What are the costs involved in trading stocks directly and not via a derivative ? Is it some percentage of the volume of your order, is comparable with the spread you pay when trading Forex ?
Pipcrawler
james16 Chart Thread
- #85,902
- Jan 15, 2011 9:18am Jan 15, 2011 9:18am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
My first post here on the thread. Have decided to read the whole thread, up to pg 150 still long way to go. Man this is gonna take a whole. Hopefully it pays off.I seriously need to get PA embedded into my brain.
Attached are a few setups for Mon.
With EUR/USD we do have had significant bullish momentum and the V formation as discussed, but there is also significant confluence. Still requires confirmation for entry. Mike what would you rate this setup??
Attachment
Similar setup on EUR/CAD, Mike just wondering why the RN is so important...
Nice to have you at the group bro. I am sure you'll enjoy the ride through the thread. The info sure is gold if you are a price action enthusiast.
Regarding the setups you mentioned, here's my view on them. (Mike will drop down on them soon enough too)
Eur/Cad:
The best of the the three. The part that impresses me most is the story that it carries. By story I mean, you can clearly see on the chart why price has done what it's done and what it is likely to do.
If you notice we broke short of wedge and the pin bar is more of a retest of this wedge after the breakout. It thus makes its location all that valid. My only concern though (and which would make it a pass for me) is the way the daily bar closed. It barely closed within the previous bar and importantly it failed to lose below 1.32.
A close above the main resistance area of 1.32 means that it can well act as support if price breaks down on Monday meaning that a short taken (even at a proper break of the pin bar) can get in trouble. A close below 1.32 however would have made this an excellent setup because then price gets to open below the resistance area which is a huge plus for pending shorts.
Close is an extremely important part of your trading setup, and a few pips up or down can make or break a setup. Let us know if the 'close' concept is still unclear or if you have questions.
GBP/CAD:
The first thing that catches my eye is the choppiness this pair has been in. Crazy whipsaws forming most of the price action on the pair. I would be extremely cautious in taking a trade in this scenario. I would want my bar to be in perfect shape (satisfying close and length), at a perfect location (with enough confluence) and with enough space to breathe in (that is the first trouble area of S/R should be at least far enough to allow for conservative trade management)
The bar in question has the biggest issues in the space department. See the marked S/R flip? See the close on the bar? See how a break is immediately going to see an obvious trouble area in the form of that flip?
Once again a close below this entire flip would have made this setup a pretty decent one.
EUR/USD:
A pretty mediocre trade setup IMHO. The bar is less a pin bar and more an indecision bar (remember we want our nose...or the longer wick...to be nice and long protruding away from the previous bars to give it that 'stand out' look) it too like the other 2 setups is heading straight into some traffic areas.
(We define traffic areas as areas that lie in the direction of a favorable trade and are polluted with bar highs and lows from previous bars. As price tends to bounce off these high and lows the trade is said to be 'in traffic' instead of being on a highway where it can run smoothly)
Again a pretty simple pass.
***---***
Just a quick final word.
While you're new at this try and focus only on the A+ bars, the ones that stick out like a bulge. Manage them conservatively and get the confidence going. I am (and I am sure the rest too) extremely glad to see you start off at the dailies at least.
The last thing we want is a newbie to jump on the 15 min and try and take the first bar that looks like a pin bar.
Once again welcome abaord.
g.
I believe . . .
- #85,903
- Jan 15, 2011 9:36am Jan 15, 2011 9:36am
- Joined Feb 2009 | Status: kiki soso largyalo | 2,243 Posts
Hey Aserbfx,
What are the costs involved in trading stocks directly and not via a derivative ? Is it some percentage of the volume of your order, is comparable with the spread you pay when trading Forex ?
i use interactive brokers. you may check their website. us-stocks are ridiculously cheap with 0.005 usd per share. yes, 200 pcs will be one usd commission. ym is about 2 euro. forex also available with low spreads and about 2 euro commission. european, asian and australian stocks are more expensive.
europena stocks are 0.1% per value with max. 39 euro. so i rarely trade them.
i mainly stick to us-stocks: more liquid, more power, cheaper, more fun. and -very important- less automated computer systems then in the european market.
no, i am not affiliate with them.
meine augen sind die sterne
- #85,904
- Jan 15, 2011 9:42am Jan 15, 2011 9:42am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
Traffic is on the way.. but the close is really beautiful.. no wic at all.
I am not sure .. some how I feel (observed on couple of occasions), if the close is strong, it won't retrace much.. probably due to the momentum..
Trading in a tight sideways market and traffic is an entire trading method in itself. (If you study jarroo's charts and trades you would know what I mean). You need to work around scenarios of hard breaks and not so hard breaks. You need to be watching the close by traffic areas like a hawk possibly even on a lower time frame for an early signal of sentiment change and there are other things involved including psychological issues...
Of course a strong close is the first thing you need for trading in a tight market, my point being that there are other various methods and techniques involved most of which really come from time and experience.
Not criticizing Just sayin' using your post as a mini-rant trigger
g.
I believe . . .
- #85,906
- Jan 15, 2011 10:10am Jan 15, 2011 10:10am
- | Membership Revoked | Joined Nov 2010 | 3,072 Posts
My first post here on the thread. Have decided to read the whole thread, up to pg 150 still long way to go. Man this is gonna take a whole. Hopefully it pays off.I seriously need to get PA embedded into my brain.
Attached are a few setups for Mon.
With EUR/USD we do have had significant bullish momentum and the V formation as discussed, but there is also significant confluence. Still requires confirmation for entry. Mike what would you rate this setup??
Attachment
Similar setup on EUR/CAD, Mike just wondering why the RN...
I'm really not qualified to answer you with any authority- I've got a long way to go!
But for the sake of my own study I 'd like to put my ideas out there and learn from the embarrassment of being correctly contradicted.
Re fibre
There's a seriously short nose on this daily bar. So short that I wouldn't like it even if the close did somehow fall much lower My feed is different, and my close is at 1.3387, making it look more bullish than yours
I would have liked it to respect the formation of a trend line, but it broke through that as well as the last high of 1.3432
It also breached each of the fibs. If there were enough bear market orders sitting on those lines, they wouldn't have been broken.
It's possible that your lower tf down move will find resistance at 1.3382, the high of the previous pin.
I'd certainly wait to put my money on a much better setup
Re EUR/CAD
I'd like a much more precise TL. Even the one I've drawn is a little loose for my liking. In my opinion, though, the TL is breached.
As for the type of bar, my close is way too high and the high is way too low to be obviously bearish. Yours however looks slightly better, but still disproportional to the previous bar.
The pin did find good resistance at the top, but there's still lots of support in the past around the high of the previous bar.
Your fib confluence looks good. My fib is drawn on the up move, and price finds itself stuck between the pivot and 38.2. If price does drop to the short, it will find lost of prior resistance there ( around 1.3172 )
If you look at the weekly, this week's low was 3 pips below last week's, but its high was 20 above it. Looks kind of bullish.
Well done on getting to page 150. You now know more than 95% of other traders
Advice I give myself all the time, whether it's right or wrong I don't know, is
Look for PA setups, then look for reasons not to take them
The seriously strong setups WILL come, and if you use proper mm, stops, and mentality, they will make you smile
Best of luck mate
Michael
- #85,907
- Jan 15, 2011 10:37am Jan 15, 2011 10:37am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
Haven't posted on this thread in a long time but wanted to pop in since my last post saying I was taking time to work on my trading (http://www.forexfactory.com/showpost...ostcount=39053) and just say thank you.
Been on the trading journey for close to 4 years now....
We hope to hear from you more often Bro.
g.
I believe . . .
- #85,908
- Jan 15, 2011 10:53am Jan 15, 2011 10:53am
- Joined Feb 2008 | Status: sucker for punishment | 2,444 Posts
PATIENCE... DISCIPLINE
- #85,909
- Jan 15, 2011 11:00am Jan 15, 2011 11:00am
- Joined Feb 2008 | Status: sucker for punishment | 2,444 Posts
Hey Autumn, that to me is really just a pin bar by definition than anything else. As people have deciphered already the bar was pretty small compared to the up move, the bullish close added to its mediocrity.
Additionally it didn't have any real space to be moving into. Notice where we bounced. 1.52 held as support and if you look at the left you would know it didn't do it for the first time.
So it turns out you're shorting a smallish pin bar against a good sized up move heading into an important support area. Ample reasons to pass on the...
just wondering why i dont see a stop on the chart?? and also what was your reason for entering??
cheers
jon
PATIENCE... DISCIPLINE
- #85,910
- Jan 15, 2011 11:02am Jan 15, 2011 11:02am
- Joined Feb 2008 | Status: sucker for punishment | 2,444 Posts
PATIENCE... DISCIPLINE
- #85,912
- Jan 15, 2011 11:07am Jan 15, 2011 11:07am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
hi ghous, good post bro
just wondering why i dont see a stop on the chart?? and also what was your reason for entering??
cheers
jon
I should have used my other demo account for putting that chart up.
That's not a pin bar trade. It was a touch trade based off an idea I was playing with.
I'll fix the chart.
g.
I believe . . .
- #85,913
- Jan 15, 2011 11:14am Jan 15, 2011 11:14am
SNR with Price Action...
BitCrossNG Return Today:
na
- #85,914
- Jan 15, 2011 11:16am Jan 15, 2011 11:16am
- | Joined Sep 2009 | Status: Making Money > Being "Right" | 1,811 Posts
In the last 10-20 pages, I have seen some seriously grid-locked charts posted up. I just skip over those posts, because I don't see what is going on with those, at all. Actually this has motivated to me to take the EMAs back off my own charts again lol.
We have a bank holiday on Monday, but after that, it's officially time to start taking full positions again. If the first couple weeks of January are any indication to how this year is going to be, I think we are all in for a treat .
I know this interview was conducted in 2008, but it's still a good read:
http://www.absolutereturn-alpha.com/...-Jones-II.html
We have a bank holiday on Monday, but after that, it's officially time to start taking full positions again. If the first couple weeks of January are any indication to how this year is going to be, I think we are all in for a treat
.I know this interview was conducted in 2008, but it's still a good read:
http://www.absolutereturn-alpha.com/...-Jones-II.html
Many choose unhappiness over uncertainty.
- #85,915
- Jan 15, 2011 11:17am Jan 15, 2011 11:17am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
I believe . . .
- #85,916
- Jan 15, 2011 11:17am Jan 15, 2011 11:17am
- Joined Feb 2008 | Status: sucker for punishment | 2,444 Posts
Sheesh!
I should have used my other demo account for putting that chart up.
That's not a pin bar trade. It was a touch trade based off an idea I was playing with.
I'll fix the chart.
g.
PATIENCE... DISCIPLINE
- #85,917
- Jan 15, 2011 11:21am Jan 15, 2011 11:21am
- Joined Feb 2008 | Status: sucker for punishment | 2,444 Posts
Mike(mbqb11) also discussed this pair recently
General consensus is that it is an easy pass. way too small after that strong move up.
jon
PATIENCE... DISCIPLINE
- #85,918
- Jan 15, 2011 11:26am Jan 15, 2011 11:26am
- | Joined Sep 2009 | Status: Making Money > Being "Right" | 1,811 Posts
this has been covered pretty well over the last few pages. check out ghous' recent posts on it.
Mike(mbqb11) also discussed this pair recently
General consensus is that it is an easy pass. way too small after that strong move up.
jon
the only one that had a chance was EUR/CHF, and it didn't close right.
we continue to wait
Many choose unhappiness over uncertainty.
- #85,919
- Jan 15, 2011 11:37am Jan 15, 2011 11:37am
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Mike,
Thanks again,
Dean
My issue is that the run up is so strong. So I don't want to fight that huge bullish strength with a small bearish bar. To me small bars fighting strong moves are some of the biggest trouble bars out there. So I prefer to wait for a more clear story and bar then shorting one like that.
Best
Mike
- #85,920
- Jan 15, 2011 11:41am Jan 15, 2011 11:41am
- | Commercial User | Joined Aug 2006 | 12,004 Posts