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Compounding my Wealth using Simple Price Action Trading on Daily Charts

  • #21
  • Jul 4, 2011 7:52pm Jul 4, 2011 7:52pm
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
While this is a good inside bar setup and many price action traders might be going short on this setup already, I like to wait and stick by my rules. I am hoping that a pin bar is formed on todays candle rejecting the highs of the previous 2 candles, if so, then i am in. If not then I am happy to let go of the trade
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf5jul11.gif Size: 15 KB


Quoting JMo
Attachment
  • #22
  • Jul 7, 2011 6:43am Jul 7, 2011 6:43am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
I have noticed that I have been stretching Target profit too far; in other words I have been putting target profits too close to the next S/R area. What this is doing is that Price goes very close to hitting my target and sometimes misses it just by around 5-10 pips as it is happening in my current GBPUSD trade. So Key learning is that in future I will select the target at around 80% distance to next S/r region.
  • #23
  • Jul 7, 2011 6:51am Jul 7, 2011 6:51am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Entry Date07/07/11
Security/Fx PairUSDCAD
SetupPinBar
Buy or SellSell
Planned R:R3 to 1
Planned Stop0.9701
Planned Target0.9527
Entry0.9658
Possible Risk pips44
Possible Reward pips131




Attached Image (click to enlarge)
Click to Enlarge Name: usdcad7jul11.gif Size: 21 KB
  • #24
  • Jul 7, 2011 6:54am Jul 7, 2011 6:54am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting JMo
Entry Date07/07/11
Security/Fx PairUSDCAD
SetupPinBar
Buy or SellSell
Planned R:R3 to 1
Planned Stop0.9701
Planned Target0.9527
Entry0.9658
Possible Risk pips44
Possible Reward pips131




Attachment
Missed out on this trade earlier this morning as i was in a rush, just added this order to get in if the market rebounds a bit
  • #25
  • Jul 8, 2011 5:33am Jul 8, 2011 5:33am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
This trade just hit Target Profit and was closed.... a WINNNER


Quoting JMo
Heres a very good setup, I believe its a very high probability trade.
Why?
A pinbar rejecting-

  1. Resistance at 1.6100 (big round number as well)
  2. also formed in the "value" area between 8 and 21 EMA AND
  3. rejecting the highs of previous 2 candles

Attachment [list][*]My SL is 5 pips above the high at 1.6144[*]My target is around the next support area at 1.5937[*]Difference between the SL and TP is 207 pips[*]I am aiming for 2:1 RRR, so 297 pips divide by 3 is 69 pips[*]69 pips from SL is 1.6075,...

  • #26
  • Jul 8, 2011 1:41pm Jul 8, 2011 1:41pm
Very nice thread!
I trade price action off the daily as well. Thats an interesting idea you have for determining entry points. I have been using orders set 10 pips below/above the bar.
Look forward to hearing more.

all the best
  • #27
  • Jul 8, 2011 11:14pm Jul 8, 2011 11:14pm
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting jazzman
Very nice thread!
I trade price action off the daily as well. Thats an interesting idea you have for determining entry points. I have been using orders set 10 pips below/above the bar.
Look forward to hearing more.

all the best
Thanks Jazzman,
Let me explain a bit more on my mindset/logic on entry and I will use a LONG trade example to keep things simple. In an ideal world, I would like to get into a long trade ABOVE the high of the bar, I do think that by entering that way, it slightly increases the probability of having a winning trade. However, putting stoploss below the low of pinbar is non-negotiable for me. What I find is that when I place stoploss below the low of bar and then wait to get in above the high of the bar, generally speaking those trades do not give me high enough reward:risk ratio. As mentioned in my previous posts, I like to have atleast 2:1 and preferably 3:1 reward risk. This goes back to a trading principle I believe in "BEING WEALTH IS MORE IMPORTANT THEN BEING RIGHT". For me, I think getting in above the high of bar when going long will make me more right, but due to the lack of enough reward:risk, it will not make me wealthy. So in my trading I put more emphasis on getting higher risk reward and dont worry too much about entry, this way i may have a few more losing trades but in the long run, I will have more money as Reward:risk is continually working in my favour... Hope that helps... do keep posting mate, answering to the posts helps me organise my thoughts better and helps me become a better trader.

Cheers,
JMo
  • #28
  • Jul 9, 2011 7:14am Jul 9, 2011 7:14am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting JMo
Missed out on this trade earlier this morning as i was in a rush, just added this order to get in if the market rebounds a bit
I had put this order in and was thinking that I am too late, I may not be able to get in... but to my pleasant surprise the market bounce back just enough to fill in my order.... Hoping the trade continues in the direction and reaches 0.9527 soon.
  • #29
  • Jul 12, 2011 8:52am Jul 12, 2011 8:52am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Ah! well after all that, my stoploss got taken out today, so this one was a loser... you win some you lose some....

While I dont want to overanalyze and go about making any trading plan just based on 1 trade, I do need to keep an eye out on efficiency of pinbar setups on USDCAD, I have noticed a few times in the recent past that USDCAD does not respect S/R levels and Pinbars as well as some of the other currencies.... will keep an eye out and analyse all trades at the end of 3 months. I have taken 3 trades on USDCAD since Feb and they have all been losers....something for me to think about...




Quoting JMo
I had put this order in and was thinking that I am too late, I may not be able to get in... but to my pleasant surprise the market bounce back just enough to fill in my order.... Hoping the trade continues in the direction and reaches 0.9527 soon.
  • #30
  • Jul 13, 2011 9:22am Jul 13, 2011 9:22am
upon closing the U-CAD yesterday, a long upper wick candle produced, a pb liked, 8/21 crossed down, so I short today. hope it work out nicely for r:r 1:1 today or tomorrow.
  • #31
  • Jul 14, 2011 9:18am Jul 14, 2011 9:18am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting nbafx
upon closing the U-CAD yesterday, a long upper wick candle produced, a pb liked, 8/21 crossed down, so I short today. hope it work out nicely for r:r 1:1 today or tomorrow.
NBAFX,
Looks like your trade is well into profit... good luck and best wishes...
  • #32
  • Jul 14, 2011 6:20pm Jul 14, 2011 6:20pm
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
put in a pending order:
Entry: 1.4191
SL: 1.4286
TP: 1.4014
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd15jul11.gif Size: 21 KB


Brief explanation of my trade is in the picture below
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd15jul11PART2.gif Size: 10 KB
  • #33
  • Jul 15, 2011 9:57am Jul 15, 2011 9:57am
Quoting JMo
put in a pending order:
Entry: 1.4191
SL: 1.4286
TP: 1.4014
hi your e/u is working very well
it has a pb like the one in u-cad.
also i opened long this morning with rr 1:2
  • #34
  • Jul 15, 2011 10:12am Jul 15, 2011 10:12am
Quoting JMo
NBAFX,
Looks like your trade is well into profit... good luck and best wishes...

thank you. it is 3rd day now. hope it will hit my stop loss today for rr 1:1 or 120 pips.


your entry is very good. you have a big fat gain
  • #35
  • Jul 15, 2011 7:38pm Jul 15, 2011 7:38pm
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting nbafx
thank you. it is 3rd day now. hope it will hit my stop loss today for rr 1:1 or 120 pips.


your entry is very good. you have a big fat gain
Thanks mate,
Got lucky this time with the entry
As you would know I focus much more on SL, TP and Reward:Risk.
  • #36
  • Jul 16, 2011 6:17am Jul 16, 2011 6:17am
hi jmo
on u-cad, yesterday candle was good - broke passed past 10 days support line, it also hit my stop loss.
i just took a look at the weekly chart, a pin bar is born. i think it is a good south shooting
just my 2 cents.
cheers
  • #37
  • Jul 16, 2011 7:32am Jul 16, 2011 7:32am
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting nbafx
hi jmo
on u-cad, yesterday candle was good - broke passed past 10 days support line, it also hit my stop loss.
Congrats on your win for the usdcad mate...

Quoting nbafx
i just took a look at the weekly chart, a pin bar is born. i think it is a good south shooting
Just use caution mate. While I do think that USDCAD is going south and the weekly pinbar shows that, I would not trade that pin as it is not on a "swing high" or in a major S/R region.
  • #38
  • Jul 16, 2011 8:04am Jul 16, 2011 8:04am
Quoting JMo
Just use caution mate. While I do think that USDCAD is going south and the weekly pinbar shows that, I would not trade that pin as it is not on a "swing high" or in a major S/R region.
now i see your point / analysis... good and hey thanks.
  • #39
  • Jul 16, 2011 9:52am Jul 16, 2011 9:52am
Also fellas, on my chart, fridays close failed to break the trendline.
Its one i'm watching closely.
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad.gif Size: 28 KB
  • #40
  • Jul 16, 2011 9:22pm Jul 16, 2011 9:22pm
  •  JMo
  • | Joined Aug 2010 | Status: Discipline + Winning Edge = WEALTH | 43 Posts
Quoting jazzman
Also fellas, on my chart, fridays close failed to break the trendline.
Its one i'm watching closely.
Nice one Jazzman.....
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