Torbarxa Isn't that the last level up from thE H1 CHART? IT LOOKS LIKE PRICE MAY FORM A HEAD AND SHOULDERS PATTERN AND WE MAY HAVE A REVERSAL COMING, WHAT DO YOU THINK?
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Joined Jun 2011
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Status: Keep It Simply Stupid
|356 Posts
Can anyone answer this?
The daily market cycles through the week I understand price makes a midweek reversal either Tues - Wed/Wed-Thur but can it have more than 1 reversal I mean major on the 4 hour?
Also, if you cannot see the 2nd leg or the MW pattern on the 15 mins would a 5 min 2nd Leg be acceptable?
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Joined Jun 2011
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Status: Keep It Simply Stupid
|356 Posts
Thanks for that actually missed that too this morning while eating breakfast!
Doesn't the higher right M leg trigger caution as its higher the the first left M leg? I prefer a lower structures right leg there to make it high probability.
Also, care to share that Asian range box indicator looks good.
Can someone confirm if I got this right for straight away trades into the overnight asian session?
Doesn't the higher left M leg trigger caution as its higher the the first leg? I prefer a lower structures right leg there to make it high probability.
Ignored
It is not clear to me what you're trying to say. You cautioned against higher left M leg, yet you preferred a lower right M leg. No one will answer your questions in future if you don't check what you type and correct your typo.
Doesn't the higher right M leg trigger caution as its higherthe the first left M leg? I prefer a lower structures right leg there to make it high probability.
Ignored
Take a look at USD/CAD on 15mins chart. Prices moved higher at 10:30amET sucking in long buyers, and then "they" immediately pullback with two red bars, trapping the late breakout buyers. This structure is not a perfect M-pattern, but can still be analyzed in same way. The second leg or right M leg is higher (which you cautioned) but if you look at the TDI, the signature of the right M leg is lower.
The first leg in TDI broke outside the volatility band, but the second leg came up close, but could not break the volatility band. Prices moved higher on second leg, but TDI closed lower on second leg. This is like bearish divergence.
Update: The first short entry at 1.00051 was a "test", if I'm wrong I would be stopped at half my normal risk. The second red bar showed I'm right (no drawdowns), so added second short entry at 0.99955 to make full risk. Overnight, the initial target under 200ema area were hit at 0.99654 for best partial exit +40pips (from 1.00051). Moved stop to breakeven+2pips at second entry and let the remaining positions trail out.
In this case, the higher second leg or right M leg is actually a good trade if you can identify and explain the trap moves and stop hunts.
Hi pipanator. I am looking at your chart and don't know exactly where you got in but according to the MM rules you would have gotton in a sell on the beginning red candle with a 10 pip SL, and you would have not been taken out. Hind site though maybe.
Hi room. I just finished reading this thread and it was both informative and interesting. I just finished the SM videos last week and traded it the last six days. I had losses and made mistakes but over all I was very pleased with this method and made a easy profit for the last six days. I look forward to next week. I will participate as best as I can.
One thing that SM teaches in his course that I have implemented in my trading is scaling into trades. This is just the opposite of what the rest of the world does but it sure helped my numbers. So what I do is when I catch the 1st leg and am up 10 to 12 pips I add another position and then do it a third time the same way. My goal is 50 pips for the first trade. When I hit that I watch for some indication that the trade is over, like I am in the third leg or something else and I close all my positions. This last week it was very difficult in my opinion to find "perfect setups" that were going to do textbook runs. So now instead of scaling out and giving up pips I have taken a 50 pip move and turned it into a 120 pip move. Learning that is changing how I look at my trades. Some of my trades aren't going to go 50 pips and I need to get out, but over all if you add all three trades you might be there.
My SL is set to 10 pips. In the past I did like everybody else does and gave a lot of pips to the MM and they smiled all the way to the bank. Now if I have a 10 or so pip loss, since they like to cheat on even your SL and take more, I don't sweat it and just wait for the next entry or go find a different chart.
I have been trading for many years and this course has turned a corner for me and I will be studying it and studying charts to get better at picking the right entries until I can decrease my mistakes.
I am posting a screen shot of Thursdays Eur trade coming out of the Asian session. You couldn't have asked for a better set up, too bad it isn't all ways this easy.
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Joined Jun 2011
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Status: Keep It Simply Stupid
|356 Posts
Hi ynot4x,
Great info. I got in at the close of the previous green candle with a 15 point stop for it to take me out. I believe you need a larger stop nowadays 25-30 to be safe from sneaky stop hunts like that as everything was pointing down. Anyway, it’s great to see your having success with SM videos and system he makes it sound so simple and is one of the few people in this entire industry who teaches this type of trading which actually works.
So, what you’re saying is catch the 2 legs and scale in to get 2 x 50 or 3 x 50 pip legs rather than the main move if it happens? I like this idea as sometimes there are no legs and price just falls for you to miss out trading that pair for the day makes you feel sick at times. Half a batman I think Steve calls it lol
Yeah that trade on the euro was excellent and was kicking myself when I got stopped out I should of been disciplined and looked for a quick re-entry.
Do you find the more legs that get created that more positions/contracts are being built up therefore more likely to be a bigger move? What do tighter 1 and 2 legs mean a more volatile violent move? Do you find the spread widens as its testing the high and getting those amatuerish stops?
Ya I took thje same trade, i was in at the inverted hammer red candle with a 14 pip SL, I use the H1 to look at level count and take my entries from the M15 and the 2nd leg of the M or W.
It takes practice to nail the tops and bottoms. look thru previous charts on the weekend and try to refine your skills that is what i do.
Hi pipanator. I am looking at your chart and don't know exactly where you got in but according to the MM rules you would have gotton in a sell on the beginning red candle with a 10 pip SL, and you would have not been taken out. Hind site though maybe.
Hi room. I just finished reading this thread and it was both informative and interesting. I just finished the SM videos last week and traded it the last six days. I had losses and made mistakes but over all I was very pleased with this method and made a easy profit for the last six days. I...
Ya i wish we had some more people contributing to this thread the strategy is solid if you just remember to set back and ask yourself what are the MM doing and where are they going.
"So, what you’re saying is catch the 2 legs and scale in to get 2 x 50 or 3 x 50 pip legs rather than the main move if it happens?"
If I understand your response, What I am saying is that the first trade makes 50 pips and the second trade makes 40 pips and the third trade makes 30 pips. As the first trade makes my 50 pip target I close all three trades and since they went in 10 pips apart the profits are different but add up nicely.
Do you find the more legs that get created that more positions/contracts are being built up therefore more likely to be a bigger move? What do tighter 1 and 2 legs mean a more volatile violent move? Do you find the spread widens as its testing the high and getting those amatuerish stops?
To answer your other questions I think that more legs or less legs are up to the MM and we just have to be diligent to see if that particular trade is text book or is the one they do something funny. I don't notice any difference with the size of the legs and yes spread often widens as the MM are taking traders stops out before they go the way they want to go.
Take last Friday as a great example on the EurUsd. There was nothing in that day that was text book and it was a day that I should have been at the beach.
