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Trading Major Lines

  • #381
  • Mar 12, 2011 10:16am Mar 12, 2011 10:16am
Thank you Nomask.

Rather than extending this with different mathematical money management calculations I can say from experience :

a) I tried ultra-shortterm trading with high leverage. My thought : if I make 20 pips ( 1Pip worth 20 USD = 2 lots ) daily, that would be 400 USD. Not bad. Result : huge stress.

b) then the idea : increase my risk to reward ratio and reduce leverage. I can then trade with less lots, but the pips gained are more than 20 pips per trade. I can place larger stops if I want to, or don`t experience so much stress even if I get stopped out multiple times. This works !


Hope anyone can make sense out of that....




_____________
michael
Be like water.
  • #382
  • Mar 12, 2011 12:19pm Mar 12, 2011 12:19pm
EURUSD - H4

Quoting nomask
Not very clear but still holding long bias due to the last rejection of support.
Hi Nomask,

Very good strategy, thanks for sharing and keep it visual
I also use major lines as well as minor ones for intraday.
As for EU, I think we're @ important level atm (not very clear until further PA).
We'll see what we get next week...
Good trading to you all!

ant-
Attached Image (click to enlarge)
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  • #383
  • Mar 14, 2011 4:04am Mar 14, 2011 4:04am
Good morning everyone..
Here is something little bit off the method just to point out that anything/any price action on higher timeframes can be traded in lower timeframes with low risk entries.
Although I'm biased long on eu I just took a countertrade against my hindsight.
Be aware that countertrades not necessary for any system and they need a lot of exercise before actually trading them otherwise they can take all your profits especially when you over countertrade.
I always say that first you need to master on regular rules then exceptions..
As everybody knows that when there is price gap market tends to fill that gap first before heading to its main direction.
eu started with a big gap this week (I'm not a gap trader but price action) followed by a bearish candle on the weekly trend line.and then I had this 4hr inside bar signaling possible down move.
Best place to get in a trade of an inside bar is at its top (if you entering long its at its low)
So I dropped down to 5 min and observed the high of the inside bar and entered as I got a three bar reversal there..
I moved it to b.e and this is all I expected from it.
this is my favorite when I have positions at b.e in both directions as I have a higher chance of hitting bigger target.
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  • #384
  • Mar 14, 2011 4:20am Mar 14, 2011 4:20am
what I did with the latest countertrade example was that I pretend as a day trader or a gap trader during the journey, taking advantage of their first push down but not targeting their take profit level but something possibly a lot bigger.
But the gap traders took their profits and left the market to buyers.
Thats why my only sell position died at b.e.
When it made a close back above the lower line I was expecting my position stopped out at b.e.And thats what happened.
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  • #385
  • Mar 14, 2011 4:33am Mar 14, 2011 4:33am
Here is recap.
Hope it all sounds clear and easy to catch up.
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  • #386
  • Mar 14, 2011 4:44am Mar 14, 2011 4:44am
Thanks Nomask, all is clear. I will wait a bit before entering any position ( Mondays... ).

Yet again one can see clearly by zooming in on 5min ( to see the inside candle on the 4h ) that you were able to REDUCE risk....well done.

Good trading to all this week.





___________
michael
Be like water.
  • #387
  • Mar 14, 2011 4:56am Mar 14, 2011 4:56am
Quoting msmarple
Thanks Nomask, all is clear. I will wait a bit before entering any position ( Mondays... ).

Yet again one can see clearly by zooming in on 5min ( to see the inside candle on the 4h ) that you were able to REDUCE risk....well done.

Good trading to all this week.





___________
michael
Thanks Michael..
not so many good things happen on mondays and fridays just because they're usually "pullback days"..
most of the time they go opposite of main direction because of that pullback/retracement attitude.
However I try to treat the market same everyday as a result of k.i.s.s approach and the experience of you never know when it starts moving.
  • #388
  • Mar 14, 2011 5:46am Mar 14, 2011 5:46am
Hi,

How do you view the current development happen in Japan affect the forex market. What extra confirmation do we need to monitor or take consideration when trading at this period of time. Thank you.
  • #389
  • Mar 14, 2011 8:25am Mar 14, 2011 8:25am
I agree nomask. Mondays are pretty slow for me sometimes and fridays can be downright crazy..going in all kinds of directions.

Quoting nomask
Thanks Michael..
not so many good things happen on mondays and fridays just because they're usually "pullback days"..
most of the time they go opposite of main direction because of that pullback/retracement attitude.
However I try to treat the market same everyday as a result of k.i.s.s approach and the experience of you never know when it starts moving.
  • #390
  • Mar 14, 2011 9:39am Mar 14, 2011 9:39am
Quoting cwl0375
Hi,

How do you view the current development happen in Japan affect the forex market. What extra confirmation do we need to monitor or take consideration when trading at this period of time. Thank you.
All I need in order to make my hindsight is one weekly candle at a major level.nothing extra needed.
Its just a direction I need to choose and I don't try to interpret market via fundamentals as I simply trade the odds with low risk entries.
Some traders try to combine technical and fundamentals together.
To me its just too much and unnecessary.
Sure fundamentals is what drives the market along with mass psychology. But you never know when and for which direction the market taking fundamentals into consideration.
I'm attaching a chart for a better visualizing that's similar to what I've seen years ago but can't find it anywhere anymore..
But it was used to support the theory of both technical and fundamentals should be taken into consideration but I believe in same chart while still claiming no need for fundamental analysis since we do not know how the market will react to fundamentals :nerd:
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  • #391
  • Edited 9:08pm Mar 14, 2011 4:12pm | Edited 9:08pm
Hi Nomask,

Just tuning in...and am learning a lot! Thank you!

As your bias is long and EU is at the 1.4 zone, I'm looking for a safe long entry. Could this also be an entry as per your method with the exception that I used Friday's Daily because it gave a bullish candle bouncing off the trendline? Normally I know we should be waiting for a Weekly signal before moving to the H4 but could this be a variation of your method? Or should one wait for a Weekly signal before entering a long position?

Thanks for your comments!

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  • #392
  • Mar 15, 2011 4:11am Mar 15, 2011 4:11am
Quoting leftcoaster
Hi Nomask,

Just tuning in...and am learning a lot! Thank you!

As your bias is long and EU is at the 1.4 zone, I'm looking for a safe long entry. Could this also be an entry as per your method with the exception that I used Friday's Daily because it gave a bullish candle bouncing off the trendline? Normally I know we should be waiting for a Weekly signal before moving to the H4 but could this be a variation of your method?...
Thanks a lot...We all learning from each other..
First of,I ignore the timeframes out of my favorite three (wk,4hr,5min)
Its more important to keep things simple and clear rather than trying to combine or consider all timeframes when trading.
I think I left this subject little bit unclear when I said I'm biased long for eu.
In fact I'm biased long for my existent position from 1.35xx and I'm not biased long for the move from the 1.4 to 1.5 yet.
Why?
Because I don't have a price action at 1.4 signaling long yet.
So if you not holding a long position currently then you better wait to get a clear signal on 1.4 to be biased long.
that means I'd be looking for a new setup for a first entry in any direction if I didn't have my long position.
any long position you enter now would be dealing with the 1.4 of major line which is bad in terms of reward/risk ratio.We don't want that.
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  • #393
  • Mar 15, 2011 4:26am Mar 15, 2011 4:26am
Nomask,

Thanks for the clarification and setting me straight. You may have been clear but sometimes our minds make things more complicated it really is, it's crazy!

I look forward to the next long/short signal...and will be patient about it!

Thank you for sharing!

Much success to all!
  • #394
  • Mar 15, 2011 2:21pm Mar 15, 2011 2:21pm
Quoting zoli
Also watching this pair:
Attachment

Attachment
It looks like shame on me.
This chart looks like I would have liked when I posted preveiously. Except there is no added position of mine on it.

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Kind Regards zol
  • #395
  • Mar 15, 2011 2:43pm Mar 15, 2011 2:43pm
[quote=zoli;4473816]It looks like shame on me.
This chart looks like I would have liked when I posted preveiously. Except there is no added position of mine on it.

I've been quietly lurking & studying this thread with extreme interest. I was fortunate enough to catch that 50% retracement and bagged 100+ pips, which is huge by my standards. Hats off and huge thanks to Nomask for the thread and all those who contribute. This specific trade wasn't based on the concept of this thread, but that's what learning is all about I think - fitting it our personal traits. I look forward to earning the right to contribute in the future, but for now I'll watch & learn.
Thanks again Nomask.
  • #396
  • Mar 15, 2011 11:54pm Mar 15, 2011 11:54pm
I know we wait for weekly to have a bias for pipeasy method, do you consider the previous weekly candle to be a hanging man therefore having a bearish formation? Also spicing it up a little more daily also saying hanging man, anyway waiting for H4 to show way to trade

[IMG]http://s4.postimage.org/23y3w7fxg/no...ngman_week.jpg[/IMG]

[IMG]http://s4.postimage.org/23y77a4x0/no...ingman_day.jpg[/IMG]
  • #397
  • Mar 16, 2011 2:07am Mar 16, 2011 2:07am
[quote=dmostpips;4473889]
Quoting zoli
It looks like shame on me.
This chart looks like I would have liked when I posted preveiously. Except there is no added position of mine on it.

I've been quietly lurking & studying this thread with extreme interest. I was fortunate enough to catch that 50% retracement and bagged 100+ pips, which is huge by my standards. Hats off and huge thanks to Nomask for the thread and all those who contribute. This specific trade wasn't based on the concept of this thread, but that's what learning is all about I think - fitting it...
thanks a lot.
so you'll be feeling 10x better than this as you catch your first +1000 pips
I don't expect anybody following the exact method of what I'm showing here but using this information/technique to develop their own trading method.
  • #398
  • Mar 16, 2011 2:14am Mar 16, 2011 2:14am
Quoting pippin4me
I know we wait for weekly to have a bias for pipeasy method, do you consider the previous weekly candle to be a hanging man therefore having a bearish formation? Also spicing it up a little more daily also saying hanging man, anyway waiting for H4 to show way to trade

[IMG]http://s4.postimage.org/23y3w7fxg/no...ngman_week.jpg[/IMG]

[IMG]http://s4.postimage.org/23y77a4x0/no...ingman_day.jpg[/IMG]
to be honest I don't like hanging man formation.I think of them unreliable price action.
btw If I had to interpret that price action I'd say that its bullish to me (I know its considered a bearish price action but doesn't make sense to me).Because of the last rejection showing that sellers lost some power.But as I said I don't rely on it.
and I know its not exciting when you wait but this method has three periods of time.
1.attempting period
2.adding or growing profit period
3.waiting period
---
We're now in the 3rd period and It may sound its not the most exciting period but believe me its the most necessary period of the method.Its the period that saves your capital from sloppy entries and consolidations
  • #399
  • Mar 16, 2011 2:23am Mar 16, 2011 2:23am
Thanks nomask
  • #400
  • Mar 16, 2011 4:42am Mar 16, 2011 4:42am
Quoting pippin4me
I know we wait for weekly to have a bias for pipeasy method, do you consider the previous weekly candle to be a hanging man therefore having a bearish formation? Also spicing it up a little more daily also saying hanging man, anyway waiting for H4 to show way to trade

[IMG]http://s4.postimage.org/23y3w7fxg/no...ngman_week.jpg[/IMG]

[IMG]http://s4.postimage.org/23y77a4x0/no...ingman_day.jpg[/IMG]

Confirmation is needed for a hanging man to be a bearish pattern, and that is a further candle closing below the tail.
Regards
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