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Trading "The Constrictor"

  • #181
  • Aug 30, 2010 10:44pm Aug 30, 2010 10:44pm
Quoting ghous
That is due to the difference in broker feeds. The MAs use bar close as an input and that can differ in price value depending on the close time of the bar which can eventually lead to minor differnces in the position of the EMAs, so that daily Eur/Chf ET4 bar came off a little more constricted CZ on the IBFX than Fxpro - again the differnce wasn't big enough to cause one to take a trade on IBFX but pass on Fxpro because of any sort of lack in the constriction.

g.
thanks.
  • #182
  • Aug 31, 2010 11:30am Aug 31, 2010 11:30am
Quote
Hey Sheph I really look forward to a strong trend for an ET3 setup. Only very rarely a juvenile trend will still do the job if price has reversed off an important area. The setup on Ej seems like it qualifies nor neither of these conditions. I basically see a long down trend that had lost it's steam way back and price is basically more side ways than down trending now. Yes price has sort of moved away from the 21 and pulled back to it, but like I said I look for neater PA for ET3

That is far from an invalid trade though, if we get a good bar...

I managed this iffy ET3 setup really tight, so I am now out at breakeven on two nanolot positions. I took profit at 20 pips on one microlot position.

http://content.screencast.com/users/...PYDAILYET3.png

I managed this USDCAD DAILY ET3 setup too tight. I looked at the 4HR chart and made the mistake of moving my stop up too early below the 4H pinbar. If I had not moved my stop, then I could have at least ended up at breakeven on this trade instead of a loss.

http://content.screencast.com/users/...ADDAILYET3.png

http://content.screencast.com/users/...SDCAD4HET3.png
"Dare to live the life you have dreamed for yourself. Go forward and make y
  • #183
  • Aug 31, 2010 1:23pm Aug 31, 2010 1:23pm
Quoting shephrd
I managed this iffy ET3 setup really tight, so I am now out at breakeven on two nanolot positions. I took profit at 20 pips on one microlot position.

http://content.screencast.com/users/...PYDAILYET3.png

I managed this USDCAD DAILY ET3 setup too tight. I looked at the 4HR chart and made the mistake of moving my stop up too early below the 4H pinbar. If I had not moved my stop, then I could have at least ended up at breakeven on this trade instead of a loss.

http://content.screencast.com/users/...ADDAILYET3.png

http://content.screencast.com/users/...SDCAD4HET3.png...
That setup on the Usd/Cad was no trade at all sheph,

Remember we want a strong trend in place and a nice soft pull back to the 21 EMA (or beyond) without a constriction of the CZ for an ET3. I see none of these crieterias being met on that UsdCad setup.

Moreover you've got to be extremely careful when trading markets that are as crazy as the UsdCad atm. That trade even looked upon as a blind PA based trade did what it was supposed to. I actually love markets like these not because they give you great constrictor trades but because they are so many meaty scalps available that are money in the bank for someone who understands these markets. Dropping down a time frame at a time like this on the pair to manage a trade taken on the highers IMO is over complicating things. If you ask me this was a sweet and simple take to a very obvious FTA (not as a constrictor trade for sure though).

g.
Attached Image (click to enlarge)
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I believe . . .
  • #184
  • Aug 31, 2010 1:59pm Aug 31, 2010 1:59pm
Thanks for the feedback, Ghous. Guess I still need a whole lot more study, chart time, and practice on demo.

Quoting ghous
That setup on the Usd/Cad was no trade at all sheph,

Remember we want a strong trend in place and a nice soft pull back to the 21 EMA (or beyond) without a constriction of the CZ for an ET3. I see none of these crieterias being met on that UsdCad setup.

Moreover you've got to be extremely careful when trading markets that are as crazy as the UsdCad atm. That trade even looked upon as a blind PA based trade did what it was supposed to. I actually love markets like these not because they give you great constrictor trades but because they are...
"Dare to live the life you have dreamed for yourself. Go forward and make y
  • #185
  • Sep 1, 2010 1:40am Sep 1, 2010 1:40am
Hey Ghous,

Would you / did you take the EJ setup on the daily Sheph is referring to?

I took this as price is in a strong downtrend and then consolidated a bit to give an ET4 set up and then was moving smoothly and pulled back to give an ET3 set up.

I'm still in this and will update you on how it proceeds.



Quoting ghous
That setup on the Usd/Cad was no trade at all sheph,

Remember we want a strong trend in place and a nice soft pull back to the 21 EMA (or beyond) without a constriction of the CZ for an ET3. I see none of these crieterias being met on that UsdCad setup.

Moreover you've got to be extremely careful when trading markets that are as crazy as the UsdCad atm. That trade even looked upon as a blind PA based trade did what it was supposed to. I actually love markets like these not because they give you great constrictor trades but because they are...
  • #186
  • Sep 1, 2010 3:03am Sep 1, 2010 3:03am
Quoting Pirabuji
Hey Ghous,

Would you / did you take the EJ setup on the daily Sheph is referring to?

I took this as price is in a strong downtrend and then consolidated a bit to give an ET4 set up and then was moving smoothly and pulled back to give an ET3 set up.

I'm still in this and will update you on how it proceeds.
Not a trade I would take. I wouldn't say we are in a side ways market but nor are we sweetly down trending. I don't even have much to say here except that it was an easy pass for me given that elongated pull back that brought about the ET4 trigger and a quick pull back to the 21 EMA again rather than a decent move down after that Et4 bar.

g.
I believe . . .
  • #187
  • Sep 1, 2010 3:09am Sep 1, 2010 3:09am
here's a trade I have taken. Eu 4H ET1 trigger.

g.
Attached Image (click to enlarge)
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I believe . . .
  • #188
  • Sep 1, 2010 4:55am Sep 1, 2010 4:55am
Hi G,

Isn't that more of an ET2 set up? Price was in a nice downtrend and then reversed with divergence and then pulled back into the CZ and gave a bullish bar?

P
  • #189
  • Sep 1, 2010 10:40am Sep 1, 2010 10:40am
Quoting Pirabuji
Hi G,

Isn't that more of an ET2 set up? Price was in a nice downtrend and then reversed with divergence and then pulled back into the CZ and gave a bullish bar?

P
Umm...well price actually was consolidating but only around the CZ and not within it. You're right that price had initially broken above the CZ but then notice it didn't come back down to find support within the CZ, it rather dropped out of it yet still remained in that consolidation mood. To me hence, this setup was still an ET1,

I did mention earlier some where that because the markets are inefficient entry methods may over lap, but then again if you're on the right side of the thought process it won't matter much. Quite honestly whether you take this as an ET1 bar or an ET2 bar it shouldn't have an effect on any of the decisions related to trading this setup.

g.
I believe . . .
  • #190
  • Sep 3, 2010 9:56am Sep 3, 2010 9:56am
1.29's in sight.

g.
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 38 KB
I believe . . .
  • #191
  • Sep 3, 2010 10:41am Sep 3, 2010 10:41am
Stopped out for 1.75R (420 pips).

http://content.screencast.com/users/...HFDAILYET5.png





Quoting ghous
hey Sheph,

Not sure if you're still in this trade, just wanted to follow up on this trade as it unfolds.

See how placing a TP at that all time swing low kills any possibility of riding the momentum further down? Trailing stops behind pull backs and allowing price to do it's thing is IMO the best way to ride potential runners. Your stop would currently be right above that swing low with a big bearish bar currently in the making which may just go on to break the consolidation box and make a new "all time swing low"



g.
"Dare to live the life you have dreamed for yourself. Go forward and make y
  • #192
  • Sep 3, 2010 10:51am Sep 3, 2010 10:51am
Quoting shephrd
Stopped out for 1.75R (420 pips).

http://content.screencast.com/users/...HFDAILYET5.png
I believe . . .
  • #193
  • Sep 6, 2010 5:31pm Sep 6, 2010 5:31pm
Not a whole lot goin' on these days

Saw an opportunity late in the US yesterday (ET4) that was good enough in terms of what we look for with ET4 setups but passed given that we were heading straight into a VRBN 1.3 as a FTA that I didn't want to leave unattended during the low volatility trading sessions (sleep time here)

PS Eu seems it wants to stop me out for BE...we'll see.

g.
Attached Image (click to enlarge)
Click to Enlarge Name: ec.gif Size: 35 KB
I believe . . .
  • #194
  • Sep 7, 2010 7:53am Sep 7, 2010 7:53am
Eu got me out at BE.
I believe . . .
  • #195
  • Sep 10, 2010 2:57am Sep 10, 2010 2:57am
GBP/CHF ET1 based off a BUOB.

g.
Attached Image (click to enlarge)
Click to Enlarge Name: gc.gif Size: 25 KB
I believe . . .
  • #196
  • Sep 10, 2010 3:11am Sep 10, 2010 3:11am
Quoting ghous
GBP/CHF ET1 based off a BUOB.

g.
hey ghous, what about the ppz to the left?
just a question...
Attached Image (click to enlarge)
Click to Enlarge Name: gc1.GIF Size: 26 KB
meine augen sind die sterne
  • #197
  • Sep 10, 2010 3:13am Sep 10, 2010 3:13am
Quoting aserbfx
hey ghous, what about the ppz to the left?
just a question...
Hey Aser,

That PPZ to me has it's core in the 1.58 RN, and a strong close of the BUOB (at this RN) was good enough to get me in.

g.
I believe . . .
  • #198
  • Sep 10, 2010 8:19am Sep 10, 2010 8:19am
Ghous, the GBPCHF was the first trade I had considered all month.

I passed on it, even though the bar looks great, and a perfect Counter Trend Constrictor entry, due to...

1) Friday Profit taking days can be screwy.

2) Looks like strong S/R at about 1.5850 or so.

I hope this works out for you!
  • #199
  • Sep 10, 2010 11:50am Sep 10, 2010 11:50am
Quoting unlv_tj
Ghous, the GBPCHF was the first trade I had considered all month.

I passed on it, even though the bar looks great, and a perfect Counter Trend Constrictor entry, due to...

1) Friday Profit taking days can be screwy.

2) Looks like strong S/R at about 1.5850 or so.

I hope this works out for you!
Yup that PPZ did provide some decent resistance despite a strong close on the BUOB. Never mind I killed this one for -0.13R because essentially I want my breakout trades to really breakout, specially when it's operating right into a PPZ such as the 1.5850 in this case.

It's been a slow 20 days or so for the system, and understandably too...the markets have been very sideways which have prompted me to scalp em' around with the conventional J16 stuff. I would dearly want to maintain a journal for those trades but I am 100% sure I won't be able to keep up with both journals as my uni is about to resume.

g.
I believe . . .
  • #200
  • Sep 10, 2010 1:30pm Sep 10, 2010 1:30pm
Quoting ghous
Yup that PPZ did provide some decent resistance despite a strong close on the BUOB. Never mind I killed this one for -0.13R because essentially I want my breakout trades to really breakout, specially when it's operating right into a PPZ such as the 1.5850 in this case.

It's been a slow 20 days or so for the system, and understandably too...the markets have been very sideways which have prompted me to scalp em' around with the conventional J16 stuff. I would dearly want to maintain a journal for those trades but I am 100%...
You handled that trade like a real pro Ghous. As I said, I didn't take it, but I almost wish I did take it (I mean, it wasn't a bad set-up) and could have managed it as well as you (only lose .13R, kick ass man!).

I know I have a lot to learn, and here I learned even more. The traded "dicked around", so you cut your loses, because you expected a strong break. Thank you for sharing this.

It would be awesome if you had a 2nd journal for your scalping trades, because I would spend hours there as well. But I can understand the time constraints. I hate to hear you will be going back to school soon, because I know that will take up a lot of your free time, and damn I learn a lot from your posts and videos.
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