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Price action momentum trading

  • #61
  • Aug 4, 2011 11:50am Aug 4, 2011 11:50am
Quoting KMidas
Dear Survivor

My account and I would like to thank you for my first successful day trade.

Making money is easy- Just dont take losing trades
  • #62
  • Aug 4, 2011 12:38pm Aug 4, 2011 12:38pm
I trade momentum too. Not specifically how you have described Survivor, but the idea behind it is the same. I need to start looking more at the rejection bars.


For advanced users who use larger time frame to trade this, One thing that can be done is moving to the lower timeframe and placing stop-loss at the swing low for long trade and at swing high for short trades. Example, if you trade the momentum bar of 4hr tf, switch to 15min to fine tune stoploss and entry.

This does NOT apply if you trade momentum bars on 15min tf. You WILL get stopped out most of the time.


I love the battle ground analogy. I look at the market in the same way =)
  • #63
  • Aug 4, 2011 1:57pm Aug 4, 2011 1:57pm
Hey Survivor, Looks like a cool system with NO INDICATORS!! which is always a bonus. Anyway, I have been scouting through my charts, looking for good previous entries and have found a lot. What I wanted to know was, do you always enter on the break of the first large momentum candle or do you wait for the next candle to push back a little and then enter on the break of that candle? I'll see if I can get some examples of trade that have failed taking the first momentum candle for entry and some taking the second (small pullback) candle for entry.

Rexz
  • #64
  • Aug 4, 2011 2:24pm Aug 4, 2011 2:24pm
As you can see I have two entries. One is the low of the first momentum candle which takes profit at the 1* SL. The second momentum candle however triggers a buy at the top which then reverses completely. Is this just a loss that should be accepted or have I done something wrong?

Attached Image
  • #65
  • Aug 4, 2011 4:32pm Aug 4, 2011 4:32pm
well done survivor. good thread.

i find it hard to believe you only go for a 40 pips daily target !

some questions:

if the momentum candle is way too large, do we ignore that trade. because the price movement would be so large that it may have lost steam so its best to keep out of such trades where the mpmentum candle is way too big ? what is the max number of pips we can look for in a momentum candle ? similarly what is the minimum ?

in a trending market, is it best to avoid those trades that go against the trend , even if there is a momentum candle. what has been your experience on this ?

how long have you been trading this, and what results have you achieved in the last few months ?

  • #66
  • Aug 4, 2011 4:44pm Aug 4, 2011 4:44pm
also, how would you deal with the trades contained within the two marked red lines in the attached chart. it appears the first red bearish candle triggering a short would be a success. and the following trades after that are prone to be stopped out...

if a candle is a long doji, do you still count the wick as a body ?
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  • #67
  • Aug 7, 2011 6:54am Aug 7, 2011 6:54am
Hi rexz

First of all thanks to survivor for this wonderful system.im not an active poster.ihave been trading dance for the last 2 with very good success.i have followed every post of kostas and survivor..

survivor's approach is awesome.im very fond of his contrainment entries..


im new to dance ..im no expert. IMHO....

it will be very good if we can stick to Trend of the moment.it was a downtrend so no buy there.i will test this from today...buying 2 pips above the last bar and selling 2 pips below the last bar closed.i will use TOM to filter my trades..will post the results.

correct me if im wrong. thanks
  • #68
  • Aug 8, 2011 2:34am Aug 8, 2011 2:34am
I took this beauty today on my live account for 15 pips.

took the trade on the break of the previous resistance candle.exit at the RN

...

I'm filtering my trades by sticking to the TOM according to CHOROS.

here the TOM was buy only..so i bought and took 15pips...

bless me for more pips guys
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  • #69
  • Aug 8, 2011 3:20am Aug 8, 2011 3:20am
Just closed this one on my live account for +51 pips. Sold at the aqua line and closed position at the magenta line.

Lets have more examples of successes and failures please. I'm eager to learn more about this method.

GG
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Now trading live
  • #70
  • Aug 8, 2011 3:34am Aug 8, 2011 3:34am
Quoting Rexz
As you can see I have two entries. One is the low of the first momentum candle which takes profit at the 1* SL. The second momentum candle however triggers a buy at the top which then reverses completely. Is this just a loss that should be accepted or have I done something wrong?

Attachment
Already answered. I would like to add that no matter what we do sometimes sl will be hit. I take it as part of life.
Making money is easy- Just dont take losing trades
  • #71
  • Aug 8, 2011 5:03am Aug 8, 2011 5:03am
Quoting Survivor
Already answered. I would like to add that no matter what we do sometimes sl will be hit. I take it as part of life.
So that was a correct trade that just didn't follow through with a win? Should we trading in the direction of the trend like what georgecv87 said?
  • #72
  • Aug 8, 2011 5:12am Aug 8, 2011 5:12am
Quoting Rexz
So that was a correct trade that just didn't follow through with a win? Should we trading in the direction of the trend like what georgecv87 said?
I dont competely agree with george because sometimes momentum bars really signal trend reversal. However, i am always very careful with contra trend trades. i take counter trend trades only when i see a BIGG momentum bar. Unfortunately, i haven't detailed these things yet and your trade was good as per half cooked system that i have been able to put up. i will detail things soon with more examples.
Making money is easy- Just dont take losing trades
  • #73
  • Aug 8, 2011 5:15am Aug 8, 2011 5:15am
Quoting Survivor
I dont competely agree with george because sometimes momentum bars really signal trend reversal. However, i am always very careful with contra trend trades. i take counter trend trades only when i see a BIGG momentum bar. Unfortunately, i haven't detailed these things yet and your trade was good as per half cooked system that i have been able to put up. i will detail things soon with more examples.
Ok, I look forward to your future updates.

Rexz
  • #74
  • Aug 8, 2011 4:29pm Aug 8, 2011 4:29pm
Quoting whatfx
also, how would you deal with the trades contained within the two marked red lines in the attached chart. it appears the first red bearish candle triggering a short would be a success. and the following trades after that are prone to be stopped out...

if a candle is a long doji, do you still count the wick as a body ?


By definition of a doji, when do you ever count a wick as a body?

Suggest you go back to babypips.com and read some candle definitions
"To live with Passion, it takes Courage and Grace to survive"
  • #75
  • Aug 8, 2011 5:07pm Aug 8, 2011 5:07pm
Nice analogy on the battles - I have it similarly described by others in the industry.

I am using a very similar approach on the higher timeframes - 4 hour and day and look forward to seeing this thread develop.
"To live with Passion, it takes Courage and Grace to survive"
  • #76
  • Aug 9, 2011 7:59am Aug 9, 2011 7:59am
Hi Survivor

Thanks for sharing this wonderfully simple approach. In your first pic - featured in the manual as well - you point out a couple of momentum bars that take out previous highs or lows. You also mention reversal failures. Do you trade the reversal failures or do you just note them? If you trade them, do you stop in at that reversal highs or lows or do you wait for a new momentum bar to confirm the failure?

Cheers!

PS: I'm a junior member, so i don't think I can post charts to explain. I hope it's clear from my text what I'm asking.
  • #77
  • Aug 10, 2011 9:09am Aug 10, 2011 9:09am
Hi, Friends
Provide a chart example.
Unfortunately, I was not in the trade.
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Dancing with Candlesticks
  • #78
  • Aug 11, 2011 12:20pm Aug 11, 2011 12:20pm
sorry for abandoning thia thread after starting. I am down with flu and my internet connection is acting up. Todays chf move was easy for momentum traders. I will post charts soon. Keep asking. Keep learning. I hope to see some veterans here and learn frm them!
Making money is easy- Just dont take losing trades
  • #79
  • Aug 11, 2011 2:36pm Aug 11, 2011 2:36pm
Hi All

sorry, it's just not a FF trading methodology without an indicator!!!!!! LOL

Here is an indicator to help show momentum bars, and if necessary alert you to them

Parameters are pretty self explanatory but anyway:-

xb_Alert.On - true if alerts are to be sent
xi_Alert.Bar - the bar id that an alert is to be sent for, 0 is the currently open bar, which means at 0 it may send an alert which is no longer valid at bar close (good for early warning)
xd_Min.Pc.Increase - the minimum percentage the bar must be over the average to be a momentum bar
xd_Max.Wick.Pc - the maximum percentage the wick (in the direction of trade ie. bull High-Close, bear Close-Low) should be. NB- this doesn't affect the alerts but does affect the color scheme
xi_MA.Period - the period to use to get the average candle body size
xi_MA.Method - the averaging method to use

When on chart it shows like this:-

the aqua line is the trigger line (ie. the average candle body size + the min percentage increase)

the values above 0 are the candle body sizes, the values below zero are the wick sizes for the candle direction (ie. bull candle only the upper wick, bear candle only the lower wick) - dojis will show no wick

regards, John
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD-2011.08.11-21.30-15m.gif Size: 22 KB
Attached File(s)
File Type: mq4 !Momentum Candles.mq4   6 KB | 1,614 downloads
  • #80
  • Aug 11, 2011 3:08pm Aug 11, 2011 3:08pm
He he he ... the EA people force their way into a PA-only thread

Cool indicator. Nice work, man. Thanks.
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