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James16+Rayanmcd(Jan kone) and ME 7 replies

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Jankone M5 thread

  • #3,801
  • Jul 23, 2010 3:00pm Jul 23, 2010 3:00pm
Quoting judith
finally!! I waited all week for this one, too late for a friday but the momentum was still there!
nice trade, judith.. it is really worth waiting for setups like the one you took!
  • #3,802
  • Jul 23, 2010 4:53pm Jul 23, 2010 4:53pm
Quoting judith
finally!! I waited all week for this one, too late for a friday but the momentum was still there!
Judith.

Observing the RSI at what it was, what made you pull the trigger on that trade?
  • #3,803
  • Jul 23, 2010 6:08pm Jul 23, 2010 6:08pm
Quoting Freddyfx
Judith.

Observing the RSI at what it was, what made you pull the trigger on that trade?
Not to come off rude Freddy, but screw the RSI in this case.. this is one of those A+ setups that I dream of! The recent momentum shows the trend is reversing and price has started to go up, price then retraces a bit, shows a sold pin off the previous swing high. This is the price action with trend on a pullback setup. I love it. IMO pay attention to the trend first, then the price action. I for one do not trade CT setups and have no real purpose for the rsi on my charts (which i do have) other than to show me divergence on the higher time frame so I know not to trade the 5min against a 15min ct setup. I trade only with the trend and look for a TP four times my stop loss.

My point being, indicators are futile. They certainly can aid in decision making but the trend, PPZ or S/R lines and price action should have a stronger bearing on your trading decisions then the RSI.

Take care,
Chris

EDIT: then again, 'to each his own' -if the indicators work for you, by all means go for it, this is simply my opinion :-)
  • #3,804
  • Jul 24, 2010 12:08am Jul 24, 2010 12:08am
Thanks Chris, I understand that, you are 100% right.
  • #3,805
  • Jul 24, 2010 4:01am Jul 24, 2010 4:01am
Quoting Freddyfx
Judith.

Observing the RSI at what it was, what made you pull the trigger on that trade?
if i may..

I believe in Jankones meaning, the RSI is only to be used when trading counter-trend..nevertheless in some of ryanmcds's post he marks the rsi div in some trend trades, too. it makes the setup better, but is not a must when trading with the trend.
  • #3,806
  • Jul 26, 2010 10:54am Jul 26, 2010 10:54am
Quoting Freddyfx
Thanks Chris, I understand that, you are 100% right.
yes, Chris already said it perfectly, I personally only look at RSI for divergence on counter trend setups, I you wait for a nice breakout and pullback you dont even need a good pinbar to enter any doji or neutral bar will do!
  • #3,807
  • Jul 27, 2010 4:50am Jul 27, 2010 4:50am
Quoting judith
yes, Chris already said it perfectly, I personally only look at RSI for divergence on counter trend setups, I you wait for a nice breakout and pullback you dont even need a good pinbar to enter any doji or neutral bar will do!
I noticed that but using pinbar for entries avoid some wrong setups, it increase your %win and set easily your SL (under the wick).

Overall, they are many pinbars in this area, we can wait for taking only A+ setups
  • #3,808
  • Jul 27, 2010 12:57pm Jul 27, 2010 12:57pm
Just to give you an insight of what goes thru my head when looking for Breakout+pullback.
this is exactly the point where i'd be looking for some PA to enter short. Price just broke a double bottom with a big bearish bar and slowly retraced to the (hopefully) support turned resistance. If I dont get my bearish PB, I would just pass and wait for the next.
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  • #3,809
  • Jul 27, 2010 1:24pm Jul 27, 2010 1:24pm
Today I tried to trade H1 chart (USD/JPY). Nice Pin formed with RSI divergence and double top. However ... it was a loosing one Any ideas?
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  • #3,810
  • Jul 27, 2010 1:29pm Jul 27, 2010 1:29pm
Quoting jajo
Today I tried to trade H1 chart (USD/JPY). Nice Pin formed with RSI divergence and double top. However ... it was a loosing one Any ideas?
If you move down to the lower timeframes, you'll see that the pin bar was really just a retracement that closed at the exact worst time, closing as a pin. Maybe 20 minutes later, it would have closed a lot differently. Just something to consider. If you take them with the trend however, you'll be enjoying at the very least a cool 65+% on your trades.

When I enter on 1 hour setups, I always look at the 5 minute charts to make sure that it will run through. If I see that it was just the retracement back to the 21 however, I'm out.
I dream, therefore I become.
  • #3,811
  • Jul 27, 2010 1:47pm Jul 27, 2010 1:47pm
Quoting mike w
If you move down to the lower timeframes, you'll see that the pin bar was really just a retracement that closed at the exact worst time, closing as a pin. Maybe 20 minutes later, it would have closed a lot differently. Just something to consider. If you take them with the trend however, you'll be enjoying at the very least a cool 65+% on your trades.

When I enter on 1 hour setups, I always look at the 5 minute charts to make sure that it will run through. If I see that it was just the retracement back to the 21 however, I'm out.
Thanks Mike! I opened M15 and see that PA retraced exactly to 23.6 FIB + round number and thus formed PIN on H1 Then price tested previous support and resistance (daily resistance also) and moved up. It seems that I totally ruined this trade ... should move my SL to BE when price reached daily resistance or even better ... I should not enter this trade at all to save my money
  • #3,812
  • Jul 27, 2010 1:49pm Jul 27, 2010 1:49pm
here is M15 chart
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  • #3,813
  • Jul 27, 2010 1:58pm Jul 27, 2010 1:58pm
Quoting jajo
Thanks Mike! I opened M15 and see that PA retraced exactly to 23.6 FIB + round number and thus formed PIN on H1 Then price tested previous support and resistance (daily resistance also) and moved up. It seems that I totally ruined this trade ... should move my SL to BE when price reached daily resistance or even better ... I should not enter this trade at all to save my money
hey, it's no worries my man. If you don't make the same mistake twice, then you're great. Check this out, here is why I always watch the 5 minute charts if I'm entering an hourly setup. The blue box is the pin bar, just on the 5 minute timeframe. 5 minutes later, we see this continuation setup on the 5 minute charts. I see these all the time and when that happens, they pretty much always negate that hourly pin. Notice it next time and capitalize on it, that's all. No need to worry about something that is beyond your control now.

P.S. the red arrow with the white interior notes the continuation setup.

Have a good day ladies and gents!

I hope that helped ya with that my man, I know it took me a looonnnggg time to notice that on my own lol
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I dream, therefore I become.
  • #3,814
  • Jul 27, 2010 2:21pm Jul 27, 2010 2:21pm
Thanks a lot Mike! Now I understand
  • #3,815
  • Jul 27, 2010 8:21pm Jul 27, 2010 8:21pm
another thing to keep you out of bad trades is the elliot waves. you will notice that when a divergence trade triggers a 5 wave pattern begins
  • #3,816
  • Jul 28, 2010 1:06am Jul 28, 2010 1:06am
Quoting jajo
Today I tried to trade H1 chart (USD/JPY). Nice Pin formed with RSI divergence and double top. However ... it was a loosing one Any ideas?
Hello jajo,
is this usdjpy?

based solely on your chart.
Here are some quick observations:
-check the trend. what is the trend?
-if u base the trend n your MAs, then the trend is up since all theMAs are BELOW price.
-the pin closed with a bullish close
-the pin triggered & hit its FTA (first trouble/traffic area), around 87.40 (the low of that BIG BUOB)
-about RSI, it DID not make a good divergence. notice your RSI broke through the black line u plotted. even your MACD is turning up.
- assuming the RSI divergence was legit (i cant really confirm based on your chart), u might have fought an uptrend (consider all the points i raised above).
-do not trade every pin or outside bar that u see. study the price environment. trade with the trend (for newer traders, AVOID CT trades). try to take only high probability setups.
-DO NOT be rigid. be flexible &alert. if trade is going against u & u feel it, exit. Ryanmcd is famous for saying "kill the trade"

hope this helps


EDIT
just saw your M15 chart.
so the trend is indeed up. that was the biggest reason why your trade failed. u traded against it.
  • #3,817
  • Jul 28, 2010 1:07am Jul 28, 2010 1:07am
Quoting Divergence
another thing to keep you out of bad trades is the elliot waves. you will notice that when a divergence trade triggers a 5 wave pattern begins
post more Sir, so we can see.
i believe some here knowingly & unknowingly use EW with this method.

Thanks!
  • #3,818
  • Jul 28, 2010 9:24am Jul 28, 2010 9:24am
hi guys, i enteret at 1.3006 and hit my sl, i enteret again at 1.3016 and also i hit my sl, the trade was with good res, and downd trend in chanel. that you guys think im did wrong?
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passion and discipline
  • #3,819
  • Jul 28, 2010 6:21pm Jul 28, 2010 6:21pm
Quoting rohule
hi guys, i enteret at 1.3006 and hit my sl, i enteret again at 1.3016 and also i hit my sl, the trade was with good res, and downd trend in chanel. that you guys think im did wrong?

your chart has waaaaay too much crap on it... i can't even see the price!!
  • #3,820
  • Jul 28, 2010 6:30pm Jul 28, 2010 6:30pm
I really need to find a bar close alert for MT5. I was watching this like a hawk.
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