DislikedI also think this area is interesting if it's broken I can see it heading a long way down.Ignored
Hopefully this will be the first position of many on the new bear trend!
Regards,
Dan
DanUK's Advanced Trend Trading Strategy
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- Joined Nov 2008 | Status: You must obey the dance commander | 2,038 Posts
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- Jun 29, 2011 9:49am Jun 29, 2011 9:49am
Hi all,
Yes I am still out here trading!
So I must apologise to kwaters and hotjoey who asked me questions but I missed them and it's probably a bit late to reply now!
Dan
We will wait and see your good trading performance, and look forward to hearing your good news.
have a nice day, dude best regards
Joey
Gododdin (Hi DanUK),
Two vitally important things to consider with "Inside Bars" (also known as Harami's).
1. IF you trade an inside bar WITH the timeframe trend your odds are exponentially higher of a successful trade. Remember, reducing risk (risk management) and waiting for high probability set ups are the keys to success.
2. However If you choose to trade an "inside bar" against the trend you are officially "counter trend" trading and a higher risk trade as the overall primary trend will resume at some point and this counter trend trade will come to an end. It's not to say you won't snag some pips in the process but just make sure you're not greedy and take profits as price retraces back down into the overall trend.
NOTE: Some use the analogy that "Inside Bars" are referred to as "Mother Bars"...meaning the larger candle that preceeds an inside bar is the "Mother" candle and the "inside" bar is the child. When price takes out the high/low of the Mother candle, it's giving birth to the move. It's a natural way to discuss in essence what an inside bar truly is
127.2 Trade
This is a phenomenom known as the 127 trade and it's setup using Fib Extensions. When price breaks thru a previous swing high or low, there is a 70% success rate of price reaching the 127.2 Fib extension from where price broke structure. Go back thru your charts and watch just how accurate this set up is. You'll be pleasantly surprised and rewarded. ONCE I get my flying colors from Forex Factory (as today is my first post and am considerd a noob), I'll post a few charts.
DanUK, I too am a pure price action trader and use all of the same methodologies and timeframes that you do. I will enjoy contributing and sharing what I know as I'm am familiar with this style of trading.
Thanks all - Mongo
That’s quite alright. I welcome questions – this thread is designed to help and if things aren’t clear I have no problem discussing them.
Regards,
Dan[/quote]
Two vitally important things to consider with "Inside Bars" (also known as Harami's).
1. IF you trade an inside bar WITH the timeframe trend your odds are exponentially higher of a successful trade. Remember, reducing risk (risk management) and waiting for high probability set ups are the keys to success.
2. However If you choose to trade an "inside bar" against the trend you are officially "counter trend" trading and a higher risk trade as the overall primary trend will resume at some point and this counter trend trade will come to an end. It's not to say you won't snag some pips in the process but just make sure you're not greedy and take profits as price retraces back down into the overall trend.
NOTE: Some use the analogy that "Inside Bars" are referred to as "Mother Bars"...meaning the larger candle that preceeds an inside bar is the "Mother" candle and the "inside" bar is the child. When price takes out the high/low of the Mother candle, it's giving birth to the move. It's a natural way to discuss in essence what an inside bar truly is
127.2 Trade
This is a phenomenom known as the 127 trade and it's setup using Fib Extensions. When price breaks thru a previous swing high or low, there is a 70% success rate of price reaching the 127.2 Fib extension from where price broke structure. Go back thru your charts and watch just how accurate this set up is. You'll be pleasantly surprised and rewarded. ONCE I get my flying colors from Forex Factory (as today is my first post and am considerd a noob), I'll post a few charts.
DanUK, I too am a pure price action trader and use all of the same methodologies and timeframes that you do. I will enjoy contributing and sharing what I know as I'm am familiar with this style of trading.
Thanks all - Mongo
Hi gododdin,
Thanks for your questions... I have put my responses in blue below and hopefully it should help to clear things up a little more:
1. First of all you identify a trend on the daily by zooming out as far as possible. Let's assume you've got an uptrend for an imaginary case. Ok.
2. We've already identified our support and resistance levels and rounded down/up to round numbers as you suggest. Ok....
Regards,
Dan[/quote]
Hi Sylar/DanUK...
If I could offer a suggestion for those who've NOT experienced a 1,000 pip winner (yet)...
After you take a trade (of course using good, sound principles that DanUK has thoroughly layed out)...SIT on your hands.
Next, come back and see if a), you're still in the trade or b) you've been stopped out. If you're still in the trade...SIT on your hands (again
Next come back and look at where price is at. IF price (for example; a short trade) has moved down, then retraced (putting in an "outside return" or Lower swing), simply move your stop down to Break Even.
As price makes a newer outside return, now move your stop from break even down atop the previous "outside retrun" or newest cycle swing. KEEP repeating until the market proves it wants to reverse and take you out.
This approach accomplishes (3) things;
1. Patience: You've entered a good trade, now let the market work for you, no need to be hasty and take a profit just because you're impatient.
2. With price and the market proving itself, your trade is a winner and by moving stops to BE+1, you create confidence and discipline as you follow your rules (whatever they may be) Why? because you are now in a RISK free trade and trades have 4 results; Win, Lose or Breakeven. Win and Breakeven are considered WINNERS!
3. By moving your stops down JUST above the outside returns (in this short trade example), you're locking in profits while making the market prove it wants to go higher and reverse.
This becomes a repeatable and disciplined way to trade and we all know we can use more discipline
Mongo
If I could offer a suggestion for those who've NOT experienced a 1,000 pip winner (yet)...
After you take a trade (of course using good, sound principles that DanUK has thoroughly layed out)...SIT on your hands.
Next, come back and see if a), you're still in the trade or b) you've been stopped out. If you're still in the trade...SIT on your hands (again
Next come back and look at where price is at. IF price (for example; a short trade) has moved down, then retraced (putting in an "outside return" or Lower swing), simply move your stop down to Break Even.
As price makes a newer outside return, now move your stop from break even down atop the previous "outside retrun" or newest cycle swing. KEEP repeating until the market proves it wants to reverse and take you out.
This approach accomplishes (3) things;
1. Patience: You've entered a good trade, now let the market work for you, no need to be hasty and take a profit just because you're impatient.
2. With price and the market proving itself, your trade is a winner and by moving stops to BE+1, you create confidence and discipline as you follow your rules (whatever they may be) Why? because you are now in a RISK free trade and trades have 4 results; Win, Lose or Breakeven. Win and Breakeven are considered WINNERS!
3. By moving your stops down JUST above the outside returns (in this short trade example), you're locking in profits while making the market prove it wants to go higher and reverse.
This becomes a repeatable and disciplined way to trade and we all know we can use more discipline
Mongo
Hi Sylar,
Thank you for your questions...
Yes to a certain extent I do rank my entries… I don’t really grade them but I do consider in my mind how good the setup looks and I only take it if I feel comfortable with it – you know when you should skip a trade because you will get to “feel” that the entry is not quite what it should be; at that stage you know it’s better to stay out.
[color=black][font=Verdana]If I get...