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Trading Made Simple

  • #5,801
  • Jun 20, 2011 12:50pm Jun 20, 2011 12:50pm
Quoting freebeans
Identifying support and resistance is so important when trading this system. Do you guys draw your own like I do or do you get the values from some other website.
I draw my own.
  • #5,802
  • Jun 20, 2011 12:53pm Jun 20, 2011 12:53pm
Quoting rbuki
I have found a statistical analysis of different pairs using 4H TF. It shows the starzing times when trends are most likely to occur with the average trend length and reachable pips. I think it can be of some interest. Ric
I thinkIwill monitor this and see what happens. thanks for the info
  • #5,803
  • Jun 20, 2011 12:53pm Jun 20, 2011 12:53pm
Yeah me too
  • #5,804
  • Jun 20, 2011 1:03pm Jun 20, 2011 1:03pm
Quoting bez3000
I draw my own.
I would like to see some of your trades if you have time to post some charts. I know you work, so dont go to any extra trouble if it interferes with your schedule.


Freebeans
  • #5,805
  • Jun 20, 2011 1:32pm Jun 20, 2011 1:32pm
Guys, sorry for this off topic but... I just couldn't resist to post this chart. Some people are really out of their mind!

Ka-boom!

Edit and PS: Actually it is ON topic: that's what would happen if you keep adding "one more" fancy indicator to your chart! Enjoy!
Attached Image (click to enlarge)
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Bah...
  • #5,806
  • Jun 20, 2011 1:34pm Jun 20, 2011 1:34pm
Quoting poudos
I took it earlier (1,4304) on H1 tf but I hesitated (see previous post) to add another long position on H4 tf.
So let's see now...
I have also entered Long @1.4309 on 1H tf, but EurUsd is not moving.
  • #5,807
  • Edited 1:58pm Jun 20, 2011 1:36pm | Edited 1:58pm
Re the point about support and resistance levels, you really do have to draw your own. It's the only way to learn about them for yourself, and get a feel for how price reacts to them.

I come from a background of pure price action trading using a naked (ie no indicators) chart. In short, it's all about identifying longer term trends and shorter term directional bias, then figuring out how price will react to areas of support and resistance. That doesn't just include levels where price has found s&r in the past, but 'big numbers' (00s and 50s), plus fib retracements and daily/weekly/monthly pivot points.

There are particular levels that do exert a consistently strong influence on price: the previous day's high and low is one. By that I mean the previous 24 hour period - I use NY midnight to midnight. Keep an eye on that in the future and you'll see what I mean.

One useful technique is to look for areas of confluence... ie where potential s&r indications fall together within about 10 or 15 pips. Like you could get yesterday's high near to 1.6200 and also near to a daily pivot resistance level. Those together would indicate potentially very strong resistance. Stronger than if was just the big number on its own for example.

All of this is impossible to get onto your chart with TDI and Stochs underneath without it all getting too messy. I use a separate 15m chart (wit no indicators) with s&r levels noted. Then when I get an entry signal, I'll flick open the other chart just to check what's around before pulling the trigger.

All of this might sound like it's complicating the KISS ideal. I don't think so. Big E has in the past emphasised how essential an understanding of basic price action is (I think he even mentioned at least a year's experience at some point). If anyone isn't that familiar with these techniques, I'd suggest they spend a bit of time trading without any indicators whatsoever (on demo of course!!!). It's the best way to get a feel for how the market flows on an hour-by-hour, day-by-day, week-by-week basis.
  • #5,808
  • Jun 20, 2011 2:02pm Jun 20, 2011 2:02pm
hi all

i have a question about e/u today on the 4 hr at what time did the green line cross the red for a short trade 4.00am or 8.00am gmt

why i ask 4.00 bar was a small bar so would like conformation
if yes for a short trade it was good for 60 pips if no then 8.00am would have been a short trade which would have resulted in a losser

thanks
"The person who knows that enough is enough, will always have enough". .
  • #5,809
  • Jun 20, 2011 2:29pm Jun 20, 2011 2:29pm
I have a question, I've read in Big E's comments that you should wait till the candle closes above the yellow moving average(5EMA) and the take the trade on the open of the 2nd candle, is that what you guys do or take the trade as soon as the TDI crosses? Because I have also read that the other indicators are just used as a guide and aren't used in the entry. And all you do is wait for the TDI to cross and take the trade on the new candle? I'm sorry for this I have read it but im still kind of confused. Also what if the price is about to hit a round number should you wait before the price moves past it or take the trade as soon as the candle opens?

Sorry about all the questions, but im just confused after reading all those posts. I appreciate any help.

Kind regards
  • #5,810
  • Jun 20, 2011 2:50pm Jun 20, 2011 2:50pm
Quoting Wbm
I have a question, I've read in Big E's comments that you should wait till the candle closes above the yellow moving average(5EMA) and the take the trade on the open of the 2nd candle, is that what you guys do or take the trade as soon as the TDI crosses? Because I have also read that the other indicators are just used as a guide and aren't used in the entry. And all you do is wait for the TDI to cross and take the trade on the new candle? I'm sorry for this I have read it but im still kind of confused. Also what if the price is about to hit a round...
You may have read the posts but you didn't get the picture?

Think of it like this, Big E gets up at midnight his time (doesn't matter of course, could be Mars time, but throws everyone off track), 8 am London (this is the important time to consider) - the 4 hour candle is CLOSED - he sees a cross, of course he is entering on the start of a new candle!

It is the only possible answer, he enters a trade, he goes back to bed, doesn't stare at the screen for the next 4 hours looking for an entry.

Just think about it, be like Watson or CSI, find the clues
OPPORTUNITY IS NOWHERE
  • #5,811
  • Jun 20, 2011 2:56pm Jun 20, 2011 2:56pm
I think im just over analysing everything. Thanks for your help

Quoting Callisto
You may have read the posts but you didn't get the picture?

Think of it like this, Big E gets up at midnight his time (doesn't matter of course, could be Mars time, but throws everyone off track), 8 am London (this is the important time to consider) - the 4 hour candle is CLOSED - he sees a cross, of course he is entering on the start of a new candle!

It is the only possible answer, he enters a trade, he goes back to bed, doesn't stare at the screen for the next 4 hours looking for an entry.

Just think about it, be like Watson or CSI,...
  • #5,812
  • Jun 20, 2011 2:58pm Jun 20, 2011 2:58pm
There are so many S/R areas we could be thinking about/looking at. However, if you look at every S/R area available, very few trades appear 'safe'..

Possible S/R levels:

 

  1. Recent High/Low
  2. Round Numbers (which?)
  3. Previous Day's High/Low
  4. Daily Pivot
  5. Daily Pivot S/R
  6. Weekly Pivot
  7. Weekly Pivot S/R
  8. Monthly Pivot
  9. Monthly Pivot S/R


Which levels do you folks pay attention to? I'm currently looking at bolded levels for my H1 trades.

Enter Signature
  • #5,813
  • Jun 20, 2011 3:00pm Jun 20, 2011 3:00pm
Going south with it. Think its looking good.
Still lerning so a small TP of 15-20 pip.
  • #5,814
  • Jun 20, 2011 3:01pm Jun 20, 2011 3:01pm
Callisto,

I'm a newbie working my way through the thread...
I have a question...should a newbie concentrate on the overnight 4 hr bar entry? Or the hourly bar entry throughout the day?

I'm just wanting to know where my focus should be?
Thanks,
dougl
  • #5,815
  • Jun 20, 2011 3:03pm Jun 20, 2011 3:03pm
Quoting plamendp
Guys, sorry for this off topic but... I just couldn't resist to post this chart. Some people are really out of their mind!

Ka-boom!

Edit and PS: Actually it is ON topic: that's what would happen if you keep adding "one more" fancy indicator to your chart! Enjoy!
This is too Funny
  • #5,816
  • Jun 20, 2011 3:03pm Jun 20, 2011 3:03pm
Quoting Pecunia
I took this, let's see if it breaks resistance...
Closed EURUSD long on H4 -10 pip loss. Resistance wasn´t broken and TDI went flat.
  • #5,817
  • Jun 20, 2011 3:08pm Jun 20, 2011 3:08pm
OK guys whats that euro going to do! Fly or Die? If only we could get politics out of it! Somebody's pockets are going to get greeced.
  • #5,818
  • Jun 20, 2011 3:11pm Jun 20, 2011 3:11pm
Quoting Wbm
I think im just over analysing everything. Thanks for your help
Just to analyse it a bit further, in the situation I described, the cross must already be there on the closed candle for Big E to take the trade - remember he says he takes only the best set ups, must mean that a move is underway from the Asian session. To visually back test the system, probably all anyone has to do is mark all the 8 am, 12 noon & 4 pm London time candles, see if there is a cross and how far the trade went.

The problem for the rest of us watching at 8 am London time, seeing the new candle form, and it might be a direction change as often happens around then, lines start to cross but 4 hours is a long time, they could reverse fairly quickly and the cross disappears...

This is why there is so much discussion on this topic and why Big E brushes it off so easily, because he doesn't see it happening, in my opinion anyway, yours may vary
OPPORTUNITY IS NOWHERE
  • #5,819
  • Jun 20, 2011 3:14pm Jun 20, 2011 3:14pm
Quoting Pecunia
Closed EURUSD long on H4 -10 pip loss. Resistance wasn´t broken and TDI went flat.
If you are posting real time, it is no wonder, everything is closed !!!
OPPORTUNITY IS NOWHERE
  • #5,820
  • Jun 20, 2011 3:28pm Jun 20, 2011 3:28pm
Quoting PipsyRussell
OK guys whats that euro going to do! Fly or Die? If only we could get politics out of it! Somebody's pockets are going to get greeced.
To me it looks like big sharks took the opportunity (No big News, Greece drama tomorrow, etc.) to clean all stops inbetween 1.42-1.43 area in preparation for tomorrow plunge (Greek Parliament). That's just a hunch anyway.

Btw, what's the name of the pattern in red colored box? Very unusual (to me at least)? Do you see the same gap? I think today's rally was just to fill it up.. Just thoughts...

On a side note: any greek fellow here ? Any insight information?

Plamen
Attached Image (click to enlarge)
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Bah...
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