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Quoting the_wizard
I was bidding to buy that as it broke the lows for a classic fade.

But you are right; normally I would look for this area to break and trade a rounded retest.
Thank you. I think I missed the session where you talked about classic fades.

If I understand correctly, there are some situtations you will buy at these locations also, right ?
  • Post #482
  • Quote
  • Edited at 1:39pm May 21, 2011 1:00pm | Edited at 1:39pm
Quoting the_wizard
Hi Alex,

I will do my best and we can see how the thread progresses.

As a full time trader I often don't get time to post and it can be hard to sum up everything I'm thinking in a post. That's why when I do get time, I'll make a lot of posts in one go :-)

If anyone is interested, I've got some screen sharing software and I'm happy to run a free room on a Sunday evening to share the trades I've recently taken and their management and make some calls for what I'm looking out for in the week ahead. It will be a lot easier to communicate everything...

Hi Wizard,

Your thread says it out about newbies.

I will be very interested to subscribe to your webinars if there is going to be one. I had pm you on this.

I have a few questions regarding the way you trade nowadays:

1. I still don't get it how you know when to short off the resistance zone, and long off the support zone. How you know it will not simply punch through the zone and reverse on your position significantly?

2. How many times touching of the zone you will consider it as strong or weak support/resistance zone? Do you look at the velocity it reached the zones in the past and how it relates to the present trend? In one of your answer you said never long when the market touches the support too many times. How many times is many?

3. How you deal with the large drawdown following this method?

4. Do you cross reference different time frames to determine which support and resistance to use for your trade?
Hope to learn more from you. I am hooked on this thread.

5. As from the title of my post here, you seems trade price action without stressing too much on candlesticks or you completely ignore candlesticks formation patterns?

6. Which time frames is best suited to the so called "no interaction" approach once the setup is entered?

7. But then your subsequent post seems to call for interaction of the stop loss to adjust our initial Risk/Reward ration. Isn't it contradict the "no interaction" method?

8. Do you taking into account news breakout before you want to enter a trade setup? E.g. NFP, you wait for the news to settle in for at least half hour before entering a trade?

9. What you shared here, how is it different from another protrader Sam Seiden of Online Trading Academy about supply and demand, and price action by James16?

10. It seems we need to have large equity balance to trade your method of "no interaction"?

Thanks.
Just my observations but i think for many noobs it is good to understand this first.

Simply the law of chart based on Dow theory.
I think a less experienced trader maybe could focus first on the rounded retest as tom described. See them as stones laying on each other building a trend.
In this stones can be a range on the shorter timeframes. Don't really know how to desribe it but most S&R traders probally know what i mean.
Like the market is fractal in nature.

http://blogs.stockcharts.com/mailbag...indu-tran.html

http://en.wikipedia.org/wiki/Dow_Theory

http://www.optionsoutlet.com/ebooks/DowTheory.pdf



If you get more experienced you can look for stophunts etc
  • Post #484
  • Quote
  • Edited at 11:31am May 23, 2011 7:58am | Edited at 11:31am
Quoting jerryyap
I have a few questions regarding the way you trade nowadays:

1. I still don't get it how you know when to short off the resistance zone, and long off the support zone. How you know it will not simply punch through the zone and reverse on your position significantly?
You don't.

There are no certainties in this game. All you have are probabilities.

There are certain factors I look for to place the odds in my favour that price will bounce. These include but are not limited too;

- making sure the level is significant s/r (preferably with confluence - particularly the ATR)

- that price would make sense bouncing when I consider the highest timeframe (the D1)

- that the level not been hit too many times (particularly from the same side) in recent activity

- the the level is not washed

- that time has elapsed between the breakout and the return (I use the "rounded retest" on the H1 to evaluate this)

- that price is not bouncing just ahead of it and then returning to it,

- that price is moving with some velocity but that the velocity has not just started from the middle of nowhere on no news

These are the major points. The words in italics are ones I find hard to systematise. People are always asking me for a set of rules. "How much time between the break and retest? How far does price have to bounce for you to cancel your order?" etc etc. I am not a rules based trader. Things either look right to me or they do not and this is purely based on screen time.


Quoting jerryyap
2. How many times touching of the zone you will consider it as strong or weak support/resistance zone? Do you look at the velocity it reached the zones in the past and how it relates to the present trend? In one of your answer you said never long when the market touches the support too many times. How many times is many?
In general, if it has three touches from the same side in "recent" trade (I will not quantify this - recent for me can be weeks, it can be months it depends on how price has moved) then I will not trade it the fourth time no matter what I see (unless I am fading it)

Quoting jerryyap
3. How you deal with the large drawdown following this method?
I don't get large drawdown.

In the early stages of my career I did but that was due to the risk taken.

Quoting jerryyap
4. Do you cross reference different time frames to determine which support and resistance to use for your trade?
Hope to learn more from you. I am hooked on this thread.
Yes, I use the D1 and H1.

Quoting jerryyap
5. As from the title of my post here, you seems trade price action without stressing too much on candlesticks or you completely ignore candlesticks formation patterns?
No, I just don't use them to the extent I used too. If I see a D1 candlestick formation and it appears at a good level that for some reason I am not in at the source, I will use that to determine my bias for the next session. I don't usually do this with H1 candlestick formations however.

Quoting jerryyap
6. Which time frames is best suited to the so called "no interaction" approach once the setup is entered?
You have to find this out yourself. Whether one should "interact" or "not interact" requires examining the trade idea once they are out of it and determining the outcome under both approaches. And then looking for patterns.

Quoting jerryyap
7. But then your subsequent post seems to call for interaction of the stop loss to adjust our initial Risk/Reward ration. Isn't it contradict the "no interaction" method?
I didn't say to use a no interaction method on my trades. I said that I use it on the gap trade and that I have worked with some traders that find they do better with no interaction.

Quoting jerryyap
8. Do you taking into account news breakout before you want to enter a trade setup? E.g. NFP, you wait for the news to settle in for at least half hour before entering a trade?
With NFP, I tend to not take positions up to a few hours before and about an hour after. Everything else I largely ignore unless it is particularly high impact, falls within an hour of my setup and relates directly to what I am trading.

Quoting jerryyap
9. What you shared here, how is it different from another protrader Sam Seiden of Online Trading Academy about supply and demand, and price action by James16?
I have no idea who Sam Seiden is. It is similar to J16 but not identical. There are several things I am covering in the webinars that I have never come across J16 or anyone else for that matter talking about.

Quoting jerryyap
10. It seems we need to have large equity balance to trade your method of "no interaction"?
See my response above regarding "no interaction".

But regarding my method in general: you do not need a large equity balance.

How much you need depends on how good your stats are, how well you position size and also how much you are comfortable risking.

I built my account to what is today from about £50 ($80).

The record I used to get into prop I built from around £200 - £4,000 approx in a few months.

I traded an account for my sister last year that I took from approx £800 to just under £10,000 in a year trading this way.

It is worth noting however, that the less money I had, the bigger risk I always took until I deemed the account big enough that I could scale back risk.
Please note: I cannot respond to PM's but you can email me via my profile.
The pattern we spoke about in the webinar.

This was the only FX pair among those that I watch that I saw it in.

Remember it calls for a down day the next day which we have had (and can also often call a longer term swing high).

Tom
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I guess this is what you would call a spider!?

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Quoting plund
I guess this is what you would call a spider!?

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Holy smokes. I have no idea what that is but win or lose, buying that on a rounded retest is a good trade.

Please keep us updated. I'd like to know how that one pans out.
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Tom, a chart I posted on the J16 FF thread.

Is the 1.3200 level something you would touch trade?

If I remember correctly, this doesn't seem to be a pair that you follow?

Tomek
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Quoting 5.25
Tom, a chart I posted on the J16 FF thread.

Is the 1.3200 level something you would touch trade?

If I remember correctly, this doesn't seem to be a pair that you follow?

Tomek
No, I wouldn't trade this since it was support last and it's the third time back.
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Another one I am watching.

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pat
AUD/USD posted the bullish pattern I look for on the D1 yesterday.

I wonder if some of you saw that and have got in :-)
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Quoting the_wizard
AUD/USD posted the bullish pattern I look for on the D1 yesterday.

I wonder if some of you saw that and have got in :-)
I'm still testing this out...unfortunately didn't execute.

Questions for you ....on the below charts...N/JPY( i know you don't trade the pair).

First, does my ppz at 65.30 look accurate? And secondly, would you wait for a rounded retest of the area to go long ? I am not looking for trading advice, just looking to see if I am understanding the concept you teach.

Thanks,

Bill
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Quoting the_wizard
AUD/USD posted the bullish pattern I look for on the D1 yesterday.

I wonder if some of you saw that and have got in :-)
Hey Tom - Since price closed below your highlighted bars low yesterday I'm assuming this isn't the setup you described in the last webinar where price tests a level again and forms a wick closing behind that level?

If so, could you explain what you're looking for in this setup pls?

Cheers
Simon
Quoting AnimalHungry
Hey Tom - Since price closed below your highlighted bars low yesterday I'm assuming this isn't the setup you described in the last webinar where price tests a level again and forms a wick closing behind that level?

If so, could you explain what you're looking for in this setup pls?

Cheers
Simon
Simon,

It closed above the lowest low on my feed.

Only marginally but it was still a close above.

Tom
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Is this a good level for a rounded retest? I am sure it is not a good level to short as it has too many hits.
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Quoting macbow
Is this a good level for a rounded retest? I am sure it is not a good level to short as it has too many hits.
I'm buying a break and rounded retest of that.
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Would this qualify?
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Quoting Atc
Would this qualify?
Was the close on yesterdays UP day, LOWER than the high of the last swing?

It doesn't look like it from what I can see of your chart but if it is, then yes it is the pattern.

If it is equal or higher then it is not the pattern.
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Quoting the_wizard
Was the close on yesterdays UP day, LOWER than the high of the last swing?

It doesn't look like it from what I can see of your chart but if it is, then yes it is the pattern.

If it is equal or higher then it is not the pattern.
The answer is no .....it missed by a pip on the feed FXpro 5pm est daily close. However, another feed I trade on it was clearly lower. So, I assume you are using the 5 pm est D1 feed.
Quoting the_wizard
The pattern we spoke about in the webinar.

This was the only FX pair among those that I watch that I saw it in.

Remember it calls for a down day the next day which we have had (and can also often call a longer term swing high).

Tom
Sorry Tom, I wasn't at the webinar is the pattern you are referring to a BEOB or is it something other than that?

Thanks.
Gregg
Gregg Sniper in training
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