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Why did you start trading and what do you expect from it? 19 replies

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Trade what you see NOT what you expect

  • #34,461
  • Jun 16, 2011 1:57am Jun 16, 2011 1:57am
Quoting ztdep
Dear friends:
I wait many hours for the EUR/USD to break out the range. Now it break the high. but what is my entry point? Need i to wait for the retrace?
Could you please help me to point out the entry point in the consolidation period.
thank you very much
Sorry it took me a while to respond, not been trading too much recently.

There are dozens of ways you can trade breakouts. Some better methods than others but none of the are necessarily the right way. Here is the way I trade them and it's served me well:

Two charts for you. The first is a H1 chart from your setup. I take only retests of the high/low following breakout and only ever on H1 and H4 setups taken from the bodies of the the candles that we have left behind, never the wicks. I have drawn green lines to signal where I would have drawn the lines for short entries and orange lines for long entries. I am usually looking for price to retest within 7 or 8 candles maximum, if too much time has passed, a news release may entirely change market sentiment and drive price in a new direction, straight through our S and R. However, I will let price action around my line still let me take the entry if I like it (you can see an example on this chart), all normal entries are taken on the touch, usually a pip or three before the line as you'll miss too many entries if you wait for the precise touch.

This chart shows two missed entries 3 winners on touches, one possible winner on a price action setup and one loser.

Your setup is the green circle, see how it makes a perfect entry off those bodies on H1? Very small drawdown on that entry and possibly 115 pips profit.

However, the second chart shows you the M15 setup at the same line. Looks weird, doesn't it? What it shows is how taking the breakout retest on M15 can be a taxing and frought game, leading to a much higher % of failed trades in my opinion. However, as we are looking for longs at some point, i've circled a pretty decent looking candle cluster that might be used to get your entry, if you hadn't taken the H1 touch.

These are just my thoghts and ideas, they do work consistently well for me, i'm sure other traders have a different view. Hope it helps
Attached Image(s) (click to enlarge)
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  • #34,462
  • Jun 22, 2011 4:22am Jun 22, 2011 4:22am
it looks like a news release. i can understand your 2nd order but not first.

you intended to buy zone is somehow rather confusing to me. bounce on the blue moving average + fibo 36 and dlch , thats why u decide to buy them ?

Hi all i have finished reading EO book and trying to apply them.

Quoting rompe
Well another 35/50 cross which coincide with news release, but I took it though.
+35
My entry was bit delayed because of "my slip of the pen" - I pressed sell button instead of buy.....
(tp and sl was inputed so server rejected my order)

How about 35/50 cross circled magenta earlier today??
Didn't took it because wasn't "working" at that moment, beside it is not a short wick. But EO says...................



Comments appreciate!
  • #34,463
  • Jun 22, 2011 4:27am Jun 22, 2011 4:27am
thank you so much!!! this is so nice n cool u are kind enough to share with us.

Quoting ohammond
Someone sent me a pm asking me to post my templates with S/R that I use, I will do that but please bear in mind I look at the 5min for entries on bounces.

I have attached 2 templates, the one I use for 5 and 15min and the HTF one for 1hr and above. I use the ma indicator that was posted on this thread further back written for this system as I find it very useful when I have to switch from 5 to 15min and vice versa as it keeps the ma's in the right place without having to change anything, likewise if I have to switch from 4hr to daily etc it keeps...
  • #34,464
  • Jun 22, 2011 10:02am Jun 22, 2011 10:02am
Quoting tankokjian
it looks like a news release. i can understand your 2nd order but not first.

you intended to buy zone is somehow rather confusing to me. bounce on the blue moving average + fibo 36 and dlch , thats why u decide to buy them ?

Hi all i have finished reading EO book and trying to apply them.
It is 35/50 ema(sma) cross, if you have read this or this or maybe this then you should know that or, maybe, I don't understand it properly?

All MA's, on my picture, are labeled so there should be no difficulties to read them!

Thank you for brainstorming it!


Comments appreciate!
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  • #34,465
  • Jul 14, 2011 4:22am Jul 14, 2011 4:22am
EO is going to post here today so let come back home pls. This thread must not die
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #34,466
  • Jul 14, 2011 8:21am Jul 14, 2011 8:21am
Quoting ejiexe
EO is going to post here today so let come back home pls. This thread must not die
That would be great if Eohater does post today, he hasn't been here for quite a while and I agree this thread is so good it could really do with a boost.
  • #34,467
  • Jul 15, 2011 8:56am Jul 15, 2011 8:56am
This thread will never die but it may take the occaisional snooze
  • #34,468
  • Jul 27, 2011 12:41pm Jul 27, 2011 12:41pm
Just checking in. I hope everyone is well and your trading is going GREAT!! Politicians make me sick !!
Please ask questions and share your experiences with us all!
  • #34,469
  • Jul 27, 2011 2:02pm Jul 27, 2011 2:02pm
Man, Im rly reading and re-reading this stuff, is awesome how other's "systems" never came close to this one! Even a noob like me can tell the diference
  • #34,470
  • Jul 28, 2011 7:23pm Jul 28, 2011 7:23pm
Quoting bkg102665
Just checking in. I hope everyone is well and your trading is going GREAT!! Politicians make me sick !!
I"ll 2nd that vote.

How's life treating ya? Hope all is well.

HOLLA
  • #34,471
  • Jul 28, 2011 11:06pm Jul 28, 2011 11:06pm
Quoting Turtle
I"ll 2nd that vote.

How's life treating ya? Hope all is well.

HOLLA
What's Up Turtle and BKG! Hope you boys are well! Anyone doing any trading?
Cap
  • #34,472
  • Jul 31, 2011 6:32pm Jul 31, 2011 6:32pm
Quoting The Captain
What's Up Turtle and BKG! Hope you boys are well! Anyone doing any trading?
Still trading just making sure my risk is defined in these choppy markets.

Feels like 2008 all over again.

HOLLA
  • #34,473
  • Aug 1, 2011 5:56pm Aug 1, 2011 5:56pm
Hi guys,
plz forgive my poor english (not a native speaker), today I took a trade on the GU, price was on a 4h support and a hammer printed, Im aware the bias was bearish, but I thought this setup was good for a few pips soo I opened the buy order on the next candle according to manual, obv this trade was catastrofic but that's allright, Im just trying to learn and understand this method. Hope u guys can shed some light on this one, what I'm not seeing on this setup?? Is there any hint that this one was a loser??

Thanks in advance


http://img803.imageshack.us/img803/1423/gu1.jpg
  • #34,474
  • Aug 1, 2011 8:55pm Aug 1, 2011 8:55pm
If you took that entry around 9:00am est, there was a 4HR candle and 1HR candle with a bearish close.

It was a good location with 1.6330-1.6340 being good support, the market forces just took over. Not much you could of done, just blame the market on that one and move on.

Just my two pips.

HOLLA


Quoting ForexForce
Hi guys,
plz forgive my poor english (not a native speaker), today I took a trade on the GU, price was on a 4h support and a hammer printed, Im aware the bias was bearish, but I thought this setup was good for a few pips soo I opened the buy order on the next candle according to manual, obv this trade was catastrofic but that's allright, Im just trying to learn and understand this method. Hope u guys can shed some light on this one, what I'm not seeing on this setup?? Is there any hint that this one was a loser??

Thanks in advance


http://img803.imageshack.us/img803/1423/gu1.jpg...
  • #34,475
  • Aug 2, 2011 7:13am Aug 2, 2011 7:13am
Quoting ForexForce
Hi guys,
plz forgive my poor english (not a native speaker), today I took a trade on the GU, price was on a 4h support and a hammer printed, Im aware the bias was bearish, but I thought this setup was good for a few pips soo I opened the buy order on the next candle according to manual, obv this trade was catastrofic but that's allright, Im just trying to learn and understand this method. Hope u guys can shed some light on this one, what I'm not seeing on this setup?? Is there any hint that this one was a loser??

Thanks in advance



http://img803.imageshack.us/img803/1423/gu1.jpg...
My only suggestion here is with that much down pressure on the market I would be looking for a pullback and then a short signal to continue down. With so much down pressure you are better off to look for trades going with the market than trying to find a reason to go against the market. I know this to be true because I tried to do it for years and it is almost impossible to do.
Please ask questions and share your experiences with us all!
  • #34,476
  • Aug 2, 2011 7:26am Aug 2, 2011 7:26am
Quoting ForexForce
Hi guys,
plz forgive my poor english (not a native speaker), today I took a trade on the GU, price was on a 4h support and a hammer printed, Im aware the bias was bearish, but I thought this setup was good for a few pips soo I opened the buy order on the next candle according to manual, obv this trade was catastrofic but that's allright, Im just trying to learn and understand this method. Hope u guys can shed some light on this one, what I'm not seeing on this setup?? Is there any hint that this one was a loser??

Thanks in advance


http://img803.imageshack.us/img803/1423/gu1.jpg...
As others have said, you are trying to trade against the obvious momentum here. This really should be where you are looking for your "5 o'clock somewhere bounces".

That said, looking for reaction around areas of interest is still fine if you play it with absolte caution. The problem here is that the area wasn't great for me, I don't see a lot of 4hr support there. Secondly, your M15 entry candle was a hammer with a bearish close. Even a hammer with a bullish close would be a signal to approach with absolute caution in that sort of market but a bearish close? Forget that every time.

The longer you trade, the more you realise that the people making it are the ones choosing only the clear and obvious setups. They don't occur all the time and some of them fail too but if you stick to finding them and taking them every time, you'll get there.

Good luck
  • #34,477
  • Aug 2, 2011 7:52am Aug 2, 2011 7:52am
Hi everybody,

I haven't posted here for a couple of years, but seeing as some of the the old boys seem to be around, I wonder if somebody could advise me on a couple of trades.

EOHater used to talk about taking trades in the opposite direction when a 15 min candle closed full through the emas. Does it have to close beyond all emas (10,21,35 & 50) or does a close just beyond the 10 qualify? I've attached a chart from today with 2 sell trades that would have worked out. Was this just luck, or were these valid sell signals?

Thanks in advance for any advice that may come my way
Attached Image
  • #34,478
  • Aug 2, 2011 8:16am Aug 2, 2011 8:16am
Quoting MarkyBoy
Hi everybody,

I haven't posted here for a couple of years, but seeing as some of the the old boys seem to be around, I wonder if somebody could advise me on a couple of trades.

EOHater used to talk about taking trades in the opposite direction when a 15 min candle closed full through the emas. Does it have to close beyond all emas (10,21,35 & 50) or does a close just beyond the 10 qualify? I've attached a chart from today with 2 sell trades that would have worked out. Was this just luck, or were these valid sell signals?

Thanks in advance...
He has what is called the 35/50 cross. Thats when the 15min candle crosses fully through the 35 and 50 mas and closes, then he takes the opposite direction. The only other thing I've read on here about closing fully is what they called a "flat top" thats when a candle on any timeframe closes as a full candle with no wick, I seem to remember reading that pippinole liked taking those trades.
  • #34,479
  • Aug 2, 2011 7:09pm Aug 2, 2011 7:09pm
Thanks guys, this was very helpfull, now that I see some active and experienced members of this thread I'll sure be asking more question and posting more charts, hope this is OK
  • #34,480
  • Aug 6, 2011 2:50am Aug 6, 2011 2:50am
We are about to witness some market history.

Buckle up for the ride and don't forget to define your risk.

PARTY ROCK IS IN THE HOUSE TONIGHT........SHAKE THAT!!!

HOLLA
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