The Touch Trader Method | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The Veteran Floor Trader Method 127 replies

pamm trader my method 8 replies

bo7a method... method for GBP/JPY 205 replies

Papilios Thread - 1-2-3-Setups and the Floor Trader Method 51 replies

TAG "Touch And Go" method 4 replies

Attachments: The Touch Trader Method
Exit Attachments

The Touch Trader Method

  • #1
  • First Post: Nov 17, 2010 9:49am Nov 17, 2010 9:49am
Hello Guys,
My name is Taz and i just use simple Support/Resistance and PA for trading.
Just two months ago i started trading based on S/R and found it the most simplest and most rewarding technique.
What is in my trading style is S/R and prices story around them.
My favorite currency pair is Usd/Jpy.
And i trade majors most of the time.
Now the question is what is different in my method as is not with others.
You will know,as i proceed on.
There are many people here who use S/R in their systems core.
One of the moguls of PA here is J 16,i never saw the PF but think what i found and gathered from there and combined with my basic knowledge and know how from other sources i built a system.
Which i call trading the Zones and or Trading Pivots.
Yes,i just open up the chart for a few minutes and i know where the next long or short should be taken.
I place my order and leave comeback to collect my profits.
I am still advancing it,and hope to do it here as i discuss my methodology here.
I trade a small live account but am growing it considerable at 3 % or 5 % a day.
But just a week ago i decided to incorporated this system in my Arsenal completely, so am just going to continue on demo for another two weeks testing its consistency if it is consistent i will be able to generate more and more profits.
My basic methods revolve around Buy and Sell Zones.
I will start posting my charts as i place the trades in demo as soon as possible this is just an Intro.

There are Specifics i will cover in this method.
Location of PA
Story of PA
S/R and naked Chart.
Breakouts.
And Trade plan formulation.
These just look few points but the whole J 16 and many great threads revolve around them,i am just going to elaborate my views and methodology as i established.
Regards
Taz
  • #2
  • Nov 17, 2010 10:08am Nov 17, 2010 10:08am
Before i continue posting trades taken on demo.
I want to post basics of PA and S/R first,these are some of the things i use most often.
Regards
Taz

http://img831.imageshack.us/img831/2417/introz.gif
  • #3
  • Nov 17, 2010 10:35am Nov 17, 2010 10:35am
Chart:
http://img403.imageshack.us/img403/6919/intro2.gif
  • #4
  • Nov 17, 2010 10:46am Nov 17, 2010 10:46am
Next trade i'm taking.
I will place a pending sell limit order at the top.
I missed the long entry at 38 and PPZ confluence.

PPZ= Price Pivot zones,term coined my James 16 another word for S/R.
Regards
Taz
Chart:
http://img593.imageshack.us/img593/2248/intro3.gif
  • #5
  • Nov 17, 2010 11:04am Nov 17, 2010 11:04am
Chart:
Missed Short at top.
Will Long Loonie below.
http://img217.imageshack.us/img217/6426/intro4.gif
  • #6
  • Nov 17, 2010 11:45am Nov 17, 2010 11:45am
http://img816.imageshack.us/img816/6240/intro5.gif
  • #7
  • Nov 17, 2010 12:00pm Nov 17, 2010 12:00pm
GBP/JPY Long.
Will see the result later
http://img517.imageshack.us/img517/2021/intro6.gif
  • #8
  • Nov 18, 2010 5:10am Nov 18, 2010 5:10am
Take Profit hit on Gbp/Jpy.
No PA just a touch trade,layered confluence and S/R play.
http://img213.imageshack.us/img213/8312/intro7.gif

Regards
Taz
  • #9
  • Nov 18, 2010 5:21am Nov 18, 2010 5:21am
Layered Confluence:
Before we understand what is layered confluence we must understand the word Confluence properly.
In case of rivers confluence is a place where two tributries meet.
In case of Price confluence is multiple S/R and Fibs and TLs and trend and Indicators all lining up in your favor.

So what is layered Confluence:
Layered confluence is layer of multiple strong PPZ piling up on each other where the price will trickle for sure.
A sample Example will be:

38.2 Fib Coupled with Weekly PPZ and 365 EMA.
Now at this confluence price is most likely to bounce without any doubt.
Are we going to get PA i'm not sure.

If a pin bar forms we will have rejection,but pin bar only forms with multilayer confluence in a single 30-80 pips region.
For touch trades we need One layer of Confluence a single place where orders are placed.
In my case Gbp/Jpy the layered confluence was right where my order was.
I will elaborate with historical examples.
And will post live trades or demo trades also.

This trades Profit was 45 $,as i shifted my take profit a bit down so i don't have to finness the trade.

Started with 240 $ account.
Now account grown to 323 $ with just 1 hour of efforts.
1 hour i say because i took just 9 trades a bit small ones bit big ones.
i usually take 4 trades a day.
So depending on that it was nice.
83/240=34 % growth in two days.
Ain't that nice,i'm not boasting but just saying S/R works,simplest method ever.
Will post statement if anyone wants to see if layered confluence works.


Regards
Taz
  • #10
  • Nov 18, 2010 5:32am Nov 18, 2010 5:32am
Quoting 666Doom
Layered Confluence:
Before we understand what is layered confluence we must understand the word Confluence properly.
In case of rivers confluence is a place where two tributries meet.
In case of Price confluence is multiple S/R and Fibs and TLs and trend and Indicators all lining up in your favor.

So what is layered Confluence:
Layered confluence is layer of multiple strong PPZ piling up on each other where the price will trickle for sure.
A sample Example will be:

38.2 Fib Coupled with Weekly PPZ and 365 EMA.
Now at this confluence...
hi

you need to tell us your system in simple language. this is all too confusing. good idea to just put your method down in simple language from start to finish on one post.


many thanks
  • #11
  • Nov 18, 2010 5:33am Nov 18, 2010 5:33am
Nice charts. Your gains are insane. How do you manage risk?
:-anything
  • #12
  • Nov 18, 2010 5:41am Nov 18, 2010 5:41am
Quoting whatfx
hi

you need to tell us your system in simple language. this is all too confusing. good idea to just put your method down in simple language from start to finish on one post.


many thanks
Tell me if my chart makes sense.
http://img264.imageshack.us/img264/2869/intro8.gif
Regards
Taz
  • #13
  • Nov 18, 2010 5:45am Nov 18, 2010 5:45am
Quoting tritom
Nice charts. Your gains are insane. How do you manage risk?
The gains are not insane.
They are completely possible.
I only risk 2 % of my account under normal circumstances.
But at multilayer confluence,ie multiple places of order coupling together i can place my stop loss as tight as 20 pips.


Reason being:
If there is multilayer confluence,that means price will bounce by a pip.
Will not go down towards your stop point at all.
That is no draw-down.
Tell me if it makes sense.
Yes,i will prepare a PDF or word document soon on my method,give me some time.

Regards
Taz
  • #14
  • Edited 7:30am Nov 18, 2010 7:03am | Edited 7:30am
Quoting 666Doom
If there is multilayer confluence,that means price will bounce by a pip.
Will not go down towards your stop point at all.
That is no draw-down.
Tell me if it makes sense.
Good work Taz, please keep going on here. It makes sense. I'm trading intraday but I love confluences of 38.2/50 fib retraces, 200EMA(M1, M5, M15) and broken s/r retest as well.

Today's example - long eurusd @3620:

 

  1. 3618: R3 (fib pivot) became support
  2. 3618: 150 fib extension of yesterday's range
  3. 3617: 200EMA on M1
  4. 3616: 50 fib retrace of recent upswing 3575-3656

4 layers within 2 pips.
But I have to see PA stalling & showing some signs of early momentum in proposed direction on M1. So i usually enter with a market order. My risk is .5% - 1% per trade.
Init stop 10 pips, closed a half for 40 pips, stop moved to BE+1, rest still running.

:-anything
  • #15
  • Nov 18, 2010 11:13am Nov 18, 2010 11:13am
Hello guys,
Sorry for posting this late,i took this trade on Euro/Usd ,one of my layered confluence type trades.
Won 45.60 $ on this one account equity now standing on 370 $
Growth of 50 % in 2 days.
Yes the day is not over yet.
The Confluence i did not draw it was monthly PPZ and fib confluence there.
2 layer confluence.

http://img840.imageshack.us/img840/23/intro9.gif

http://img99.imageshack.us/img99/851/intro10.gif

I think this test is going fine,i will go live after account equity is tripled.
Or another week.
  • #16
  • Nov 18, 2010 11:20am Nov 18, 2010 11:20am
Quoting tritom
Good work Taz, please keep going on here. It makes sense. I'm trading intraday but I love confluences of 38.2/50 fib retraces, 200EMA(M1, M5, M15) and broken s/r retest as well.

Today's example - long eurusd @3620:

 

  1. 3618: R3 (fib pivot) became support
  2. 3618: 150 fib extension of yesterday's range
  3. 3617: 200EMA on M1
  4. 3616: 50 fib retrace of recent upswing 3575-3656

4 layers within 2 pips.
But I have to see PA stalling & showing some signs of early momentum in proposed direction on M1. So i usually enter with a...


Let me tell you tritom,PA will only happen where there is zonal confluence.
And when there is layered confluence within 2 pips price is gonna bounce within a dime,ie no recoil.
I don't like to finnesse my trade ie watch over them so BE thing i only keep for PA trades like Pinbars etc.

I just wait for price to reach my lines with confluence,i place pending orders there and hide my stop loss behind a major level and then Voila a great trade

I only trade 4 hr chart and above.
Yeah i will keep posting here.
And you are dead set on my strategy,you know what is confluence.
Regards
Taz
  • #17
  • Nov 18, 2010 11:23am Nov 18, 2010 11:23am
http://img151.imageshack.us/img151/3...statementc.gif
  • #18
  • Nov 18, 2010 4:58pm Nov 18, 2010 4:58pm
Quoting 666Doom
Hello guys,
Sorry for posting this late,i took this trade on Euro/Usd ,one of my layered confluence type trades.
Won 45.60 $ on this one account equity now standing on 370 $
Growth of 50 % in 2 days.
Yes the day is not over yet.
The Confluence i did not draw it was monthly PPZ and fib confluence there.
2 layer confluence.

http://img840.imageshack.us/img840/23/intro9.gif

http://img99.imageshack.us/img99/851/intro10.gif

I think this test is going fine,i will go live after account equity is tripled.
Or another week.
np. it still doesn't make sense. no idea what all this confluence / infuence is all about.
  • #19
  • Nov 18, 2010 11:33pm Nov 18, 2010 11:33pm
Quoting whatfx
np. it still doesn't make sense. no idea what all this confluence / infuence is all about.
Hello Brother,
It is very nice of you to say the truth.
Now let me explain in detail.

If a weekly High/Low (Which are used in construction of Weekly S/R),is completely aligned with a Fibonacci retracement and also we can have several other fibs or moving averages come together at a single point,say 1.2340,
then it means that anyone using fibs or S/R of high/low and moving averages and all the people who use other fib tools will see something at 1.2340,that means they will place their orders at 1.2340 be it be a fib trader or a S/R trader all will place their order their.

If all the traders are watching that single point that means their will be a single big sell or buy order present at that place.
And if a single big order is there that means price is surely going to bounce from there.

Let me first draw a weekly high/low.
Then i draw nearest swing high/low.
Then i drop down to daily TF and draw another nearest fib levels.
And let me put a 200 EMA on daily.
If all of them come at the same point then that means everyone is going to sell at that point then you can too.(Right)

Confluence of Monthlies or any further things will only enhance that trade.
The more the factors lined up in your favor the more the successful the trade.

If this does not help i will post a chart,but the best way to describe is theory,plain simple theory.
Regards
Taz
  • #20
  • Nov 19, 2010 2:27am Nov 19, 2010 2:27am
Quoting 666Doom
Hello Brother,
It is very nice of you to say the truth.
Now let me explain in detail.

If a weekly High/Low (Which are used in construction of Weekly S/R),is completely aligned with a Fibonacci retracement and also we can have several other fibs or moving averages come together at a single point,say 1.2340,
then it means that anyone using fibs or S/R of high/low and moving averages and all the people who use other fib tools will see something at 1.2340,that means they will place their orders at 1.2340 be it be a fib trader or a S/R trader all will...

please post charts with where you got in and out and why, along with some description of the daily, weekly sr fibs etc.
0 traders viewing now