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Price Action Trading with Indicators! The Freebie System

  • #3,181
  • Jun 24, 2011 11:36am Jun 24, 2011 11:36am
Hi Paulas I think you use MT4 and for charts and use SB for trades so if you just want gold on MT4, Smart Live Markets have it

Speed

Quoting Paulus
I have CF but cannot see Gold on my MT4 hmmm

Just short GU 1.5980

P
" Dont wait for your boat to come in ..... swim out and meet it"
  • #3,182
  • Jun 24, 2011 11:38am Jun 24, 2011 11:38am
Yeah i qhad it in a down trend based on H1, but was talking about it turning upwards on a 15M, sorry for the confussion.

[/b][/b][/b]
Quoting Dredding82
You have AudUsd in a down trend...i have it on an uptrend on the M15 but a down trend on the H1....pick a TF and just trade that TF...
So im pretty sure i got this sytem down and when to enter a trade, my problem now is determining how far to let the trade go. I know a several post back Paulus said he bases it off of the next pivot line. So do i just let it ride to the next pivot?
Damn The Torpedoes, Full Speed Ahead!
  • #3,183
  • Jun 24, 2011 11:42am Jun 24, 2011 11:42am
Quoting DizzleFX
Yeah i qhad it in a down trend based on H1, but was talking about it turning upwards on a 15M, sorry for the confussion.

[/b][/b][/b]

So im pretty sure i got this sytem down and when to enter a trade, my problem now is determining how far to let the trade go. I know a several post back Paulus said he bases it off of the next pivot line. So do i just let it ride to the next pivot?

If your trading the M15-H1 use a daily range indicator....it just gives you an average of the last month from how much price moved each day and its pretty close most days give or take 20-30 pips. Some days it blows the range out by 100 pips on breakouts but you still find your R:R is there when you max profits. You can also look for S&R at other pivots levels that confirm with the daily range indicator...
  • #3,184
  • Jun 24, 2011 11:49am Jun 24, 2011 11:49am
Quoting DizzleFX
Yeah i qhad it in a down trend based on H1, but was talking about it turning upwards on a 15M, sorry for the confussion.

[/b][/b][/b]

So im pretty sure i got this sytem down and when to enter a trade, my problem now is determining how far to let the trade go. I know a several post back Paulus said he bases it off of the next pivot line. So do i just let it ride to the next pivot?
Paulus uses a Risk:Reward ratio...he looks for a MAX of 1:3 and sets his TP to 1:3 or 15% give or take at pivot levels and watches his trades if he sees a sign of reverse he might close earlier to try and keep profits but he never moves his SL.
  • #3,185
  • Jun 24, 2011 11:56am Jun 24, 2011 11:56am
Ill give the daily range indicator a try. Thanks again Dred!
Damn The Torpedoes, Full Speed Ahead!
  • #3,186
  • Jun 24, 2011 12:09pm Jun 24, 2011 12:09pm
Ok guys im done for the week...4 trades on the H1 TF today...ALL profitable with a Risk:Reward of 1:2 or better AudUsd is still going.......cant get easier or better then that.

Have a good weekend guys/gals!
  • #3,187
  • Jun 24, 2011 12:22pm Jun 24, 2011 12:22pm
Quoting Wido24
This is an awesome system! I want to say thanks again to Dred - I tried to be profitable as a trader since 1,5 years... and it seems now with your system it is possible for me. Thanks!!! Also I want also to thank you, Paulus. Your way of trading this system helped me a lot. This week I made over 100% on my demotrading. It is unbelievable to me. Next month I plan to go live with a small account (I read your post, dred...). Thanks for all the support and the new confidence.

Mark
Good luck ,all i will say is write down your entry and exit check list and do not trade unless they are all met..

Try to have the same mind set as your demo trading,if the price movement is bad on that day try not to take it personaly the market does not know you or I exist

P
  • #3,188
  • Jun 24, 2011 12:23pm Jun 24, 2011 12:23pm
Quoting speedtrip
Hi Paulas I think you use MT4 and for charts and use SB for trades so if you just want gold on MT4, Smart Live Markets have it

Speed

Thanks will take a look

cheers

P
  • #3,189
  • Jun 24, 2011 12:25pm Jun 24, 2011 12:25pm
Quoting Dredding82
Ok guys im done for the week...4 trades on the H1 TF today...ALL profitable with a Risk:Reward of 1:2 or better AudUsd is still going.......cant get easier or better then that.

Have a good weekend guys/gals!

Nice wd.. have a good 1 ..BBB....... you got a good life lols.........

P
  • #3,190
  • Jun 24, 2011 12:52pm Jun 24, 2011 12:52pm
Paulus,

Go to Market Watch ( in CF), right click and choose 'show all'

Gold = XAUUSD at the bottom of currencies. Currently August future with Spreadbet brokers

F

Quoting Paulus
I have CF but cannot see Gold on my MT4 hmmm

Just short GU 1.5980

P
  • #3,191
  • Jun 24, 2011 12:59pm Jun 24, 2011 12:59pm
Quoting Dredding82
Ok guys im done for the week...4 trades on the H1 TF today...ALL profitable with a Risk:Reward of 1:2 or better AudUsd is still going.......cant get easier or better then that.

Have a good weekend guys/gals!
A wonderful weekend to you too!!

  • #3,192
  • Jun 24, 2011 3:45pm Jun 24, 2011 3:45pm
Got the new downloaded, thanx!
Quoting ericjschroed
If you're using the indicator I posted, sorry, I missed a line. I replaced it with the fixed copy. just download again if you need to.
Damn The Torpedoes, Full Speed Ahead!
  • #3,193
  • Jun 25, 2011 6:07am Jun 25, 2011 6:07am
Quoting freddi
Paulus,

Go to Market Watch ( in CF), right click and choose 'show all'

Gold = XAUUSD at the bottom of currencies. Currently August future with Spreadbet brokers

F

the only signal I have for gold on Friday was the following short,I dont know the spread as the nk is now closed but it would of made 15% Im sure

P
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  • #3,194
  • Jun 25, 2011 7:06am Jun 25, 2011 7:06am
August future spread with my SB broker is currently 0.7 (1501.7/1502.4) which I'm pretty sure is the same as when the markets are open. I've not traded Gold, but may try it as the charts over the past week or so (only) looks quite good.

BTW ...re the 2nd chart in your last post...do you draw the horizontal lines (for Entry/SL and %TP) in manually ?

F

Quoting Paulus
the only signal I have for gold on Friday was the following short,I dont know the spread as the nk is now closed but it would of made 15% Im sure

P
  • #3,195
  • Jun 25, 2011 7:14am Jun 25, 2011 7:14am
thats a nice spread

the levels are just the fib tool in mt4 set up to shows levels for entry, sl, Tp 1 2 3 quick reference for me when trades are running

cheers

Paul
  • #3,196
  • Jun 25, 2011 12:51pm Jun 25, 2011 12:51pm
i really find it hard to believe you can read this thread and still not know where the indicators are.... once the pop up opens select "hide images"
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  • #3,197
  • Jun 25, 2011 1:37pm Jun 25, 2011 1:37pm
Thought Id post a quicky on stop loss placement

Most people, do this a*se about face for some reason

They take a position and say my pain threshold is $100 Im trading a full contract so that's 10pips...and they place their stop

But this is totally irrelevant because the stop loss ...any stop loss has to be placed in a technically good position ..not just your pain threshold away,you dont just dump it on the chart any where .. its a stop loss..its their to 'stop a loss' ..you have to give it as much chance of doing that as possible

See the 1st chart for an actual signal ..some one entering on the same bar with a 10 pip pain threshold would place the stop some where near the white horizontal line..It is at this position for only 1 reason ..

' I picked 10 pips because its a nice round number and I dont want to lose more than $100 on this trade'

What on earth is going to support your trade with your stop being at this position.... answer .....nothing..

If we are in a uptrend what defines when that trend is broken ??

Several answers but the one were interested in is

'We make a lower low'

What is a strong chart formation ?

'A double bottom'

So when we go long we need to be below the last swing low.... with this system the semaphore shows us this position,by placing our SL 1 pip below this low we have done 2 things..

We have placed our stop in a technically excellent position because.... for the uptrend to end the last swing low must be taken out

We have gained an advantage of getting support from as possible double bottom if price pulls back

And in the case of this system we have also the support of a pivot

So the thought process should be worked out as follows

'My pain threshold is $100' same as the guy above

From entry to 1 pip below swing low is 21pips as shown by horizontal blue line

If I trade 1 full contract I will lose 1 x 21pips x $10 = $210 .. too much

So I will trade 5 x mini contracts x 21 pips x $1 = $105 ....too much

I will trade 4 x mini contracts x 21 pips x $1 = $84 ...this qualifies

The outcome of this is ....

 

  1. I have stuck to my pain threshold in this case $100 worked out by MM
  2. My stop loss is in a technically good position being 1 pip below last swing low
  3. I may gain support from a double bottom formation

If you think this way you will be more protected

Dont get into the bad habit of saying as I see on many threads...1 want 30 pips from this signal so my stop loss will be 25 pips..

More use the calculation of entry to 1 pip above or below swing hi or lo and from that work out the size you trade

Its the size you trade and the % of your bank you risk that will make you a winner

throw in a good system with an edge like this and you have to make money.#

Paulus

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  • #3,198
  • Jun 25, 2011 4:28pm Jun 25, 2011 4:28pm
Quoting Paulus
So the thought process should be worked out as follows

'My pain threshold is $100' same as the guy above

From entry to 1 pip below swing low is 21pips as shown by horizontal blue line

If I trade 1 full contract I will lose 1 x 21pips x $10 = $210 .. too much

So I will trade 5 x mini contracts x 21 pips x $1 = $105 ....too much

I will trade 4 x mini contracts x 21 pips x $1 = $84 ...this qualifies

The outcome of this is ....



Paulus
Wow Paulus, Im glad you posted that. I have searched all over the web for a detailed breakdown on how to figure out how many contracts i need and of what type to stay within what Im willing to risk. Although my threshold will be more like $3, and will be using a micro account, but it all makes since now. LOL! I happen to fall under that 76.78% on Dredds poll, that wants to quit my day job and make some real money and I believe that this will be part of the Smart MM that will help build a solid foundation. Thanks!
Damn The Torpedoes, Full Speed Ahead!
  • #3,199
  • Jun 26, 2011 10:53am Jun 26, 2011 10:53am
Alright Dredd, so i have added the Daily Range Indicator, how do I use it to help determine were my TP is going to be? Im assuming I just look at the Daily High or Daily Low depending on the trend, subtract that from the current price and then take that answer and subtract it from the Daily Average.

I.E. (Down Trend)

Daily High 1.43050
Price - 1.41790
----------
= 126 <---- then subtract that from the Daily Average of 178 = 52. So I can expect it to continue
down about 52 more pips?
Attached Image (click to enlarge)
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Damn The Torpedoes, Full Speed Ahead!
  • #3,200
  • Jun 26, 2011 11:40am Jun 26, 2011 11:40am
Quoting DizzleFX
Alright Dredd, so i have added the Daily Range Indicator, how do I use it to help determine were my TP is going to be? Im assuming I just look at the Daily High or Daily Low depending on the trend, subtract that from the current price and then take that answer and subtract it from the Daily Average.

I.E. (Down Trend)

Daily High 1.43050
Price - 1.41790
----------
= 126 <---- then subtract that from the Daily Average of 178 = 52. So I can expect it to continue
down about 52 more pips?
Attachment
Right, that's what the Room Up and Room Down is, the expected distance if today's range is the same as the average. Notice that your calculation is one pip different than the Room Down of 51, so you are understanding it correctly.
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