The Touch Trader Method | Page 4 | 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

  • #61
  • Edited 2:44am Nov 23, 2010 12:22am | Edited 2:44am
Quoting tradpat
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...
Hello T
I am not as experienced as doom but i would like put my view infront of you. The following are my answers to your questions
in a month how many trades you can make?
This generally depends on the month. Like in one month you can get more at the point you would like (having excellent confluence) and may get less trades in some other months. But even if you avoid over trading and have regular day commitments you can easily get at least 1 potential 50-200 pips trade every 1-2 days. (you just have to keep waiting for the prey to but in your hunting zone).

what is your Ri:Rw under your trading method?
I also trade this method so I may be able to tell this thing which is at least for me. My thinking on this is that there cannot be generality on this. It just depends on the time frame you trade. As you said you trade daily and 4 hr time frames. So may well get time in touch trading where you can get the price to the pip you want and turn around and on some days you would have to have a wide stop to prevent it from hitting. For me it depends on the type of confluence i.e. if you have multilayer confluence at a single point, then the price will turn around from that point on a dime. But if you have many zones lining up in the range of some 50 odd pips then the whole area can be treated as a zone and for you to hide your stop loss behind major area you may need to have wide stop loss.
http://img88.imageshack.us/img88/8274/explain.gif

and the successful rate?
I cannot tell about other but all i can say is this method works for me with great accuracy. If you be picky in selecting the best trades then you can be sure of avoiding draw downs in your initial deposit and earn dollars with excellent accuracy of 70-80%, it may even be upto 90% for some traders. I even have some months where i don't get a single losing trade because i learned to be picky. You don't go every day in search for home runs. There will be some days when you won't trade at all some days when you fell Oh God! I see so many trades. But that is for sure that if you become patient in learning a method and applying it and avoid spending time doing something else after you place a trade then surely you can succeed. I said the last thing because if you sit infront of your screen watching your trade you are just going to panic and move your order around and get frustrated. You just need to find the right order and the leave it upto the market to move itself.

All these views were mine and may differ from someone else. I hpoe doom does not mind it and correct me if i am wrong in something. Hope the above helps.
Regards
Dan
  • #62
  • Edited 2:44am Nov 23, 2010 12:23am | Edited 2:44am
Quoting tradpat
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...
Hello T
I am not as experienced as doom but i would like put my view infront of you. The following are my answers to your questions
in a month how many trades you can make?
This generally depends on the month. Like in one month you can get more at the point you would like (having excellent confluence) and may get less trades in some other months. But even if you avoid over trading and have regular day commitments you can easily get at least 1 potential 50-200 pips trade every 1-2 days. (you just have to keep waiting for the prey to but in your hunting zone).

what is your Ri:Rw under your trading method?
I also trade this method so I may be able to tell this thing which is at least for me. My thinking on this is that there cannot be generality on this. It just depends on the time frame you trade. As you said you trade daily and 4 hr time frames. So may well get time in touch trading where you can get the price to the pip you want and turn around and on some days you would have to have a wide stop to prevent it from hitting. For me it depends on the type of confluence i.e. if you have multilayer confluence at a single point, then the price will turn around from that point on a dime. But if you have many zones lining up in the range of some 50 odd pips then the whole area can be treated as a zone and for you to hide your stop loss behind major area you may need to have wide stop loss.
http://img88.imageshack.us/img88/8274/explain.gif

and the successful rate?
I cannot tell about other but all i can say is this method works for me with great accuracy. If you be picky in selecting the best trades then you can be sure of avoiding draw downs in your initial deposit and earn dollars with excellent accuracy of 70-80%, it may even be upto 90% for some traders. I even have some months where i don't get a single losing trade because i learned to be picky. You don't go every day in search for home runs. There will be some days when you won't trade at all some days when you fell Oh God! I see so many trades. But that is for sure that if you become patient in learning a method and applying it and avoid spending time doing something else after you place a trade then surely you can succeed. I said the last thing because if you sit infront of your screen watching your trade you are just going to panic and move your order around and get frustrated. You just need to find the right order and the leave it upto the market to move itself.

All these views were mine and may differ from someone else. I hpoe doom does not mind it and correct me if i am wrong in something. Hope the above helps.
Regards
Dan
  • #63
  • Nov 23, 2010 5:46am Nov 23, 2010 5:46am
Hi,

I had been watching this thread, and would like to put the summary of my understanding;
1-draw previous months high/low
2-draw fibs from nearest swing high/low on monthly TF
3-draw previous wk high/low
4-draw fibs from nearest swing high/low on wkly TF
5-then drop down to daily TF and draw nearest fib level
6-put 200ema on the daily TF
If I want to trade the 4H TF, I add the following point also
7-draw nearest fib level on the 4H

if all of them coincide together between 2-8pips, you have found the perfect touch trade.

Please correct me if I have taken it wrong?

Kind regards
Kashif
  • #64
  • Nov 23, 2010 6:04am Nov 23, 2010 6:04am
Quoting jmag
Took this trade today off the fib and tl. Had monthly sr, fib, 100ema, and trendline. Got 61 pips. It turned back after that.
It was a long right.
Countertrend trades must always be exit at first S/R.
Great works JMag.
Try to take trades with the trend.
I am figuring out a great runner over here.
  • #65
  • Nov 23, 2010 6:11am Nov 23, 2010 6:11am
Quoting tradpat
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...
For you i would suggest the approach as below.
Just Zoom out into a weekly chart.
And Then see what i did,and then drop TF,place order right in these areas,try drawing zones for yourself you will see.
Attached Image (click to enlarge)
Click to Enlarge Name: eurogbpint3.gif Size: 10 KB
Attached Images
  • #66
  • Nov 23, 2010 6:21am Nov 23, 2010 6:21am
Hello Tradpat,
Welcome to my thread.
Let me tell you Touch trades can be runners or can be quick profits,you want runners o quick profits that will decide what you get.

I can wait for next great setup to form on any chart just like euro/gbp or i can take quick profit.
The min profit you can make in a month can be a genuine 1000 pips.
ie is 1000 $ profit.
You can start a mini account at 500 $ and place a great trade at right area and nail those 1000 $.
ie a 50 % growth in equity or you can be aggressive and take many trades.

But first you should practice drawing S/R and confluence areas.
Then you should demo trade atleast for 1.5 months with great profits.
I mean great profits no drawdown.

The success rate is great you just have to keep MM tight and be patient.
For you waiting for the runner is he deal.
I will post some charts illustrating ways of drawing S/R.
There are 6 ways you can use,that will help you.
Stay tuned.
regards
Taz
  • #67
  • Nov 23, 2010 6:26am Nov 23, 2010 6:26am
Quoting mkashifk
Hi,

I had been watching this thread, and would like to put the summary of my understanding;
1-draw previous months high/low
2-draw fibs from nearest swing high/low on monthly TF
3-draw previous wk high/low
4-draw fibs from nearest swing high/low on wkly TF
5-then drop down to daily TF and draw nearest fib level
6-put 200ema on the daily TF
If I want to trade the 4H TF, I add the following point also
7-draw nearest fib level on the 4H

if all of them coincide together between 2-8pips, you have found the perfect touch trade.

Please...

True,but that will be too many lines on your Chart.

Just use monthlies and Swing Points.
Use these MA's
365 EMA,150 EMA,200 EMA or 200 SMA,100 SMA.
Use only two fibs for great trades:
61.8 and 38, 50 is not a fib but you can take it.
Always trade retracements into trends,weather it be mini trend or micro or macro.
Yeah you are right as a whole but pay attention to what i use.
You will be fine.
We need 1-10 pip confluence,any offset will lead to PA and if there is PA you will have to trade PA not touch.
Taz
  • #68
  • Nov 23, 2010 6:32am Nov 23, 2010 6:32am
Quoting daniel13
Hello T
I am not as experienced as doom but i would like put my view infront of you. The following are my answers to your questions
in a month how many trades you can make?
This generally depends on the month. Like in one month you can get more at the point you would like (having excellent confluence) and may get less trades in some other months. But even if you avoid over trading and have regular day commitments you can easily get at least 1 potential 50-200 pips trade every 1-2 days. (you just have to keep waiting for the prey to but...
Great Works DAN,
Words of my mouth.
General Message to all:
Just keep MM tight and stop loss tight.
Remember any trade which ripped an S/R apart was never meant to be traded.
Which means if i have to place a 100 pip stop to be safe i was never a touch trade.
If you are loosing money trading this you have loose Money Management,this has great accuracy i can bet on that,throw a challenge i will complete.
Regards
Taz
  • #69
  • Nov 23, 2010 6:33am Nov 23, 2010 6:33am
Quoting 666Doom
True,but that will be too many lines on your Chart.

Just use monthlies and Swing Points.
Use these MA's
365 EMA,150 EMA,200 EMA or 200 SMA,100 SMA.
Use only two fibs for great trades:
61.8 and 38, 50 is not a fib but you can take it.
Always trade retracements into trends,weather it be mini trend or micro or macro.
Yeah you are right as a whole but pay attention to what i use.
You will be fine.
We need 1-10 pip confluence,any offset will lead to PA and if there is PA you will have to trade PA not touch.
Taz
Thanks Taz,

So that means that following should be the near procedure of what you do;
1-high/low of monthly
2-61.8,38,50 fibs from nearest swing high/low on daily tf
3-365 EMA,150 EMA,200 EMA or 200 SMA,100 SMA on daily tf

One another question, how do u see the trend, like a trend on monthly TF may be different then lower TF's?

Kind regards
Kashif
  • #70
  • Nov 23, 2010 6:38am Nov 23, 2010 6:38am
Chart:
Attached Image (click to enlarge)
Click to Enlarge Name: chart.gif Size: 12 KB
  • #71
  • Nov 23, 2010 6:45am Nov 23, 2010 6:45am
Quoting mkashifk
Thanks Taz,

So that means that following should be the near procedure of what you do;
1-high/low of monthly
2-61.8,38,50 fibs from nearest swing high/low on daily tf
3-365 EMA,150 EMA,200 EMA or 200 SMA,100 SMA on daily tf

One another question, how do u see the trend, like a trend on monthly TF may be different then lower TF's?

Kind regards
Kashif
I use my eyes for trends,not MAs nothing else,see my chart.
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 16 KB
  • #72
  • Nov 23, 2010 6:54am Nov 23, 2010 6:54am
So it should be done like this?

kind regards
kashif
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusd_m_tt.gif Size: 14 KB
Click to Enlarge Name: eurusd_1440_tt.gif Size: 20 KB
Click to Enlarge Name: gbpusd_m_tt.gif Size: 16 KB
Click to Enlarge Name: gbpusd_1440_tt.gif Size: 21 KB
  • #73
  • Nov 23, 2010 12:41pm Nov 23, 2010 12:41pm
i think this is a good opportunity, what do you think guys?
Attached Image (click to enlarge)
Click to Enlarge Name: tgg.gif Size: 20 KB
  • #74
  • Nov 23, 2010 5:45pm Nov 23, 2010 5:45pm
Quoting sentinel777
i think this is a good opportunity, what do you think guys?
Good spot. I'm looking for a bounce short off of the 100 & 200 ema's, and the 50% fib.
Attached Image
  • #75
  • Nov 23, 2010 10:01pm Nov 23, 2010 10:01pm
Hi 666D & Dan

Thanks for your replies. I am picking up day after day n fighting for more time after work n kids go to bed

I am practicing preferred Daily with no problem for 150-200 pips stop loss per trade with Ri:Rw 1:2 or 1:3 (seldom).

Apart from the above, I now like what you said "awaiting" the right set ups / confluences for entries.

Oh by the way my target is only 400 pips a month because if one day when ALL things go right with my trading method I see I can multiply 400 pips with USD10 or even USD100 that can go to big sum, right?

That's why I am very concern to get the "confluence" right! Well, still working and practicing on it.

Thanks again for sharing.

Cheers
  • #76
  • Nov 23, 2010 11:21pm Nov 23, 2010 11:21pm
Quoting 666Doom
Hey Guys look what i found.
2 Confluences of Weekly PPZ and 38.2 of big Swing.
Yes we have 150 EMA right at the top.
Do we get a PA here i don't think so,this is Point type confluence.
I will update about this later,let me contemplate this.
Regards
Taz

http://img528.imageshack.us/img528/8530/eurjpyp.gif
Hi Taz, I've been stalking your thread.

Curious if you took the plunge on the Trade Below. In case it doesn't show up, it's your post #33 from the 20th. I noticed it continued up slightly less than 30 pips. I'm guessing since you don't trade Mondays, You may have missed it. Not to worry, only 400 pips or so..

As I am writing this, I see that price stopped it's drop on a touched a TL from the Daily @ 110.70. Also 50% daily fib, Daily support and a toll gate that requires exact change... (just kidding about the toll gate..)


Here's a current shot of price with the Conf I mentioned.
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_01 Nov. 23 21.11.gif Size: 14 KB
  • #77
  • Nov 23, 2010 11:32pm Nov 23, 2010 11:32pm
Just a bit of commentary on the potential price movement for this pair.

Based on the current (2 month) consolidation of the e/j, if price goes up from here we could see 119.50ish based on the daily fib from this 50% retracement area up to the 38% fib ext. Especially if the weekly double bottom was really that.

or not
  • #78
  • Nov 24, 2010 12:39am Nov 24, 2010 12:39am
Quoting diamonddbw
Hi Taz, I've been stalking your thread.

Curious if you took the plunge on the Trade Below. In case it doesn't show up, it's your post #33 from the 20th. I noticed it continued up slightly less than 30 pips. I'm guessing since you don't trade Mondays, You may have missed it. Not to worry, only 400 pips or so.....
You said that right.
It is 400 pips only.
If you noticed it reached one of my lines to the pip.
It was my heads up to people on the thread.
That gap up on Euro/Jpy took it above a resistance before finally knocking it down.
That bar , turned into a so called Bearish Outside engulfing the friday bar and plunged downwards.,it was a heads up for people to be in there.
I took it after the test of 114 level,when a consolidation formed above 113.
Sell Stop order at 112.85 and Whoo.

But sad part is i took profit at 96 pips.
Anyways any gain is good.
I said i dont trade monday's before europe open.
There is lack of liquidity in the market before US and Europe open.
But the damn happy moment over here is my targets and lines still hold to the pip.
Regards
Taz
  • #79
  • Nov 24, 2010 12:42am Nov 24, 2010 12:42am
Quoting diamonddbw
Just a bit of commentary on the potential price movement for this pair.

Based on the current (2 month) consolidation of the e/j, if price goes up from here we could see 119.50ish based on the daily fib from this 50% retracement area up to the 38% fib ext. Especially if the weekly double bottom was really that.

or not
I see a Inverted Head and Shoulder giving heads up for a run up.
Right Shoulder is about to get complete.
It is not H &S before it completes but looks good in the making.
Regards
Taz
  • #80
  • Nov 24, 2010 12:59am Nov 24, 2010 12:59am
Regional PPZ and S/R drawing:

Time for everyone to know a great way of drawing S/R lines.

Just Zoom out on a weekly Chart.
Visualize the Swing Points,which clearly jump out at you.
If they turn from Support to resistance good altogether.
If they are near 00 and 50,then it is great.
When you are done,just draw a single line over that swing and high/low you see.

One all lines have been drawn,then drop TF and wait for setup.,these lines are where they will arrive these are your boundries of play.
Use Fibs and other tools if they arrive right there in Small TF the Zone is great you will get a nice PA off it if confluence is not tight.
If tight then touch trade.

Don't worry,just place a pending order there and place a stop loss behind nearest Round number.
Take profit at the nearest line you drew.
Remember you drew a line ,do draw a box in small TF to remind you it is a zone,price can reverse anywhere in pursuit of take profit.
Take Profit at Roundies i suggest,they are places of consolidation.

This is good for people who have day jobs,just place a price alert with alertfx and o other service if nearing your zone look tight in there you will definitely get consolidation or PA or Touch trade.
If price consolidates right below that line just place sell or buy stop above or below the range of consolidation with stop loss on other side of line.
Pinbar usually occurs at several PPZ at 25-60 pips apart,so beware if taking trade right off the tip of pinbar place the order at the final most PPZ where price is getting knocked.
Idea:
And 112 is already a RN.
You have PPZ at 112.34
You have PPZ at 112.50
So place order at 112.35 and Stop at 113.
Target next biggest region below,price definitely will exhaust at the above 112 brothers zonal confluence and Voila you would have bought or sold at the tip of pinbar and not at break.
Why i see price exhausts,because Pinbar forms at PPZ clusters.
The Chart with this post is same regional PPZ drwaing approach as used by me in my chart in previous few posts.
Attached Image
0 traders viewing now