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Trading "The Constrictor"

  • #261
  • Sep 25, 2010 10:41am Sep 25, 2010 10:41am
Quoting ghous
The more time I spend with the system the more it divulges itself for me. It is an amazing journey thus far and quite frankly it is the first time I have had to find my own answers to my own questions as I gain experience with the system. I have had the privilege to be spoon fed when it comes to the HOW of trading (thnx to the j16 group) and all that is actually making this new variant of trading knowledge an interesting venture.

I now know that you can't just buy/sell into a top/bottom without making a note of the area price has bounced off of....
Thank you Ghous. I got what you mean.

I did notice that reversal but paying more attention to 8500. The price broke 8500 and then started retracing. Now 2 things could happen.

1. Price will respect 8500 and will acts as a support
2. Price does not respect 8500 and price breaks through

In this case, I believe the 1st one happened. Price stalled at 8500 and formed consolidaiton with 4 bars. The 5th bar broke 8500. This bar happened to be touching EMA21. Hence I considered this bar as a trigger bar.

Probably should have waited until price crosses 8540/8530.
  • #262
  • Sep 25, 2010 10:43am Sep 25, 2010 10:43am
Quoting Fxfighter
Hi Cprao,
Thanks for replay and yes I knew price didn't some time in CZ,that why I asked if I can call ET1 .
So if you are lookin on chart when price made IB u will entry on braek him or still wait and enter on break BEOB?
In my wiev if I see that reaction prior bullish bar with rejection from support that it makes me worried but on other side I have great R:R so with very small stop is good to try it.
I won't think, I would personaly trade with IB.. I have no experience with IB's.
  • #263
  • Sep 25, 2010 1:41pm Sep 25, 2010 1:41pm
Quoting cprao
I won't think, I would personaly trade with IB.. I have no experience with IB's.
Yep you are right that prior small bulish bar with that wick means exhaustion in that little pullback and I should enter @break that IB.It's is one of his videos.
FX
  • #264
  • Sep 25, 2010 2:29pm Sep 25, 2010 2:29pm
Quoting Fxfighter
Hi Guys,
Can I call this ET1?Is it right set up for this method?
-It is CT
-Entry after big BEOB which closed below RN and below suport
-momentum down (big three bearish prior bars,red colour)
-find resistance @Ema 50
-Tighter Emas,we got spring.

Or should I enter @ break IB?What about that prior bullish bar with wick (bounced from support).
Any comments guys?
Have a nice weekend.
FX
I am going to do a video on this hang on.
I believe . . .
  • #265
  • Sep 25, 2010 2:37pm Sep 25, 2010 2:37pm
Quoting shephrd
Spotted this ET2 trigger bar, but I haven't decided whether or not to trade it.

What I noticed:

The FTA is near either the confluence of the 1.33 RN and 50 Fib or the confluence of the 1.35 VBRN and the 61 Fib.
On the weekly chart, there is a very strong downtrend with additional confluence at the FTA with the weekly 21 EMA.

http://content.screencast.com/users/...4/00000015.png

http://content.screencast.com/users/...6/00000016.png...
Nice!

Watch out for that bar high. The constriction isn't too great and that makes me feel we may not be completely ready for a ride to the moon first thing Monday morning.

This should be interesting.

g.
I believe . . .
  • #266
  • Sep 25, 2010 2:46pm Sep 25, 2010 2:46pm
Quoting cprao
Has a big bull bar on Daily from 112.50 (PPZ).
Supported by weekly bull bars from the last two weeks.

1)On h4, when the price direction is changed, A first cross through EMA's on 09/14.
2) Price retraced and another pin bar on 09/21.. but this pin is small and also running into ppz
3) This friday another bull bar from the support (112.50) crossing EMA21.

Would this be considered as a ET2?
Continuation bars taken at extreme swing points can be tricky CP,

What you are trying to do is basically buy a new high and in doing that what you need is the trend to be right with you and enough ammo to keep you going till price can establish a new swing high.

Higher time frames tell me, we might not be at the sweetest of locations where you would want to be buying a new high at. 114 is extremely...no wait italics...extremely significant. The 4H is giving off a "heavy" look with the macd diverging as price approaches the 114 mark.

An easy pass for me.

g.
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I believe . . .
  • #267
  • Sep 25, 2010 7:11pm Sep 25, 2010 7:11pm
Quoting ghous
Continuation bars taken at extreme swing points can be tricky CP,

What you are trying to do is basically buy a new high and in doing that what you need is the trend to be right with you and enough ammo to keep you going till price can establish a new swing high.

Higher time frames tell me, we might not be at the sweetest of locations where you would want to be buying a new high at. 114 is extremely...no wait italics...extremely significant. The 4H is giving off a "heavy" look with the macd diverging as price approaches the 114 mark....
Took a note of it. Thank you !!

As you said, I don't have any ammo/consolidation to support the move at the swing high.. will wait and see the action from sidelines.
  • #268
  • Sep 25, 2010 7:47pm Sep 25, 2010 7:47pm
  •  shephrd
  • | Joined Jan 2009 | Status: slow and steady wins the race | 81 Posts | Online Now
Good observation, Ghous. If I do trade this bar, then I think I'm going to manage it really tight and close, so that if I don't get a really hard break of the trigger bar with momentum, then I'll probably get stopped out at breakeven.


Quoting ghous
Nice!

Watch out for that bar high. The constriction isn't too great and that makes me feel we may not be completely ready for a ride to the moon first thing Monday morning.

This should be interesting.

g.
"Dare to live the life you have dreamed for yourself. Go forward and make y
  • #269
  • Sep 25, 2010 11:36pm Sep 25, 2010 11:36pm
Quoting Fxfighter
Hi Guys,
Can I call this ET1?Is it right set up for this method?
-It is CT
-Entry after big BEOB which closed below RN and below suport
-momentum down (big three bearish prior bars,red colour)
-find resistance @Ema 50
-Tighter Emas,we got spring.

Or should I enter @ break IB?What about that prior bullish bar with wick (bounced from support).
Any comments guys?
Have a nice weekend.
FX
hey FX,

here you go (720p)

http://www.youtube.com/watch?v=j8gZCNgfIWE

(quality sucks no? you can see the bars in the video?)

g.
I believe . . .
  • #270
  • Sep 26, 2010 3:52am Sep 26, 2010 3:52am
Quoting ghous
hey FX,

here you go (720p)

http://www.youtube.com/watch?v=j8gZCNgfIWE

(quality sucks no? you can see the bars in the video?)

g.
Hi Ghous,
Thanks for video and time to make it.Quality is ok I can see it I can hear it,so thats great.I agree what u saying in video and understand.
About that pin bar yep I see it but I didn't want to trade him I've been in that time in waiting mode and waiting for signal go to short.I wasn't sure about that IB but definitelly loved that BEOB.
Onec again thanks for video teaching session after that is again a few things clearer.
p.S.:And sorry if I was talking and took a lot of space in this thread about one trade.
Have a nice day everyone.

FX
  • #271
  • Sep 29, 2010 7:35pm Sep 29, 2010 7:35pm
  •  shephrd
  • | Joined Jan 2009 | Status: slow and steady wins the race | 81 Posts | Online Now
Hey Ghous,

Does this qualify as an ET1 setup on the EURUSD weekly chart? My initial thought is that it would not because price did not spend any time within the CZ if you do not count the BEOB in August. Also, it does not look like price has bounced off of an important location (maybe the 1.2000 VBRN?).

On the monthly chart, if the trigger bar closes authoritatively tomorrow, then does this qualify as an ET4 setup?

-The CZ is tightly constricted.
-The trigger bar may close authoritatively above the 21 EMA.
-Price was in a nice uptrend until 8/2008, but has been somewhat sideways since then.

Thanks.

Shep.
Attached Image(s) (click to enlarge)
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"Dare to live the life you have dreamed for yourself. Go forward and make y
  • #272
  • Sep 30, 2010 4:00am Sep 30, 2010 4:00am
Hi Guys,
I took short of that BEOUB last night.I had SL behind these lows as I thouht if price come back they will act as resistance.I took my profit @my weekly support.I know I should move SL and still be in the trade but deside just set up Tp and go to sleep.
Why I Enter?
Major trend is down
momentum is with me
Nice Beoub closed below lows previous bars.
Spike Beoub from Ema 21 as resistance and Ema's are tight
That pull back was just side way not deep pull back so down momentum was still there.
Any coments?

P.S. What do you thing about that possible entry before?I missed but it was good entry I think.

FX
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  • #273
  • Sep 30, 2010 8:21am Sep 30, 2010 8:21am
Quoting Fxfighter
Hi Guys,
I took short of that BEOUB last night.I had SL behind these lows as I thouht if price come back they will act as resistance.I took my profit @my weekly support.I know I should move SL and still be in the trade but deside just set up Tp and go to sleep.
Why I Enter?
Major trend is down
momentum is with me
Nice Beoub closed below lows previous bars.
Spike Beoub from Ema 21 as resistance and Ema's are tight
That pull back was just side way not deep pull back so down momentum was still there.
Any coments?

P.S. What do you thing about that...
Good Job in recognizing the TP (weekly PPZ) and getting out of the trade. Otherwise,your trade have stopped out by this time. There was good reaction from 80.5 as expected from any PPZ.

Quote
P.S. What do you thing about that possible entry before?I missed but it was good entry I think.

Let Ghous comment on this one.
  • #274
  • Sep 30, 2010 9:15pm Sep 30, 2010 9:15pm
Quoting cprao
Good Job in recognizing the TP (weekly PPZ) and getting out of the trade. Otherwise,your trade have stopped out by this time. There was good reaction from 80.5 as expected from any PPZ.



Let Ghous comment on this one.
Thank you I've been lucky.
FX
  • #275
  • Sep 30, 2010 9:21pm Sep 30, 2010 9:21pm
Hi Guys,
I didn't take this one as MM and RM wasn't good for me,but maybe for scalping with good spread and with apply very tight Trading Man.on lower TF will be ok.
Nice BEOB but closed abowe priors lows and very close to my monthly PPz and RN so didn't take it..

FX
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  • #276
  • Sep 30, 2010 10:12pm Sep 30, 2010 10:12pm
Quoting Fxfighter
Hi Guys,
I didn't take this one as MM and RM wasn't good for me,but maybe for scalping with good spread and with apply very tight Trading Man.on lower TF will be ok.
Nice BEOB but closed abowe priors lows and very close to my monthly PPz and RN so didn't take it..

FX
I would think this is a dicey trade since the close of the BEOB is not below the low of previous couple bars. It did react before it was going in the expected direction. Then the PPZ is very close by.. It could be a pass.
  • #277
  • Oct 1, 2010 4:41am Oct 1, 2010 4:41am
Quoting cprao
I would think this is a dicey trade since the close of the BEOB is not below the low of previous couple bars. It did react before it was going in the expected direction. Then the PPZ is very close by.. It could be a pass.
Yep I agree .That's why I didn't take it.
  • #278
  • Oct 1, 2010 7:39am Oct 1, 2010 7:39am
Quoting shephrd
Hey Ghous,

Does this qualify as an ET1 setup on the EURUSD weekly chart? My initial thought is that it would not because price did not spend any time within the CZ if you do not count the BEOB in August. Also, it does not look like price has bounced off of an important location (maybe the 1.2000 VBRN?).

On the monthly chart, if the trigger bar closes authoritatively tomorrow, then does this qualify as an ET4 setup?

-The CZ is tightly constricted.
-The trigger bar may close authoritatively above the 21 EMA.
-Price was in a nice uptrend until 8/2008,...
hey there,

Weekly setup:

Not one I would go for. The bar itself looks good and authoritative but like you mentioned the lack of constriction would be a concern for me. The ideal scenario for me would be if price can pull back to the CZ (preferably to 1.33 PPZ which would then act as a "confluence area") allowing the MAs to constrict nicely.

Monthly setup:

Once again I won't give that setup a thumbs up. I can see we are in an up trend but clearly price has lot that trend since it hit the 1.6 and the bar as of now lies in a sideways market, which would immediately shoo me away.

g.
Attached Image(s) (click to enlarge)
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I believe . . .
  • #279
  • Oct 1, 2010 7:43am Oct 1, 2010 7:43am
Quoting Fxfighter
Hi Guys,
I took short of that BEOUB last night.I had SL behind these lows as I thouht if price come back they will act as resistance.I took my profit @my weekly support.I know I should move SL and still be in the trade but deside just set up Tp and go to sleep.
Why I Enter?
Major trend is down
momentum is with me
Nice Beoub closed below lows previous bars.
Spike Beoub from Ema 21 as resistance and Ema's are tight
That pull back was just side way not deep pull back so down momentum was still there.
Any coments?

P.S. What do you thing about that...
Not a trade I would take but hats for an expertly managed trade!

We were not in the most convincing of down trends nor did we have a strong close on the BEOB (one below 81 and the bar low to the left would have better) but I love the way you did not underestimate the strength of the 80.5 region!

As for the earlier bar. That would be a pathetic take IMHO. The bar itself is hardly a BEOB and has a very poor close. Add to that the fact that price was still in that uncertainty mood, and that BEOB hardly looked like it was going to bail price out and provide it with a direction.

g.
I believe . . .
  • #280
  • Oct 1, 2010 7:44am Oct 1, 2010 7:44am
Quoting Fxfighter
Thank you I've been lucky.
FX
lol.

If you had the slightest idea of the value of 80.5 this was far from luck...

g.
I believe . . .
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