congrats Sonicdeejay. It is always nice to come back from sea and find some profit instead of SL. TP1 hit, SL on BE
- #22,083
- Jun 22, 2011 2:07pm Jun 22, 2011 2:07pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,553 Posts
hello soonicers here is my 2 cent picture say 1000 words..hope it will help new commers..
Muhammad
(See his fantastic instructional chart below!)Folks, following up on Muhammad's post, the current H4 chart is now showing reason for a SonicR short setup. It shows PA failing at S&R, and an engulfng candle.
This new session just started, up to the next London open, might provide a retrace upwards to give us a nice PA WAVE like the one shown on the attached M15. This would be a PA WAVE bounce down off of the upper whole number area. It could set up a nice SonicR short, and maybe with an entry area higher than the current price.
-tah
- #22,087
- Jun 22, 2011 2:53pm Jun 22, 2011 2:53pm
Thanks for the updated version of your indis TAH.
Check this funny video out sonicers
http://www.youtube.com/watch?v=wU1pD...layer_embedded
luv it !
- #22,088
- Jun 22, 2011 2:55pm Jun 22, 2011 2:55pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,553 Posts
Glad I held on to my SELL position at 1.4400, Thanks TAH
The use of a SL, and the management of it, can be a real bitch in this business. At times of high volatility, it is challenging to the extreme. Yesterday, starting with the asian session 70+ pip whip and continuing thru the day with PA moving in a 100ish pip range and continuing to get little whips here and there, it makes one wonder. It seems that SLs are "fuel" for the market to make its moves on. I wonder how well the market could manage whips and other price manipulations if nobody used a SL!
On the otherhand, it is the price manipulations in the market that give us the moves we need for trading. So maybe everybody should use a SL!
See?! It can be real challenging! We want the price moves, which may be dependent on SLs. We just don't want our SLs to fuel the price moves!
The use and management of SLs is the one thing in any trading system that cannot be neatly wrapped up in a package of rules. Here, the trader must always be flexible, and vilgilant of the market's voliatility. Multiple moves of a SL might be required as market conditions develop. And this will raise havoc with those that trade with a rigidly fixed percent account risk rule.
Note that Sonic often generously places his SLs, almost a catastrophic placement of SLs, in order to let his trade have room to survive anticipated PA swings.
How well do you believe in your trade? A lot? Then why strangle it with a tight SL? How well do you believe the "market" believes in the trade? The more the market believes in the trade, the greater the whips they might venture into!
SLs have been my worst nemesis. I am now beginning to try to embrace them. So, personally, I am going to be carefully watching and reflecting on what Sonic does with them. He is successful with them, or in spite of them, however you view it. I also would like to be.
-tah
- #22,090
- Jun 22, 2011 3:20pm Jun 22, 2011 3:20pm
Honestly I don't use SL or TP when im trading live, my stops in the past have been hit to many 1 times and just stop using them, I draw horizontal lines on my charts for SL and TP and do it manually. Its hard sometimes pulling the trigger but I've become custom to it 
- #22,091
- Edited 3:39pm Jun 22, 2011 3:23pm | Edited 3:39pm
- | Commercial User | Joined Mar 2008 | 9,089 Posts
stopped out. outch
nice trap of the PA making swing low.
http://www.forexfactory.com/attachme...8&d=1308753572
they fooled us this time.
They took u down by few pips..
I wasn't asking u to put ultra wide SL that will make ur trade R:R becomes out of proportion.
But must place at the region that the price unlikely to go..
So that, ur stop shouldn't be easily taken out just normal whipping..
Sonic
or was that TAH ?
- #22,096
- Edited 6:07pm Jun 22, 2011 5:55pm | Edited 6:07pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,553 Posts
hi sonikers
one question, please
in vsa volume i see red candle, green candle and blu candle.
i know that red candles are clima bear, blu candles are for rising bull or bear, and green candle for climax bull. is it on right?
can you indicate in which post i may read something about it?
thanks
maurizio
There is nothing else to know except the summary of how to use volume included in the releasing post.
- #22,097
- Jun 22, 2011 6:28pm Jun 22, 2011 6:28pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,553 Posts
- #22,098
- Jun 22, 2011 6:37pm Jun 22, 2011 6:37pm
UJ:
13 pips profit on SS EL1 = 80.44 closed at TP = 80.60.
23 pips profit on SS EL2 = 80.34 closed at TP = 80.60.
33 pips profit on SS EL3 = 80.24 closed at TP = 80.60.
49 pips profit on SS EL4 = 80.08 closed at TP = 80.60.
*118 pips total profit*
- #22,099
- Jun 22, 2011 6:39pm Jun 22, 2011 6:39pm
- | Commercial User | Joined Mar 2008 | 9,089 Posts
UJ:
13 pips profit on SS EL1 = 80.44 closed at TP = 80.60.
23 pips profit on SS EL2 = 80.34 closed at TP = 80.60.
33 pips profit on SS EL3 = 80.24 closed at TP = 80.60.
49 pips profit on SS EL4 = 80.08 closed at TP = 80.60.
*118 pips total profit*
I m so sure that with the way u write, this thread gonna attract many newbie more than ever..
Respect,
Sonic
- #22,100
- Edited 9:13pm Jun 22, 2011 6:50pm | Edited 9:13pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,553 Posts
Sonikers, I hope to mature in this area and write a treatise on SLs. Meanwhile, permit me to post some ramblings as my mind explores.
Earlier I posted, which included the thought that SLs might actually be the fuel for the market to execute price manipulations. Later, thinking about it, came the thought that setting a SL is like playing a guessing game with the market. You are guessing how far the market might run the price because you are trying to place your SL where it won't get hit. And you are thinking the market is guessing where to run the price in order to hit enough SLs to profitably add to a position.
A guessing game? Hardly. We are the only ones guessing! The market is not guessing. The market knows the size and SL level of every order with a SL! With it's computers, it instantaneously knows how much money will be required to attain each price level, and at that level how big it's new position will be, and it's average price! All that remains is for the market to decide to spend the money to take out the opposing positions at each level to move the price to the next. There is no guessing by the market, only by us!
So, looking at it that way, why the hell have a SL? Why make it easy for the market? The purpose of the SL is to protect against losses. But if the trade is valid, setting a SL just entices the market to hit it before the market validates the trade by finally moving the price in the trade direction.
So, how do we protect against losses, if not with a SL? It seems to me that the protection best comes from being picky about the trade. Only when genuine momentum might be behind a breakout move. Yesterday was not such a day. Momentum was not genuine. PA moves were SL hunting moves. Real trade moves were not underway.
Understanding when genuine momentum might develop could be the best criteria of all in any trade system, and enable even less risky trading without any SL.
-tah
Earlier I posted, which included the thought that SLs might actually be the fuel for the market to execute price manipulations. Later, thinking about it, came the thought that setting a SL is like playing a guessing game with the market. You are guessing how far the market might run the price because you are trying to place your SL where it won't get hit. And you are thinking the market is guessing where to run the price in order to hit enough SLs to profitably add to a position.
A guessing game? Hardly. We are the only ones guessing! The market is not guessing. The market knows the size and SL level of every order with a SL! With it's computers, it instantaneously knows how much money will be required to attain each price level, and at that level how big it's new position will be, and it's average price! All that remains is for the market to decide to spend the money to take out the opposing positions at each level to move the price to the next. There is no guessing by the market, only by us!
So, looking at it that way, why the hell have a SL? Why make it easy for the market? The purpose of the SL is to protect against losses. But if the trade is valid, setting a SL just entices the market to hit it before the market validates the trade by finally moving the price in the trade direction.
So, how do we protect against losses, if not with a SL? It seems to me that the protection best comes from being picky about the trade. Only when genuine momentum might be behind a breakout move. Yesterday was not such a day. Momentum was not genuine. PA moves were SL hunting moves. Real trade moves were not underway.
Understanding when genuine momentum might develop could be the best criteria of all in any trade system, and enable even less risky trading without any SL.
-tah