Price Action and Trading Discussion | Page 86 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Price action at the core = family members' discussion project 2,214 replies

Price Action discussion 26 replies

Volume Price Level Trading Discussion Area 1 reply

Trading and Exchanges Discussion Thread 17 replies

Maxsmarts Trading Journal and Discussion 164 replies

Attachments: Price Action and Trading Discussion
Exit Attachments

Price Action and Trading Discussion

  • #1,701
  • Jul 1, 2012 9:25pm Jul 1, 2012 9:25pm
Quoting dboy365
After top down analysis from Daily through 1hr TF, my trades are taken from 5/15mins TF after price reaction from R/S and based on the time of the day.
And because I have an excel sheet where my position lot sizing is calculated based on my % account bal risk ($$$) and my SL (pips), my lot size gets bigger with smaller SL
This is the one thing to be very careful of.

Do not place you stop to adjust your positions sizes.

Your position size should be based on your stop placement.
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,702
  • Jul 1, 2012 10:17pm Jul 1, 2012 10:17pm
Quoting jibjib210
Yes im not sure if your familiar with the book Way of the Turtle. But a successful trader after every 50 pips opened a new position and managed his previous positions making them b/e and locking in pips always having a exposure of one of his positions.

Was curious to know your methodology of opening up lots. Idk how your managing but I am realizing by not adding positions to my winners and riding the profits its a see saw battle between 50% losers and 50% winners and losers always coming on top at the end of the day due to one reason or another.......
I have read a couple of books about the turtles. I just flicked one of them open to where they have the turtle trading rules. Verto was spot on about how they add units to their open positions.

They entered single units at breakout levels and added to those positions at what they called the 1/2N intervals. Their rules permitted them to keep doing this until they reached the maximum permitted units per position which was 4 units.

This may have worked for them and their trading rules but however it is not how I would go about adding positions. If I am already in a position on a particular pair, firstly I would like it to be at very least at BE on the open position. If price then gave me another reason to enter at a key level then I would take the position.

I look at it like this. If I did not have the original position open and the PA presented itself at a key level would I take the position ? if the answer is yes then as long as I have BE or profit locked away on the original position I will take the trade.

Cheers.
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,703
  • Jul 1, 2012 10:32pm Jul 1, 2012 10:32pm
Quoting DarkWolF
This is the one thing to be very careful of.

Do not place you stop to adjust your positions sizes.

Your position size should be based on your stop placement.
Thanks again for your insight. We are saying thesame thing but It seems I didnt get my message passed across properly...
What I meant to say was: I have an Excel sheet which calculates my position size based on my SL size (in pips) and what I'm willing to risk (e.g 2% of acc bal), and that means the position size is inversely proportional to the SL, while the % acc risk never changes. I guess thats what you must have noticed over the months?
  • #1,704
  • Jul 1, 2012 10:45pm Jul 1, 2012 10:45pm
Quoting dboy365
Thanks again for your insight. We are saying thesame thing but It seems I didnt get my message passed across properly...
What I meant to say was: I have an Excel sheet which calculates my position size based on my SL size (in pips) and what I'm willing to risk (e.g 2% of acc bal), and that means the position size is inversely proportional to the SL, while the % acc risk never changes. I guess thats what you must have noticed over the months?
My apologies, yes I did read it the other way. If you are using the % of account as risk managment criteria then yes that is how it should be
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,705
  • Jul 2, 2012 12:03am Jul 2, 2012 12:03am
Quoting DarkWolF

I look at it like this. If I did not have the original position open and the PA presented itself at a key level would I take the position ? if the answer is yes then as long as I have BE or profit locked away on the original position I will take the trade.

Cheers.
Oh i see. Thanks for the opinion and clarification of the supply and demand. Think i need to work on opening positions at the correct moment and riding profits for longer periods of time.

Furthermore, a question. Do you try to close your current position in order to play a retracment you believe might occur or grind it out till the end of the trend?
  • #1,706
  • Jul 2, 2012 12:31am Jul 2, 2012 12:31am
Quoting jibjib210
Oh i see. Thanks for the opinion and clarification of the supply and demand. Think i need to work on opening positions at the correct moment and riding profits for longer periods of time.

Furthermore, a question. Do you try to close your current position in order to play a retracment you believe might occur or grind it out till the end of the trend?
Yes absolutley. Majority of the time I like to close positions at good support and resistance areas.

As what is most likely to happen, and does happen time and time again - price moves to support and stalls, will pullback to the previous support area now becoming resistance and then make a move down through the support level that held breaking that and so on.

Now what is usually the case is the where price breaks from origninally is where we tend to enter the position and that is where we have our BE in. Therefore price makes it back, hits your BE as that is the new resistance area and then continues on with the trend.

Look at a chart and simply look for the areas, you will see it is a simple aspect that happens over and over.

Over the last month or so I have trailed a few positions, but normally I like to simply TP at a key level.
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,707
  • Jul 2, 2012 12:31am Jul 2, 2012 12:31am
Hi guys
Everything is this site is always all about supply/demand, resistance/support, volume up vs volume down, has resistance been broken, will new support hold. But speaking from experience here, I have been watching the markets for nearly 7 years now, just watching the screen without paying attention to anything else. I have never used an indicator or even a line. I have been trading this system since 2000, and have not had a single loss yet on monthly frame. I take 1 or two trades per week also, and have had 5 losses, out 400 weeks traded so far. I can trade monthly, put a trade on, and forget about it. All I use is tick charts and candle charts. Pure and simple bare trading. I can use this system to trade pretty much any offerings on the stock market. I will never reveal the system, and don't ask for it. All these people here, saying they have found the system, this is it, the holy grail and then go right along and say they will be selling it for whatever price? WTF? This should ring alarm bells ringing. A holy grail system should be worth millions, if not billions of dollars. SO just a heads up from an insider you could say. The system is yourself and how you interpret the market and even more importantly, you knowing how the market interprets that data itself. Good luck in your trading everyone. I have posted few gold and silver trades on the gold/silver forum for examples of a successfull system doing what its supposed to do. Good trading everyone, since I believe that anyone that says good luck, should not be in the cut throat game of trading. Cheers
  • #1,708
  • Jul 2, 2012 12:33am Jul 2, 2012 12:33am
Quoting DarkWolF
Hi Skynet,

A well thought out and insightful post.

Keep it simple. If the support or resistance area is an obvious one, and there is some good PA evident then I will consider the trade depending on how that PA has set up and why. Apply your risk management and job done.

In my experience, I have learnt that it is the simple things that work the best.

This is something that when I first learnt to trade someone said to me, and after years of looking at various different approaches to trading I can safely say, it really is the simple things...
Thanks. I like your advice. I would like to think i follow it too...i just spent some time really trying to understand why S/R levels sometimes work and sometimes doesnt. a depth undestanding, if you will. Both from a fundamental point of view and technical point of view. By technicals i mean, market microstructure analysis, orderflows, identity/objective of market participants at that juncture and their trading signatures, how the players react to price behaviour and patterns at S/R, price action indicators of liquidity oasis, how to suss out pending orders locations, etc.

I found that this has helped me quickly identify solid S/R LEVEL AT A GLANCE. Case in point: HERE IS A TRADE I AM CURRENTLY IN.

P.S. damn good thread you have here, dark wolf.
" It may mean something. It may mean nothing at all "
  • #1,709
  • Jul 2, 2012 12:38am Jul 2, 2012 12:38am
AS A PART TECHNICIAN, i concurr with the dark wolf, nothing much else to add.

Quoting DarkWolF
Yes absolutley. Majority of the time I like to close positions at good support and resistance areas.

As what is most likely to happen, and does happen time and time again - price moves to support and stalls, will pullback to the previous support area now becoming resistance and then make a move down through the support level that held breaking that and so on.

Now what is usually the case is the where price breaks from origninally is where we tend to enter the position and that is where we have our BE in. Therefore price makes it back, hits...
" It may mean something. It may mean nothing at all "
  • #1,710
  • Jul 2, 2012 12:42am Jul 2, 2012 12:42am
Quoting whet412
Hi guys
Everything is this site is always all about supply/demand, resistance/support, volume up vs volume down, has resistance been broken, will new support hold. But speaking from experience here, I have been watching the markets for nearly 7 years now, just watching the screen without paying attention to anything else. I have never used an indicator or even a line. I have been trading this system since 2000, and have not had a single loss yet on monthly frame. I take 1 or two trades per week also, and have had 5 losses, out 400 weeks traded so...
Hi Whet,

Indeed everyone has their own method of trading and I always say that you should do what works best for you. If you have found a way to trade that suits you and gives you consistant profits then I applaud that.

PA is what I have found works for me and this may not work for others. I do not trade by a "system" only by how I see price reacting. I have set of rules that I follow as I am sure you do to enter and mangage your positions.

There is no holy grail of trading, only what works for you and what is comofortable for you to trade. There will be some within the trading community that are happy to help others understand the market a little better to asssit them on their trading journey and some that simply will not.
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,711
  • Jul 2, 2012 12:55am Jul 2, 2012 12:55am
i cant believe that i missed this one. short EUR/JPY...solid fundamental direction too.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2012-07-02_01-53_OANDA.jpg Size: 61 KB
Click to Enlarge Name: 2012-07-02_01-57_OANDA.jpg Size: 56 KB
" It may mean something. It may mean nothing at all "
  • #1,712
  • Jul 2, 2012 1:28am Jul 2, 2012 1:28am
Quoting Skynet
i cant believe that i missed this one. short EUR/JPY...solid fundamental direction too.
I took this short on EURJPY.

I have shorts also now on AUDNZD and EURUSD I will get some images up later as I have a few things going on at the moment and im trying to not get distracted
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURJPY 4 hourly 02-07.jpg Size: 97 KB
Click to Enlarge Name: EURJPY 4 hourly1 02-07.jpg Size: 96 KB
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,713
  • Jul 2, 2012 2:56am Jul 2, 2012 2:56am
Hi Dark wolf
I believe we can all help each other just by providing thoughts, and ideas along our Forex careers or even if we are just beginning. It took me almost 7 years to get to this stage, where i am very profitable every year, very profitable in fact.
I look at all these holy grail forums, and can't believe it. A holy grail is a no miss, always right system. Such a system can not be accomplished, because no human has foresight to see into the future and no indicator can either. The best way to become successful at trading Forex i believe is:
1Using only 1 system
2Having strict money management
3Risk to reward ratio has to be sensible and in proportion to your capital
4Trading on pairs that have the tightest spreads, even during news or releases.
5Always paying yourself. It feels great when all your hard work pays off and you become more motivated to make a success of yourself and your business.
6Treat your trading as you job, or your second job. Take it seriously and you will see an improvement in the way you think, act and behave towards market information.
7Become knowledgeable about your broker, and know how they operate, your position sizing, pairs, spreads and margin. Getting to know your broker is essential to you business in trading. You wouldn't just have an account with a bank and not know who they are or what service they are offering to you , would you?

I trade on weekly, and monthly time frames only.
I trade eur/usd, gbp/usd, gold, silver, nzd/usd only.
I trade each pair and metals on weekly once a week, set and forget trading
I also do the same on the monthly time frame. I don't ever use any indicator, analysis of any sort. I just look and pure price action, not even volume, and look at percentage drops of that pair. I look at % drops, this is very important in my system, and that will usually tell me which way the price will head next. I won't devulge anymore of the system and will let you guys figure the rest out for yourself. I am here to help out but not to reveal anything. I have worked very hard to get success in this game and deserve my rewards.
I am more than happy to discuss price moves in general and the reason behind that moves and contribute towards a better informed forex community.Thanks
  • #1,714
  • Jul 2, 2012 3:10am Jul 2, 2012 3:10am
Quoting whet412
Hi Dark wolf
I believe we can all help each other just by providing thoughts, and ideas along our Forex careers or even if we are just beginning. It took me almost 7 years to get to this stage, where i am very profitable every year, very profitable in fact.
I look at all these holy grail forums, and can't believe it. A holy grail is a no miss, always right system. Such a system can not be accomplished, because no human has foresight to see into the future and no indicator can either. The best way to become successful at trading Forex i believe...
Hi Whet,

Yes indeed I agree with you about the forums, which is why I decided to start my own thread in first place.

I totally agree with the point you make about sticking to one method. A common trait is for traders to be jumping from method to method looking to improve what they do. This is a journey most new traders will take and evenutally they will come to the realisation on their own.

It sounds like you have a very solid grounding which is good to see as it is few and far between these days.

I look forward to seeing some of your analysis on the charts.

Cheers.
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,715
  • Jul 2, 2012 3:10am Jul 2, 2012 3:10am
If i may say this: whatever you want to do, bro. Good for you.

Of course, if people starts bothering you about your system....one can always move to another thread. Case in point...i was having drama on euranalysis...i stop going there. problem solved.

or you can use the ignore button.

Good trades to you.



Quoting whet412
Hi Dark wolf
I believe we can all help each other just by providing thoughts, and ideas along our Forex careers or even if we are just beginning. It took me almost 7 years to get to this stage, where i am very profitable every year, very profitable in fact.
I look at all these holy grail forums, and can't believe it. A holy grail is a no miss, always right system. Such a system can not be accomplished, because no human has foresight to see into the future and no indicator can either. The best way to become successful at trading Forex i believe...
" It may mean something. It may mean nothing at all "
  • #1,716
  • Jul 2, 2012 8:22am Jul 2, 2012 8:22am
USD/CAD, went long. Price at support. Small SL.

US index at support and CAD index at resistance.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: uc.jpg Size: 234 KB
Click to Enlarge Name: in.jpg Size: 320 KB
Thoughts are things
  • #1,717
  • Jul 2, 2012 8:28am Jul 2, 2012 8:28am
Watching NZD/USD.
First time back at this resistance.
Attached Image (click to enlarge)
Click to Enlarge Name: nu.jpg Size: 231 KB
Thoughts are things
  • #1,718
  • Jul 2, 2012 8:36am Jul 2, 2012 8:36am
Quoting Quezoy
Watching NZD/USD.
First time back at this resistance.
Yes indeed this will be a good area to be watching on this one
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
  • #1,719
  • Jul 2, 2012 8:41am Jul 2, 2012 8:41am
Quoting DarkWolF
Yes indeed this will be a good area to be watching on this one
I guess you'll wait for a nice downbar, before entering?
Thoughts are things
  • #1,720
  • Jul 2, 2012 8:53am Jul 2, 2012 8:53am
Quoting Quezoy
I guess you'll wait for a nice downbar, before entering?
You got it

Although it will depend largely on how it was to close and where it was to close I think if it was to happen.

There is the RN to contend with and the trend line depending on how you would like to draw it there is a couple of highs that you could line this one up to.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1.jpg Size: 80 KB
Click to Enlarge Name: 2.jpg Size: 78 KB
Twitter - DarkWolF@OzForexTrader - Facebook Page - link in post 1
7 traders viewing now