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Trading using only price action

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  • What Do you think about the Idea
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  • #1
  • First Post: Aug 8, 2009 6:42pm Aug 8, 2009 6:42pm
Hi everyone,
i have been reading FF for a long time and so i think now i should share my idea.

take 2 timeframes d1/h4 then in this tf pair we will use d1 as setup chart and h4 as trigger chart.

we wait for a bar close on d1 if the bar is a bull bar then we change to h4 and on that tf we wait for a bear bar on h4 and then a bull bar on h4 then we enter on 1 pip high of the bull bar.

Stoploss: lowest low of the last 2 bars including the trigger bar.

the target is the same as stoploss or move s/l to breakeven when s/l = t/p.

please suggest me some method to improve this method
any suggestions are welcome!!!!
  • #2
  • Aug 8, 2009 8:28pm Aug 8, 2009 8:28pm
I would like to see a chart or 2 showing this.
  • #3
  • Aug 9, 2009 2:24am Aug 9, 2009 2:24am
Quoting zeeshanfkhan
Hi everyone,
i have been reading FF for a long time and so i think now i should share my idea.

take 2 timeframes d1/h4 then in this tf pair we will use d1 as setup chart and h4 as trigger chart.

we wait for a bar close on d1 if the bar is a bull bar then we change to h4 and on that tf we wait for a bear bar on h4 and then a bull bar on h4 then we enter on 1 pip high of the bull bar.

Stoploss: lowest low of the last 2 bars including the trigger bar.

the target is the same as stoploss or move s/l to breakeven when s/l = t/p.

please suggest...
i ever use system like you, sometimes work.

Better use SL on daily bar. And TP 1 50pips SL move BE, let your profit run.
  • #4
  • Aug 9, 2009 6:27am Aug 9, 2009 6:27am
okay as you said here are the charts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: d1.gif Size: 39 KB
Click to Enlarge Name: h4.gif Size: 38 KB
  • #5
  • Aug 9, 2009 3:15pm Aug 9, 2009 3:15pm
Zee,

As far as one can tell, your method has no reason for having an edge. It seems like you are basing it either on what happened in the recent past, or what you think the market should behave like. If you can explain a sensible reason for selecting such a pattern then it may be worth trading. Until then, you shouldn't risk losing your money. I hope you don't take this personally. Just trying to help out.

Kris M.

Quoting zeeshanfkhan
Hi everyone,
i have been reading FF for a long time and so i think now i should share my idea.

take 2 timeframes d1/h4 then in this tf pair we will use d1 as setup chart and h4 as trigger chart.

we wait for a bar close on d1 if the bar is a bull bar then we change to h4 and on that tf we wait for a bear bar on h4 and then a bull bar on h4 then we enter on 1 pip high of the bull bar.

Stoploss: lowest low of the last 2 bars including the trigger bar.

the target is the same as stoploss or move s/l to breakeven when s/l = t/p.

please suggest...
  • #6
  • Aug 9, 2009 3:47pm Aug 9, 2009 3:47pm
Quoting kristdm
Zee,

As far as one can tell, your method has no reason for having an edge. It seems like you are basing it either on what happened in the recent past, or what you think the market should behave like. If you can explain a sensible reason for selecting such a pattern then it may be worth trading. Until then, you shouldn't risk losing your money. I hope you don't take this personally. Just trying to help out.

Kris M.
Okay can you tell me how do you trade then???
i based this on whether the market sentiment is bullish or bearish.
  • #7
  • Aug 10, 2009 11:55pm Aug 10, 2009 11:55pm
Hi Zee,

Thanks for taking my advice constructively. My method is not for everyone but it works for me and people who I've shared it with and like the style. I trade based on fundamentals and behavioral analysis (and occasionally mix in a bit of technicals, etc.)

Basically it goes like this: I look for a fundamental imbalance (usually something like a correlation breakdown between currencies and some other asset class [e.g. CAD and oil] or if the market has been rallying based on some behavioral flaw like assigning too much weight to one piece of economic data and ignoring the big picture) and then wait for sentiment and price action to reverse and confirm my view.

Often the market is focused on one topic and then undergoes a big "Gestalt Shift" when some new concept surprises it and causes it to price in a new view. If you combine this with price action analysis, it's really powerful.

Yes, it does require a little thinking and discretion, but if you just do some reading from some reputable sources (bank research reports [avail for free in many places; there's a link on my blog], Financial Times, etc.) you will find that certain analysts spot these imbalances ahead of time and all you have to do is wait for price action and sentiment to confirm it.

Trading actually becomes easy. The only thing to remember is that the frustration due to the random behavior of the market will always be there, so don't lose your cool and immediately start trying to engineer new strategies when things don't go right. *Not directed at anyone in particular- just a thought that popped up in my mind that I thought would be helpful.

Kind regards,

Kris Matthews
  • #8
  • Aug 11, 2009 12:16am Aug 11, 2009 12:16am
If you put support & resistance in here, might help get better entries.
  • #9
  • Aug 11, 2009 7:20pm Aug 11, 2009 7:20pm
Quoting zeeshanfkhan
Hi everyone,
i have been reading FF for a long time and so i think now i should share my idea.

take 2 timeframes d1/h4 then in this tf pair we will use d1 as setup chart and h4 as trigger chart.

we wait for a bar close on d1 if the bar is a bull bar then we change to h4 and on that tf we wait for a bear bar on h4 and then a bull bar on h4 then we enter on 1 pip high of the bull bar.

Stoploss: lowest low of the last 2 bars including the trigger bar.

the target is the same as stoploss or move s/l to breakeven when s/l = t/p.

please suggest...

Thank you very much for this simple system. Some love complicated methods but my backtesting using this method has been very good. I have a couple of questions.
1. Do you trade specific pairs or can it be adapted to all pairs?

2. Do you had data on which is more profitable between using SL=TP versus the BE variation?
Thanks.
  • #10
  • Aug 11, 2009 7:34pm Aug 11, 2009 7:34pm
Quoting aelimian
Thank you very much for this simple system. Some love complicated methods but my backtesting using this method has been very good. I have a couple of questions.
1. Do you trade specific pairs or can it be adapted to all pairs?

2. Do you had data on which is more profitable between using SL=TP versus the BE variation?
Thanks.
The future is not equal to the past.
  • #11
  • Aug 11, 2009 7:45pm Aug 11, 2009 7:45pm
Price Action can increase my odds, I think, I see the S/R level be broke and now Price come to it once again, so when I see the Price Action, I get my position in, but I can not sure about everything, that's why I have my S/L to protect me.

Some recent times I even didn't look at the Price Action, I imagine the Trend Action.
Back to the beginning ... demo
  • #12
  • Aug 13, 2009 8:20am Aug 13, 2009 8:20am
Quoting aelimian
Thank you very much for this simple system. Some love complicated methods but my backtesting using this method has been very good. I have a couple of questions.
1. Do you trade specific pairs or can it be adapted to all pairs?

2. Do you had data on which is more profitable between using SL=TP versus the BE variation?
Thanks.
I use it mainly on Eurjpy bcoz of high volatility and also small spread and its somewhat quite and not like Gj.

s/l and target there are no changes. u can get out whenever you like
  • #13
  • Sep 13, 2010 12:16pm Sep 13, 2010 12:16pm
Interesting thread
Holy Grail = J16 + F12 x infinity
  • #14
  • Sep 13, 2010 1:05pm Sep 13, 2010 1:05pm
Hi zeeshanfkhan,

as kristdm pointed before, i think too that there is no real edge in this method, it's just focusing on sth what happened in the past. Backtests always seems PERFECT with unbelievable results, but reality is usually a lot different when it comes to trading that. After few years you will probably find out that such "systems" just don't work (ok maybe yes but i've never found such based system), even that just look at the TA - it's very similar - sometimes it works, TL, SR holds almost to a pip, triangles, H&S, flags and so on are nicely broken, but other time it don't work totally, it's because some big companies just don't matter if they are selling just into upward sloping trendline, it's all the orderflow what is so hard to find out in OTC market as FX is. Most of time almost every trader is watching the same SR level and almost all of them are using that, but almost everybody lose...so why do you think that you will not?

don't take this bad mate i'm not here to offens you, i just want to help and put more light on you

regards Mike.
  • #15
  • Sep 13, 2010 1:47pm Sep 13, 2010 1:47pm
Zee, I think you have the makings of a good price action system. If I understand your post correctly then it is very similar to a 123 breakout method but may get you into trend even earlier.

I also think that being aware of S/R zones could help. This was brought up by someone already.

Since you have asked for suggestions to improve your method I would like to add the follow ideas. Important to know how much of your account you are risking on each trade (basic MM). Also I think it is better to use some sort of trailing stop rather than a TP. I would only use TP if it is a partial close with move to BE and then the remainder is left to run. I think this can drastically improve your eventual risk to reward ratio.

I think these points have already been brought up, but just wanted to add my 2cents and subscribe to your thread.

Good trading to you



Dan
  • #16
  • Sep 13, 2010 3:27pm Sep 13, 2010 3:27pm
Quoting zeeshanfkhan
Hi everyone,

take 2 timeframes d1/h4 then in this tf pair we will use d1 as setup chart and h4 as trigger chart.

we wait for a bar close on d1 if the bar is a bull bar then we change to h4 and on that tf we wait for a bear bar on h4 and then a bull bar on h4 then we enter on 1 pip high of the bull bar.

Stoploss: lowest low of the last 2 bars including the trigger bar.

the target is the same as stoploss or move s/l to breakeven when s/l = t/p.
Hi Zee

Would you further post some charts showing your trading method?
So that for better understanding.
p.s. I like PA

Cheers
  • #17
  • Last Post: Nov 29, 2010 9:09pm Nov 29, 2010 9:09pm
is Tom DeMark indicator a truly dynamic.
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