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Trading With Limit Orders

  • #41
  • Nov 14, 2010 7:06pm Nov 14, 2010 7:06pm
Quoting frankkn
Wow success on 10s chart doesn't come easy. My style of trading is kindof the opposite of that I would imagine. 10s would require a watchful (red) eye, a solid trigger finger, and lots of free time.
Yes, a VERY SOLID TRIGGER FINGER! It is way too easy to take bad trades on that kind of time frame but it is very worthwhile if you can manage avoiding those (easier said than done!). This type of trading is better though if it becomes lucrative for me. After spending morning after morning on the edge of my seat watching charts this would be a nice change of pace for sure.

Quoting frankkn
This upcoming week is the last week of fall quarter, and that means one thing: finals. I only have 3 classes this quarter, but working 40 hours per week makes it very difficult to keep your head in the school-game. I've been preparing study material all weekend and I have dozens and dozens of pages of outlines for my various classes. I'm going to try to sneak these outlines into work next week. Last week I managed to get an outline ready for one of my classes on the topic of asset protection.
Wow, I don't know how you do it. Very impressive. Maybe in another life...HA who am I kidding?

Anywho here's just a couple setups I'm looking at. We'll see if my limit orders get hit in the next week. I'm going to take a closer look at pairs after a nice dinner and beer.

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  • #42
  • Nov 14, 2010 7:27pm Nov 14, 2010 7:27pm
Quoting Bluehills
Yes, a VERY SOLID TRIGGER FINGER!...
From what I see on your charts alone, the levels look absolutely great, outside of curve, clear levels. There are a couple of things that would make me nervous with those particular pairs, however.

First, with your usd/chf, you're looking for a short. At the moment, I've been trying to stay with bullish USD momentum. I would definitely look for a bounce in that area if I could observe PA, but with a limit order I would be looking to trade with the momentum.

As for the usd/jpy, that is with the dollar's momentum. I don't trade jpy too much, and would like to see a weekly futures chart of the yen before I say if I like the trade. With both of those trades I would either look for a lower r:r, or be present to manage them accordingly.

I do really like the way you're drawing your levels, btw. The trades I've posted aren't too high probability because they aren't at the extremes, and they aren't combined with any obvious SR. If we range this upcoming week my trades could be taken out, but if we continue our trend I will either be left behind or filled. Guess that's how she goes.
  • #43
  • Nov 14, 2010 7:30pm Nov 14, 2010 7:30pm
Quoting ZacharyRC
Frankkn:
Your description with limit orders is very interesting, as wel as your successful results. Congrats! I agree that it must be awesome to place your orders and not have to fret the sporadic movements of the trade. This will in turn help your daily mood and stress level, allowing you to make pure decisions off your hard work and research instead of being clouded by past negativities. Your doing great man! Very cool!
Hey ZacharyRC

Thanks for the motivational words!

Hope to see some of your ideas soon.

When I have more time I'll be looking to post some weekly charts of some futures contracts for a couple currencies, mainly USD and Euro.

Back to the nonsensical outlines.. on page 27 from today's studies. This prof really has way too much material to cover on this final (not comprehensive).. and an essay due the same day.

Only an hour to go and I'm fillin my big ass frosty mug that is waiting for me in the freezer. Too bad I have to fill it with cheap beer.
  • #44
  • Nov 15, 2010 10:40am Nov 15, 2010 10:40am
My order are still waiting up at those supply levels. Today, price has fallen from the lowest supply level and at the moment is sitting at a recent demand level. At this point I'm just gonna leave my orders where they are and let the market come to me.

I hope that if I'm patient (by not trying to adjust my shorts to more recent/weaker supply levels) I get fewer trades, but of higher quality.
  • #45
  • Nov 15, 2010 2:50pm Nov 15, 2010 2:50pm
Home from work now, I see that last week's supply levels remain untouched.

Here is a supply level made today, it's not as heavy duty as the others. As a result it seems to be lower probability, but I'm not sure.

The first chart is a 15m of EU from today, the next is a 5m.

A demand zone turned into a supply zone, that's where I'm placing my order. Sometimes I have to remind myself (after a day without any trades being triggered) that it's okay to sit on the sidelines while a clear picture is painted for your next set of trades. I'm keeping my old ones on at those major supply levels.
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  • #46
  • Nov 15, 2010 6:05pm Nov 15, 2010 6:05pm
Quoting frankkn
At the moment, I've been trying to stay with bullish USD momentum. I would definitely look for a bounce in that area if I could observe PA, but with a limit order I would be looking to trade with the momentum.
Good point. I'll be looking to see if anything interesting happens there but I won't be taking that trade. I think we'll see increased demand for USD as Ireland continues to tip toe to the edge. Bond yields for Ireland and Greece have continued to rise. The US has its own major issues but might be "safer" in the short-mid term compared to EU.

Quoting frankkn
Here is a supply level made today, it's not as heavy duty as the others. As a result it seems to be lower probability, but I'm not sure.
Yeah, I took that bounce this morning. It worked out for me but I don't know if I should take these trades in the future. Ideally I would like to see price at the origin of drop for only a short time. Shorter amount of time = greater supply/demand imbalance. Though today there was enough supply at this level today to push it to my TP. I managed ~2.5 Reward on this trade. Demo this week, maybe small live trades next week.
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  • #47
  • Nov 16, 2010 10:39am Nov 16, 2010 10:39am
Quoting Bluehills
Good point....
What's up man, I'll get back to you later on. I'm home briefly to heat up some pizza, then back to work then to campus for last minute studying before my final.

Here is my first trade of the week, and I just closed it for 5:1 reward:risk.
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  • #48
  • Nov 16, 2010 7:41pm Nov 16, 2010 7:41pm
Excellent trade man! Did you have a set TP? It's pretty cool that we had separate trades from the same supply level that both worked out.
  • #49
  • Edited 3:00pm Nov 17, 2010 2:58pm | Edited 3:00pm
Quoting Bluehills
Excellent trade man! Did you have a set TP? It's pretty cool that we had separate trades from the same supply level that both worked out.
Haha awesome! One of the most attractive aspects of this kind of trading is the r:r. It's totally easy to get through a few losses in a row because you know that the nature of this trading gives kick ass rr.

And about TPs, yeah I had one set that would have been hit. I've gotten pretty good about not checking the trade until I think it's over just so I don't close early, but when I saw I had 1:5 I closed it out and was thankful.

I still have yet to try that link someone posted on the first page. That would be an excellent way to make sure you stayed away till it was over.

In 2 1/2 weeks my schedule flips for 5 weeks so I'll be here in the mornings. After that it's back to the schedule I'm on now, but during that time period I will demonstrate how I enter using VSA.

The use of VSA for entry when price goes near these levels is hands down the most accurate way of trading from my personal experience. The trade off is that your r:r isn't as good as this limit order method. You will have more confidence, and you will also be able to get more trades.

Today I had no trades, but I'm learning to think of that as a good thing. LO trading really makes sure you stick to your plan. On a day like this where my entry criteria weren't met (so far), I'd be willing to bet that I would have taken a trade out of sheer boredom instead of just taking no trades.

Here is a 1h EU short. Looks like this supply level has decent confluence with the support to the left. Price has already bounced off of the lower portion of the SR level, and if it goes up to the supply level I'm in looking for 1:3 on both positions.
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  • #50
  • Nov 17, 2010 3:27pm Nov 17, 2010 3:27pm
Watch out guys daily speed bump ahead
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  • #51
  • Nov 17, 2010 3:57pm Nov 17, 2010 3:57pm
Quoting frankkn

Here is a 1h EU short. Looks like this supply level has decent confluence with the support to the left. Price has already bounced off of the lower portion of the SR level, and if it goes up to the supply level I'm in looking for 1:3 on both positions.
Yep, I have the same limit order. Being a round number gives greater confluence even still.

I just came back to the computer and found my USDCAD trade placed this morning got stopped out. It's still a good trade if we see a bounce in the dollar index. I'm really tempted to jump back in but I'm going to stay out of this trade for discipline's sake. It's so much easier to make that decision trading this way than when scalping!

AUDUSD bounced off supply before reaching my farther sell order. Even though my sell wasn't hit it's still great seeing supply/demand working in the market. I just need to find the sharpest way to trade it. I'd be interesting in seeing how you incorporate VSA! I'll have some free time tonight and I think I'm going to just go back a couple months and see how the market behaves around these identifiable supply/demand levels. Get a feel of things a bit more. Here's the charts.
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  • #52
  • Nov 17, 2010 8:06pm Nov 17, 2010 8:06pm
Quoting Bluehills
I just came back to the computer and found my USDCAD..

My good buddy, it seems like you forgot we were trying to trade with USD bullish momentum!

Your sentiments about watching a trade pass you buy (au) causing frustration, and at the same time providing comfort that the principles with which we're trading are sound.

The more we work through this thread, the more we're distilling the primary components to our trade:

1) our bias is determined from the weekly SD levels (in this case USD bulls)
2) we choose recent and significant SD levels (in line with number 1)
3) we would ideally like to see confluence of SR. RNs provide confluence too, but on the scale I'm trading they're too numerous to be of much use other than exact placement of orders
  • #53
  • Nov 17, 2010 10:02pm Nov 17, 2010 10:02pm
Quoting frankkn
My good buddy, it seems like you forgot we were trying to trade with USD bullish momentum!
Haha yes I know! It looked like we might have a bounce off the USDX and that coupled with the super nice form tempted me to the trade. Hey it would have worked out too if I had put my SL where I should have (3-4 pips above high). How far off bar highs/lows have you been placing your SL? Your right though about sticking with the USD bulls at the moment.

Here's another USDCAD trade lining up with overall momentum. This trade is looking super nice. It's off the 15m and there is confluence of SD shown on the 30m. It has a healthy profit margin of 3:1 reward to risk.

Also it looks like EURUSD is lining up for a short. 3:1 on this one also.
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  • #54
  • Nov 17, 2010 10:12pm Nov 17, 2010 10:12pm
Also here is a long I took in silver. It's not strictly a SD play the way we are playing (with USD bulls) them but it has great confluence and I was looking for a buy in silver anyways. I'm very bullish on metals in the medium-long term. I thought I'd throw it in here for kicks. I broker with Oanda, btw.
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  • #55
  • Nov 18, 2010 2:38pm Nov 18, 2010 2:38pm
Quoting frankkn
Here is a 1h EU short.
Stopped on that. These losses are easy to deal with because of the r:r. Looks like price may be headed to the next supply level.

Gotta go make sure my water doesn't get shut off, then studying for my last final at 8pm tonight.

What's up Blue I'll be checkin back in later on my man
  • #56
  • Edited 8:02pm Nov 18, 2010 7:48pm | Edited 8:02pm
Quoting Bluehills
Also here is a long I took in silver. It's not strictly a SD play the way we are playing (with USD bulls) them but it has great confluence and I was looking for a buy in silver anyways. I'm very bullish on metals in the medium-long term. I thought I'd throw it in here for kicks. I broker with Oanda, btw.
Hey Blue super duper! I'm really glad that one of us saw some profit today Gret use of trend lines too dude.

Here is my 1h eu.

Starting from the bottom: The red box is a failed supply level, the white is the next, and the yellow is the next.

Sam Seiden likes it when supply levels are stacked up like that, and considers it an odds enhancer. From my personal experience, price tends to gravitate to SD levels and when you have a S level right above your entries like that, it is possible that price will want to jump up and tag the upper S level. This is cool if you're there to trade it, but if you're trading LO style you have to decide how you're going to place your multiple orders and if you want to try for both zones with and how you plan on varying position size/stops.

All of those things I'm trying to figure out, and hope to share here.

Blue's trend lines could definitely be a cool confluence-factor. I've always had mixed emotions about trend lines, however there's no doubt that they can do some elegant things.

Edit: the red level is a failed supply level for me, someone trading in real time using any number of price action analysis methods to manually enter/exit could have made some cash.

Looking back on all the blood sweat and tears I put into reading price real time and learning to trade based on what was unfolding in front of me on 15m and 5m charts, I can definititvely say that I would much rather be good at trading with LOs than on smaller time frames actively. Don't get me wrong, not many things are more entertaining than trading with the volitility of 8-11 am EST, but when looking at the long road ahead as a trader, I think the quality of my life would be greatest if I could choose to spend a minimal amount of time each day trading this way.

I just took my last final and my girl friend will be home from work soon. Looking forward to this weekend. I think my lady's graduation party is this Sunday.

My lady is graduationg with a bachelors in English with an emphasis and certification in TESOL (teaching english to speakers of other languages) and TEFLL (teaching english to foreign language learners). This summer she's going to be spending 4 months in Japan on a teaching internship. When she returns, I'll finally have my degree and we'll be heading to tempe for 10 months of training that I have to complete for a financial services firm. I would prefer to move to a small-medium sized town near a larger city in the western US. I would love to move to California, Montana, Colorado, or Oregon. Right now I'm in Dayton Ohio finishing up school. I'm on my victory lap, it's officially gonna take me 5 years to graduate. I can't say I'm very upset because the past few years I've been also studying forex day and night which unfortunately has effected my gpa (and possibly my graduation date). I know that's not the smartest thing but you couldn't have stopped me from watching price even if you had put a gun to my head, it is what it is.
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  • #57
  • Nov 18, 2010 8:03pm Nov 18, 2010 8:03pm
Quoting frankkn
Hey Blue super duper!...
I've also added a short just under 1.3800
  • #58
  • Nov 19, 2010 10:22am Nov 19, 2010 10:22am
Quoting frankkn
Hey Blue super duper! I'm really glad that one of us saw some profit today Gret use of trend lines too dude.
Yep, I sometimes throw trend lines up on the chart if they are very obvious. I wouldn't take a just a bounce but they do add confluence to the trade. When there is confluence they work often. The key thing is that every other trader looking at the chart should see them easily, if not they aren't worth crap imo.

Quoting frankkn
Here is my 1h eu.

Starting from the bottom: The red box is a failed supply level, the white is the next, and the yellow is the next.
Yep, I was stopped out of the red one too. I need to stack my limit orders like you do so I don't miss a trade is price decides to continue to the next supply level. This is my first week trading SD using limit orders but everything is shaping up quite nicely.


Quoting frankkn
I just took my last final and my girl friend will be home from work soon....
Congrats dude! My girlfriend is head deep into her finals and it doesn't look fun! 5 years isn't bad. I know a lot of people who are trying to stay IN school because they are so afraid of the job market. Not me, I opted out of university SO I could trade! Got to follow your dreams! BTW, Boulder is a great little university town. I almost moved out there with a buddy to snowboard but a certain someone had her claws sunk deep enough that I didn't, LOL! Anywho, good week all around and I look forward to refining what we're doing next week. Take care!



Edit: Oh, also next week I need to reduce my exposure to any one currency. EURUSD and USDCAD got stopped out for the same reasons.
  • #59
  • Nov 19, 2010 10:36am Nov 19, 2010 10:36am
Home for lunch here's what I'm seein! Gotta go eat
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  • #60
  • Nov 19, 2010 3:08pm Nov 19, 2010 3:08pm
Quoting Bluehills
Yep, I sometimes throw trend lines up on the chart if they are very obvious....
Alright just sold my books back. I spent more than $700 for them and only received $82 back. They were all in perfect condition and were used for only one quarter what a scam. Beer money I guess.

Hey Blue, stacking those LO is something we're gonna have to work on. Check out the chart I posted, my stop is really far away on that so I had to use a smaller position size. This represents one way of approaching "stacking": multiple orders, where the (in short example) lower orders are smaller position sizes with larger stops and the higher orders are larger position sizes and smaller stops.

But what if I just placed the stop above the supply level I'm targeting, and just accept the loss if price heads for the higher levels. The loss would not be too big of a deal because many times it would be very small (less than 25 pips) and the reward can be in the hundreds of pips.

So we can stack our LOs with all of the stops at the same place, with the lower LOs having small position sizes and large stops that gradually change as we go further north to larger PS and smaller SLs. OR we can just shoot for awesome r:r and accept the small losses.

The second one sounds better but we'll have to see. What do you think Blue?

So you live in Colorado? That is really cool, in Ohio things are so flat it is mind boggling. Sometimes when I visit a hilly area it blows my mind.

That's a brave choice on going after trading like that, balls to the wall! Gotta admire that.

Have a good weekend man!
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