The Touch Trader Method

Will Continue with some Charts,here only then will continue with pdf's,my life is filled with commitments right now but promise will post everyday.

Getting back to where i was before.
It's time i really define the meaning of Touch Trade.
Touch Trade is not a blind trade,it is preplanned trade taken at right location.

Consider this thing say,i have a zone or a point inside the chart in any security or financial instrument,eg euro/usd at 1.2000.,what will be a touch trade in that area and what will be a PA trade.

Touch trade will be a order lying over there which was placed by me on some confluence and professional confidence in that area.

While a PA trade will be a bar confirmation in that area which would confirm my belief that really something was there in that area.

Textbook Example for touch trade, say we have:
1.2000 Round Number.
Swing Point.
61.8 fib on any daily confluence.
Or 38.2 fib.
With these factors alone, i can have full confidence in that area without seeing a bar confirmation.

While a PA or Candlestick trader will look for a bar confirmation which will prove that area for real is important.
Example:
A Good Looking Pinbar with 61.8 fib and a retrace into the trend.


What did i do which was different?
Hell I don't know i just had confidence in that area before bar confirmation,because i have faith in my methodology that at the right area if i have confluence i am sure price will bounce,thats it.

While a PA trader or bar trader is little bit conservative to look for confirmation, about the validity of the zone.

What is the similarity ?

I believe in confluence

He also does but will not make a move unless market tips its hand.

We both believe in Support and Resistance,but we also know that,not all support and resistances are created equal.

So Now you ask me how are we safe if he saw same things but in fact an extra thing,but we only saw a few without bar confirmation.

You are wrong there are some more things a touch trader will line up in his favor before taking a trade.

Trendline,With Trend trade,fibs,fib tools, PPZ, and even some Volume analysis, and some reasoning.
This all i did before the trade took place there,then on this i laid down my faith and placed a trade.


So where to go now?
We make this thread a ground to learn the most intricate and simplest things about S/R or PPZ which could tip things in our favor.

The Most important thing is Faith in the analysis you did.



Chart:

Just got shown this thread and glad i did.

I always liked BRV's trading but found it hard to be consistent. I think this is where your method might have the edge over his. It should be a lot easier to learn and become consistent for the newer traders. (and maybe even some of the older traders)

Hope you keep at it.

Juicyt

Glad you like it.
Support and resistance is king in this business,they always work.
But you have to practice drawing them,this is a two way thing you work hard then you get results.
And Confluence just makes it better.

BTW what do you mean by BRV's trading.
I do my home work on my S/R before even placing a trade.
It goes through careful process of self argument,asking myself why would this thing will work or not.

Anyways enough of my chattering

Chart:

Chart:

Chart:

Ohhhhhhhhhhhhhh Man.

The No brainer trades thread. by BRV.
I did not read it but, from your response i believe he just uses PPZ without layers of yummy confluence.
ooopsss what did i say.

But that man has got 10 + Vs i think he's got something.
But i have full faith in my method so i won't say any more thing on top of what i believe in and what i just said.
To readers of this thread.

If anyone has any question regarding S/R throw it here, let me answer it because without them forex would be very difficult.
Answering and helping you just improves me also as i get to think variable aspects of my trading ,so go on.
See you tomorrow guys.
My limit for today is over.
Regards
Taz

Thanks for the efforts on your thread Taz.

I have but 1 request, do you think you could do a series of pics showing from a blank chart to your finished version (on any pair you like) as you put on your lines explaining it as you do.

If you could do that, that should be enough for others to contribute (including myself) and begin posting our own charts or potential trades.

Regards, Juicyt

Hi Taz, I just thought I'd add why I asked the above. I find myself adding possibly too many fibs etc on a chart and for that reason it makes me second guess myself too much. I can only imagine if I find something, others will too. If you show how you do it step by step, then it should clear up "when enough is enough" on the chart for me. Thanks

Hope this clears your doubts.
Chart:

ok thanks Taz, I thought you were starting from say, monthly highs & low to weekly pivots/supres downs to daily fibs type of thing. But not in that picture.

Juicyt

I think i might have jumped the gun here in the last post.
Here is a basic guideline.

Here are the rules:

1. Go to monthly TF
2. Plot all the swing points.
3. Plot fibs see if you have confluence.
4. Go to weekly see if the same line is acting as a swing point or a major area in lower TF sometimes it will sometimes it will not cauz not necessarily the months high matches everytime with a repeated point.
5. Now go back to monthly and mark all the clear flip areas with a line ie support turning resistance,resistance turning support.
6. Now go to weekly TF and see the most major moves and draw fibs on them see if you have confluence.
7. Now plot any obvious important Trendlines and then see if these lines and confluence zones combine together so far.
8. Now go to daily TF mark the flips and swings and draw sme fibs see if the come up on existing lines if they are then no need for drawing lines over lines just mark the main line a little bolder.
9. Now plot 365 ema 150 ema and 125 ema then see whether they are coming annywhere near the lines you have plotted.
10. Now after a 30 min or so drawing s/R you will have a bunch of lines on your charts bolder ones will make the price bounce for sure.
11. The second major lines will make the charts do the same dance as bolder ones and so the ability to move prices decreases as we move downwards.

Added Confluence.
See and obvious major consolidation and see if its S/R intersect with any of your lines.
Use fib expansion tool to see the waves outer extent in terms of 127.2 or 161.8 fib.
Always follow trend.


Now What?
Now you have readied yourself with basic S/R.
Now move on and remove all those lines which do not suit your strategy ie lines close enough less then 100 pips must be disregarded.
Use the lines that are major and apart by 200 pips as it suits my strategy.

What we don't want?
Finessing our trades and looking after them aleast when they are started.
Management we will do during the day.

Our strategy.
Our strategy is to use these very special S/R formed during the process of filtration and plotting.
Ands place as many trades as possible around them.
Say i do the following i readied my S/R or PPZ and am ready for some trades.

I want in all say net 12 trades and atleast 100 pips in a single trade and that too in 3 days of the week.

We will place trades with only 2000 lots and no more then that.
that amounts to only 20 $ per trade.
That is just 240 $ per 3 days or sometimes a week.
Remember this the more the trades we are placing the more the probability have of winning.

This will build our confidence and all trades will be low risk and high reward trades.
Our stop loss will be behind the major points on the charts,that i will define as the example comes by.

At a time if our trades are active i suggest that we must have atleast the min balance as margin and plus stop loss amount in our account.

That will be around 2000*12=24000 and divided by the leverage say 50.
24000/50=480 $
And as our targets and stop losses are same.
that amounts to around 220 $
So the minimum balance in our account before tis will be 800 $.


The above is just a basic guideline of the strategy.
There are many factors that can enhance the trades but those cannot be represented with an example in the forum unless we have the trade coming by as we are discussing.

What i think is i will have to do a video,but am not quite able to find out any good software for that.
Any suggestions ?
Regards
Taz

Chart:
The levels i see for Usd /Chf.
I just covered step 1 and 2,3,4 but further analysis will give us more insight.

Here :
I see long till 0.9525.
Or a breakout short below 0.9475.
As trend is heavily down i guess next trade should be short above the market till then this will be a scalp.

Hi taz .
first i want to thank you for a great thread.
i got few questions:
1) as i see you are making all your drawings on monthly weekly and daily chatrs. do you loo king on on a lower tf s/r tr and fibs ? to see if you have confluence with highter tf .
2) what if you see realy good setup and the price coming to this confluence zone, but then you see a news are about to come out (in a few hours or a day) do you still put order at that area?
3)lets say you put order the price triggered it but insted oof going your way it keep stucking at the same area. what you do then??

this is all for now
thanks

p.s sorry for my english. i now its not perfect.

Awesome thread!

Got a question. Was wondering how you analysis on purely a support/resistance level (without fibs, ema, etc.) Do you simply look for how many times it touches (confluence of touches). Or maybe if it's a higher timeframe of support/resistance. What are the major factors in determining if a level is strong purely on the swing highs & lows? I understand that many considerations such as fib, ema, etc. are taken into account. But can you isolate & analyse just purely on support/resistance zones?

Dear Friend,
A trader evolves over time,so have i.
Although i don't trade the system presented in this thread,the information of confluence provided here is very valuable.
You cannot tell for sure that a level is strong or not even after confluence check has been made.
Support/Resistance levels have and will fail from time to time.
Yes,with experience a trader can tell,if the level being used by us is strong enough.
Above all fibs and EMA's,i suggest you watch the price consolidations and ranges being formed in price.
The bigger the range or consolidation,more major the level is.
I suggest a Check list of the following.

1, Check Price Ranges.
2.Mark upper and lower boundries of Ranges.
3 The upper and lower lines are strong Support and resistance Zones.

Hope this helps.
If it is unclear,i may have to divulge on some other aspects not related to this thread.
Regards
Taz

As i am responsible for presenting this system in this thread,i think its my responsibility to,define what is best way to use this system.
For all those who have read this thread so far,i assume they have some idea of marking strong support resistances on their chart.
Rather then taking trades of these levels,against price move,i suggest you use these levels to formulate a trend trading strategy.
I will present a general schematic in next post.
Warm regards
Taz

Here:

1. Use the Knowledge in this thread for marking strong levels.
2. Trade the defined trends which setup,between these levels.
3. In simple words:
Use trend trading 101,buy on pull backs and sell once it reaches target.
Sometimes pullbacks can be too deep,it means your entry was not perfect,but if you marked the levels correctly the trend should stay up or down between two levels,so trend will gradually resume even if it goes against you for a while.

I know this seems easy to say,but difficult to follow,but i think i can prove my point if i post some setups i take.

Next i shall post my trades as they are setup.

Regards
Taz

Take Care and see you all later.
From
Taz