Rufus

The weekend is here and I have some time off for Friday.....

I have had a few questions regarding some things I do.
Thought I'd post some of the changes I have incorporated into my trading.

In the example from UJ long. I at times will not wait for a candle to close to take a position. If a candle reaches deep into a zone that I believe is a strong one, the position is taken as close to the extreme edge as possible. With the UJ attached my stop was then about 10 pips. If I had waited for the 5m candle to close out of my zone the stop would have been over 20. My initial target was 50 pips away, the top of the previous swing high. So this would have made it a 5:1 risk reward if the target was reached.

By taking the position deep in the zone the risk reward is multiplied. I have had some with 7 and 8 pip stops.

As usual, the key is to have a plan. Whether the trade is opened with a move in the zone. Or engulf out. Or touch. Have a plan before price gets there on entry, risk, and targets. If you are wrong and price hits your stop so what it is part of doing business. But if the stop is as small as possible with the reward large as possible you can afford to have your stop get hit. What does it do to you mentally when a stop is hit? Know what condition your mind needs to be in to trade effectively. Also know when you need to walk away from your platform.

This past week was challenging at times for me. Central Bank interventions, a lot of news, weak economies, gold flying all over. For me the hardest thing is to step away from the platform when things are going haywire.

Ah well....some stuff I have been thinking about.

Rufus

EU short

Started as breakfast.....ended at dinner.

A good day..Went to a Mariners game so no trading tonight. Beer then bed.

Boom!

EU short at supply. Another entry with breakfast. Eggs and grits, with a bit of cheese on them. I don't normally hold over the weekend. This time I am. See how it goes Sunday.

First target hit.

Rufus

Just finished it....Awesome book. I think it should be required reading for all. So much in there about the psychology of trading. It is more than worthy of a second or third read.

Back in the saddle again

Good for a few. I will be doing more pending orders. Way busy with work right now.

New pending order. Missed entry by 0.7 pips. Will cancel it. Price did not leave suppply the way I thought it would.

HI RUFUS!!

im usually active on sho's thread-"intrady price action" but i follow ur thread as well as i think u are a very good trader.
i believe u are very good with spotting supplydemand levels so if u don't mind i would like ur advice regarding my plan with the aud.
i trade futures and not forex but the idea is the same just different numbers.

i spotted that the aud is reaching a supply level(at least i think its a supply level)..
if we look to the left we can see that in the past price has dropped lots of pips.
with that in mind i am looking for a shorting opportunities.
would u mind giving me any comments?
am i wrong with my assumption?

its always hard to think short when the market is rising but isn't that always the case?

Hi Elliotrader

I have been watching the same area. Usually Gold and the AUDUSD move together. Lately it has been kind of weird though, but they seem to be moving back into syncretization again. The chart posted is showing that both Gold and the AU are approaching a supply area so this may be a great shorting opportunity. I know I will be watching it..

I missed the big move last night on the EU. As you saw by my post my entry was off by 0.7 pips. Then I was too tired and sore to stay up last night to trade the London session. My work has been busy lately. Sure looking forward to trading full time.

You are sure right about selling in a strong up move or buying when things are dropping. It just doesn't seem right at times. How many times in your life have you heard the phrase "You can't catch a falling knife". Well if there is a floor, you just pick the knife up when it hits it.

Bob Uecker was asked how to catch Phil Niekro's Knuckle ball........
"Wait until it stops rolling, then go to the backstop and pick it up."

I think an area where people get messed up with S/D zone trading is in controlling their risk. My stop is always 7 pips the other side of the zone and I calculate out my position size to risk only my set percentage. My first target is minimum risk x 2, want 3 x risk.


I guess I have rambled enough. Everything I do now is based on S/D in some way.

I will post my AU chart in the next post. My trading is on a different computer. Research on this one.


Trade safe and will talk to you latter

Rufus

AU

Yep yep, waiting on that 1.08 aussie short...maybe tonight??

rufus thank you very much for your detailed response!!!!
great as always!!!
thx again!!
happy pips!!
will post here again if i actually press the trigger on this short...

so i decided not to pull the trigger.
in my future chart of audusd price did reach the supply level but i did not like the way it did it.instead of having a fast move to the supply level it kinda slow bleed over there.
ofcourse now i will see it nose dive(lol) but it did not follow my rulle so im skipping it.

thx again rufus for ur insight.
hope to chat with u soon about a different trading opportunity.
happy pips!!

I agree. I have narrowed down my zone to about 35 pips wide. I like to see price leave the zone quickly and with a fast approach. So far we have seen neither. It may be that things are waiting for NFP. gold is still in a narrow band as well. Right now I am thinking about a pending order on this bugger and reduce my risk. But we will see.

There is a mountain of paperwork for me to wade through before I feel like I can look at the charts with a clear head.

Trade safe and will talk latter. Charts next post

Rufus

The AU 1h chart is where the origin of the supply is. It took a full day of PA for the sellers to take over. This chart also shows my narrowed down supply area. I am still a bit hesitant with it, I like to see price leave quicker then this for a well defined zone.

I had been watching this zone for days. Did not want to do a pending order on it and was not home to take the entry, but hit the S/D area beautifully. Just what I like to see.

Now we see if it will move.

Rufus

Caught a little last night

Pending order filled...Stops at BE now. Think I wlll soon head for bed and sleep well.

Wild times......Closed