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Price action momentum trading

  • #81
  • Aug 12, 2011 12:08am Aug 12, 2011 12:08am
Quoting Survivor
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!
No problem, get well soon and come start a party here!
Riding the order flow
  • #82
  • Aug 12, 2011 3:32am Aug 12, 2011 3:32am
Quoting TaoForex
He he he ... the EA people force their way into a PA-only thread

Cool indicator. Nice work, man. Thanks.
Thanks binyman,.... thanks tao. i am posting from mobile. no charts possible. but we will see. people pls posts charts and explain things to everyone.
Making money is easy- Just dont take losing trades
  • #83
  • Aug 12, 2011 9:17am Aug 12, 2011 9:17am
Hi Survivor,
Below is the trades i took,
I hope you can explain why the 1st is failed & the 2nd is OK...
Thanks
Attached Image (click to enlarge)
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  • #84
  • Aug 13, 2011 10:42am Aug 13, 2011 10:42am
Ok, since Survivor asked for more participation from us I will post a recent trade that I took. I post it because there are many points I would like to make. I am not very experienced trader and I switched to intraday trading since I have read this post. This is why if I am wrong somewhere I hope someone more experienced will jump in and correct me.

In the chart below GBP/USD looks like it is trending down and we were in a pullback. I entered a pending sell order below the big bearish bar. The order was 12 pips below the low price. After 2 bars the order was fulfilled and the price reached the support almost to the pip. At this point I had $30 profit. I didn't take it thinking that the downtrend is healthy so it should go lower. Well, I was wrong. The price turned around and started climbing its way up to resistance.

I got tired of so many trades where price turns around, approaches my SL, I get scared and get out of there before my SL is hit just to watch it go back in the original direction and had I stayed in I would get out with at least a minimal profit. So I left this one run up to previous resistance hoping that it would not take me out. The price bounced back from the resistance and started to fall again. At the middle of the move, at the point where trouble was expected, trouble came. Well I got scared and I got out with half of the loss I would have taken if my SL was hit.

If I had stayed a bit longer in the trade I would have gotten out with at least those original $30 profit.

That lead to a string of revenge trades who initially showed some decent profits that I didn't take and then turned around and messed my account.

The points I want to make are

1. The laws of support and resistance still apply. Following blindly a momentum bar will not do. You still need to know the basics of PA
2. If you follow the trend chances are that in the end the trade will work
3. Knowing where to get out is equally important as knowing where to get in.
4. All you need is support, resistance, momentum bars and nerves of steel.
5. Nerves of steel come with experience (= chart time)
Attached Image (click to enlarge)
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  • #85
  • Aug 13, 2011 1:36pm Aug 13, 2011 1:36pm
[quote=Survivor;4831235]Price action momentum trading


Thank God I found the promised land at last!!!!!!!!!!! You just revealed the whole lot to a novice like myself. We need guys like u often more than thought. Let me tell u this, your name is Redeemer and not survivor.
  • #86
  • Edited 8:01pm Aug 13, 2011 7:45pm | Edited 8:01pm
Hi KMidas
After reading your post I felt the frustrating you must be feeling. I am not a great writer hence I hardly ever write in this Forum.
Study the attached chart and go from bigger TF to lower TF. Saying it in other words If your hourly chart is down only trade the 15m on the short side. But you new that anyway.
I may also suggest get rid of all your indicators you will see thing a lot clearer.
Charly
Attached Image (click to enlarge)
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  • #87
  • Aug 14, 2011 3:12am Aug 14, 2011 3:12am
[quote=KMidas;4867543]
The order was 12 pips below the low price.

After 2 bars the order was fulfilled and the price reached the support almost to the pip. At this point I had $30 profit.

Well I got scared and I got out with half of the loss I would have taken if my SL was hit. If I had stayed a bit longer in the trade I would have gotten out with at least those original $30 profit.



Hi KMidas,

I have a number of comments regarding your post which I hope you will find useful.

If you are going to trade then you need a trade plan, you cannot just do random entries or exits for many reasons but one of the biggest being how will you know if your trading is successful when you make random choices?

In this case your entry is related to the previous momentum bar plus a 12 pip delta, (12 pips seems quite a lot) your stoploss was set I presume above the previous momentum bar, but your exit seems to be undefined. You mentioned the support level but that can't have been your exit otherwise you would have taken it, you need to define the exit before you trade.

I would suggest that it needs to be appropriate to the timeframe that you are using and expecting to follow a trend on a short timeframe is unlikely to yield success. You might want to look at a multiple of the Average True Range, or a trailing stop of the ATR value etc. or a set amount of pips, or just above the next support line, BUT you must decide before you trade and stick to it and please ensure that your stoploss bears some resemblence to the exit level ie: you don't want a 100 pip SL for a 30 pip exit plan.

So most important of all you did not trust your system and allow the stoploss to work as you planned. If you don't have or follow your trade plan then you will never know if your system is successful because you will end up saying to yourself things like "well that one would of worked if I had let it run"


I hope this helps you.

and Survivor I like the thread and the method thanks
  • #88
  • Aug 14, 2011 4:05am Aug 14, 2011 4:05am
Hi Ozzie and MaxDoom

Thank you for your comments. I don't feel frustrated about this trade because the market did what it had to do and it was almost clear in the chart what is going to do next. What annoys me is exactly that, my psychological reaction to what was happening even if I expected it.

The truth is that I don't have a trading plan. So far my SL is set above/below the entry bar or over/under the swing point if the swing point is very close. My thinking is that if the price exceeds that point then there is no reason for me to stay in the trade. Unfortunately exits are still something I must master. I need to find the line between "Don't be greedy" and "Let the profits run".

As for my 12 pips buffer I have observed that letting a buffer before entering the trade increases the chances that the price will run further in the desired direction. I prefer to enter my trades with pending orders and since Alpari allows pending orders 12 pips from current price I used just that. Now that you mention it maybe I will make an EA to circumvent the 12 pips restriction.

How do you guys enter your orders? You just hit the buy button when you see price reaching your entry level?

Also MaxDoom can you clarify this a bit more?

Quote
I would suggest that it needs to be appropriate to the timeframe that you are using and expecting to follow a trend on a short timeframe is unlikely to yield success
  • #89
  • Aug 14, 2011 5:09am Aug 14, 2011 5:09am
Hi KMidas


Unfortunately exits are still something I must master. I need to find the line between "Don't be greedy" and "Let the profits run".


Have you ever thought of letting the market decide where you entry and exits are. In my last post I send you a short graph . Everything is there,your entry's,your stops,your targets. You don't have to decide anything the market will do it for you.

I prefer to enter my trades with pending orders and since Alpari allows pending orders 12 pips from current price .....


If I was you I would very strongly consider changing Broker to one with no restriction what so ever. Would you step into a Boxing Ring with one hand tied behind your back. I think not.

Regards
Charly
  • #90
  • Aug 14, 2011 10:58am Aug 14, 2011 10:58am
Quoting Ozzie

If I was you I would very strongly consider changing Broker to one with no restriction what so ever. Would you step into a Boxing Ring with one hand tied behind your back. I think not.

Regards
Charly
I know you are right about this. This is a demo account with the benefit that never expires so this is why I am keeping it. Right now I am in the process of searching for a broker to go live but I can't find any information about this type of restrictions
  • #91
  • Aug 14, 2011 11:39am Aug 14, 2011 11:39am
[quote=KMidas;4868215]Hi Ozzie and MaxDoom

I am pleased to tell you that you posts are all read and found useful by me. But kindly clear me of a level of confusion:
1. is it save to just push the buy or sell button once I am convinced that my entry point is save from the bullets of the opposite camp?

2. I use 15M TF, kindly advise on the level of SL and TP to set for the trade

3. Can you please through a chart reflect to me and especially other trader in the house who may be in my shoes the normal time to enter a trade (candle stick analysis)

I thank you for the efforts so far.
  • #92
  • Aug 15, 2011 3:46am Aug 15, 2011 3:46am
[quote=adeniyia33;4868543][quote=KMidas;4868215]Hi Ozzie and MaxDoom

I am pleased to tell you that you posts are all read and found useful by me. But kindly clear me of a level of confusion:
1. is it save to just push the buy or sell button once I am convinced that my entry point is save from the bullets of the opposite camp?

Hi adeniyia33

You push the buy/ sell button when the market tell you to. you don't have to be convinced and you will not get a guarantee either. that where your stop loss and money management comes in. Let me explain.
On the 15m EURUSD chart I have one short and one long entry . IMHO this is the only position you could have entered this trade . On the short trade the market told you go in at the Low of the Bullish Bar and your stop is the High of the entry Bar.
On the Long trade the market told yo to go long at the high of bullish outsitebar and the stop is the low of the bullish outsiteBar

2. I use 15M TF, kindly advise on the level of SL and TP to set for the trade

You know where your SL is placed. I never set a TP I take what the market gives me. Sometimes it gives me only 5 pips other times 1000
One example.I entered GBPCHF at 1.1824 and I have no intention of setting a TP but I will add to my position when the time comes.
Regards
Charly
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 16 KB
  • #93
  • Aug 15, 2011 7:48am Aug 15, 2011 7:48am
Quoting Survivor
Here is my trading "system"! Simple and effective. Hope you like it.

No Specific exit strategy. I exit my half lot at 1*Sl so that my trade becomes free. Then i let other half run with fast trailing of tight stop. I generally let PA guide me. if i see my side winning, i stay in longer. I also take profits when i reach may daily target of 40 pips. So i exit on variety of reasons.

No indicators. I used them and didnt like them. I find more indicators less reliable. It all becomes confusing hell.
Just came back from vacation and found your first thread! Good luck and good job.
I think your approach using CHOROS in H1 has some good applications. My advice to newbies, use Survivor's method to take quick scalps (10-20p) per trade and you will have many wins. Use lower TFs to fine tune your exit. My only concern is that you don't get an early seat in the train (compared with CHOROS). But it seems to be a winning seat if you don't stay too long with it.
  • #94
  • Aug 15, 2011 8:52am Aug 15, 2011 8:52am
Great thread, thanks Survivor.

Love to see more charts.
  • #95
  • Aug 16, 2011 12:46am Aug 16, 2011 12:46am
Quoting kostas1
My only concern is that you don't get an early seat in the train (compared with CHOROS). But it seems to be a winning seat if you don't stay too long with it.
my thoughts exactly, i would love to see more examples too.
congradz on your thread Survivor, keep it up my friend .
  • #96
  • Aug 16, 2011 1:43am Aug 16, 2011 1:43am
[quote=Ozzie;4870156][quote=adeniyia33;4868543]
Quoting KMidas
Hi Ozzie and MaxDoom
Quoting KMidas
I am pleased to tell you that you posts are all read and found useful by me. But kindly clear me of a level of confusion:
1. is it save to just push the buy or sell button once I am convinced that my entry point is save from the bullets of the opposite camp?

Hi adeniyia33

You push the buy/ sell button when the market tell you to. you don't have to be convinced and you will not get a guarantee either. that where your stop loss and money management comes in. Let me explain.
On the 15m EURUSD...
Thank you for the post but I still need to ask you a Q. What do u mean by IMHO? Don't mind me, I am just a newbee


See Clear before crossing the road else....
  • #97
  • Aug 16, 2011 5:24am Aug 16, 2011 5:24am
[quote=adeniyia33;4873213][quote=Ozzie;4870156][quote=adeniyia33;4868543]

What do u mean by IMHO? Don't mind me, I am just a newbee

Hi Adeniyia,
In may humble opinion is the answer.
As a newbie ,read anything on PA (Price Action)
Stay away from Indicators, you will not be successful if you use indicators
Stay away from lower TF (Time Frames) Trade anything from 4H or >
If you Trade the 4H look at Monthly,Weekly and Daily Trent
You will only need 2-3Bars on the Monthly, Weekly and Daily to see where the trend is.
Study the chart on page one and apply this principle, it works on any TF
Read also the thread from Pipeasy " Building a equity millipete" and James 16
Good Luck
  • #98
  • Aug 16, 2011 7:41am Aug 16, 2011 7:41am
[quote=Ozzie;4873736][quote=adeniyia33;4873213][quote=Ozzie;4870156]
Quoting adeniyia33

What do u mean by IMHO? Don't mind me, I am just a newbee

Hi Adeniyia,
In may humble opinion is the answer.
As a newbie ,read anything on PA (Price Action)
Stay away from Indicators, you will not be successful if you use indicators
Stay away from lower TF (Time Frames) Trade anything from 4H or >
If you Trade the 4H look at Monthly,Weekly and Daily Trent
You...
What must write than thank you for the support so far. I had changed my TF to H4 as advised as you mentioned certain books which could help ( PA, James 16 and Building a equity millipete), Kindly assist on either PDF or any form you think is convenient for you of such materials as such things are hardly gotten in Nigeria. MY e-mail address is ([email protected]).
Nothing more but to thank you again.
  • #99
  • Aug 16, 2011 8:28am Aug 16, 2011 8:28am
[quote=adeniyia33;4874131][quote=Ozzie;4873736][quote=adeniyia33;4873213][quote=Ozzie;4870156]

What must write than thank you for the support so far. I had changed my TF to H4 as advised as you mentioned certain books which could help ( PA, James 16 and Building a equity millipete), Kindly assist on either PDF

You find all the information here on FF. Go to Trading systems and find Pipeasy Thread " Building an equity milibete" and James 16 . PA =Price Action
  • #100
  • Aug 17, 2011 7:51am Aug 17, 2011 7:51am
i'd like to know, when is the right time to exit the trade?
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