Trading with Deadly Accuracy

LOL, just read your profile, how appropriate.... haha

Trading forex old fashioned way.
Channels // Trend Lines // Breakout // Pullback

Will, you should add support and resistance as well! You're hands down the best support and resistance trader (especially intraday) I have ever seen in the last 10 years.

I just love how simple you make trading. I am constantly amazed at how you can extract pip perfect trades with a only a trendline and/or a support resistance level!

Dazz. I would love to see your setups.

WMD: I've been reading the thread over and over and would really like some info on exiting trades. Thanks again for providing this excellent resource.


Trade Updates:

UsdJpy: In profit 5 to 20 pip range - most pips in loss -20
AudUsd: In profit 150 pips - most pips in loss -10

Hi 'CT' (creativetrader). There is tremedous power in words. Its more important to see yourself as what you are becoming, not what you think you are now.

Dazz

After going through this thread, it appears some people get it and some don't, so I might re-iterate some points.


1. See POST 14. Trade when price moves the way it should. If it does not, the trade can be skipped. Be picky When you look at the chart in post 14, notice where Will starts drawing it from. Notice the vertical drop is from the “start of the move”. Then a hook, then price moves away from the hook. It’s not only important that a pattern formed, but where did that pattern form.


2. Re-read the rules. Please see POST 26. Remember point 4. I see plenty of charts posted the only have points 1, 2 and 3. Point 4 is either forgotten or not understood.


3. If you can, watch price as it approaches and reaches the price of entry. This can be on a 5min or 1min chart. Price should move in the way you expect it to. If price does not, a trade can be skipped.


4. The overall market conditions should be taken into perspective to determine if a trade is a going to be a good one.

More on point 1. I read something in a Larry Williams book [on futures, not Forex] (short term secrets to long term trading) about 6 or 7 years ago that the left an impact on me. Larry said something along the lines of this…

“It was not until the in the 80’s that technical analysts really understand what created/started a trend. Trends are started by “short explosive bursts in price”.

This really stuck…. It’s always been in the back of my brain.

We also know that price never keeps going one way forever. It will always pulls back (the hook).

However, that “explosive burst”, if it’s the start of a trend, has enough “umph” that price does not pull back to break out point (BOP), it just keeps going. That’s the continuation of the move.

Now, look at the picture on post 14…. As Will says, “how price moves”.
It looks like the same observation to me.

More to come….

Dazz

Here is an example I am looking at now.
Note the following points.

There is support, then:

1. the bop is from "the start of the move"... (the "burst")
2. then the pull back (the "hook")
3. then price continues to move away (the "continuation")

Now price is nearly back at that level....

dazz

and on the same chart...

From my own observations, sometimes, the bottom of the hook will potential serves as S/R thereby neutralizing price advances. It is something that i watch out for.

A concur. About the short explosive burts being critical to establishing the trend.

i have a few questions: will it render the BOP more valuable if the short explosive burst(s.e.b) in price is at a minimum, +50 pips in length, on say, h4 or higher? That is, the longer the breakout candle on higher time frames the better?

(2)Look for reversal candle at point of entry on 1min or 5min time frame? Using the bottom of the reversal candle as SL.....

of course, trade management and individual preference matters along the way.

Hi dddd,

I do not think is was a "short explosive burst" in price movement, I think it was just "an explosive burst" in price movement. I'd need to check the book again, but I think adding "short" is an error on my part. My brain was thinking the word "quick" or "agressive".

Regarding your question, I do not think the pip count matters as much as how it looks on the chart. How much it moves depends on the timeframe and the pair. What's important, is that is looks obvious enough to be noticed by enough large traders to place some big orders at that level.

If you want to use a pip count, look at the "cluster" that price breaks away from. If the cluster was ranging at "x" pips, then you want the break out (before the hook) to be quite a lot larger than this. The larger the better. It's got to visually grab your attention.

Regarding your second question, it depends on your style. I know Will is more inclined to watch price action on a 1m or 5m chart (and sometimes higher) at the point he expects to take entry, seeking confirmation of entry. If price is going to reverse, he will see this by how price moves. Sometimes you can see this just in the way a single forms (real time) at the level. That's something I am learning, but by no means an expert on. That part just takes a lot of screen time.

As you say, if you see PA at the level, then yes, by all means place your stop below that. That's what I do.

dazz

update... (as example)

dazz

cool stuff. makes sense. gracias.

PA not supporting a short.... Its good to call a trade, then analyse it.... great learning experience for all, regardless of outcome.

I did not take the entry myself, PA did not confirm entry so I left it alone.

dazz

Aussie/$.

I remember getting my first car. 1971 Ford Cortina. After I got it, I noticed them everywhere. Before that, I had never noticed them on the road.

Well, it worked anyway... that drop was 135 pips. (I was not in it)... Will was though!

dazz

dazz

Nice to see a little buzz back on this thread. Thank you fellas!

move by + 88 Pips.


yes it did

a level to keep an eye on

dazz

cool that dazzdude choose to do this.

a level worth watching...

dazz

something about those dam clusters price breaks out from of isn't there!

dazz