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  • #1,201
  • Mar 22, 2012 5:19am Mar 22, 2012 5:19am
Quoting lovejoy80
Yeah you don't get better opportunities to make money from price action trading than a setup like that. IT hit where my TP would have been earlier (5882) which would have resulted in over 12% win (SL would have been @ 5937)...that's how you make some proper money through price action trading. Never mind onto the next.

Dax level looks interesting and a LTF falling channel to watch too.

Yes that is ETX, only recently started testing them out - only for Indices and Bonds though.

Hi LJ,

I noticed you took a small loss on the DAX long. I had it on my radar aswell but i think we might have look on different contracts. On June contract 6969 was the price for support level and PA respected it very well.
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  • #1,202
  • Mar 22, 2012 5:30am Mar 22, 2012 5:30am
Quoting Greenhaze
Hi LJ,

I noticed you took a small loss on the DAX long. I had it on my radar aswell but i think we might have look on different contracts. On June contract 6969 was the price for support level and PA respected it very well.
Yeah I trade the daily rolling spot when it comes to Dax and FTSE and not the daily futures contracts - higher spreads, many more gaps, longer closing hours that's why I prefer the spot for FTSE and DAX (not for S&P and DJIA though).

Yes I took a small loss on this one, reduced my risk when price got close and tightened my SL considerably as I watched the price action on the 5mins. This is where knowing your news is important - why did I reduce risk cos I know why price was moving like it was and the chance of demand overcoming supply at that area had materially decreased due to the renewed strength sellers had. It would have hit my SL if I'd left it - now I'm watching the 3hr / 4hr close...
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  • #1,203
  • Edited 7:47am Mar 22, 2012 7:26am | Edited 7:47am
I'm going to start doing some videos to explain 'Professional Price Action Trading' starting with the basics. Wipe your mind clean of everything you've learnt in the past (seriously) and you'll understand why the retail amateurs often get it so wrong.

Lesson 1 - Price Action Basics - Supply and Demand

http://www.dailymotion.com/video/xpl...mand_lifestyle

Summary of key points from the video (and charts) attached (Forex Factory doesn't allow PPT files to be attached and it looks like it only embeds youtube videos).
Attached File(s)
File Type: zip Lesson 1 - Supply and Demand.zip   126 KB | 988 downloads
  • #1,204
  • Edited 9:07am Mar 22, 2012 8:52am | Edited 9:07am
A follow up to 'Lesson 1' above with a very recent example.

Part 1: The Professional's view.
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  • #1,205
  • Mar 22, 2012 9:06am Mar 22, 2012 9:06am
Part 2: - the novice and amateur's view...
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  • #1,206
  • Mar 22, 2012 9:16am Mar 22, 2012 9:16am
Part 3: The end result.
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  • #1,207
  • Mar 22, 2012 12:34pm Mar 22, 2012 12:34pm
Quoting lovejoy80
Part 3: The end result.
Some great posts as usual!

Looking forward to the webinar!
  • #1,208
  • Mar 22, 2012 12:43pm Mar 22, 2012 12:43pm
Quoting lovejoy80
I'm going to start doing some videos to explain 'Professional Price Action Trading' starting with the basics. Wipe your mind clean of everything you've learnt in the past (seriously) and you'll understand why the retail amateurs often get it so wrong.

Lesson 1 - Price Action Basics - Supply and Demand

http://www.dailymotion.com/video/xpl...mand_lifestyle

Summary of key points from the video (and charts) attached (Forex Factory doesn't allow PPT files...
Point is 99% of ppl on forums know this thing!but only few manage to get to be profitable..i believe there is more to the story more than just the S-Rs,
there will be such good S-R everywhere on the charts,but using psychology,"well-trained" instincts and sensing where the big money comes in,where the big interests are is something an aspiring trader need to get a grip on to be a part of 5% club. With that said,i follow my sig
Cheers.
  • #1,209
  • Mar 22, 2012 1:14pm Mar 22, 2012 1:14pm
Quoting AvanishDemo
Point is 99% of ppl on forums know this thing!
If 99% knew this then then there would be a lot more profitable retail traders out there...The fact is retail traders don't learn price action the same way professionals do and thus don't have the same level of knowledge and understanding of what is happening behind the scenes.

It's not down to psychology or trade management IMO that accounts for the majority not 'getting it' - there are fundamental flaws in knowledge and understanding and therefore application - the majority don't have much of a chance because they don't possess the knowledge and understanding required.

So although trade management and psychology are of course very important aspects of trading from my experience - it's the minority not the majority that 'get it'.


Quote
but only few manage to get to be profitable..i believe there is more to the story more than just the S-Rs,

Quote
there will be such good S-R everywhere on the charts,but using psychology and sensing where the big money comes in is something an aspiring trader need to get a grip on to be a part of 5% club..With that said i follow my sig
Cheers.

Of course there is more to price action trading than just supply and demand (this is just lesson 1 after all!) but the very basics and core of price action trading is an understanding of supply and demand - if people had this understanding then the 'novice and amateur' class of trader wouldn't exist.

It depends on how you class 'good' supply and demand - I showed numerous examples on the AU 5min chart - there are perfectly good tradable setups everyday across multiple pairs and multiple time-frames.

How do you think you 'sense' where the big money is coming in - the answer to that question was in lesson 1 if you think about it....

Psychology and trade management are two of the most important aspects of becoming a successful trader, but without thorough knowledge of order-flow dynamics and supply/demand you stand little chance of becoming a good price action trader - so psychology and trade management are largely irrelevant if you don't have the right 'knowledge and understanding'.
  • #1,210
  • Mar 22, 2012 6:13pm Mar 22, 2012 6:13pm
Quoting lovejoy80
Part 3: The end result.
...and where did price get bid...first time back to a former demand zone.
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  • #1,211
  • Mar 22, 2012 6:22pm Mar 22, 2012 6:22pm
Okay last post on 'Lesson 1'...

If you're going to remember anything from this lesson them remember the following statements...

1. When price first returns to a demand area the probability it will be met with more demand is high and vice versa for a Supply area.

2. Price levels where you have the biggest imbalance between supply and demand represent the best price action trading opportunities.

3. Combine the statement above with a strong current trend and you have a very high probability trading opportunity.

4. The more times a supply / demand is hit the weaker it is likely becoming - contrary to traditional teachings.

5. Professional price action traders use objective logic based on supply and demand.

...and importantly understand why these statements are true.


One last chart - 5min EURUSD, remember these are applicable on ANY time-frame.

Look at this chart with statements 1-3 in mind.
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  • #1,212
  • Mar 22, 2012 6:29pm Mar 22, 2012 6:29pm
Quote
How do you think you 'sense' where the big money is coming in - the answer to that question was in lesson 1 if you think about it....

Can you see from the previous post where the big money is coming in and why?

Quote
"well-trained" instincts and sensing where the big money comes in,where the big interests are is something an aspiring trader need to get a grip on to be a part of 5% club

Forgot to comment on this first time round:

Price action should be OBJECTIVE and not SUBJECTIVE - strategies should be able to be applied equally to any liquid fx pair - for example I can trade a specific price action strategy on the majors and on exotics and have the same hit rate....something I wouldn't be able to do if a successful price action trading depended on instinct and subjective reasoning.

Of course you can get used to certain pairs the more you watch then and pick up some nuances of how pairs move i.e. how the big money moves a pair - but at the end of the day the same strategies can be equally applied across all pairs.

It's an important point because there is a misconception that price action trading is subjective and requires a significant amount of discretion.
  • #1,213
  • Mar 22, 2012 6:32pm Mar 22, 2012 6:32pm
Couple setups from today...
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  • #1,214
  • Mar 22, 2012 7:10pm Mar 22, 2012 7:10pm
Would like to see a pullback and retest for a FTB entry. If we ever get there...

Would you consider 82.75 a possible entry or is the sell off too substantial?
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  • #1,215
  • Edited Mar 23, 2012 12:04am Mar 22, 2012 11:27pm | Edited Mar 23, 2012 12:04am
Quoting lovejoy80
Can you see from the previous post where the big money is coming in and why?



Forgot to comment on this first time round:

Price action should be OBJECTIVE and not SUBJECTIVE - strategies should be able to be applied equally to any liquid fx pair - for example I can trade a specific price action strategy on the majors and on exotics and have the same hit rate....something I wouldn't be able to do if a successful price action trading depended on instinct and subjective reasoning.

Of course you can get used to certain pairs the more you...
Nice take on that!!

thanks for the valuable info!learning new things as always!yes it was just 1st lesson after all!!

Good Trading!
  • #1,216
  • Mar 23, 2012 4:13am Mar 23, 2012 4:13am
Quoting 5.25
Would like to see a pullback and retest for a FTB entry. If we ever get there...

Would you consider 82.75 a possible entry or is the sell off too substantial?
Why would the sell-off being substantial be a cause for concern?...
  • #1,217
  • Mar 23, 2012 4:27am Mar 23, 2012 4:27am
Hi there ,

Very good video LJ and some neat information

There is one setup i am watching atm. EURJPY H4 chart
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  • #1,218
  • Mar 23, 2012 4:35am Mar 23, 2012 4:35am
I hope LJ wont have anything against putting that chart. IMO it illustrates the difference beetwen mediocre and very good BO & pullback setup.
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  • #1,219
  • Mar 23, 2012 4:45am Mar 23, 2012 4:45am
Quoting Greenhaze
Hi there ,

Very good video LJ and some neat information

There is one setup i am watching atm. EURJPY H4 chart
Yep that looks good to me, though I would have preferred an EP short over EJ and as they are both correlated (via risk sentiment) I would have opted for EP or split my risk because EP is technically superior - I made this call via Twitter yesterday morning!
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  • #1,220
  • Mar 23, 2012 5:07am Mar 23, 2012 5:07am
Quoting Greenhaze
I hope LJ wont have anything against putting that chart. IMO it illustrates the difference beetwen mediocre and very good BO & pullback setup.
I completely understand what you mean with regards price not respecting the support before breaking out - it's why we prefer to look for periods of consolidation prior to the breakout - because then you know exactly where the demand / supply imbalance is occurring...but I'll show you another view with a chart in a bit
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