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  • #341
  • Oct 2, 2010 6:44am Oct 2, 2010 6:44am
Quoting PipRiderFX
Hi Dan,

Thanks for the answer. So let me try to summarize my understanding and you can tell me if it is right or not :-)

When you enter a trade your stop is located at the other side of the signal candle that got you in. So the extreme if you like.

Then you move your stop to break even once price reaches a level that could pose as an issue to break. You then generally leave your stop at break even until you get another entry signal at which point you may take the new entry and also move the stop from break even to where your new stop would...
Hi PipRiderFX,

A's to your Q's in blue...

When you enter a trade your stop is located at the other side of the signal candle that got you in. So the extreme if you like.

Yes. Sometimes directly above it, sometimes a little further if I feel a little extra room might be needed.

Then you move your stop to break even once price reaches a level that could pose as an issue to break.

Yes.

You then generally leave your stop at break even until you get another entry signal at which point you may take the new entry and also move the stop from break even to where your new stop would be placed which one would assume again is at the extreme of the signal candle?

I do take the new position but the stop of my earlier position isn't necessarily moved at that point. I only move my stop to protect profit once I am sure price is far enough away that it will only get taken out once the trend changes, which leads on to...

Finally you exit all positions when the trend changes? Is that all about right?

You got it!

Regards,

Dan
  • #342
  • Oct 2, 2010 6:53am Oct 2, 2010 6:53am
Quoting adowland
Great thread and thanks for your thoughtful and patient input and coaching. Hope your son is better. What part of the UK do you hail from (I'm English but resident in Brisbane Australia now). Earlier on you answered a more philosophical question by saying (in essence) you had gained a lot from this site and you wanted to give back. I was wondering if you wouldn't mind sharing some of the chaps who helped you to come to this style of trading (and as always you have of course added your own nuances for which we are grateful).

Alex
Hi Alex,

Thank you for your well wishes. He is much better now, thank you!

I'm from the South coast of England. Australia sounds nice, I would welcome some warmer weather right now!

There are a lot of guys here that I've learned things from (hopefully I have thanked them all at some point over the course of things). Some of the biggest influences have been from BillyRayValentine (support/resistance), Acumen and Eyevoltage (trading from an intraday perspective), james16 (learning to take great setups - not every setup), clockwork71 (the importance of higher timeframe s/r and learning to let trades run) and whilst I absolutely do not condone his alleged investment scam I actually owe a lot to Jacko's thread (although most of the thread is crap, arguing, mud slinging etc the first page sets out a nice simple way to view the market).

I think my trading style has developed as a result of different parts of all the methods taught by those guys.

Regards,

Dan
  • #343
  • Oct 2, 2010 6:55am Oct 2, 2010 6:55am
Quoting goldenFishie

if the price retrace back to the level u r waiting for..would u juz enter the trade at that level or u wait for a confirmed candle & enter at a price which is slightly higher or lower than the level?
Hi goldenFishie,

No, I would still wait for a signal to tell me that the level might hold.

Regards,

Dan
  • #344
  • Oct 2, 2010 7:01am Oct 2, 2010 7:01am
Quoting howard
On the other hand this can be regarded as a new bull trend making HHs/HLs as shown on the attached chart
Hi howard,

Yep that's a valid point of view. This comes on to the counter trend trading part of my method; I have short positions and I now have a long position on the EUR/CHF from the bullish outside/engulfing bar that formed on the 24th. My stop on this position is now at breakeven, so if price does get back into the longer term downtrend that position will just close for a 0. And if that happens hopefully I will get another signal to sell to add to those positions but if it doesn't and it is the start of a new trend I already have a position in the new trend and I can close my shorts for a profit.

Whilst this is not rocket science it is slightly more advanced than I want to go at the moment so I would appreciate it if everyone stuck to trend based entries for now.

Regards,

Dan
  • #345
  • Oct 2, 2010 7:18am Oct 2, 2010 7:18am
Quoting bez3000
Dan can you help me with determining when a trade is forming, what i mean is from an area of consolidation when do you decide this will start trending now so i will enter on a pull back.
I have attached a chart to show what i mean.
usdcad was consolidating in the blue box then started trending, what would have made you enter?
Hi bez3000,

First of all, you can never know for sure... we're just looking for signals that indicate something might happen at a location that shows a high probability (based on historical data) that something will happen.

As for the USD/CAD - that's an easy one to answer as I can give you two examples of trades I actually took...

The first thing to note about it is strictly speaking this could be considered counter trend. But my analysis was that price was unable to break the major s/r level around 1.3000 after spending almost half a year trying to!

Price had broken through the trendline that I was looking at and then came back up (retraced) 50% of the move down and formed a nice looking shooting star off of the 1.2700 s/r level... I sold the break below. Price then continued down before retracing back up, slightly past the 50% level and formed another nice looking shooting star off of the 1.2500 s/r level... I sold the break below this too. Back then I wasn't looking to hold long term positions so both of these trades closed for a few hundred pips profit but had I been looking to trade the way I do today I could have held onto them for at least 2000 pips.

Regards,

Dan
Attached Image (click to enlarge)
Click to Enlarge Name: uc.gif Size: 27 KB
  • #346
  • Oct 2, 2010 8:41am Oct 2, 2010 8:41am
DanUK, thanks for your , as always , courteous reply. I have also (just today in fact) started to read pipEASY's thread "building an equity millipede" which to my way of thinking at the moment fits hand and glove to your teaching. Between the two of you you have moved me off the short term thinking I have been using to trade and desperately chasing trades on the shorter term fluctuations to moving over to the long term way of building your trades and then your equity. The crucial bit is picking the low risk entry points, master that as you have and then you should be on the way I would say. Again thank your for your training. I particularly like the wait before an answer as it gets me off my lazy butt and thinking and researching on my own. I am reminded of the "Zen" silent answer technique.

Alex
  • #347
  • Oct 2, 2010 12:30pm Oct 2, 2010 12:30pm
Thanks for all the hard work , subscribed.
  • #348
  • Oct 2, 2010 11:53pm Oct 2, 2010 11:53pm
Dan,

Great thread.
After many years trading short time frames I am now trading longer term and your thread is a breath of fresh air.

I have top and bottom picked doing every method possible without great success. Its just to dam hard and not consistent enough.

Enter trading with the trend... wow... what an idea... cant believe I have waited years to give it a go... as the saying goes "The tide lifts all boats..."

Anyway... I just wanted to say thanks.

I am not sure if you will like me adding a couple of things I have used and find a great help when identifying the trend and looking for confluence on entries but I rate them and thought it would be worth contributing, please ignore if they are not welcome.

I don't use ANY indicators.. just price action, I have studied Gann for years and found one of his tools very useful... "what has been will be again".

I use another fib tool..to measuring the last swing and current swing in the same direction. When it lines up with other key levels etc then it adds confluence to the level. I like to measure the last two retracements in the same direction.

Also on the chart is a trend tool which I find very good... looked at your entries and exits on the euro and the trend tool lined up perfectly. Great for identifying counter trend 4hr trades.. but I wont mention any more about that.

The trend tool was stolen and modified from
http://www.ibfx.com/Corporate/post/2...ce-Action.aspx

Did not like the way its was used etc... just liked the visual of the trend. I have played with other settings and Raghead has it perfect as standard.

Place the indicator on your chart then double click the line and you can move the points to suit.

GBPUSD did 50% of the last retracment short.



http://i982.photobucket.com/albums/a...dailychart.jpg

This is the Euro... 200% of the last retracment short...

http://i982.photobucket.com/albums/a...ROUSDdaily.jpg

Here is one for USDCHF... retracment was 100% of the last swing long... this is just another tool that might be of interest.

http://i982.photobucket.com/albums/a...SDCHFdaily.jpg

Sorry if I have added things which are not welcome... don't worry my next post wont be trying to design an EA...LOL... I don't believe in them!

Just to add there is also an alert for change from long to short etc... good for the unmentioned counter trend trades.

But great thread... you have 5stars from me!!!

PS please ignore the short term trade long on euro....as seen on the chart...some habits are hard to break when your bored...
Attached File(s)
File Type: mq4 EMA_alert_v1.mq4   4 KB | 526 downloads
File Type: mq4 GRaB Candles Long.mq4   4 KB | 515 downloads
File Type: mq4 GRaB Candles Range.mq4   4 KB | 530 downloads
File Type: mq4 GRaB Candles Short.mq4   4 KB | 533 downloads
File Type: tpl raghead.tpl   83 KB | 491 downloads
  • #349
  • Oct 3, 2010 4:02am Oct 3, 2010 4:02am
Very well explained Dan. thanks
  • #350
  • Oct 3, 2010 8:16pm Oct 3, 2010 8:16pm
Hey Dan,

Thanks for the helpful thread on trading with the trend - certainly my favorite form of trading as well.

I am posting to ask if you would just provide a checklist of the ways you are assessing when the trend has/is finished. I'm thinking you probably have a list (mentally if not literally) of specific things that you are looking for to help you guage if a trend is done.

I am a private pilot and checklists have saved my life more times than I can count. I use them for preflight, pre-takeoff (end of runway runup), prior to entering the landing pattern and post flight. I have learned that checklists not only can save my life but also my trading account.

I have read through all 300+ posts and I do not see where this has been wrapped up in a summary. Could you do that for those of us here?

Thank you
Ab
  • #351
  • Oct 3, 2010 11:01pm Oct 3, 2010 11:01pm
Hi Danuk...what do you think of the PIN BAR on AUDNZD? is it a valid setup to get a short going just below the pin bar....
  • #352
  • Oct 3, 2010 11:35pm Oct 3, 2010 11:35pm
Hi Dan,

Can you clear something up for me, do you always wait for S/R to be broken and then retrace before you enter the trade? When you say you trade from S/R areas, do you only mean major S/R areas?

Thanks Dan.
  • #353
  • Oct 4, 2010 6:49am Oct 4, 2010 6:49am
Quoting Duke900
[font=Arial][size=2][font=Arial][size=2]Dan,
Lets try not to ruin what could be a great thread with this rubbish please
  • #354
  • Oct 4, 2010 8:38am Oct 4, 2010 8:38am
Dan thanks for your invaluable work.....keep it going.

Patience is essential
  • #355
  • Oct 4, 2010 9:42am Oct 4, 2010 9:42am
Quoting TheFutureAce
Hi Danuk...what do you think of the PIN BAR on AUDNZD? is it a valid setup to get a short going just below the pin bar....
Hi FutureAce,

I'm not Dan but imo the trend has been up on audnzd, so going short would be counter trend, my opinion for whats it's worth would be to look at going long this pair if price could brake 1.3200 (it's previous high) then enter long on a retrace to that area.

Interested to see what Dan thinks?
  • #356
  • Oct 4, 2010 10:24am Oct 4, 2010 10:24am
EUR/CHF looks like a nice setup. Breaish outside bar at trendline .. waiting for the close of the candle

http://my.jetscreenshot.com/demo/20101004-lpd9-206kb
  • #357
  • Oct 4, 2010 12:12pm Oct 4, 2010 12:12pm
Quoting dan89
EUR/CHF looks like a nice setup. Breaish outside bar at trendline .. waiting for the close of the candle

http://my.jetscreenshot.com/demo/20101004-lpd9-206kb
Hi Dan89 - you are right about it coming off the trend line. The only thing is, I have major S/R at 1.33 - right where price is now on my chart - this could cause another upward bounce - though maybe not. Advise caution though...

Personally I will wait for a break down through 1.33 and then a retrace back up to it. The upside of this is that you might then have confluence of the 1.33 and the trend line.

Cheers, G
When in doubt, sit on your hands...
  • #358
  • Oct 4, 2010 1:04pm Oct 4, 2010 1:04pm
Hi Dan - a couple of questions re your method if I may:

How do you treat Sunday bars - just like any other? I'm curious because some people say that they should be disregarded for technical purposes.

Do you ever take a 4 hour trade in the direction of the trend and then 'promote' it to a longer term daily trade?

Thanks, G
When in doubt, sit on your hands...
  • #359
  • Oct 4, 2010 1:12pm Oct 4, 2010 1:12pm
Dan89,

EURCHF looks good.

Nice bounce of trend line, lower low and lower high...
50% retracment @1.3343 which is now broken.

Not sure about line at 1.33, yes its a round number but not a strong S and R point from what I can see. There is not enough price history to establish a strong line. So based on that 1.33 might be the only decent point?
  • #360
  • Oct 4, 2010 1:25pm Oct 4, 2010 1:25pm
Playing a break (break and retest) of the 4hr trendline would be a better option

Chart:

http://my.jetscreenshot.com/demo/20101004-dlij-221kb
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