I'm currently watching the 1.38 area..
price has been really consolidating in the box...
price has been really consolidating in the box...
Attached Image (click to enlarge)
james16 Chart Thread
- #104,424
- Nov 15, 2011 2:07pm Nov 15, 2011 2:07pm
- | Joined Feb 2010 | Status: Make Them Pay | 1,103 Posts
Anything can happen.
- #104,426
- Nov 15, 2011 2:59pm Nov 15, 2011 2:59pm
Okay since I'm a beginner who has recently quit my job to become a full time trader, I need all the help I can get, and so I've decided to just jump in and post some of my trades here. This is all on demo trading by the way.
For this first trade, I guess I did not really know how to use fib retracements. I shorted at 1.0495 and closed out at 1.0516 for a profit of £12.27. A fluke I guess.
Now for the next trade I made on the same day. Looking at the same graph, as soon as I closed the position on my last trade, I saw a shorting opportunity when I used different swing points for the fib retracement.
I entered at 1.0517. The price did not go down straight away as you can see from the picture below. Instead it started ranging. At the time I did not realise that prices can range before going in the expected direction. Therefore I exited the trade before I lost money. I made a tiny profit, of 1.84. Then, the price DID eventually go down and I lost out on a decent profit.
I have since made better trades, which I will also post up, but I just thought I would share some of my first few trades in my first week.
For this first trade, I guess I did not really know how to use fib retracements. I shorted at 1.0495 and closed out at 1.0516 for a profit of £12.27. A fluke I guess.
Now for the next trade I made on the same day. Looking at the same graph, as soon as I closed the position on my last trade, I saw a shorting opportunity when I used different swing points for the fib retracement.
I entered at 1.0517. The price did not go down straight away as you can see from the picture below. Instead it started ranging. At the time I did not realise that prices can range before going in the expected direction. Therefore I exited the trade before I lost money. I made a tiny profit, of 1.84. Then, the price DID eventually go down and I lost out on a decent profit.
I have since made better trades, which I will also post up, but I just thought I would share some of my first few trades in my first week.
- #104,427
- Nov 15, 2011 3:43pm Nov 15, 2011 3:43pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Wow Mike
I read about 3 times your posts (I am ashamed to write the real number ;-)), and everytime I do it I learn something new. I see my charts, read your post again, and everytime I learn something new. It is amazing.
The way you see things is important, because this is the way everyone should do it. Anyone can be lucky once, but there is no such thing as being lucky everytime.
Thank you very much for your colaboration. Like PinBar wrote yesterday, without you and Jaroo, James16, and many other in here, so many like me would be...
Hey Hector
Write as many long posts as you need and thanks for the kind words, they mean a lot
I basically see this more as a breakout of a consolidation area with the beob as the "tip-off"
In this case the lows are very important(lower boundary of the box). This area really needs to hold on any pullback otherwise the idea of it may not be as valid.
My FTA is much closer which price has been able to get through pretty nice(see chart). Obviously where you move your stop loss or exit is going to be very trader dependent. I think moving ones stop to above the current bar high to try to catch a runner makes sense.
So I think overall the entry is an interesting one using the BEOBish bar as a breakout sign. But I also will caution new traders that this bar would be considered in traffic so we want to build a story like we can here with the BRN and box to make it worth taking. Otherwise we really want to see a bar like this at a swing high and not in traffic
Hope this helps a bit
Mike
- #104,433
- Nov 15, 2011 5:58pm Nov 15, 2011 5:58pm
- Joined May 2010 | Status: HCR-LCS SFP | 6,026 Posts
- #104,434
- Nov 15, 2011 6:05pm Nov 15, 2011 6:05pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Hello,
This is my first post at this forum. I had taken a trade on GBPNZD based on the concepts James has taught. I am not sure if it was a good enough trade, so wanted to have the opinion of you guys.
Reasons for taking this trade:
1) Resistance at 2.0590.
2) 50% Fib retracement. I have not drawn it explicitly so as to keep chart tidy.
3) Long term trend pushing the market down.
4) 365 EMA acting as a resistance.
Next day when the markets opened in Monday, it gapped down. The Inside bar was "triggerred", and I entered the trade....
Welcome to the thread
Someone had asked me about this in the PF so I wrote this about this inside bar, and posted a chart with the FTA.
Here was my response
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I don't trade inside bars much I think they are the trickiest to trade. In my view it's easier to learn to trade the other bar formations(outside, pins, dblhc/dbhlc, multibarhighs/lows) first. Inside bars represent the market resting or consolidating. So the information isn't as much most times as the other bars for me.
In this case like all inside bars you can straddle them(that is buy or sell) or you could be biased. If you are biased to a short then your FTA would be the purple dotted line. If you buy a break to the upside of the last 2 swing points and the BRN, then if it breaks it shouldn't have to come to far back against you(meaning those swing points should hold). Both ways are valid.
I would rather see price breakout tot the upside and watch that BRN and former swing high area for support. I would rather an inside bar off that area once we break thruogh and then trade it to the upside, then I would look to buy a breakout with that inside bar.
Again though everyone uses the material in a different way and find certain situations more comfortable.
Another aside to your chart. That first swing high created by that big bar didn't reach that high. Looks like your demo feed is off though. The high was around 2.0428, so that would also change my mind to the strength of the story(better if it looked like your chart). Always good to check with multiple feeds, or a live feed if you have access
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Again welcome and hope it helps a bit
Mike
