Trading Major Lines

I want to follow along.

Thanks for the simple clarity.

Ron

Thank you all..
Today (after finishing my other works) I'll try to go into little details that shaped my trading style through my experiments.
I also want to put my trading preparation in an order to make things easier follow but for a short definition I can say that I'm trying to trade "big guys'" levels ultimately with my 5 min chart..
when price on a big number only thing I know for sure is its going to be heading to next big number no matter which direction.
This simple information means at least 1.000 pips just staying in front of you.
Another thing is once you enter as per any entry system you use you must've entered because you thought it should be heading the direction you thought..
a.If price does what you expect but only when you use large stop such as placing your stop behind the s/r levels that cost you around 100 pips..
Then your timing is not good..
b.Price don't go the direction you expect and hit your large stop in shot time.
You had wrong interpretation of the market.
c.you entered and price just started moving in your direction without looking back or with tiny pullbacks.

c is our goal..It needs good interpretation and good timing..Thats all.
and I know everybody cool with weekly and 4hr charts but not 5min..Its not my favorite but Its impossible to make entries with tight stop without small timeframes.
and 5 min's another job is to keep us away from fake price actions which is very important.It even sometimes prevents us ranging market..
We'll talk more about them through charts..
I'll try to keep this thread visual as much as I can because I believe it worths thousand words..
See you then.

Preparation/Analysis of a trade

1.Start with weekly and try to understand its story..
Here is a story of over a year period.(Past moves covered for clarity)
Move#1
It was a massive 3000 pip move and break through all the round number in the first attempt even when it exhausted at 1.2000 level
Move#2
It started with 3 bars pattern (very typical even the gap was there) at 1.2000 level which is a reversal sign and made another price action with pin-looking bar(but also an engulfing bar at the same time) on the median line of 1.2500 level..Median lines are important for some reasons..One of them is price usually shows intention where its heading further..In this case that made a convincing bar about its intention.
If you noticed I'm not talking about trend but the action.Yes It made a 3000 pip before but the fact is you will never know which move is a main move or a pullback until it ends.
There was no guarantee at the time that price would not come back to 1.2000 level when it first started raising up to the 1.2500 level..
Indeed never came back to the level of 1.2000.
Move#3
When move#2 ended by a bullish engulfing bar I thought that was a continuation of the down move but this time price was just testing %50 level of the move#3 with a pinbar.
Major lines and fib levels (38.2,50,61,8) used to define hindsight.
this time price obeyed the fib levels and continued to move up and made a second close above 1.3000 level winning the second fight.
Move#4
this move was a typical hit one big number+pullback+hit the next big number move...
Move#5
This all started with a very nice looking pinbar at 1.4000 level and went down to the next big number.Notice the pinbar touched the 1.3000 level and came back resulting a bullish pinbar
Move#6
We were expecting another move up but price failed to breach the median line (remember they're key levels to grasp the intended direction thus making another pinbar but opposite this time signaling moving further down
Move#7
this move taught me the same fact again that you can never bu sure about the direction.When it made the close below 1.3000 level I was too sure about the down direction.But by the very first candle which was an engulfing candle It said for the second time"no I reject going lower than this level"..I'll name this candle for "rejection candle" and take this as a setup signal to analyse further
Move#8
This move made a close above the median line which is cool for longs but also a bearish pinbar at the 61.8% of the move#
Here is the real deal...
at this point you can hold your buy from the move#8 but also playing that candle for shorts just to be prepared for both side
Move#9
You might've had opposite directions alive until this candle but now This candle telling us "okay I found my support at 1.3500 level thats why I made a engulfing candle..I didnt engulf only one bearish but 3 of them at the same time..
So this is why I'm biased long for the next week...
You need reasons to enter a trade
1.a story that makes sense
2.a good setup on the weekly
3.good setup on 4hr
4.good entry on 5 min..

looking forward to it Nomask...wat i'v done is the same on my eurusd chart, trying to understand the principles and methodology your good work. keep it going, looking forward to your next post.

sam

thx Sam..
This will get clearer by the time and charts I promise..
One thing I can consider myself lucky is I was good at painting and math in school..art of trading is just painting and math...
and as you already know every paint has a different story behind it..
my favorite is Pieter Bruegel (I'm not a paint expert though)..Why is he?I found his works with lots of stories..when you look at his piece of works you feel watching a movie or reading a book..
http://www.ibiblio.org/wm/paint/auth/bruegel/death.jpg
He's insane..
Sorry about that.
I know I promised not to teach life lessons through charts but i think it doesn't count yet...

Back to the charts..
This is how i like to consider the zones "mainly"..there are sometimes exceptional but making exception is not very important next to planning the regular..

the key is yes planning a trade then trading the plan but with one more thing which is being prepared if things don't work out the way you expected

How do you determine your lines ? Eg: median lines? do you based on whole numbers?

This way of trading is interesting but in another way its quite risky too as you judge based on your personal perception ?

I wanted this statement in a seperate post as its very important.
Everything in this thread is my personal opinion and noone has to take them seriously but I believe
STAY AWAY FROM MOVING AVERAGES,INDICATORS BECAUSE THEY ARE KILLERS
Anything shows you future/potential by calculating past is totally ridiculous.
I don't put them on my charts even for fun...
I'll just do it for first and last time to give you and example..
there you go...
REMEMBER MOVING AVERAGES WILL MAKE YOU BLIND MOST OF THE TIME AND LATE ALL THE TIME.

We enter our trades on 5min time-frame..
Although there is no fixed stop I use,usually its around 10 pips or less depending on my entry candle and setup.
If it stops moving after my entry I usually close it with small loss and wait until I believe it starts to move.
But all entries made at the close of the candle
Remember that you entering on 5 min but targeting >1000 pips
It may sound nonsense but I know its possible through myself.
No need to trail stops.Its a hit the big number or die at the break even issue..Sometimes this approach will save you from fake price actions as well as causing some frustrations reversing after couple hundred pips.
I'll show you my losing attempts upon new trades because of they are part of the process.

Hi Nomask,
So Far I read your trading strategy VERY low risk and VERY high profit .

actually i'm a newbie inthis bussiness, so i just want to ask one thing about Fake Out, can you share your experience (through chart and sample if possible ) about fake breakout in your trading strategi?
a website link would be nice too.

because for us newbie fake out is real killer.

thanks

Hi nomask

I used to read all your posts on CW's thread always with interest and I am glad you started this thread explaining your excellent analysis.

The only part which I have a slight problem with is the 5 min entry, I understand its advantage of having very small stops; the drawback being also a lot of screen watch to get that pinpoint entry.

I wish you all the best and will follow your live analysis with great interest to become more familiar with the 5 min entry.

thx Noer and welcome..
important question..

Thx Howard..
I see what you pointing..
But believe me I don't have complex entry methods..
simple breakouts,double top/bottom,pinbar and engulfing candle..Actually you can even forget about the titles of the candles..Story behind it what I'm trading..
I'll give you some examples.Actually The next post I was going to post will be an answer to you too..
I believe in that trading less pair is part of K.I.S.S...
No need to try catching every move on every pair..
As I said earlier in this thread..
My money is valuable and I want to spend it on something worthy..
in my case its eurusd..
Trading one pair is enough unless it stops giving you clue about its direction for long time.

Continuing of my last charts

Great trading aproach. You finished a good school, I mean Gream and took probably some of the best of it and in a simpliest form, making it your own.
I see it very usefull for myself. Thanks and good luck.

thx saint.nice to hear that
as i said everything i pointed so far will get even clearer by more charts,examples

thanks sir for this great way to trade

Thx alot free..call me nomask pls..I like that nickname

things look juicy on another pair eventhough I never get the chance of trade it enough.Im talking about usdchf.
What I am showing here can be applied any currency pair, any type of market..In fact It must be If its a valid trading method.
Because those numbers very related to human psychology and luckily every maket has only human traders.
Those numbers and the fact that they can be traded in a very profitable way will remain same as long as only humans keep trading markets.
and also the rounder the number the more attention it gets..
for this reason
1.0000 is stronger than 1.1000
so is 1.1000 than 1.1500..................

hai nomask,
thanks for sharing your experience,
after i ask the question and look for your answer over and over and over again, i find your method is looking for some thing big and zoom it and looking for similar pattern and zoom it again to make an action.

weekly breakout >> zoom H4 for confirm >> zoom 5M again for action. am i missing something here?

its like think globally act locally idea.

i will try your trading strategy from now, hope you dont mind if i have some question about problem that i've with it. i'm greatly thanks for sharing its with us .

regards,

Cool thread. Here is a 4h I am in on.

Another...