what do you guys think of this trade? I thought mike wont take this as the tail is not long enough so he cant reduce much risk at fta. any comments welcome from anyone. thanks {image}
Great job
Mike
james16 Chart Thread
- #124,541
- Apr 7, 2013 4:45pm Apr 7, 2013 4:45pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Great job
Mike
- #124,544
- Apr 7, 2013 8:32pm Apr 7, 2013 8:32pm
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
I believe . . .
- #124,547
- Apr 8, 2013 6:59am Apr 8, 2013 6:59am
Hey H When you say your stop will be too large do you mean you are not comfortable spreading your risk over such a large bar or do you not know what I mean by that. For example if you risk 2% of your account it doesn't matter the size of your bar but rather your position size of your trade. As others said you can look for retrace entries if that is something you are ok with. In a case like this I think a retrace entry makes more sense. But just want to make sure you understand the concept of money mgmt and position sizing Best Mike
Hi mate,
I always risk 0.5% of my account no matter how many pips my stop is (don't yet feel comfortable risking 2%). What I meant is that the stop will be so far away that it messes up the RR ratio of the trade. I like the retrace method but I guess it is slightly riskier since a bar isn't officially valid until it breaks.
Here is a trade I've just taken. Again, this BUOB isn't at a swing low but it did close above resistance and an RN (1.3200) and the bar is decent size compared to previous few candles. There was also a large bullish candle 6 bars away. I entered long on a retrace. I've hit 1:1 RR and have moved my stop to break even.
- #124,551
- Apr 8, 2013 9:07am Apr 8, 2013 9:07am
Hey guys,
Here's a trade i'm currently in and would love your thoughts on it. I'll try and give me reasons for the trade so you guys can evaluate my logic behind it.
Daily Chart
A fairly straight forward daily chart with clear level of a S/R level with price opening within the previous days candle looking more or less like an inside bar at this moment in time.
4 Hour Chart
This is where I saw the crux of the trade. Basically at the resistance level I saw quite a few candles of congestion, now this could be because price had hit the resistance area now and deciding on which way to move. What alarmed me was after price has hit the resistance line, it failed to make even any higher highs and that price was happy to stay within the candle that hit the resistance level. notable after hitting the resistance two consecutive candles couldn't even breach the 1.535 level after which it created an bearish inside bar. My confirmation candle was then the BEOB (as mentioned not a textbook BEOB though) for which i put my entry just below the confirmation candle and my stop at the high of the candle which hit resistance and then let the trade play out which thankfully it did. Also mentioned by mangement of the trade in the screenshot.
Now only put this on for the members to evaluate my trade and see if there is anything i have missed or could improve on. Not showing off as there is nothing for me to show off about - absolute newbie!
All comments and criticisms welcome
Here's a trade i'm currently in and would love your thoughts on it. I'll try and give me reasons for the trade so you guys can evaluate my logic behind it.
Daily Chart
A fairly straight forward daily chart with clear level of a S/R level with price opening within the previous days candle looking more or less like an inside bar at this moment in time.
4 Hour Chart
This is where I saw the crux of the trade. Basically at the resistance level I saw quite a few candles of congestion, now this could be because price had hit the resistance area now and deciding on which way to move. What alarmed me was after price has hit the resistance line, it failed to make even any higher highs and that price was happy to stay within the candle that hit the resistance level. notable after hitting the resistance two consecutive candles couldn't even breach the 1.535 level after which it created an bearish inside bar. My confirmation candle was then the BEOB (as mentioned not a textbook BEOB though) for which i put my entry just below the confirmation candle and my stop at the high of the candle which hit resistance and then let the trade play out which thankfully it did. Also mentioned by mangement of the trade in the screenshot.
Now only put this on for the members to evaluate my trade and see if there is anything i have missed or could improve on. Not showing off as there is nothing for me to show off about - absolute newbie!
All comments and criticisms welcome
- #124,555
- Apr 8, 2013 12:28pm Apr 8, 2013 12:28pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Hey guys, Here's a trade i'm currently in and would love your thoughts on it. I'll try and give me reasons for the trade so you guys can evaluate my logic behind it. Daily Chart A fairly straight forward daily chart with clear level of a S/R level with price opening within the previous days candle looking more or less like an inside bar at this moment in time. {image} 4 Hour Chart This is where I saw the crux of the trade. Basically at the resistance level I saw quite a few candles of congestion, now this could be because price had hit the resistance...
Well done on your S/R levels. That's really going to be the key as you progress forward. I'd like to see a stronger confirmation bar myself(I am picky that way). But your plan makes perfect sense. The level we are at now is very strong as well and makes for a good target or as you did protect yourself. Just keep track of your PA bars as you go along
Great job for a new trader
Mike
- #124,557
- Apr 8, 2013 12:41pm Apr 8, 2013 12:41pm
Have taken full profit on this trade now. Looking for longs on either the GBP/USD or GBP/AUD. Weekly charts are showing nice BUOB's that have closed above previous support and RNs. Will post charts later to get thoughts.
So here are my charts for the above trades I'm considering.
- #124,560
- Edited 1:53pm Apr 8, 2013 1:32pm | Edited 1:53pm
- Joined Jul 2012 | Status: Ninja | 537 Posts
EURUSD
Mike had a nice trade on EURUSD. I missed it due to university stuff, but I would like to analyze the whole setup- and the events that took place before. (And please tell me if I’m right or I just made up some random nonsense.)
We had this “head and shoulder” (H&S) formation but there wasn’t such a strong PBT&CB at the end of the day. However Price formed a BUOB. As a “Beginner Jarrooer” I would have put my pending order right on the Line. Next day price goes south – it’s not a tiny bar so for me it seems bears got the power. Then Reverse and Retest – just as expected -> order activated. HUGE BUOB. With this huge bar we cut through a former minor LCS and a major HCR.
It’s obviously not new for you but I noticed that these minor PPZs are places, where price reverses and then pulls back a bit. (And usually trend continues) The size of the pullback differs every trade but in the last 1 month – (LOL I know it’s not a lot of time – But I would like to test this theory in the next few years) I noticed that this pullback is usually around -30-40% of the former bar. So in this case I would close my order on the close of the BUOB and try to reenter at one of these minor PPZs (which are wow exactly at 30-40% of the former bar!) Next target - obviously the BRN.
Then I see no trading opportunity - Bears and bulls are struggling to push the other either south or north. I’m going to be straight: Right after the PBT&CB I would have gone short by the time – (and SL hit – out with loss.) After reading this SPF theory my question is: Isn’t it just an example of it? (Or the body can’t be at the LLS, only wick can be there?!)
The next interesting thing is that GIANT BUOB, that even touched the BRN (from below) and more: It went way over it. It clearly showed us that the “battle of BRN” is over – even the long wick indicates it. (Here I mean that the area of the BRN was cleared again.) Despite the huge move the minor PPZ is still ahead of us. We sit back and watch. (You can scroll back and see on the big chart which PPZ is that)
Then Price continues its consolidation: I drew the DLCS, DHCR. Honestly I was so busy with my PPZs and HCRs that only after seeing one of Mike’s posts - have I noted the existence of the orange channel. (Later It was crucial for a trade. – That I just as usual – due to university stuff – missed.) Anyway – credit to Mike! At this point I had the chart made on the 4H frame that I even posted here. I was expecting the purple scenario to occur. (This chart is also very special to me because this chart brought me the first compliment from Mike
And wow -> BAMM – Giant BUOB breaking our trendline – (it indicates that the bulls have had enough of the playing downstairs…) Now we wait for the retracement (on the 4H) – A small pinbar just touched the TL. -> BUY. Target BRN, after BRN hit, I count back -30% -> and new pending buy. Triggered but seeing the reversal to BRN now I would have gone BE or sg.
Anyway that’s my story. I know it’s easy to be the clever guy only by looking back in the past – but my point here was to show you what I learnt from you in the last 2 months. I know it would have been much better if I have done all these things real time – but with that I have to wait 2-3 years I guess.
I would love to hear your opinion about the actions on the EURUSD – see if you agree with my point of view – point out the flaws in my theory etc.
Last but not least I would thank you guys everything – especially Ghous, Mike, Jim, meshka, and Ryan who were not lazy to help me and answer the millions of questions I asked in PMs.
Cheers,
Stephen
**Maybe this -30-40% thing is nothing but crap - the main idea is to exit right on minor PPZ-s and enter on a minor reverse , thus gaining + pips and if price would reverse, - the old SL is hit with less loss - so at the same time I cut down on my losses.
Mike had a nice trade on EURUSD. I missed it due to university stuff, but I would like to analyze the whole setup- and the events that took place before. (And please tell me if I’m right or I just made up some random nonsense.)
We had this “head and shoulder” (H&S) formation but there wasn’t such a strong PBT&CB at the end of the day. However Price formed a BUOB. As a “Beginner Jarrooer” I would have put my pending order right on the Line. Next day price goes south – it’s not a tiny bar so for me it seems bears got the power. Then Reverse and Retest – just as expected -> order activated. HUGE BUOB. With this huge bar we cut through a former minor LCS and a major HCR.
It’s obviously not new for you but I noticed that these minor PPZs are places, where price reverses and then pulls back a bit. (And usually trend continues) The size of the pullback differs every trade but in the last 1 month – (LOL I know it’s not a lot of time – But I would like to test this theory in the next few years) I noticed that this pullback is usually around -30-40% of the former bar. So in this case I would close my order on the close of the BUOB and try to reenter at one of these minor PPZs (which are wow exactly at 30-40% of the former bar!) Next target - obviously the BRN.
Then I see no trading opportunity - Bears and bulls are struggling to push the other either south or north. I’m going to be straight: Right after the PBT&CB I would have gone short by the time – (and SL hit – out with loss.) After reading this SPF theory my question is: Isn’t it just an example of it? (Or the body can’t be at the LLS, only wick can be there?!)
The next interesting thing is that GIANT BUOB, that even touched the BRN (from below) and more: It went way over it. It clearly showed us that the “battle of BRN” is over – even the long wick indicates it. (Here I mean that the area of the BRN was cleared again.) Despite the huge move the minor PPZ is still ahead of us. We sit back and watch. (You can scroll back and see on the big chart which PPZ is that)
Then Price continues its consolidation: I drew the DLCS, DHCR. Honestly I was so busy with my PPZs and HCRs that only after seeing one of Mike’s posts - have I noted the existence of the orange channel. (Later It was crucial for a trade. – That I just as usual – due to university stuff – missed.) Anyway – credit to Mike! At this point I had the chart made on the 4H frame that I even posted here. I was expecting the purple scenario to occur. (This chart is also very special to me because this chart brought me the first compliment from Mike
And wow -> BAMM – Giant BUOB breaking our trendline – (it indicates that the bulls have had enough of the playing downstairs…) Now we wait for the retracement (on the 4H) – A small pinbar just touched the TL. -> BUY. Target BRN, after BRN hit, I count back -30% -> and new pending buy. Triggered but seeing the reversal to BRN now I would have gone BE or sg.
Anyway that’s my story. I know it’s easy to be the clever guy only by looking back in the past – but my point here was to show you what I learnt from you in the last 2 months. I know it would have been much better if I have done all these things real time – but with that I have to wait 2-3 years I guess.
I would love to hear your opinion about the actions on the EURUSD – see if you agree with my point of view – point out the flaws in my theory etc.
Last but not least I would thank you guys everything – especially Ghous, Mike, Jim, meshka, and Ryan who were not lazy to help me and answer the millions of questions I asked in PMs.
Cheers,
Stephen
**Maybe this -30-40% thing is nothing but crap - the main idea is to exit right on minor PPZ-s and enter on a minor reverse , thus gaining + pips and if price would reverse, - the old SL is hit with less loss - so at the same time I cut down on my losses.
It's all psychology...