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  • #101
  • Oct 6, 2011 8:27am Oct 6, 2011 8:27am
Trade 7 - Executed
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The Thief of Wall Street
  • #102
  • Oct 6, 2011 8:29am Oct 6, 2011 8:29am
Quoting shotunz
nice thread....is it ok if i share how i trade this method?
Shot, please do share.
The Thief of Wall Street
  • #103
  • Oct 6, 2011 9:32am Oct 6, 2011 9:32am
i usually watch the 4hour chart....when i identify a support or resistance, i wait for it to get half way and place my order...the aim is to confirm that the support or the resistance is genuine..

yes i still get some whipsaw here and there but that's how i trade this method..works for me.
currently long eur usd @ 1.3411....lets see how it goes
  • #104
  • Oct 6, 2011 9:34am Oct 6, 2011 9:34am
Quoting Chicky
Trade 7 - Executed
Trade 7 - Running

A better view.
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The Thief of Wall Street
  • #105
  • Oct 6, 2011 10:27am Oct 6, 2011 10:27am
Quoting Chicky
Buma,

I just took a long scalp for few pips, only one trade (not on demonstration account).

May remain on sidelines for rest of the week.

Here is what I see. Dotted lines are the strong levels. The "Gap" you see is the strongest.

as bumapatria, the only question i have is why the lines are all parallel, or at least they seem to be.
these are not the usual trendlines but rather a channel. and what makes the dotted lines so powerfull.
what's the story here?
  • #106
  • Oct 6, 2011 10:40am Oct 6, 2011 10:40am
Quoting Chicky
Trade 5
As part of my system, after every two consecutive losses, I eat about 10 grams of Horny Goat Weed, cover my whole body with 2 pints of goat blood and perform some black magic rituals either standing, sitting or lying naked in my backyard. Usually this is a 40 day ritual, but in weather conditons like this, I do it for 40 minutes.
Brilliant
  • #107
  • Oct 6, 2011 1:54pm Oct 6, 2011 1:54pm
Quoting Chicky
I have added some horizontal resistances (pink lines) to complete the chart. Kindly remember all lines are arbitrary but more than 50% chance of being respected.

Click at the chart for larger version.
How do you deal with price going through and only through such lines?
I can see on your charts that price reacts to your lines, validating their existence.
I try and avoid this difficulty through using very few lines or a preset drawing device such as Gann Fan or channels.
Only your way, there seems to be almost nothing finite, no boundaries between or close and around which these low-reacting lines go.
  • #108
  • Oct 6, 2011 4:44pm Oct 6, 2011 4:44pm
Quoting asos101
as bumapatria, the only question i have is why the lines are all parallel, or at least they seem to be.
these are not the usual trendlines but rather a channel. and what makes the dotted lines so powerfull.
what's the story here?
I would call him and all his strategy as a whole, as his edge on the market

Yeah, chicky please explain, I am a curious dude always in the hunt for knowledge, but not in the hunt for indicators and other systems lol.

Have I got something on my face, SOLDIER?
  • #109
  • Oct 6, 2011 9:02pm Oct 6, 2011 9:02pm
Quoting asos101
as bumapatria, the only question i have is why the lines are all parallel, or at least they seem to be.
these are not the usual trendlines but rather a channel. and what makes the dotted lines so powerfull.
what's the story here?
Asos, these lines are perfectly parallel in three directions. Blue are ascending, yellow are descending and pink are horizontal.

Yes, these are channels but there are only two channels in this chart. Blue Channel goes up and Yellow Channel goes down. That is why all these lines are parallel.

Lines get their dotted status in two ways. 1) If historically pa has stongly reacted to a channel line (trendline) on Daily, and 2)If pa has not reacted strongly in the past but starts reacting to a trendline now.

The story is short and simple, there is more than 50% chance that pa would react to these lines. This is all one needs, more than 50% chance.

In this demo account chart, number of lines are probably ten times less than what they should be because we have a minimum trade limit of 60 pips. In my other accounts, this limit is 10 pips and therefore they require inserting lines also for smaller reactions.
The Thief of Wall Street
  • #110
  • Edited 9:47pm Oct 6, 2011 9:17pm | Edited 9:47pm
Quoting ha-pattern
How do you deal with price going through and only through such lines?
I can see on your charts that price reacts to your lines, validating their existence.
I try and avoid this difficulty through using very few lines or a preset drawing device such as Gann Fan or channels.
Only your way, there seems to be almost nothing finite, no boundaries between or close and around which these low-reacting lines go.
Ha, thanks for stopping by.

Since these lines are supports/resistances, I take a chance of bounce from these lines. It is normal for pa to penetrate and then fall back within a trendline respecting the boundary. Therefore my sls are not just few pips away from these lines. My sls are very generous, almost equal to TPs.

If pa takes several bounces but persistently keeps on attempting at a line, I sometimes take chance of a break. The good thing about a break is that pa travels fast after a break.

Initially I used to go for a break, but later learned that most of the time pa respects these lines. Therefore I now try to take chances on rebounds. But such chances also consider fundamentals, session and time of session, psychological factors, etc. For example I did not take any short trade in the past two weeks. The only reason is that before a major news announcement pa stops near a major level. There were two major levels 1.3250 and 1.3500. It got near 1.3250 days before US employment data, now expected it to either stay there for another 3 to 4 days or head for 1.3500. Logically it should not break 1.3250 before data is out therefore any penetration below 1.3250 was a long opportunity. When it stayed above 1.3250 I again went long.

You already know this, but for new traders I would like to add that these lines are just arbitrary levels and our speculation is not conclusive, therefore we only take chances. No chance deserves putting significant amount on stake therefore one should keep position sizes small.
The Thief of Wall Street
  • #111
  • Oct 6, 2011 11:50pm Oct 6, 2011 11:50pm
Trade #7 - Running

There is a little glitch in this position. I know a way how to correct it. Will explain later, after this trade either hits sl or tp. Do not want to encourage exceptions.

Just remind me of this equation when this trade is over:

X/n + y/n = Z/n
The Thief of Wall Street
  • #112
  • Oct 7, 2011 12:00am Oct 7, 2011 12:00am
Quoting Chicky
Trade #7 - Running

There is a little glitch in this position. I know a way how to correct it. Will explain later, after this trade either hits sl or tp. Do not want to encourage exceptions.

Just remind me of this equation when this trade is over:

X/n + y/n = Z/n
Will use this chart to explain the above.
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The Thief of Wall Street
  • #113
  • Oct 7, 2011 12:44am Oct 7, 2011 12:44am
chiky, i see you have awesome setups. truyl great...

do you also trade live?

just a question.

if udo..

damn...

great job !
Have I got something on my face, SOLDIER?
  • #114
  • Oct 7, 2011 12:49am Oct 7, 2011 12:49am
Quoting bumapatria
chiky, i see you have awesome setups. truyl great...

do you also trade live?

just a question.

if udo..

damn...

great job !
Buma,

LOL bro. I sometimes hit a series of losses. I do trade live for many years but that's my hobby not a business. But all hobbies require some investment.
The Thief of Wall Street
  • #115
  • Oct 7, 2011 1:05am Oct 7, 2011 1:05am
Quoting shotunz
i usually watch the 4hour chart....when i identify a support or resistance, i wait for it to get half way and place my order...the aim is to confirm that the support or the resistance is genuine..

yes i still get some whipsaw here and there but that's how i trade this method..works for me.
currently long eur usd @ 1.3411....lets see how it goes
Shot, what do mean by half way? Do you place a market order when support/resistance is near or a pending order right a that support/resistance?
The Thief of Wall Street
  • #116
  • Oct 7, 2011 1:38am Oct 7, 2011 1:38am
chicky do you trade the x's?
Have I got something on my face, SOLDIER?
  • #117
  • Oct 7, 2011 3:24am Oct 7, 2011 3:24am
Quoting Chicky
Shot, what do mean by half way? Do you place a market order when support/resistance is near or a pending order right a that support/resistance?
i set a pending order when the support or resistance has been established...
the image below shows 2 RED lines and a blue line...its a eur/usd chart 4hour (last week)

on the 26th of September , a support was formed at 1.3375....next resistance should be at 1.3570..

so i wait for price to get to the middle of the support and resistance (at 1.3477 which is the blue line) to give me PROOF that price is actually going to keep going up to meet the resistance.
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  • #118
  • Oct 7, 2011 4:23am Oct 7, 2011 4:23am
Quoting shotunz
i set a pending order when the support or resistance has been established...
the image below shows 2 RED lines and a blue line...its a eur/usd chart 4hour (last week)

on the 26th of September , a support was formed at 1.3375....next resistance should be at 1.3570..

so i wait for price to get to the middle of the support and resistance (at 1.3477 which is the blue line) to give me PROOF that price is actually going to keep going up to meet the resistance.
hey shot,
u sure about that tp?
Have I got something on my face, SOLDIER?
  • #119
  • Oct 7, 2011 4:33am Oct 7, 2011 4:33am
Quoting bumapatria
hey shot,
u sure about that tp?

for my current trade...well...its nonfarm today...i'll take what i can get.
  • #120
  • Oct 7, 2011 5:58am Oct 7, 2011 5:58am
Quoting Chicky
Post 1 of 4: The first and foremost lesson learned is to Have an Edge.

The edge means a “Method” or a “Result of Analysis” that puts traders in advantageous position in such a way that odds are in their favor if their analysis is right or their method is sound.

[color=black]An edge can be a conclusion regarding market’s future direction after analyzing fundamentals or it can be a technical method that is likely to yield profit over a certain number of trades. The profit is net result of...
Chicky you are really able to get the title of THE THEIF OF WALL STREET... AAAHHHH GREAT.
I really got from your analysis, and today it was amazing.... the NFP.... as expected
"Sensible Trader"
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