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Price Action Trading with Indicators! The Freebie System

  • #6,141
  • Jan 6, 2012 10:23pm Jan 6, 2012 10:23pm
Hey all. First up, thanks everyone for the excellent thread. I read it towards the end of last year over a couple of weeks and have been slowly going through it again. It's been good watching people pick it up and go from being a bit lousy to making solid gains. Actually been some pretty good stories in there. Hopefully now it's my turn

I'm pretty new to forex and had read all about the need for a strategy you trust but figured that working out one of my own could take years. Saw Udine's post for Invictus on google and followed his link here.

So anyway.. got some distance to go yet. Trading this system had me 30% down within a month (on demo) but practice and patience are starting to pay off and I made 12% for this week (Dredding's breakout strategy contributed 5%), even though I made couple of shocking trades last night.

The most useful change in my approach, if it helps other noobs, has been MM and closing out half at 1:1. So many of my trades would make it to that point and reverse me out. As I get better and see more of my trades making it to the second TP, I'll look at changing this but for while I'm finding my feet, locking in 1.5% beats the hell out of losing 3. I might make 3-5 trades a night so it all adds up. Converting those reversals into partial winners had me hitting at 70% for the first 3 days this year - up from about 25%

Also: chart time. I've bailed out on a few trades early because my growing experience told me that the charts were going too strongly in the wrong direction. Been right and wrong on them (mostly right) but the psych benefit of not staying so long in the red is pretty valuable when you're starting out. If you're a noob, looking at Paulus and that Zen ability to sit back and watch 5% evaporate, only to load up and try again, you have to take into account that he's been trading for something like 13 years. There's a certain perspective that comes with experience and I ain't got either of them yet.

Anyway, that's me and my starting point. My current challenge is with trends. I get stung a bit on picking the end of retracements, waiting 4 hours for that setup and missing all those intraday pips, only to jump in about an hour early, get stopped out, and then have the good trade's benefits spent on making up for the losses. Frustrating as hell but we'll get there
  • #6,142
  • Edited 12:44pm Jan 9, 2012 12:33pm | Edited 12:44pm
Quoting TheMadMonk
Hey all. First up, thanks everyone for the excellent thread. I read it towards the end of last year over a couple of weeks and have been slowly going through it again. It's been good watching people pick it up and go from being a bit lousy to making solid gains. Actually been some pretty good stories in there. Hopefully now it's my turn

I'm pretty new to forex and had read all about the need for a strategy you trust but figured that working out one of my own could take years. Saw Udine's post for Invictus on google and followed his link...
Its great you are starting to get the hang of using this system. Like most things in life, trading also takes time to master or atleast become profitable at.
Now that you are starting to understand how important money management is, try to remember not to over think it. When you start to over think you become scared or unsure of a trade which could cause you not to enter a good trade out of emotions. But with the use of a proper money management and a trade plan or system for entry the odd are in your favor and there should be no need for fear or emotions in your trading..
Trend is not that hard as i keep telling everyone. There are only a few ways to tell trend. You either have to use HH/LL or a moving average. As always you should look on a higher time frame for the HH/LL or for the use of the MA for trend. Using the lower time frame is picking out the retracement when you use the higher time frame to find the trend.
Hope your trading continues to improve as you grow as a trader.

**NOTE** You can use almost any trend type indicator even the higher TF HA candle color...*WINK* WINK*

Dredding82
  • #6,143
  • Jan 9, 2012 2:01pm Jan 9, 2012 2:01pm
Hey Dred, Am indebted to you and your system. Thanks a million. I can't locate that link to your innermost sanctum which i think you posted a while ago - if I was not dreaming it ?

Happies Arigo
  • #6,144
  • Jan 9, 2012 2:48pm Jan 9, 2012 2:48pm
Quoting Arigo444
Hey Dred, Am indebted to you and your system. Thanks a million. I can't locate that link to your innermost sanctum which i think you posted a while ago - if I was not dreaming it ?

Happies Arigo

Post #1.
  • #6,145
  • Edited 6:49am Jan 10, 2012 6:45am | Edited 6:49am
Thanks man.

Yeah I think it's a patience thing with me too. I wouldn't be the first to come into forex with starry eyes and thinking I could retire in a year. And that's a thing for me to get over right now - Being careful on the retraces. Waiting for confirmations or multi-TF convergences instead of jumping at the first hint of a longer term trend kicking back in because I've been missing so many pips.

Mind you, I used some of that on my last trade. Caught that Aussie USD run just before. Closed out half while it was racing towards the daily range. (Caught it on the cable too which was nice but missed the Euro - newbie error on the risk so closed it out immediately). After the cable retraced to take my SL at BE (had taken half) I looked closer at my aussie trade to see it at daily R3 and weekly R1. My 2nd TP was about 10 pips away and my BE SL 25 pips south. So we had confluence and a risk of reversal (considering I'm not hugely bullish at the moment on the AU and it's been falling for 3 days) with 25 pips risked for a 10 pip gain. No news and only weakish fundamentals lately had me thinking that technical considerations, such as convergence would have to take priority. Bailed on the trade.

So far it was a pretty good choice and I'm pretty stoked I saw it. While I'm typing this, I see a big old candle attacking my exit point again, but having the 3 or 4% in the bank has made the last hour of retrace a whole lot easier to deal with

Anyway, those levels should have been looked at BEFORE I entered the trade. In fact, it should have been looked at before I started trading tonight. Identify the levels. Look for possible points of inflection. I had kinda stopped after deciding we had room in the channel to go up.

Something for the diary, eh?

Edit.. oh yeah and anyone looking at those lines on the chart , they're bogus. I couldn't get your system working on the the FXCM trading station. I use a proper MT4 now for the signals but couldn't get used to the empty charts on the platform I trade from so I kinda left them there.

Quoting Dredding82
Its great you are starting to get the hang of using this system. Like most things in life, trading also takes time to master or atleast become profitable at.
Now that you are starting to understand how important money management is, try to remember not to over think it. When you start to over think you become scared or unsure of a trade which could cause you not to enter a good trade out of emotions. But with the use of a proper money management and a trade plan or system for entry the odd are in your favor and there should be no need for fear...
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  • #6,146
  • Jan 10, 2012 9:39am Jan 10, 2012 9:39am
Hello. Tell me please why the yellow lines and a skull on the chart?
Sorry for my mistakes. I am from Russia.
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  • #6,147
  • Jan 10, 2012 11:47am Jan 10, 2012 11:47am
Quoting Slik
Hello. Tell me please why the yellow lines and a skull on the chart?
Sorry for my mistakes. I am from Russia.
Attachment
The lines are the ADR...AVERAGE DAILY RANGE.......

The skull....Because i like it! lol Its my "mark"...and before anyone says anything, TROs is a tiny little gray skull..........
  • #6,148
  • Jan 10, 2012 9:53pm Jan 10, 2012 9:53pm
Was getting ready for bed, decided what the hell, might as well enter a small trade considering the stop loss was only 11 pips. Set Take Profit two pivot points down. Got +40, Now do I count that as today's trades or roll that over into tomorrow's profits...oh well. We'll just call that beer money.
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  • #6,149
  • Jan 10, 2012 11:26pm Jan 10, 2012 11:26pm
Quoting mustangzs
Was getting ready for bed, decided what the hell, might as well enter a small trade considering the stop loss was only 11 pips. Set Take Profit two pivot points down. Got +40, Now do I count that as today's trades or roll that over into tomorrow's profits...oh well. We'll just call that beer money.
Nicely done Mustangzs. Easy money!
Damn The Torpedoes, Full Speed Ahead!
  • #6,150
  • Jan 10, 2012 11:51pm Jan 10, 2012 11:51pm
Quoting Dredding82
The lines are the ADR...AVERAGE DAILY RANGE.......
Thanks. Means ADR for enters it is not used? Several months ago I have started to study Price Action. Your system works as well, as well as PA. But your system is much easier.
  • #6,151
  • Jan 11, 2012 1:35am Jan 11, 2012 1:35am
ucad S
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  • #6,152
  • Jan 11, 2012 4:41am Jan 11, 2012 4:41am
Got it on the red horizontal line and rode it out for 33 pips.

Closed out totally as I had set the limit at the start of the trade and it moved too quickly for me to get in and change it to a scale out. Chose that point as its a weekly mid pivot and daily resistance level. Could have got a few more pips, but happy with my 3.5%
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  • #6,153
  • Jan 11, 2012 5:49am Jan 11, 2012 5:49am
Yeah ok so I might have cut myself out of a couple of pips.... or 50 something.... Heh.
  • #6,154
  • Jan 11, 2012 6:27am Jan 11, 2012 6:27am
The action was pretty slow bearish. A little bullish hump then a break of congestion and rejection of the M2 (15m) and the M1 (Weekly). A bit risky - would have preferred a proper full pivot. But slow action across the board at that stage and that breakout could have been the big one. Read it a bit wrong as it wasn't a breakout, just a turn back to trend. Then some ratings dude comes out and says something obvious and everyone risks off lol.

The race was which currency out of AUD and EUR would lose more. Was more bearish on the EUR because it's hopeless right now and also thinking that the trade figures for GBP from earlier might have more of an effect on the Euro than the Aussie.

My trade had a tight stop of about 15 pips. The target was 31 pips (1.2340) which was the convergence of R2s for both daily and weekly. Rode it out to 17 and closed half. Not sure on the consolidation and the roundish number at 1.2350 (also a record low) so closed another quarter. I reckon it has further to go but I'm tired, fussing over my trades too much and it's been a good night. 2 trades, 2 wins. 6.89% for the night and +18.68% (plus compounding) for the year with a 56% hit rate. Would have been nice to get another long US trade in there as that was where the big pips were tonight, but hey I'd take the numbers I got any day

Get this trend stuff down better and with better FA and I could be going places.

Thanks Dred
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  • #6,155
  • Jan 11, 2012 2:34pm Jan 11, 2012 2:34pm
anyone did get that set up woww nice one
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  • #6,156
  • Jan 12, 2012 4:22am Jan 12, 2012 4:22am
Quoting Dredding82
Now that you are starting to understand how important money management is, try to remember not to over think it. When you start to over think you become scared or unsure of a trade which could cause you not to enter a good trade out of emotions.

Dredding82
Bah!!! Yeah... Missed a nice breakout on the AU just now. Stinging over getting reversed on the GU about 15 minutes ago. Looked at jumping on but started thinking that I was too late and missed the first impulse. Was 10 minutes and about 10 pips too late. Don't chase the pips blah blah. Would have made my 1:1

Two losers tonight and the fear is in. A double chilli pizza and a half hour off should take care of that.

Learned a valuable lesson about getting into a trade to early. The attached pic was where I went short on a break of the prior candle's low. We'd had a rejection of the S1 and some pretty bad figures out of the UK. HAs we all red. And the price was heading south. So I went in early to catch more pips.

*slaps head*
*slaps head again*

I mean... at the time I got in, it was such a sensible looking trade. But impatience and greed cost me 3%. Then fear cost me from getting it back.

On a fkn demo account!

Still don't know for sure what caused such a reversal but I'll have a guess. Spanish bond auction came in at about 3%. USD fell against GBP, AUD, and EUR. Everyone's having a risk on thing because of it.

Anyway.. waiting out for the ECB rates decision as there should be some good action after that.
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  • #6,157
  • Jan 12, 2012 4:29am Jan 12, 2012 4:29am
Always wait for the candle to close!
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  • #6,158
  • Edited 4:48am Jan 12, 2012 4:30am | Edited 4:48am
sorry would do the quote thing but does not seem to be working for me, look at rule #4 word for word...
Inserted Code
SELL
Trade With The Trend
1) ZZ Semafor On TOP(Within 1-3 Candles)
2) Failed At Pivot
3) Stoch Crossed DOWN
4) HA Candle Closed RED
SL= Last High(ZZ Semafor Dot)
TP= 1:1-1:4(risk/reward) or Use Other Pivots(The Daily Range indicator will tell you what pivot to MAX PROFITS)
DONT BE GREEDY!

BUY
Trade With The Trend
1) ZZ Semafor On BOTTOM(Within 1-3 Candles)
2) Failed At Pivot
3) Stoch Crossed UP
4) HA Candle Closed GREEN
SL= Last Low(ZZ Semafor Dot)
TP= 1:1-1:4(risk/reward) or Use Other Pivots(The Daily Range indicator...
  • #6,159
  • Jan 12, 2012 6:42am Jan 12, 2012 6:42am
Yeah. And it wasn't like I entered in the last few seconds of the candle either. Checking my history now it was more like about 3 minutes in from the start.

Very poor trade

Quoting Dredding82
sorry would do the quote thing but does not seem to be working for me, look at rule #4 word for word...
[code]
SELL
Trade With The Trend
1) ZZ Semafor On TOP(Within 1-3 Candles)
2) Failed At Pivot
3) Stoch Crossed DOWN
4) HA Candle Closed RED
SL= Last High(ZZ Semafor Dot)
TP= 1:1-1:4(risk/reward) or Use Other Pivots(The Daily Range indicator will tell you what pivot to MAX PROFITS)
DONT BE GREEDY!

BUY
Trade With The Trend
1) ZZ Semafor On BOTTOM(Within 1-3 Candles)
2) Failed At Pivot
3) Stoch Crossed UP
4) HA Candle Closed GREEN
SL= Last Low(ZZ...
  • #6,160
  • Jan 12, 2012 3:24pm Jan 12, 2012 3:24pm
Hey everyone. Have some charts for anyone who wants to see them. I'm probably going to stop posting charts unless people still want to see them. Getting time consuming and there's much more support in the chatroom. Figured I would post some examples of winning trades and my loser. Total for the day was +150 pips. My losing trade was my own fault, I didn't set my stop loss back far enough, I thought it was an error on my brokers side and Dred showed me that I was looking at the BID price on my short instead of the ASK price...

Oh well, still a very good day. Dred, thanks for all the support and help. If I ever meet you in person...drinks on me.

PS. The losing trade was the USD/CAD, most of my trades were entered in at 3:15am EST. I was going so fast entering multiple orders that I became complacent and had my platform defaulting to like..12 or 15 pips on a stop loss till I went back and changed them...patience...patience. The trade went my way, just got stopped out and I was asleep in the cot in my office..lol.
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