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Trading Major Lines

  • #601
  • Edited 5:59pm Mar 30, 2011 3:14pm | Edited 5:59pm
Quoting nomask
We need three key ingredients in order to execute an entry.
1.location
2.candle shape/price action
3.timing
location is as one of the major lines,median lines(mostly when adding),s/r levels and fib levels.
price action is
pinbars or engulfing candles which are my favorites
and rarely 3 bar reversal or an inside bar.But first two of them most reliable ones.
timing is something we do not have a control over.We just get to know after we excute the trade.when I say timing I dont' mean the market hours but when the price starts making its big bold candles.
when...
Nomask (and the gang)--

Thank you for your indepth reply, taking the time to review my chart and all the valuable information to my post and to all the others. Be assured that every word written in this thread is being absorbed, extremely valuable and appreciated (though some repetition may be required ). I can say without a doubt that I do feel like I'm moving forward with all of your clarifications.

And although this week is turning out so far to be a ranging week with 2 B.E. trades, the education (and acquiring discipline) is priceless! I do find it amazing still how the market and your lessons have perfect timing (when you started this thread there was a long bias, now time for the consolidation/ranging lesson. I don't know if you could have planned it any better...wow!).

BIG Thank You to you and everyone!
  • #602
  • Mar 31, 2011 2:35am Mar 31, 2011 2:35am
Quoting leftcoaster
Nomask (and the gang)--

Thank you for your indepth reply, taking the time to review my chart and all the valuable information to my post and to all the others. Be assured that every word written in this thread is being absorbed, extremely valuable and appreciated (though some repetition may be required ). I can say without a doubt that I do feel like I'm moving forward with all of your clarifications.

And although this week is turning out so far to be a ranging week with 2 B.E. trades, the education (and acquiring discipline) is priceless!...
thank you too for letting me clarify the method by asking important questions.
You're right this pair has been walking through simultaneously as we revealed the method.
By now the method has been pretty much covered..
nothing important to add but may be some spices later on.
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  • #603
  • Mar 31, 2011 3:54am Mar 31, 2011 3:54am
why you not change the fibo for the past week? sorry if my understanding about fibo wrong
  • #604
  • Mar 31, 2011 4:38am Mar 31, 2011 4:38am
Quoting normeck
why you not change the fibo for the past week? sorry if my understanding about fibo wrong
I did change it though.If you notice that the high of the fib has been moved to the last weeks high but after that ,price went back in the old range making the previous week in tact.
  • #605
  • Mar 31, 2011 4:51am Mar 31, 2011 4:51am
Quoting nomask
thank you too for letting me clarify the method by asking important questions.
You're right this pair has been walking through simultaneously as we revealed the method.
By now the method has been pretty much covered..
nothing important to add but may be some spices later on.
Nomask, just want to ask what can we do if we have missed the breakout candle which just happened 2 hours ago?
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  • #606
  • Mar 31, 2011 5:18am Mar 31, 2011 5:18am
Quoting liangko
Nomask, just want to ask what can we do if we have missed the breakout candle which just happened 2 hours ago?
answer is "nothing"...
the purpose of this method is establishing positions with low risk.
we don't try to capture every movement since it would cost a lot more than what we willing to risk.
whenever I think that i missed an entry, half of the time later on I see price coming back and giving me another/better (in terms of timing) opportunity.
You'll find out more when you stay patient.
  • #607
  • Mar 31, 2011 5:31am Mar 31, 2011 5:31am
Quoting nomask
answer is "nothing"...
the purpose of this method is establishing positions with low risk.
we don't try to capture every movement since it would cost a lot more than what we willing to risk.
whenever I think that i missed an entry, half of the time later on I see price coming back and giving me another/better (in terms of timing) opportunity.
You'll find out more when you stay patient.
Thanks for your advice.

I should have listen to you before do something stupid.

I just entered on 5 mins tf after the retracement from 38.2% fib level. However, it stopped out with small loss.

Now I will wait for the current 4hr candle to close first before do anything.
  • #608
  • Mar 31, 2011 5:43am Mar 31, 2011 5:43am
Quoting liangko
Thanks for your advice.

I should have listen to you before do something stupid.

I just entered on 5 mins tf after the retracement from 38.2% fib level. However, it stopped out with small loss.

Now I will wait for the current 4hr candle to close first before do anything.
Its allright.We all make mistakes.
here is detailed explanation of what i meant with the previous post.
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  • #609
  • Mar 31, 2011 7:13am Mar 31, 2011 7:13am
Just to share my thought and seek for your guys advices:
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  • #610
  • Mar 31, 2011 7:50am Mar 31, 2011 7:50am
Quoting nomask
Its allright.We all make mistakes.
here is detailed explanation of what i meant with the previous post.
Hi Nomask,

Could you please explain why you chose that swing low point on the 5M chart for the fibs?

Thanks!
  • #611
  • Mar 31, 2011 8:46am Mar 31, 2011 8:46am
Quoting jasonc1213
Hi Nomask,

Could you please explain why you chose that swing low point on the 5M chart for the fibs?

Thanks!
its the start of the 4hr setup candle.
  • #612
  • Mar 31, 2011 9:09am Mar 31, 2011 9:09am
Quoting liangko
Nomask, just want to ask what can we do if we have missed the breakout candle which just happened 2 hours ago?
Liangko, I was kicking myself because I missed that breakout, too. It was a 4am candle for me in EST. #1 on chart

#2 on chart shows a small break. If I'd have been awake I would have taken that one. I know it's prior to the close of the 4H signal candle, but it's above the break of the 4H channel, It's a little aggressive but as long if I can move SL to BE it doesn't matter.

Both got stopped out anyway! I think it was on the bad USA unemployment news this morning.
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Luck occurs when preparation meets with opportunity.
  • #613
  • Mar 31, 2011 9:14am Mar 31, 2011 9:14am
Oh, it's very different on my chart. I think I'll download fxdd-malta just to see what you're seeing. I was wondering... are you planning on trading at all during NFP day?

Thanks again.

I missed the EUR/USD breakout several hours ago and now I'm at my day job. Good luck everyone with any opportunities that present themselves today.
  • #614
  • Mar 31, 2011 9:16am Mar 31, 2011 9:16am
Quoting liangko
Nomask, just want to ask what can we do if we have missed the breakout candle which just happened 2 hours ago?
That's why I suggested a Buy Stop at your 23 Fib because we can't be at our computers all the time, best you can do is place it there with a stop loss you're comfortable with. I caught it but price is coming back....hopefully just a minor retrace.
  • #615
  • Mar 31, 2011 9:45am Mar 31, 2011 9:45am
Quoting AlienFrog
Liangko, I was kicking myself because I missed that breakout, too. It was a 4am candle for me in EST. #1 on chart

#2 on chart shows a small break. If I'd have been awake I would have taken that one. I know it's prior to the close of the 4H signal candle, but it's above the break of the 4H channel, It's a little aggressive but as long if I can move SL to BE it doesn't matter.

Both got stopped out anyway! I think it was on the bad USA unemployment news this morning.
Yea. The price is zig zag-ing like crazy. Unpredictable.

Foresee even more volatile movement on the release of NFP report tomorrow.
  • #616
  • Mar 31, 2011 9:55am Mar 31, 2011 9:55am
Quoting deepblue44
That's why I suggested a Buy Stop at your 23 Fib because we can't be at our computers all the time, best you can do is place it there with a stop loss you're comfortable with. I caught it but price is coming back....hopefully just a minor retrace.
Yea. It is a good idea to place a Buy stop order at desire level to enter. I will consider to do that next time.

The price has been retraced greatly and it is forming bearish engulfing candle. Not really sure where is the price heading to.

Hope that your position can get through this and become one of profit making legs.
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  • #617
  • Mar 31, 2011 12:14pm Mar 31, 2011 12:14pm
Hi Nomask


Thank You so much for this brilliant thread. I now understand how to trade properly and enjoy reading your explanations.

with Best Wishes
  • #618
  • Edited 10:32pm Mar 31, 2011 3:20pm | Edited 10:32pm
Nomask --

Here's a thought, please comment and correct me if I'm wrong...

I was staring at the H4 chart and reviewing this week's move. As it's turning out, this is a bullish week and trading with the LONG bias would certainly have established our positions providing we entered those positions at the right LOCATION (1. Location, 2. candle shape/price action, 3. Timing, see http://www.forexfactory.com/showpost...&postcount=589).

So the question becomes, where could I have entered and my positions still survive?

First, if I stood back and stepped outside the forest, looking at the H4 candles from afar...
For a couple weeks, price was bouncing it's head on the 1.40 level, then when it finally broke, price came back down during this week to that level and retested it. If I drew a H4 S/R line off of most recent old tops (where price was meeting resistance, red line), this week's early pinbars bounced right off the Old Resistance line (old resistance becomes new support). If I could have identified that sooner, I may have paid more attention to those early in the week H4 pinbars.

Second, entries...
So where could I have entered and my positions still survive? It appears that I should be paying more attention to WICKS of DOUBLE BOTTOMS (and tops if reversed), as deepblue44 pointed out in one of his posts http://www.forexfactory.com/showpost...&postcount=502. Having a position on the wicks of H4 candles has a higher probability for survival with the smallest risk, thus giving us the 'trading edge' because the likelihood of price revisiting the wicks are lower than revisiting the bodies. Or another way of saying it is that we are entering long positions at 'Demand' levels, pivot points (short positions at 'Supply' levels, Sam Seiden terminology). (This is only another entry LOCATION). And all other entries thereafter would be our stacking positions.

One more thing -- catching pinbars -- always 'look to the left', be mindful of what's to the left and set alerts if you see a possible DB situation, surely can't hurt.

Am I on the right track?

Thanks!
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  • #619
  • Mar 31, 2011 3:41pm Mar 31, 2011 3:41pm
Very good and clear post, helps us all.







___________
michael
Be like water.
  • #620
  • Apr 1, 2011 2:46am Apr 1, 2011 2:46am
Quoting Jess
Hi Nomask


Thank You so much for this brilliant thread. I now understand how to trade properly and enjoy reading your explanations.

with Best Wishes
Thank your for your compliments.Glad to hear you enjoying it.

Quoting leftcoaster
Nomask --

Here's a thought, please comment and correct me if I'm wrong...

I was staring at the H4 chart and reviewing this week's move. As it's turning out, this is a bullish week and trading with the LONG bias would certainly have established our positions providing we entered those positions at the right LOCATION (1. Location, 2. candle shape/price action, 3. Timing, see http://www.forexfactory.com/showpost...&postcount=589).

So the question becomes, where could I have entered and my positions still survive?

First,...
Location has to be very easy to spot by traders. That’s why we want to see a price action out of any wicks or range so mass psychology can pay attention and follow it easily.
Although price usually respects to the past s/r levels from very long time ago,in terms of “starting its move” price needs a relatively close s/r level for the same reason “should be easily spotted”.
See the chart #1.
So I don’t consider all the past s/r levels to determine my possible entry levels.
I want something recent, easy to spot which is most of the time being previous week’s high-low or fib levels and major lines(1.4,1.3,etc).
That’s why I ignore the longer s/r level in the previous chart to keep things simple to trade.As you can see It did not meet the above requirements,iIt was not overlapped with neither any of the fib levels, high/low of the last week nor a major line.
Also you can see that the last week’s candle was an “almost inside bar” candle. In this case, I highlighted the areas that I’d be noticing during the week.chart#2..
1st arrow :low of the week overlapping %50 fib of the recent swing
2nd arrow:high of the week
3rd 61.8 fib leve of the recent swing overlapping with major line
4th same with 1st (put that by accident)
5th 38.2 fib of the recent swing
6th new s/r level formed in the present week.
I usually get 1 or 2 4hr setup candles during a week.That start real move.
However this week we’ve had (chart#3) 26 4hr candles finished but only 4of them could be taken as setup candles (1 of them countertrade.If you take that out you get 3 4hr candles).But none worked out.
This is all about trading itself.Sometimes you get 1 signal and a 500 pip quick move after that but sometimes “like this week” you get 3 signals but no significant move.Its like fishing so we have to be patient fishermen.
You're on the right track.Keep analysing previous moves and ask yourself which price action started the move..Thats very key to improve your trading skills.After you pass this stage you'll be spotting very easily and hearing that candles talking to you (not because you lost your mind by then)
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