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The Touch Trader Method

  • #41
  • Edited 9:07pm Nov 21, 2010 8:33pm | Edited 9:07pm
Glad I happened into this thread. I discovered my first 2 layer confluence touch trade. Missed it though. Nice bounce off the 200 EMA and 50% fib. Taz, can you say more about what you are looking for in tp's? I assume maybe the next fib or monthly HL etc. Thx

edit: now I see this trade is one you already mentioned - well around the same place anyway. Oh I see where you are touching off the monthly.
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  • #42
  • Nov 21, 2010 10:55pm Nov 21, 2010 10:55pm
Confluence alert! How's this look? Monthly, 100 ema, and fib.
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  • #43
  • Nov 21, 2010 11:03pm Nov 21, 2010 11:03pm
Quoting jmag
Confluence alert! How's this look? Monthly, 100 ema, and fib.
How did you get monthly high in there? is it from previous month.. still trying to figure out how to draw everything in this method.
  • #44
  • Nov 21, 2010 11:11pm Nov 21, 2010 11:11pm
Quoting newyear498
How did you get monthly high in there? is it from previous month.. still trying to figure out how to draw everything in this method.
I'm just looking back some months and find highs and lows. It's actually from March and July lows and looks like some weeklys. It needs to be a little higher than my previous chart, but it's in that area.
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  • #45
  • Nov 22, 2010 1:48am Nov 22, 2010 1:48am
[quote=sentinel777;4186519]
Quoting 666Doom
You have got a very nice blog there. Thanks
As i see your chart i see pure S/R and trendlines.
Another thing i see heroism and lack of patience.

Why would you break even a trade just because you feel a hero,i mean,every trade is not a runner,i know market gurus say that let yous profits run and cut your losses short,but that doesn't mean your let every profit turn into a net break even. [color=Blue]I dont quite understand what you mean. I tried letting my profits run earlier this year, but i did...
Hey Sentinel,
I don't trade monday's so no trades today.

The reply to all the responses is as below.
I saw in your charts that you were actually trying to run every trade in the past,i believe you don't do it now and is a good thing.
We should never let a potential profit turn into a loss.

In some trades i saw you were trading based on R:R,i would take profit even if my R:R is not matched becuse if at next point price is going to bounce it is going to bounce no leniency on that particular criteria.

Market doesn't care wheather i have 20 pip stop loss or 40 and i want 40 pips.
If next bounce was just 15 pips away then i was better off not taking that trade.

Some trades as i see were not purely touch trades, this i say because if you will see confluence in your trades it will enhance your trading all together.
You just trade S/R and trendlines,and there are chances price may spike up and down triggering your stop,that will violate my first criteria that a touch trade must never turn towards my stop loss point,if i have 2 or more factors ling up in my favor i will nail a perfect touch trade.

Your responsibility is to take trades where you can place a stop loss as tight as possible.
You took trade where there was a chance if one level violated there was no protection,but i have everal levels at one place.

Hope you understand what i mean.

I think your understanding of S/R is deep,as i saw your charts i felt it.
I just wanted to know how you draw S/R,you draw them on daily or weekly.
If you draw them on weekly your trade will be enhanced.
Yeah,this is what i wanted to see.
Regards
Taz
  • #46
  • Nov 22, 2010 1:58am Nov 22, 2010 1:58am
Quoting newyear498
Ok, after looking at your thread I really like the idea of just using this set and forget method.. but I don't really understand how to go about it..

my interpretation is drawing the weekly high low(for last week), drawing fib lines and looking for places they overlap to place pending orders with the assumption price will bounce off.

I do not know what PPZ stands for sorry, could you explain.

and without having to be statistically correct.. what is your probability of winning to losing trades?

also some other questions, do you usually...
If, i or you take any trade at a great location there is very less chance it will turn against me.
If i set my trade and forget it,i will be better off,because sitting wont move the market in my favor in fact i will screw the trade if i feel nervous,hope i got you here.

Correct you should use weekly high/lows and trendlines for timing good places,and check multiple fibs at same place,i same lower TF and in higher TF.
ie;;;;; draw lines on weeklies and drop down to 4 hr and draw fibs there which overlap at your places.

PPZ is another word for Support/Resistance.
Price Pivot Zones coined by our dearest James 16.

My winning probability is 70-80 % and sometimes better.
I select good places only,i told you that i was going to incorporate this trading in my arsenel i have tested this and am having good results.
I took three to four live trades with it and is working 100 % fine.
I have several demo records with this they are good.

A bigger accounts less % will be a big amount.

You can easily bank 700 pips a week from this that is all i can say,that is for start, just use MM your trading will reach a new level.
Take correct position size always.

I tested this method for 6 months.
I have an experience of 1.2 years will appear less but i demo traded extensively side by side.
I will post some charts which will clarify thing a bit more.
Regards
Taz
  • #47
  • Nov 22, 2010 1:59am Nov 22, 2010 1:59am
Quoting daniel13
Thanks bro for your pleasant comments. I am bit of a conservative trader and don't like to see my profits turn up into a loss as i don't spend too much screen time. So i did set my limit buy order at around .9830 and bagged 55 pips profit.
Regards
Dan
No Problem bud,
Those biggies will come to you.
Hope to see more charts from your side.
Regards
Taz
  • #48
  • Nov 22, 2010 2:07am Nov 22, 2010 2:07am
Quoting Glove
Nice thread Taz.

I am a beginner trader, and interested in this method. I am currently learning similar techniques, although so far I have concentrated more on PA confirmation.

I would appreciate it if you could comment on my assessment of USDJPY (attached) to help me learn what I am getting right and wrong.

James.
Hey G,
You got the idea of confluence well enough.
But let me tell you,the Trendline is good,but you should take Fibs from daily chart,that is 4 hr chart right,and take a bigger swing your probabilities will get enhanced.

Use Weekly chart
Use trendlines with atleast 3 touches.
Use bigger swings for fibs.

Add 78.6 fib to your toolbox.
And Visualize major S/R areas in your trading points.

I will post a chart on visualizing major and biggest areas in trading,stay tuned.
regards
Taz
  • #49
  • Nov 22, 2010 2:10am Nov 22, 2010 2:10am
Quoting sentinel777
this one may work out, but i wont trade this live..dont like to see conflicting trends
Sentinel,
I think your charts are great,the only reason this style of trading did not work out with you in the past was, i guess impatience and improper MM.

Your right it is a good spot i saw the weekly chart it is a visible swing low.
If i saw more things there i will tell.
great works,
It is going down right from there.
Taz
  • #50
  • Nov 22, 2010 2:14am Nov 22, 2010 2:14am
Quoting jmag
Confluence alert! How's this look? Monthly, 100 ema, and fib.
You must have a monthly or weekly S/R to make it a great trade Jmag.

I will usually see.
A great area of S/R or PPZ.
Two or three,atleast two fib on a single point.
A MA.
A Trendline.
And voila a great trade.
Regards
Taz
  • #51
  • Nov 22, 2010 2:17am Nov 22, 2010 2:17am
Quoting jmag
Glad I happened into this thread. I discovered my first 2 layer confluence touch trade. Missed it though. Nice bounce off the 200 EMA and 50% fib. Taz, can you say more about what you are looking for in tp's? I assume maybe the next fib or monthly HL etc. Thx

edit: now I see this trade is one you already mentioned - well around the same place anyway. Oh I see where you are touching off the monthly.
You are dead set Jmag.
That was a good trade.
I will take profit quickly on a counter-trend trade.
They usually get exhausted at first S/R.
While with the trend trade exit at second most important level.
It all depends on your appetite i like good quick profits.

LOL
Regards
Taz
  • #52
  • Nov 22, 2010 2:24am Nov 22, 2010 2:24am
Could you explain a bit more regarding drawing S&R lines.

I either end up with too many and cant see wood for trees or no where near the price.

My take on it is that there are should be 2 touches for a "valid" support line (for example), ideally near a round number and the line has to be large e.g. 50 pips (if that makes sense)

Would you start by drawing Month H&L, Weekly H&L and then also identify 2 touch S&R lines

Would be great to do a Dummy guide please from a blank monthly chart and the lines being place, then dropping to daily.

Monk
  • #53
  • Nov 22, 2010 2:28am Nov 22, 2010 2:28am
Quoting newyear498
How did you get monthly high in there? is it from previous month.. still trying to figure out how to draw everything in this method.
Buddy,
Just open a monthly chart.
Draw a line on high/low of just 2 months.
Then drop down TF,you will see the price definitely bounces off of them.
Or just draw the high/low of previous moth you will see when price reached there it bounced.
If a monthly high/low is coupling exactly with a fib and S/R area of lower TF say daily then you got a nice touch trade there.
Remember we need close coupling.
Regards
Taz
  • #54
  • Nov 22, 2010 2:29am Nov 22, 2010 2:29am
http://img202.imageshack.us/img202/8274/explain.gif
  • #55
  • Nov 22, 2010 2:36am Nov 22, 2010 2:36am
Quoting TheMonk
Could you explain a bit more regarding drawing S&R lines.

I either end up with too many and cant see wood for trees or no where near the price.

My take on it is that there are should be 2 touches for a "valid" support line (for example), ideally near a round number and the line has to be large e.g. 50 pips (if that makes sense)

Would you start by drawing Month H&L, Weekly H&L and then also identify 2 touch S&R lines

Would be great to do a Dummy guide please from a blank monthly chart and the lines being place, then dropping to...
Help has arrived.
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  • #56
  • Nov 22, 2010 2:38am Nov 22, 2010 2:38am
Quoting jmag
I'm just looking back some months and find highs and lows. It's actually from March and July lows and looks like some weeklys. It needs to be a little higher than my previous chart, but it's in that area.
Someone is getting smarter by the minute.
  • #57
  • Nov 22, 2010 3:19am Nov 22, 2010 3:19am
Quoting 666Doom
Help has arrived.
Hi Thanks for that

So do you need 2 touches for a valid S&R line ?

Thanks
  • #58
  • Nov 22, 2010 3:35am Nov 22, 2010 3:35am
Quoting TheMonk
Hi Thanks for that

So do you need 2 touches for a valid S&R line ?

Thanks
Not necessrily,2 touches are important.
On monthly chart a single high/low can make price bounce on 4hr or daily.

How to gauge a major level.
It is on bigger TF.
It is at Confluence.
It is near a round number.
It is at a Swing Point.
Etc etc.
Any level that clearly jumps out at you is present there at several high/low is a major one,others are minor.
You can wait for price to reach major and score a big leap or score a home run.
Gotta Go buddy,
Regards
Taz
  • #59
  • Nov 22, 2010 11:35am Nov 22, 2010 11:35am
Took this trade today off the fib and tl. Had monthly sr, fib, 100ema, and trendline. Got 61 pips. It turned back after that.
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  • #60
  • Nov 22, 2010 10:09pm Nov 22, 2010 10:09pm
Hi 666D

thread!

Your points on "confluence" are well taught and written... can't agree more !

Just like you I prefer Daily tf, lower will be H4, due to my commitment in work and at home

Hope you don't mind... generally waiting for the right confluences or setups,
... in a month how many trades you can make?
... what is your Ri:Rw under your trading method?
... and the successful rate?

The reason asking above is I will use it as a guide in my trading. I think I should not trade more than yours otherwise I would have over traded.

Happy Trading.

Cheers
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