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Price Action Trading with Indicators! The Freebie System

  • #3,901
  • Edited 8:43am Jul 18, 2011 6:31am | Edited 8:43am
OK, I'm ready for some crticism of this entry LOL

EURUSD M5 buy

Yes, I know that ALL the higher charts are in a down trend, so it LOOKS like a counter-trend trade. However, based on the swings of the M1 and the last swings before my entry, it appears to me that there is an attempt to begin a reversal of the down trend; M1 already got reversed. now the "wave" is progressing up through the charts.

M5 higher low
stoch crossed up
HA candles up

buy 1.4059 SL 1.4020 near lows
TP 1.4073 near a "75" line

While I was at lunch, price moved up and just missed my TP.
Now in danger of the attempted trend reversal failing and further movement down.

DrDave

EDIT: TP hit. Took about 4.5 hours!
By the way, it would have been a nice M30 buy after a higher low at the same entry value 7 candles later (on M30) and R:R could have been closer to 1:1. But that would not have been "iron clad", either, because it would be against the H4 and D1 downtrends!
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To free Gazans of Hamas, use whatever it takes.
  • #3,902
  • Jul 18, 2011 6:35am Jul 18, 2011 6:35am
Dr Dave, i tried this earlier and got stopped out, I then proceedded to bang my head against the walll repeating " no counter trend" !! LOL

All'I'd say is that your stoch looks close to overbought, but stranger things have happened...

Good luck
Simplicity is the ultimate in sophistication ~ Leonardo Da Vinci
  • #3,903
  • Edited 6:58am Jul 18, 2011 6:38am | Edited 6:58am
Getting creamed on the 5 min charts myself.

AU Long 1.06229 SL 1.06056 TP 1.06709 Hit SL
EU Short 1.40301 SL 1.40626 TP 1.39651 Hit SL
GU Short 1.60652 SL 1.60846 TP 1.60358 Hit SL

Was a nice signal on AU to short for 3:1 while i was still in my long position. My broker allows me to hedge, hmmmm? Well that has now swung back so not a good signal after all.

Seems to be a tight range since London open. Not helping.
  • #3,904
  • Jul 18, 2011 6:48am Jul 18, 2011 6:48am
Quoting DrDave
OK, I'm ready for some crticism of this entry LOL

EURUSD M5 buy

Yes, I know that ALL the higher charts are in a down trend, so it LOOKS like a counter-trend trade. However, based on the swings of the M1 and the last swings before my entry, it appears to me that there is an attempt to begin a reversal of the down trend; M1 already got reversed. now the "wave" is progressing up through the charts.

M5 higher low
stoch crossed up
HA candles up

buy 1.4059 SL 1.4020 near lows
TP 1.4073 near a "75" line

While I was at lunch, price moved up...
Comment on your RR. If I understood correctly you are risking around 40 pips (your SL) to get around 15 pips (your TP). They should be atleast 1:1 (preferably 1:2 or 1:3) to be able to have consistent profit. As Dredd says you can use average daily range to set your TP to the nearest pivot, but it may not work on your way of trading? I dont know?
  • #3,905
  • Jul 18, 2011 7:17am Jul 18, 2011 7:17am
Quoting Whistlepips
Comment on your RR. If I understood correctly you are risking around 40 pips (your SL) to get around 15 pips (your TP). They should be atleast 1:1 (preferably 1:2 or 1:3) to be able to have consistent profit. As Dredd says you can use average daily range to set your TP to the nearest pivot, but it may not work on your way of trading? I dont know?
My "pivots" on this time frame are at 1.4000, 1.4025, 1.4050, 1.4075, 1.4100. I also see that >90% of the time price moves at least 1 pivot. My entry was between pivots, so I have to use the next pivot as my TP. I typically see 2 pips spread, so I set TP 2 pips below the next pivot.

side note: because we're in a possible trend reversal attempt, moves could be shorter than typical, so I did consider moving TP to even closer and just do a 5-10 pip scalp. But I am at the office today and (mostly) working, so can't babysit the trade. So I decided rahter to put in for a scalp to just let it play out. (What's 40 pips loss, any way? Just a measly 2 days' goals worth.)

DrDave
To free Gazans of Hamas, use whatever it takes.
  • #3,906
  • Jul 18, 2011 8:09am Jul 18, 2011 8:09am
(What's 40 pips loss, any way? Just a measly 2 days' goals worth.)

I believe that is the wrong mindset. Your should trade only 100% ironclad trades or nothing at all.

Your first two rules should be the same as Warren Buffets'
1. Dont loose your money, to stay in the game
2. Dont forget rule nr. 1

Udine
Sleep less, live fast, as it aint gonna last
  • #3,907
  • Jul 18, 2011 8:11am Jul 18, 2011 8:11am
Quoting Udine
(What's 40 pips loss, any way? Just a measly 2 days' goals worth.)

Your should trade only 100% ironclad trades or nothing at all.
  • #3,908
  • Jul 18, 2011 8:36am Jul 18, 2011 8:36am
Quoting Udine
(What's 40 pips loss, any way? Just a measly 2 days' goals worth.)

I believe that is the wrong mindset. Your should trade only 100% ironclad trades or nothing at all.

Your first two rules should be the same as Warren Buffets'
1. Dont loose your money, to stay in the game
2. Dont forget rule nr. 1

Udine
Hey Udine,
Unfortunately, there is no such thing as a 100% iron clad trade.

Other than ignoring the higher time frame trends, (which, by the way, part of Paulus' system is to look ONLY at the M5 time frame for trend), I indeed made an entry based on Freebie rules on the M5.

As for the TP and R:R, I already explained why I set it.

I think you'll see after you trade this for awhile looking for only "100% iron clad" trades, you'll gain enough confidence to begin to try some "riskier" setups, or explore bending/breaking the rules to fit your personal style.

DrDave
To free Gazans of Hamas, use whatever it takes.
  • #3,909
  • Jul 18, 2011 8:42am Jul 18, 2011 8:42am
Quoting DrDave
Hey Udine,
Unfortunately, there is no such thing as a 100% iron clad trade.

Other than ignoring the higher time frame trends, (which, by the way, part of Paulus' system is to look ONLY at the M5 time frame for trend), I indeed made an entry based on Freebie rules on the M5.

As for the TP and R:R, I already explained why I set it.

I think you'll see after you trade this for awhile looking for only "100% iron clad" trades, you'll gain enough confidence to begin to try some "riskier" setups, or explore bending/breaking the rules to fit your...

I see what you mean.

With the 100 % ironclad trades, I mean that you should enter a trade only when you comply 100 % with the trading rules. If your trading rules, in this case differ, I understand perfectly.

I can tell you I have adapted the Freebie system to my style, so I know where you come from.

I will not be showing my way of trading this, as Dred asked me not to and I respect his wish.

Good luck.

Udine
Sleep less, live fast, as it aint gonna last
  • #3,910
  • Edited 9:32am Jul 18, 2011 9:21am | Edited 9:32am
Took this baby and was super quick 3.66R. It was actually a counter trend move on the 5 minute, but the rejection of S1 was too coincidental, hence I took it.
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Simplicity is the ultimate in sophistication ~ Leonardo Da Vinci
  • #3,911
  • Jul 18, 2011 9:57am Jul 18, 2011 9:57am
it was NOT COUNTER TREND...........TREND IS DOWN.....If you take into account the current TREND...the M5 and the HIGHER TF you will make more PIPS......dont just try and trade off of 1 TFs trend...Look at a higher TFs trend and trade with it when the current TF you are trading matches......................TRUST ME PEOPLE! you will be right WAY MORE then you are WRONG...
  • #3,912
  • Jul 18, 2011 10:04am Jul 18, 2011 10:04am
Quoting Dredding82
it was NOT COUNTER TREND...........TREND IS DOWN.....If you take into account the current TREND...the M5 and the HIGHER TF you will make more PIPS......dont just try and trade off of 1 TFs trend...Look at a higher TFs trend and trade with it when the current TF you are trading matches......................TRUST ME PEOPLE! you will be right WAY MORE then you are WRONG...
Agree with you Dredding that the trend was down but at the same time the higher timeframe HA (H1, M30 & M15) were bullish so may be worthwhile people looking at the timeframes themselves rather than basing judgement off the MTF HA then as can clearly see LL and LHs on the H1 (although the last candle did break the previous LH giving a HH thus possibly rendering the trade invalid). Just my thoughts
  • #3,913
  • Jul 18, 2011 10:07am Jul 18, 2011 10:07am
Quoting tritan
Agree with you Dredding that the trend was down but at the same time the higher timeframe HA (H1, M30 & M15) were bullish so may be worthwhile people looking at the timeframes themselves rather than basing judgement off the MTF HA then as can clearly see LL and LHs on the H1 (although the last candle did break the previous LH giving a HH thus possibly rendering the trade invalid). Just my thoughts

I gave the MTF HA indicator for an easier way for NEWBIES to see trend...if you were looking at a higher TF chart...M15-H1 like i say to use this system on...you would have been shorting today on EurUsd...BTW...GbpUsd gave a KILLER RETURN today! lol
  • #3,914
  • Jul 18, 2011 10:07am Jul 18, 2011 10:07am
Just took eur/chf short on H1. SL 1,1521, TP 1,1382. My AUD/CAD is still struggling there in +7 pips atm. My E/U and G/U both hit sl.
  • #3,915
  • Jul 18, 2011 10:08am Jul 18, 2011 10:08am
Quoting tritan
Agree with you Dredding that the trend was down but at the same time the higher timeframe HA (H1, M30 & M15) were bullish so may be worthwhile people looking at the timeframes themselves rather than basing judgement off the MTF HA then as can clearly see LL and LHs on the H1 (although the last candle did break the previous LH giving a HH thus possibly rendering the trade invalid). Just my thoughts
What alot of you memeber here do not understand is a HH or LL is not just a spike in price that breaks the last high or low...it MUST CLOSE HIGHER or LOWER to be a TRUE HH or LL.....
  • #3,916
  • Jul 18, 2011 10:09am Jul 18, 2011 10:09am
Quoting Whistlepips
Just took eur/chf short on H1. SL 1,1521, TP 1,1382. My AUD/CAD is still struggling there in +7 pips atm. My E/U and G/U both hit sl.

AH............. Went long did ya? lol Should have shorted............
  • #3,917
  • Jul 18, 2011 10:12am Jul 18, 2011 10:12am
When in doubt of TREND....USE A Moving Average...50,100,200 and trade with which way it is moving........EASY EASY EASY lol....What makes trading hard is all the over thinking people DO! So stop thinking and START trading lol
  • #3,918
  • Jul 18, 2011 10:16am Jul 18, 2011 10:16am
Quoting Dredding82
AH............. Went long did ya? lol Should have shorted............
Nopes. Both were short, lol, but too tight SLīs maybe? Ive been testing this idea of taking larger tf eg. H1 trade setup from a smaller tf eg. M15 or M5 in order to get a smaller SL. Maybe waste of time
  • #3,919
  • Jul 18, 2011 10:17am Jul 18, 2011 10:17am
Quoting Whistlepips
Nopes. Both were short, lol, but too tight SLīs maybe? Ive been testing this idea of taking larger tf eg. H1 trade setup from a smaller tf eg. M15 or M5 in order to get a smaller SL. Maybe waste of time
I shorted both....and loving the pips right now.....
  • #3,920
  • Jul 18, 2011 10:22am Jul 18, 2011 10:22am
Quoting Dredding82
I shorted both....and loving the pips right now.....
$$$ I could say lucky you, but I know that luck just dont have anything to do with it
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