Be a little more flexible... Look at price... Look at live price. Like example - when I see levels - I do not place orders "blindly" just because I see levels.. No - I wait to see how the price will ac on the level - or the price will bounce immediately off the level, or the price will try to breach the level at first, and only then will bounce off.... So - just learn to lok at real, live price. How it acts...
But what do we do during rally like in January? The reasonable answer is to buy dips. And when to close position? At the next level? or trail with stop.
- #1,184
- Feb 2, 2011 3:46am Feb 2, 2011 3:46am
- Joined Apr 2008 | Status: Trader | 1,271 Posts
By nature TS-III is counter move trading "system". It works well for me when market is trading in range like during last December. Wait when price failed to break previous high/low on h4 and ride to the other side.
But what do we do during rally like in January? The reasonable answer is to buy dips. And when to close position? At the next level? or trail with stop.
Well - when I trade Feb's System III - I think firstly about Feb's words - "Markets are nothing more than a constant battle between supply and demand"
Just during balance-market or unbalance-market it has a little different behaviour. So - I think - after spending some real-time watching the market - you start to "get it" how to response to different market moves. (balance or unbalance). There is no more different behaviour of market (I think) than balance or unbalance. So - be ready for reacting during these two times.
I will post here one of Feb's post for all readers of this great thread:
______________________________________________________________
Markets are nothing more than a constant battle between Supply and Demand.
As simple as it sounds to whoever understand this, will have the highest probability of success in all markets.
No matter what time frame you're using, there will be always a pivotal point in which the market turns, either a pullback or a reversal. That by itself is a warning sign that the supply or demand is exhausting.
Indicators are just past representation of price. I am not here to debate if they're good or bad, as to me is the interpretation of the trader where the problem lies. Indicators tends to mislead people into a predictive figure, in reality they're just "warning signs".Unfortunately, traders rely more into what the indicator says rather than price.
As to me, identifying support and resistance or I should say, shifts between demand and supply has a tremendous advantage, system wise over any indicator system. Instead of predictive, Support and Resistance puts you into a "reactive mode" meaning ...what would you do when the market reach x price?? will you buy/sell the breakout or will you buy/sell the bounce??
I prefer to be reactive than predictive. I play the market. Not only at the entry but S/R helps me spot minor/major shifts in the market as my trade develops. Sometimes I just bail out and pass and sometimes my trade takes some heat before reaching my target.
Make it simple - here's an idea:
Let the market develop into a direction. There always will be a high/low for the day. Draw two lines, one at the top and one at the bottom (please not to be confused with picking tops and bottoms).
Once the market reach any of these points just ask yourself
- will I buy the breakout??
- or will I sell the bounce??
I assure you something ALWAYS happens at these points
develop your own criteria about validating either one, like I'll buy the breakout on the next bar if it breaks the higher/high - lower/low of the next bar...and take the trade as quick as possible.
Whatever happens next it's up to how do you manage your trade/stop-loss etc.
This has been my system since 1980 and I won't change it for nothing.
_____________________________________________________________
Hope it will help you!
- #1,197
- Feb 25, 2011 3:28am Feb 25, 2011 3:28am
- Joined Apr 2008 | Status: Trader | 1,271 Posts
Good day traders!
I want to post something at this great thread about trading pure PRICE action!
Feb is a man, who did change the whole my vision of how we should understand trading, and what this business is about... Feb is a great man!
My respect to him is very big!!!
In case to keep this thread alive I would like to post some of my trades from time to time...
Here you have my curent short trade (based at little support breakout).
For peoople who do not know me - I trade real money
I want to post something at this great thread about trading pure PRICE action!
Feb is a man, who did change the whole my vision of how we should understand trading, and what this business is about... Feb is a great man!
My respect to him is very big!!!
In case to keep this thread alive I would like to post some of my trades from time to time...
Here you have my curent short trade (based at little support breakout).
For peoople who do not know me - I trade real money
- #1,198
- Feb 25, 2011 3:35am Feb 25, 2011 3:35am
- Joined Apr 2008 | Status: Trader | 1,271 Posts
Good day traders!
I want to post something at this great thread about trading pure PRICE action!
Feb is a man, who did change the whole my vision of how we should understand trading, and what this business is about... Feb is a great man!
My respect to him is very big!!!
In case to keep this thread alive I would like to post some of my trades from time to time...
Here you have my curent short trade (based at little support breakout).
For peoople who do not know me - I trade real money
If I loose this trade - deal with it...! Like Feb said one day - "you loose something to win something more"! I do like these his words very much!
- #1,199
- Feb 25, 2011 3:43am Feb 25, 2011 3:43am
- Joined Apr 2008 | Status: Trader | 1,271 Posts
Good day traders!
I want to post something at this great thread about trading pure PRICE action!
Feb is a man, who did change the whole my vision of how we should understand trading, and what this business is about... Feb is a great man!
My respect to him is very big!!!
In case to keep this thread alive I would like to post some of my trades from time to time...
Here you have my curent short trade (based at little support breakout).
For peoople who do not know me - I trade real money
Well - I did loose this trade... Will wait for the next one.
