Ramblings of a Forex Junkie

They're selling yen and buying dollars like crazy. Pending shorts at DO on EU and GU. I am taking a nap for two hours. I am flat now and kicking myself for not holding the news long on EJ. That sucker ran like hell and I missed it. Looking for the OR breakout in a few.

Somebody knows something.... BOJ press conference due in short time.

UJ up at pwh now after steamrollering me flat, how lovely to start the day with a loss.

Here's the first 20 pages of SP's ramblings in two PDF files.

Part 1:

Part 2:

Seneca,

Wanted to add my thanks to you for your eye opening hints and tips....

Many many thanks and all the best

Grant

I got 2 winners.
GBPUSD (Upper one) Faded the retrace of yesterday low.
EURUSD (Lower one) Faded the test of yesterday low.

I didn't fade the test of yesterday low for GBPUSD, because I don't trade at London open, otherwise it would have been a loser.

One partial loss on GU Daily low with 1 win on short re-entry same level. 1.3 %. Done for today :-)

So, your win same as one of my above?
How many pips for your loser and winner respectively?

Loss was 6 pips and sl was 17 pips.
Win was 26 pips and sl was 15 pips.

Why did you know you should exit at 6 pip when your SL was 17pip?

Faded London Close today on GBPUSD for 30 pips. I never heard of this strategy until Seneca talked about it. Thanks SP. Trade looked fairly safe too since the Previous Day High was not that far above. I put my stop a few pips above the PDH which made it more than the calculated stop of the 5SMA of the 5ATR but I was comfortable with it. Maybe this is a huge No-No?? I also had a pending order to sell the PDH but I cancelled it once I got to TP Fading the London Close.

I may not have communicated my point very well. Partly due to the vagueness of my response because it's difficult for me to get into details without discussing how I specifically trade without changing the direction of the thread a bit and I try not to do that.

I know you understand the market and how orders stack up at levels. I probably shouldn't have used the term stacks, but it is what I call them. My reference to stacks is similar to what has been discussed early on here, but I take mine another step further.

I will not disagree with your point about some banks using channels, or I should clarify, some traders at banks. I am sure traders in banks use channels, trendlines, and a plethora of other indicator's. The banks or other "kings" as a whole do not trade this way though. It wasn't that a large group of orders were sitting at that spot because of a channel or trendline, even though as you stated and are probably correct some actually did. It's typically not enough to stop movement and reverse course BASED ON WHERE THE PRICE WAS RELATIVE TO MARKET BASICS.

This is not directed specifically at you, but may help get my point across. If I had the time I would draw this, but too many look at a chart from left to right because, 1) The chart develops that way on our screen and moves with time, 2) Most of us read from left to right, so it's natural that our visual perception causes us to think this way. In my reality, the market does not move like this. It is not related to movement in time as "our time" moves forward. Time is only relative at specific points with specific prices. This is probably way more confusing that it is meant to be, but that is why you have specific points in time that are important and the reason they important is the prices at those times. The market is more like a thermometer, up and down only. We utilize a chart to visually display the price data, intended to be easier, but in fact clouds perception for many because it is looked at the wrong way. We as traders need to know what we are looking at and if we are looking at it properly.

I will not (or should not anyways) discredit anyone who utilizes other tools if they are using them as an aid as long as their basis for making decisions is grounded on the structure of the market's basic principles. I just personally haven't seen the need for most of the tools.

On a side note and is way beyond the topic of this thread I have found other's work in regards to seemingly unrelated effects on the market and the way human's act and make decisions extremely intriguing. As I said, it is beyond the scope of this thread and my understanding as well, but I am a learner and love some of the thinking outside the box. I am open to new ideas and ways of looking at the market, so I don't mean to come off too close minded if it appears I do.

@kk007

I waited for the opening of the second candle forming below the DailyLow and decided to cut my loss as it didn't shoot up immediately back above DailyLow.
Then put a short pending order on the Dailylow and waited... candle 5 retraced and you know the end.

But hey, I am really not a specialist, just trying to get a feel of this technique which I start to really like as it suits my short attention span as SP would say

Just lucky today , let's see the next few weeks

Well I am a bit frustrated. I need a weekend. Dragi said nothing Euro positive so I dumped my long from the weekly low at the weekly open level. Made a profit from that but now I have been taking hits shorting the levels and have lost a percent or so. I am short from the daily open and will see what happens here. Wed high is just above so have some stronger backing for this. I don't see too much movement up before NFP but I can also be very wrong too. Going to play with my kids, they always make me happy.

so maybe it s time to buy Euro

Normally I would have held the buy at the weekly low and be raking in money right now but he said absolutely nothing Euro positive. I am dazed and confused.

Ok TV - that was like SUPER interesting. I hope seneca wouldn't mind if you answer my question so two short ones:

(1) What is the right way/direction/dimension You think is the right way to look at a chart?
(2) What are the tools you actually DO use? (you trade according to something - don't you?)

Thanks!
rdsl

I took a short position in this area as well. It did not fulfill my entry criteria. Exited with loss. I entered based on "This can't go higher, this area has to stop it" instead of following my criteria. It happens and reminds me of what I need to be focused on, which is what is market doing now.

Interesting (detrimental) what takes control over decisions sometimes...

WoW Seneca, you are here too?
I have one for you and Olarion as well. If the EU closes above the OR for a long,(in 35 minutes or so) are you going to take that one as well?
I saw you guys doing that a few weeks back, but i'm just not sure yet if I should do this trade twice a day...

Thanks and good luck to us all for the NFP trade tomorrow

Due to NFP tomorrow I will not take the long side if there is a breakout. Normally I would absolutely take it but not today. I also will not make that trade tomorrow, nor any level trades. I only trade the news trade on NFP day.