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- #2
- Edited 12:07pm Nov 3, 2012 4:20am | Edited 12:07pm
- | Joined Dec 2011 | Status: Go Vegan! | 40 Posts
There are Two entry methodology I use:
Here is the retest (price had retest that area twice, so in fact we had two opportunities going short):
Here is where we are today, you can see that this move gained us a nice ROI to our account.
- A break of flip between support and resistance areas, the higher the time frame, the better.
- For inter-day trades I use the 1H & 4H charts.
- For swing trades I use daily and weekly charts.
I first wait in order to see that the flip area was indeed broken, if that's the case, I enter on the retest to that area.
Those flip areas are an aggregate of bar lows and highs.
Here is an example:
Here is the retest (price had retest that area twice, so in fact we had two opportunities going short):
- A break of a candlestick pattern called a PB. you will see and read in other places it's also being called as Inverted Hammer or a Pinocchio bar, but the meaning from the price action point of view is the same. you can Google and read about this pattern.
I must add that the pattern must occur on a resistance or support area in order for me personally to trade it.
Here is a nice example for a PB on the daily chart with a great location on a weekly resistance level
Remember, we are going short only after the pattern will be broken:
Here is where we are today, you can see that this move gained us a nice ROI to our account.
Since I had opened this journal in order to keep track of my performance, I had decided to try different approach with regards to SL & Exit methodology (more on exit methodology later on).
So, I have Two ways to place my initial SL:
The main disadvantage with regards to placing the SL in that area is that we can sometimes have a big SL, meaning our ROI will be smaller.
On the other hand, in that scenario our SL will be safer thus will be hit fewer times.
We can see that even in the example above, we could have gained a nice ROI.
In a case of a break of flip between support and resistance areas, the same apply, we place the SL above maximum price / below minimum price.
Here is an example from the 1H chart:
So, I have Two ways to place my initial SL:
- SL will be placed above maximum price / below minimum price (depending of course if we went long or short).
in a PB case the SL will be simply placed above / below the pattern.
Here is an example:
The main disadvantage with regards to placing the SL in that area is that we can sometimes have a big SL, meaning our ROI will be smaller.
On the other hand, in that scenario our SL will be safer thus will be hit fewer times.
We can see that even in the example above, we could have gained a nice ROI.
In a case of a break of flip between support and resistance areas, the same apply, we place the SL above maximum price / below minimum price.
Here is an example from the 1H chart:
- SL will be hidden behind a lower time frame price movement
This will increase our ROI but will cause our SL to get hit more times.
I assume there is a balance between the two approach so will examine to see which work out better for me.
Pending order short on the AUDSGD.
We can see on the 4H chart a nice flip between support and resistance, last 4H candle breaks that area.
If you open the 1H chart you can see clearly a very hard break, price doesn't stall in that area, but breaks it.
What's really beautiful in that situation is that all that happens in a much bigger resistance area.
Here is the Weekly chart:
I got Two SL, according to the scenarios I'm checking (marked with Red).
I still hadn't explained my exit methodology, so I won't get into it on this post.
Regards,
Yaniv
We can see on the 4H chart a nice flip between support and resistance, last 4H candle breaks that area.
If you open the 1H chart you can see clearly a very hard break, price doesn't stall in that area, but breaks it.
What's really beautiful in that situation is that all that happens in a much bigger resistance area.
Here is the Weekly chart:
I got Two SL, according to the scenarios I'm checking (marked with Red).
I still hadn't explained my exit methodology, so I won't get into it on this post.
Regards,
Yaniv
Hey,
I took the retest after the break of the flip of the USDJPY.
I took profit after 1:1 in order to cover the lost of my last trade.
Attach is the chart.
+1% to the account.
Almost BE in total.
Regards,
Yaniv
I took the retest after the break of the flip of the USDJPY.
I took profit after 1:1 in order to cover the lost of my last trade.
Attach is the chart.
+1% to the account.
Almost BE in total.
Regards,
Yaniv
Did you go short, Yaniv? Where were your entry, exit, SL and TP?
I am just trying to get the hang of it. This (picture) is how I would have traded this (excuse me if it is naive or stupid, I am a beginner as you know)
But one thing I do not understand about that trade is that it would have been going against the uptrend. Isn't that an issue?
Let me know please how and why you traded this.
Thank you
Your question is not stupid at all, please continue ask questions cause I learn from it a lot.
As for your question, I had attached your chart with addition data from my side.
After I saw there is a flip on the 4H, I had waiting for the hard break of that area, we got that break (I had marked it with a Green box).
After the break I had inserted the short order, waiting for price to retest that area (your Red line), we also call that kind of setup as "touch trade"
With regards to the SL, I'm checking Two placement of SL, I had marked them in the chart.
Since I had wanted to balance the account, in both cases I had closed after 1:1 (or +1% to the account).
I don't care about the trend, price (as you can see) respects most of the time support and resistance areas. but it's true that as a beginner we should try and trade with the trend and not against it.
I hope I had answered your question.
Please don't hesitate posting should you have any questions or unclear issues.
Yaniv
Hey Kenawee,
Your question is not stupid at all, please continue ask questions cause I learn from it a lot.
As for your question, I had attached your chart with addition data from my side.
Attachment
After I saw there is a flip on the 4H, I had waiting for the hard break of that area, we got that break (I had marked it with a Green box).
After the break I had inserted the short order, waiting for price to retest that area (your Red line), we also call that kind of setup as "touch trade"
With regards to the SL, I'm checking...
This thing works (as you can see), I like the first retest, retest that come after are more dangerous in my point of view.
But still...... worked the second time
Yaniv
OK....... I took this 8H PB short on the NZDUSD during work hours, so can post it just now 
On the Orange area we got a false breakout of a resistance area on the 8H chart, this false breakout gave us a beautiful PB (Red arrow)
.
First area to watch is the Green area, we can see a combination of high and lows in the consolidation area.
The more bigger area is the Blue area, major flip of support and resistance.
My SL is now @ BE and I'm gonna TP @ the Blue area just at the low of the bar before the PB.
Yaniv
On the Orange area we got a false breakout of a resistance area on the 8H chart, this false breakout gave us a beautiful PB (Red arrow)
.First area to watch is the Green area, we can see a combination of high and lows in the consolidation area.
The more bigger area is the Blue area, major flip of support and resistance.
My SL is now @ BE and I'm gonna TP @ the Blue area just at the low of the bar before the PB.
Yaniv
- #16
- Nov 7, 2012 6:03pm Nov 7, 2012 6:03pm
OK....... I took this 8H PB short on the NZDUSD during work hours, so can post it just now
Attachment
On the Orange area we got a false breakout of a resistance area on the 8H chart, this false breakout gave us a beautiful PB (Red arrow)
First area to watch is the Green area, we can see a combination of high and lows in the consolidation area.
The more bigger area is the Blue area, major flip of support and resistance.
My SL is now @ BE and I'm gonna TP @ the Blue area just at the low of the bar before the...
It looked like a "free fall" on my 4 hour-chart (I don't have 8 hours)
Great job, hopefully someday I will get half as good as you are.
Peace and love to you my friend.
It went down for over 800 pips! You are a prophet!
It looked like a "free fall" on my 4 hour-chart (I don't have 8 hours)
Great job, hopefully someday I will get half as good as you are.
Peace and love to you my friend.
Yes, I was very happy to open the chart Friday and see price dropped like a stone.
I'm really not a prophet, just pure and simple price action
Everybody can do it, it's that easy.
- #19
- Nov 13, 2012 4:21pm Nov 13, 2012 4:21pm
- Joined Jun 2007 | Status: trader | 1,703 Posts
Hello Yaniv,
Nice journal!
Do you ever trade off W1 or D1 time frame?
Akira
Nice journal!
Do you ever trade off W1 or D1 time frame?
Akira
Hello Yaniv,
Nice journal!
Do you ever trade off W1 or D1 time frame?
Akira
Thanks for your kind words, appreciate it.
I do trade the Weekly and Daily charts (but obviously it's rare compared to inter-day trading).
Regards,
Yaniv