Attachments: Intraday price action trend trading

Intraday price action trend trading

#5,741
Oct 24, 2010 1:23pm Oct 24, 2010 1:23pm

anthoniex
Joined Nov 2009 | Status: Trader | 1,093 Posts

Quoting Storeball

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Hi guys! Hope your all enjoying your weekend

Hope I can get some input on a question.

Thanks all for making this a great thread and all input is appreciated

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Correct me if I'm wrong.
The way I look at it, as Sho said this momentum trading method works on any timeframe. I'm not limiting myself to 10 or 20 pips StopLoss trading on 15 minute timeframe, rather am focusing on risk reward ratio. I can always adjust my lot size so that it's within my loss limit for a single trade (1-2%)
On my last trade my risk is about 18 pips, so I'm expecting reward of 30+pips but I got stopped out

As with Fib Retracement, I would agree with what Sho said:

It doesn’t have to be perfect. 50% or 38% or any retracement level because we don’t live in a perfect world. Big institutions place their orders just before or after exact level. They know amateurs are waiting for exact level.

I find this method is simple, make sense and most importantly works

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#5,742
Oct 24, 2010 2:27pm Oct 24, 2010 2:27pm

Storeball
| Joined Apr 2010 | Status: Trader | 499 Posts

Quoting anthoniex

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Correct me if I'm wrong.
The way I look at it, as Sho said this momentum trading method works on any timeframe. I'm not limiting myself to 10 or 20 pips StopLoss trading on 15 minute timeframe, rather am focusing on risk reward ratio. I can always adjust my lot size so that it's within my loss limit for a single trade (1-2%)
On my last trade my risk is about 18 pips, so I'm expecting reward of 30+pips but I got stopped out

As with Fib Retracement, I would agree with what Sho said:

It doesn’t have to be perfect. 50% or 38% or any retracement...

Ignored

Hi Anthon!

Thanks for your input!

Youre right on just keeping it simple. For sure. And changing the lot size when stop increases is a valid point. Just wondering if someone has any experience using the fib retraces on the entry bar itself as a way to place stops. I know of a couple of traders that does it on higher time frames and does so pretty well.

#5,743
Oct 24, 2010 3:35pm Oct 24, 2010 3:35pm

Fxfighter
Joined Oct 2009 | Status: Trader | 468 Posts

Hi Storeball,
Yep I know a few people who use enter on retrace specialy as u said too big signal bar.They do on HTF,but I think u can try do this on LTF as well.Just look at more confluence say 50 or 60% of the signal bar and price retreace to previous resistance and find there support.
This just my view how i see to work.

Happy trading.

FX

#5,744
Oct 24, 2010 4:12pm Oct 24, 2010 4:12pm

Storeball
| Joined Apr 2010 | Status: Trader | 499 Posts

Quoting Fxfighter

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Hi Storeball,
Yep I know a few people who use enter on retrace specialy as u said too big signal bar.They do on HTF,but I think u can try do this on LTF as well.Just look at more confluence say 50 or 60% of the signal bar and price retreace to previous resistance and find there support.
This just my view how i see to work.

Happy trading.

FX

Ignored

Hi Fx!

Nice to hear your thoughts mate

Sorry for not making what I meant perfectly clear. Yepp its pretty common for people to wait for the retrace to a fib level and then enter, what I meant is actually the opposite. Not waiting for the retrace, but entering straight away, however you put the stop loss behind the 61.8 fib on the candle trigger in order to make sure your not missing the trade if it takes off without retracing and still keeping the stop loss at a minimum. This is for 20+pips bars. (My max sl is 20) I know James16, Jim, does something along those lines.

My reasoning being is that a price action setup is normally a high momentum setup, meaning that if its a good setup its a rare thing for price to retrace all the way to the top/bottom of our trigger signal before going into profit. Now this is not based on any testing or anything, so just a thought and a general feeling. Thats why I wanted to know if anyone had tried something like it or had any thoughts

#5,745
Oct 24, 2010 5:42pm Oct 24, 2010 5:42pm

Fxfighter
Joined Oct 2009 | Status: Trader | 468 Posts

Quoting Storeball

Disliked

Hi Fx!

Nice to hear your thoughts mate Sorry for not making what I meant perfectly clear. Yepp its pretty common for people to wait for the retrace to a fib level and then enter, what I meant is actually the opposite. Not waiting for the retrace, but entering straight away, however you put the stop loss behind the 61.8 fib on the candle trigger in order to make sure your not missing the trade if it takes off without retracing and still keeping the stop loss at a minimum. This is for 20+pips bars. (My max sl is 20) I know James16, Jim, does...

Ignored

Sorry Storeball I miss that point in your first post.I've got now what u mean.

#5,746
Oct 24, 2010 10:44pm Oct 24, 2010 10:44pm

anthoniex
Joined Nov 2009 | Status: Trader | 1,093 Posts

Quoting anthoniex

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I find this method is simple, make sense and most importantly works

Ignored

I missed this one, was going to the climbing gym.. 30-40 pips with this excellent method. Hopefully some of you caught that

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#5,747
Oct 25, 2010 12:19am Oct 25, 2010 12:19am

anthoniex
Joined Nov 2009 | Status: Trader | 1,093 Posts

waiting for the set-up again...

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#5,748
Oct 25, 2010 12:42am Oct 25, 2010 12:42am

Storeball
| Joined Apr 2010 | Status: Trader | 499 Posts

Quoting trade price

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hello...

Ignored

Hi Sho!

Thanks so much for taking the time to pop in and reply. Really appreciate it

And yes what your saying does make sence. And as you said there is not a shortage of setups during the day either so if I let a couple go it really doesnt matter.

I guess its as they say, dont change a winning tactic

#5,749
Oct 25, 2010 1:20am Oct 25, 2010 1:20am

anthoniex
Joined Nov 2009 | Status: Trader | 1,093 Posts

Quoting anthoniex

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waiting for the set-up again...

Ignored

I'm NOT taking the trade since I'm new and not familiar with this SETUP.
Is it a good time to sell or pass? Any comment, or we'll find out in soon...

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#5,750
Oct 25, 2010 1:37am Oct 25, 2010 1:37am

Storeball
| Joined Apr 2010 | Status: Trader | 499 Posts

Quoting anthoniex

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I'm NOT taking the trade since I'm new and not familiar with this SETUP.
Is it a good time to sell or pass? Any comment, or we'll find out in soon...

Ignored

Id say its an ok trade at best for a quick reaction but a pass for me. But imo your not taking the trade because the momentum says short, look at that last green bar, shows bull momentum. But it fails to close above the two highs on the left there which acts as resistance and next one is a doji. So for me its price interacting with resistance which could give you a some pips short.

My view.

#5,751
Oct 25, 2010 1:53am Oct 25, 2010 1:53am

anthoniex
Joined Nov 2009 | Status: Trader | 1,093 Posts

Quoting anthoniex

Disliked

I'm NOT taking the trade since I'm new and not familiar with this SETUP.
Is it a good time to sell or pass? Any comment, or we'll find out in soon...

Ignored

there you go... the downward momentum was only a corrective swing. I need more practice and screen time to tell the difference...

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#5,752
Oct 25, 2010 2:00am Oct 25, 2010 2:00am

anthoniex
Joined Nov 2009 | Status: Trader | 1,093 Posts

Quoting Storeball

Disliked

Id say its an ok trade at best for a quick reaction but a pass for me. But imo your not taking the trade because the momentum says short, look at that last green bar, shows bull momentum. But it fails to close above the two highs on the left there which acts as resistance and next one is a doji. So for me its price interacting with resistance which could give you a some pips short.

My view.

Ignored

Thanks Storeball, it was down 7 pips. Glad I didn't take the trade, it's a low probability setup

#5,753
Oct 25, 2010 4:27am Oct 25, 2010 4:27am

janek
| Joined May 2009 | Status: Trader | 5 Posts

Hi guys,

lucky to on the best thread here on FF, thanks to Sho's postings!

Is anyone willing to share their broker name? When trading on M15 the spread DOES matter. I do not have lots of capital to invest, so I will not have a premium-low-spread-gold-VIP account

So my question is: which brokers are good in terms of low spread when one wants to play multiple pairs?

By the way - quesition directed mainly to those who trade live, as in live trading the spreads tend to be larger than in demo accounts.

Best to all and to Sho,
janek

#5,754
Oct 25, 2010 4:36am Oct 25, 2010 4:36am

janek
| Joined May 2009 | Status: Trader | 5 Posts

Just looked at some options at the thread: Oanda, FxPro, Alpari, FXCM, IBFX, MBTrading...

Will anyone dare to point to the lowes-spread broker?

#5,755
Oct 25, 2010 7:37am Oct 25, 2010 7:37am

janek
| Joined May 2009 | Status: Trader | 5 Posts

Hi,
have been wondering about the spread. On a 15 min chart the spread is quite huge - even if it is a 3 or 4 pip spread (I don't mention the most liquid pairs like eurusd or gbpusd).
The problem (for me) is that you can't actually place a stoploss just above the entry bar, but rather tiwce further than this (!) simply because of the spread. Take a look at the chart.

So my question is: how those of you, who trade live deal with this? Do you use a RR ratio of 5 to 1 or 6 to 1 to compensate for the large stoploss? Or maybe just play the eurusd?

For those, who are still in their demo accounts it is advisable (imho) to activate the "show ask price" option in MT4.

Again if anyone has a reasonalble answer please reply, Thanks!

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#5,756
Oct 25, 2010 7:46am Oct 25, 2010 7:46am

hipcio
| Joined Apr 2008 | Status: Trader | 1,171 Posts

currently watching usd/cad to buy as far as PA is concerned

Peter

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Jesus Christ is my only Lord !

#5,757
Oct 25, 2010 7:57am Oct 25, 2010 7:57am

TC East
| Joined Jun 2007 | Status: "I reach!" | 594 Posts

Quoting janek

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Just looked at some options at the thread: Oanda, FxPro, Alpari, FXCM, IBFX, MBTrading...

Will anyone dare to point to the lowes-spread broker?

Ignored

One tip for you: don't focus so much on the spread. Live trade execution is far more important. Advertising "low" spreads has become a marketing gimmick for brokers. Lots of them advertise beautiful spreads, but what they don't tell you is what their live trade execution is like. They'll often end up filling much worse than those wonderful spreads due to horrendous slips from slow execution, platform manipulation, etc. A 0.6 spread on GU does you no good if you get slipped 3 pips on the execution for example. So, try to find out what brokers give the best execution; otherwise the low spreads are worthless.

With that said, I use Advanced Markets (amifx), and find both their spreads and execution acceptable. PFG Best is another that's ok. I'd stay away from FXCM though (I have/have had live accounts with all 3). Best wishes...

#5,758
Oct 25, 2010 8:14am Oct 25, 2010 8:14am