DanUK's Advanced Trend Trading Strategy | Page 25 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Advanced Manual Stop Loss Strategy 2 replies

Advanced Strategy Tester 12 replies

DanUK's Intraday Experiment 279 replies

DanUK Simple EUR/USD Trading Journal 2009 1,005 replies

DanUK Trend Trading Journal 2010 433 replies

Attachments: DanUK's Advanced Trend Trading Strategy
Exit Attachments

DanUK's Advanced Trend Trading Strategy

  • #481
  • Oct 21, 2010 2:27am Oct 21, 2010 2:27am
Quoting HxMark
How about this chart of EUR/CHF. Would the inside bar formed on the 8th Oct have been a suitable trigger to go short? At 1.3500 level and at trend line. Just beyond 61.8 Fib retracement.

Cheers

MarkAttachment
Hi HxMark,

Sorry... I've just been informed that I missed this post from my replies.

On my feed the inside bar formed on the 11th (using the 8th as the engulfing bar) and was a fair trigger to short. I say fair because I believe inside bar setups to be less reliable than shooting stars/hammers or engulfing bars but at the right location they work out.

Price is heading back up to 1.3500 today and I will be watching again to see what happens... if we get another trigger setup to go short again I will sell again but if not and price breaks up above I will be looking for a position to get long.

Regards,

Dan
  • #482
  • Oct 21, 2010 5:08am Oct 21, 2010 5:08am
Quoting DanUK
Hi toybits,

If I am right, you are talking about this trendline on my chart...

If that is correct, then I have addressed this earlier in the thread but incase you missed it... the reason is that the key horizontal support and resistance levels hold the most weight (in my humble opinion)! On this particular occasion the level (in the 1.37/1.38 region) was never broken and actually provided me with a re-entry back into the trend (at the break of the shooting star on the 17th March).

I hope that...
Thanks Dan! yup that clears it for me, can you comment on waiting for the break of the consolidation (say 1.4022 in EURAUD) before initiating the trade or do you do that automatically when the candle formation occurs?
  • #483
  • Oct 21, 2010 5:17am Oct 21, 2010 5:17am
Quoting DanUK
Hi bez3000,

Thank you! I'm glad to see you're still working on it... I'm sure that first big win will come around soon and when it does you will begin to realise that all the hard work (waiting, getting stopped out etc) will be worth it!

I can post a couple of live examples on the EUR/USD for you... the first was the daily hammer of the 12th October. Price had made it up past the s/r area that I discussed and user earlier when price was coming down (you should be able to see the shooting star that I shorted back in March to the left of the chart)....
On the Oct 12 trade, I'm assuming the entry was at 1.3935, why did you put the break even stop once price had hit 1.40? Do you have a rule like 50 pips up on a daily chart - move stop to breakeven? Thanks again!
  • #484
  • Oct 21, 2010 6:57am Oct 21, 2010 6:57am
Hi toybits,

Quoting toybits
can you comment on waiting for the break of the consolidation (say 1.4022 in EURAUD) before initiating the trade or do you do that automatically when the candle formation occurs?
Sure, no problem - personally it's not something I do; the reason being that if I am selling I would rather sell from higher up.

The key to my entries are that they represent price pulling back to a strong support/resistance level and that if I have identified that level correctly it holds more weight than the traffic (in the area of consolidation). So whilst this area of traffic could cause me some trouble my opinion is that the level I have identified to trade from is more likely to succeed than the area we are trading in to.

A good example of this is shown in one of the EUR/USD charts I posted recently http://www.forexfactory.com/showpost...&postcount=478 where price consolidated for some time in-between about 1.3400 and 1.3800 - I could have entered on a break below but my preferred strategy was to get in near the top of that - which I did by shorting that little shooting star that formed on the 17th March.

Two reasons I prefer this to entering below - 1, if I enter below there is a chance that price heads back up into that zone of consolidation and my trade could spend a lot of time in the red before turning a profit and 2, by entering at the top I am also cashing in on a much larger chunk of profit.

Quoting toybits
On the Oct 12 trade, I'm assuming the entry was at 1.3935, why did you put the break even stop once price had hit 1.40? Do you have a rule like 50 pips up on a daily chart - move stop to breakeven? Thanks again!
No, I don't have a fixed number of pips before I move to breakeven. What I will do is either move my trade to breakeven once it gets back to the point it retraced from or if there is a key level of support or resistance in the way I will move it when price runs into it. On this occasion the two lined up at 1.4000.

There are however other times when I might allow a trade a little more room to breathe if I feel it is necessary and the potential reward justifies the risk - but this is an instinctive thing that has grown with experience. For those new to trading I would recommend sticking with the two rules I mentioned above.

Regards,

Dan
  • #485
  • Oct 21, 2010 7:47am Oct 21, 2010 7:47am
Thanks Dan, i have also been looking for a retracement on eurusd. But i have been waiting for price to reach 1.3350 which looks a stronger S&R level very close to the 50% fib.
Is there any reason you didn't wait for price to make a deeper retracement?





Quoting DanUK
Hi bez3000,

Thank you! I'm glad to see you're still working on it... I'm sure that first big win will come around soon and when it does you will begin to realise that all the hard work (waiting, getting stopped out etc) will be worth it!

I can post a couple of live examples on the EUR/USD for you... the first was the daily hammer of the 12th October. Price had made it up past the s/r area that I discussed and user earlier when price was coming down (you should be able to see the shooting star that I shorted back in March to the left of the chart)....
  • #486
  • Oct 21, 2010 8:13am Oct 21, 2010 8:13am
Quoting bez3000
Thanks Dan, i have also been looking for a retracement on eurusd. But i have been waiting for price to reach 1.3350 which looks a stronger S&R level very close to the 50% fib.
Is there any reason you didn't wait for price to make a deeper retracement?
Hi bez3000,

I was actually anticipating a deeper retracement... I thought it might make it at least to 1.3500 before heading back up but the signal at 1.3800 was too good to miss. The Euro has been moving up pretty fast lately (although it's paused at 1.4000 again) and so we may not see such a deep retracement (although now I've said that we will probably see a great big dip down lol). Therefore I have been careful to watch for signals at all key levels.

Regards,

Dan
  • #487
  • Oct 21, 2010 8:19am Oct 21, 2010 8:19am
Quoting bboyomega83
The real money in this market is made with the trend. And squeezing the trend for all its worth by having multiple positions once you have the trend correct. Buying when price is already high or selling when its low (going with the trend) is harder to do psychologically than trying to pick tops and bottoms but thats why it works and thats why theres so few succesess in this field.
Quite true!

The psychological side of trading is just as important as the entries! You've got to get the technique right but without the right mindset failure is still waiting around the corner!
  • #488
  • Oct 21, 2010 7:16pm Oct 21, 2010 7:16pm
Dan,

When the prevailing trend is up and afterwards sideways happened, do you still trade during this period? If so, do you only enter the trade if price is at the bottom range of the sideways range?
o que será, será
  • #489
  • Oct 22, 2010 1:20pm Oct 22, 2010 1:20pm
Hi Dan can you have alook at my usdchf chart below. I entered short on the TL touch but price has gone against me, is there anything that would have put you off this trade?
The only thing i can think of is i didnt wait for PA to confirm?????
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf.png Size: 33 KB
  • #490
  • Oct 22, 2010 2:32pm Oct 22, 2010 2:32pm
Quoting bez3000
Hi Dan can you have alook at my usdchf chart below. I entered short on the TL touch but price has gone against me, is there anything that would have put you off this trade?
The only thing i can think of is i didnt wait for PA to confirm?????
Great thread indeed. I'm newbie.
There are two insidebars on my feed, before today's bar. No PA, no bearish confluence in my opinion. Inverted H&S on H4. Might be wrong. Cheers
  • #491
  • Oct 23, 2010 1:42am Oct 23, 2010 1:42am
Quoting Mist Gun
Dan,

When the prevailing trend is up and afterwards sideways happened, do you still trade during this period? If so, do you only enter the trade if price is at the bottom range of the sideways range?
Hi Mist Gun (that's an interesting name!?!),

If you have a particular situation in mind it would be easier for me to respond to a chart.

But generally speaking the answer is yes if price is moving in an upward trend and then starts to consolidate and move sideways I will still look for entries (to buy) at the bottom of the range.

Regards,

Dan
  • #492
  • Oct 23, 2010 1:51am Oct 23, 2010 1:51am
Quoting bez3000
Hi Dan can you have alook at my usdchf chart below. I entered short on the TL touch but price has gone against me, is there anything that would have put you off this trade?
The only thing i can think of is i didnt wait for PA to confirm?????
Hi bez3000,

I can see why you entered but I wouldn't have placed a "touch" trade on the basis of that trendline (because I don't find them to be strong enough for that style of trading). For a "touch" trade I would be looking to play a bounce off of a very strong horizontal s/r level and I can't see any really strong s/r at this point.

Most importantly though I would have waited for a PA signal to confirm an entry - if we had a seen a nice shooting star formed off of that trendline (and I should add there is a minor s/r level there) it would have caught my eye. Waiting for PA means you occasionally miss trades that a "touch" trade would have got you in on but on the whole they keep you out of most bad trades and get you in on most good trades.

Now, from a practical perspective I will be interested in what happens slightly higher - as shown in my chart. This is what I consider to be a strong block of s/r and this is where I would expect to get some kind of trigger to sell. Then again, if we do not and price manages to climb above it I will take it as a signal to start to look for buying opportunities.

Hope that is of some help my friend.

Regards,

Dan
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf.gif Size: 15 KB
  • #493
  • Oct 23, 2010 2:28am Oct 23, 2010 2:28am
Quoting DanUK
Hi Mist Gun (that's an interesting name!?!),

If you have a particular situation in mind it would be easier for me to respond to a chart.

But generally speaking the answer is yes if price is moving in an upward trend and then starts to consolidate and move sideways I will still look for entries (to buy) at the bottom of the range.

Regards,

Dan
Thanks, Dan.

The ID that I used is of a character of a comic .

For my question earlier, I attached a chart of EUR/USD. On the 4H chart, it is obvious that it has been in an uptrend and currently entering consolidation period. In such condition, would it be wise to enter short at the top of consolidation? Or would you only look to go long when price reached the bottom of the range and ignore short even if it is at the top of the range?

Regards,
MG
Attached Image (click to enlarge)
Click to Enlarge Name: EUR.JPG Size: 100 KB
o que será, será
  • #494
  • Edited 9:48am Oct 23, 2010 7:19am | Edited 9:48am
Absolutely great thread.
I already see a couple of familiar faces, Hello Coolshades and 007.

I have been referred here by one of the like minded guys.
Great many thanks to Dan for spending his time to help others.
  • #495
  • Oct 23, 2010 2:58pm Oct 23, 2010 2:58pm
I think the trend is changing on the USD/CHF
What you thing Dan ?

Attached Image
  • #496
  • Oct 24, 2010 12:57pm Oct 24, 2010 12:57pm
Hey seifo005, i second that but lets see what the markets say this coming week.....i have attached a chart but lets see what The Commander has to say...........cheers...lets get the Pips here all..................ooohhhhh i also see the same thing on the GBPUSD...........trend change..................Red Rectangle is where i got weary that our down trend could have come to an end..................opinions are welcome.........

Quoting seifo005
I think the trend is changing on the USD/CHF
What you thing Dan ?

Attachment
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf (4-hr).gif Size: 21 KB
  • #497
  • Oct 24, 2010 1:09pm Oct 24, 2010 1:09pm
i see the same happening with USDCAD...............see chart...also always note the correlation relations when the trends are up and running......gives more opportunities.......cheers, USDCAD & USDCHF have a strong positive correlation.
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad (4-hr).gif Size: 21 KB
  • #498
  • Oct 24, 2010 10:43pm Oct 24, 2010 10:43pm
how about EJ? pinbars form in both weekly & daily chart...

considering getting in if the price retrace back to 113.00
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ej w.gif Size: 14 KB
Click to Enlarge Name: ej d.gif Size: 16 KB
  • #499
  • Oct 25, 2010 12:07am Oct 25, 2010 12:07am

Hello DanUK,
I have been following your thread with keen interest and i must say welldone,keep the good work going.

  • #500
  • Oct 25, 2010 12:44pm Oct 25, 2010 12:44pm
Thanks Dan

Quoting DanUK
Hi bez3000,

I can see why you entered but I wouldn't have placed a "touch" trade on the basis of that trendline (because I don't find them to be strong enough for that style of trading). For a "touch" trade I would be looking to play a bounce off of a very strong horizontal s/r level and I can't see any really strong s/r at this point.

Most importantly though I would have waited for a PA signal to confirm an entry - if we had a seen a nice shooting star formed off of that trendline (and I should add there is a minor s/r level there) it would...
2 traders viewing now