Trading With Limit Orders

This is an updated version of the OP

This thread shows me trading with limits for a while, I'd like to mention that my trading has changed slightly regarding this. I still look at levels exactly the same way, I just wait for price action confirmation now.

Late 2010 is when I was most active in this thread, and I used limit orders because I only had a small amount of time to trade each day and wanted to try using limit orders. At the time my experience was mostly limited to VSA, which is still near and dear to my heart.

Once again, my trading is very similar as I identify the levels the same way, I just use confirmation these days. I also use the price alerts that someone puts a link to in one of the first posts (dailyfx) and trade from my phone as an alternative to blind LOs

Hi,

Related to this, does anyone know a reliable platform or service in which you can enter price alerts and receive a text or e-mail that w/help with enter/exiting trades.

thanks for any suggestions

Thanks for asking that question dog I was wondering the same thing. I think there is a way to set up metatrader to do that for you.

I hope this is what you guys want.

I have been using this and find it great, it's free and sends you news results and any price levels you want:

http://dailyfx.newsimpact.com/price-alerts.aspx

thanks these are helpful - i'll check them out.

I meant to have some charts on here sooner, but have been very very busy.

This chart shows 2 supply zones on EU. I've been trading towards them.

To trade towards them I find "quality" demand zones using 1, 2 ,3, and 4 hour charts. I'll enter on limit and add with VSA on the 15/5 minute charts.

More charts to come but I have to take my girlfriend to campus for now. It is pretty nice to trade with limits because normally I'd be upset at having to leave the market during L/NY overlap.

Edit: Thank you for the resources guys I appreciate it

can you help me to setup SMTP server?

We're arriving here.

I didn't place any limits because my stop would need to be more than 350 pips. I am going to look to enter on price action if possible, but there's a chance I'll be too busy.

If price turns I'll be posting limit entries at smaller supply levels, stay tuned.

Hey John, wish I could help you dude. I don't have the kind of email they need, and am thinking about checking out that link posted by Ultimatus.

Here is an example of me placing limit orders at demand/supply areas. It's 1:44 PM here (Ohio, US), and this screen shot was from this morning.

None of these limits have been hit.

I should have been posting these before now, because we are nearing some long term supply/demand levels (see EU chat in my previous post) but this is what I have been doing.

Price tends to head straight for these supply/demand zones, and it's possible to use much smaller time frames to trade towards them. On the trades like this, where I'm trading towards a level, I'll be more careful with my stop.

Edit:

Check out the 15m GU on the top left. Shortly after taking that screen shot I canceled the higher of the two orders. This was placed at resistance that was strongly broken. I canceled it because I didn't have time to verify that the level was significant enough to hold (had to go to campus).

Canceled EU long, getting too close to supply zone + a nasty 4h pin at supply. I might just pause with euro longs for a second.

EJ has come off of a supply level, but look at how strongly price moved from the circled area. Compare that to how price has moved off of the supply level.

I'll be able to watch this level (circled) during class tonight hopefully. It's also possible that I'll be forced to participate in discussion over some cases I should be reading right now regarding constantly changing regulations of retirement planning. I'd rather put my head in a blender.

1st chart: EG 1h, long at demand

2nd chart:

L- euro futures weekly showing long wicks at supply
M- EU weekly showing the same
R- dollar index weekly showing long wicks at demand

3rd chart: Weekly gbp futures at a supply level.

I'm surprised that we're not seing more selling on the gbp futures, this may mean the supply is at the next level, or perhaps further into this level.

Because of euro's supply level, and I'm going to be careful of my eurgbp long. The pound's weekly candle didn't look quite as bearish as euro's.
Because of these things I think I'll be moving my stop to break even if I'm given the chance by the market. If Not I'll look to take profit quickly.

It seems as though the markets in general may be reaching a turning point. As we see new levels appearing (on smaller time frames) I'll be placing my limit orders near their origins.

Here is a 1h EU chart. The light blue is a major supply level from the weekly/daily, and the darker blue is the most recent supply level. I'm going to place a couple of shorts up there.

Hi Frankkn

Thanks for the info. I am new to forex but not new to trading. I have been setting limit orders above or below daily resistance in daily trending
currency pairs I take a 20 to 40 pip take profit and a 100 pip stop loss. I look for the currency pairs that break the most on the daily chart and set the orders up and let them happen. I make sure its a true break by letting it break by at least ten pips before my limit order hits. If i am watching my trades any trade that goes into profitability at least 15 or so pips I will set my stop even so the worst damage on that trade would be the spread. I am still learning the forex terminology and i have made 50 percent this month on my practice account YES SORRY PRACTICE ACCOUNT. Since it is such a young strategy I am not to excited about it. What do you think to simple to hold up. Any insight would be greatly apreciated. Thanks.

Hey JJ I'll respond later on. I'm on lunch now, and don't have much time.

Here's a screen shot of EU since my last one. The supply zone with my limits wasn't even approached, and a new supply zone has been created today.

I moved my two short limit orders to this zone.

For me, I would not go anywhere near that risk:reward. One loss is going to kill you. Careful saying things like 50% this month when the month has just begun. Also you must be risking a large % on each trade to hit 50% profit in the first week of the month. If you make 50% in one week, with a rr of 1:5, imagine what kind of damage an off week (or even month) would do to your account and psychology.

My stops can vary from 35-100 pips and my TPs are always at least 100 pips. I won't move my stop to break even until price has either tested my entry or has moved a large amount (like 50 pips). SL to BE isn't really too big of a concern for me, because I'm trying to develop hands off trading. If I pick the correct levels, don't risk too much, and set my TPs further away than my SLs the rest works itself out.

Another supply level was created. This is a 5m showing where I put my entries. I'm using tighter stops, smaller position size, and tighter TPs (2 x risk). This is because this is the third supply level after the one I was watching on the outside of the curve, and I feel as though I'm chasing price.

If this supply level doesnt hold I'll be placing more orders at previous one.

Here's another limit sell on a gbp/cad supply level. I don't like how impatient I'm feeling. It sucks to not be able to watch volume for my entries.

Perhaps limit orders will keep me from taking those stupid trades though. We'll see if my account is bigger or smaller at the end of the week/month trading like this.

In five weeks, I should have a 4 week period where I'll be able to actively trade mornings (EST). After that it's unclear when I'll be able to actively trade like I have been. It is high time I get polished with these limit orders.

Hi Frankkn

Yeah I hear ya. I am definately not up 50 % this month. I meant in a month of trading with this system. My oanda practice account allows 20 to 1 leverage. At first i was using way too much of that leverage on each trade some times all of it and got lucky to win. There are about 10 good currency pairs that i have been trading.

I am familliar with risk to ruin as i am humble but profitable in the stock market (it took me two years of trading to become profitable). I have ventured here simply because of the benefits of forex trading (leverage, 24 hour a day trading, and no minimum of 3 day trades a week). Really want to trade both if possible.


I definately will scale down my trades. What percentage of your capital do you risk in each trade and do you enter multiple trades at once?

Thank You for the advice I am not the boasting type I think I just got excited and needed to say something as i do not know a single forex trader and all my friends that i preech to could really give a crap.

Oh yeah and thanks for the info again am very interested in learning this method.

I will see if I can post some charts as well if thats cool.