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Fail Better

  • #5,281
  • Apr 14, 2013 9:50pm Apr 14, 2013 9:50pm
The pullback was too vicious.
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  • #5,282
  • Apr 15, 2013 3:10am Apr 15, 2013 3:10am
Hello good people.

I am slowly reading through this thread (currently on page 43). From what I gathered so far, it would appear Tom trades in three main ways (apart from the gap trade). 1) Reversal following a SFP. 2) Rounded test following a break out. 3) Touch Trading.

So far, I think I understand the basic rules for the Reversal following a SFP. The other two I am still not clear about, especially the touch trading. Would be grateful if somebody could summarise the basic rules for the other two - rounded test following a break out, and touch trading please. I am a complete newbie and plan to concentrate on just the daily TF (demo) for now. Also I have heard Tom mention the term 'daily bias' often, what does that mean?

Many thanks
Dan
  • #5,283
  • Apr 15, 2013 5:11am Apr 15, 2013 5:11am
Quoting danjuma
Hello good people. I am slowly reading through this thread (currently on page 43). From what I gathered so far, it would appear Tom trades in three main ways (apart from the gap trade). 1) Reversal following a SFP. 2) Rounded test following a break out. 3) Touch Trading. So far, I think I understand the basic rules for the Reversal following a SFP. The other two I am still not clear about, especially the touch trading. Would be grateful if somebody could summarise the basic rules for the other two - rounded test following a break out, and touch...
Probably the daily close above or below a level.
  • #5,284
  • Apr 15, 2013 10:02am Apr 15, 2013 10:02am
Quoting Pinbar
Probably the daily close above or below a level.
Hi PinBar,

Thanks for your response. I take it your reply relates to my question about 'day bias'. Would you mind elaborating please? So if I am trading the daily TF, would I be looking for a 'week bias' (if such a term exist)?

Many thanks
Dan


PS. The first part of my question in the post before this has not been answered, so still waiting for someone to chip in. I am most grateful.
  • #5,285
  • Edited 4:48pm Apr 15, 2013 4:33pm | Edited 4:48pm
Quoting danjuma
Hi PinBar, Thanks for your response. I take it your reply relates to my question about 'day bias'. Would you mind elaborating please? So if I am trading the daily TF, would I be looking for a 'week bias' (if such a term exist)? Many thanks Dan PS. The first part of my question in the post before this has not been answered, so still waiting for someone to chip in. I am most grateful.

As far as I can gather, the daily bias mentioned is simply the daily candle closing above a swing point, creating the SFP.
I am sure he is also looking at the general trend & possibly and weekly or monthly PA &, trading in the direction of it.

Take what I am saying with a pinch of salt though, till someone in the know confirms it.
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  • #5,286
  • Apr 16, 2013 1:53am Apr 16, 2013 1:53am
Quoting Pinbar
As far as I can gather, the daily bias mentioned is simply the daily candle closing above a swing point, creating the SFP. I am sure he is also looking at the general trend & possibly and weekly or monthly PA &, trading in the direction of it. Take what I am saying with a pinch of salt though, till someone in the know confirms it. {image}
Pinbar, thank you very much for your response and explanation. Makes sense to me. I am most grateful for your assistance, you seem to be the only person that trades Toms method. I think I will have to reserve my questions for the webinar.

Many thanks
Dan
  • #5,287
  • Apr 16, 2013 4:01am Apr 16, 2013 4:01am
Quoting danjuma
Pinbar, thank you very much for your response and explanation. Makes sense to me. I am most grateful for your assistance, you seem to be the only person that trades Toms method. I think I will have to reserve my questions for the webinar. Many thanks Dan

Well, I think of it in the same terms of the HCR LCS levels, a daily close below is a signature and a bias.
I think Tom also, is looking at Weekly & Daily PA, and looking for entries in the direction of the larger TF but on the H1 tf.

All the successful systems use the higher TF PA for direction, then find an entry in that same direction with a small stop.

I must say that, while PA is great, it can give us very wide stops, this at least reduces the stop.
Of course position sizing also reduces risk but with a 100 pip pinbar on a micro account, it is still difficult to enter with a sufficient SL and RR ratio.
This system and indeed Jarroo's methodology help in that sense.
  • #5,288
  • Apr 16, 2013 6:29am Apr 16, 2013 6:29am
Here is an hourly SFP taken off of the daily SP that had yet to be tested.
Don't expect this to run for ever so, took two thirds profit, moved to BE+ and will let it play itself out while I sleep.
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  • #5,289
  • Apr 16, 2013 6:43am Apr 16, 2013 6:43am
Actually, I took the above trade on the M15 tf as, the previous daily bar closed below the area and I saw the M15 pb which did actually pierce the SFP.

Not the H1 bar.
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  • #5,290
  • Apr 16, 2013 9:10am Apr 16, 2013 9:10am
What Tom means by daily bias, or rather daily directional bias is this: Say you find a bullish pinbar on the daily timeframe. You would set your FTA target on the daily timeframe, then drop down to the hourly time frame to look for an entry and to manage your trade.

So you are finding an entry on the hourly timeframe, and trading it to your daily target. The pinbar would be your daily bias. Hope this helps.
  • #5,291
  • Apr 16, 2013 12:10pm Apr 16, 2013 12:10pm
Quoting Pinbar
Well, I think of it in the same terms of the HCR LCS levels, a daily close below is a signature and a bias. I think Tom also, is looking at Weekly & Daily PA, and looking for entries in the direction of the larger TF but on the H1 tf. All the successful systems use the higher TF PA for direction, then find an entry in that same direction with a small stop. I must say that, while PA is great, it can give us very wide stops, this at least reduces the stop. Of course position sizing also reduces risk but with a 100 pip pinbar on a micro account, it...
Hi Pinbar,

Thanks for your reply. So for example, if looking at a D1 chart, and PBT&CA a HCR, then you have to drop down to a H1 and/or H4 chart to look for 'bullish signatures' (prices not closing below the HCR) for an entry and to manage your trade. Am I correct? Now, for someone that just trades the D1 time frame (either due to work commitments, or demo'ing as a newbie as per J16 advice), would that mean going up to a weekly chart to look for the set-ups (PBT&CA or PBT&CB) and then dropping down to the D1 to look for the signatures for entry and managing the trade? I know this is not Tom's method per se, but Jarroo's, but I am also interested in Jarroo's method.

Many thanks
Dan
  • #5,292
  • Apr 16, 2013 12:22pm Apr 16, 2013 12:22pm
Quoting eruiluvatar
What Tom means by daily bias, or rather daily directional bias is this: Say you find a bullish pinbar on the daily timeframe. You would set your FTA target on the daily timeframe, then drop down to the hourly time frame to look for an entry and to manage your trade. So you are finding an entry on the hourly timeframe, and trading it to your daily target. The pinbar would be your daily bias. Hope this helps.
Hello eruiluvatar,

Many thanks for your response and much appreciated. So am I correct in saying that if I was trading the D1 chart, then I should look for setups (Pin Bar, SFP etc) on a weekly chart, set my FTA target on the weekly chart, and then drop down to the D1 chart for entry and trade management?

Also, if you do not mind please, could you explain the 'rounded test' and 'touch trade' method?

Many thanks
Dan
  • #5,293
  • Edited 4:24pm Apr 16, 2013 3:53pm | Edited 4:24pm
Quoting danjuma
Hi Pinbar, Thanks for your reply. So for example, if looking at a D1 chart, and PBT&CA a HCR, then you have to drop down to a H1 and/or H4 chart to look for 'bullish signatures' (prices not closing below the HCR) for an entry and to manage your trade. Am I correct? Now, for someone that just trades the D1 time frame (either due to work commitments, or demo'ing as a newbie as per J16 advice), would that mean going up to a weekly chart to look for the set-ups (PBT&CA or PBT&CB) and then dropping down to the D1 to look for the signatures for entry...

Well, I think these are two different systems, I see no mention of HCR or LCS in this thread.
I am just taking the best of both systems and trying to use it, how I know.
Or rather, how they complement each other.
They are all parts of the bigger picture and personally, I think this is how they need to be recognized.

Stopped out for the remainder of the position at BE+.

Hit its target of the HCR in the Daily consolidation.
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  • #5,294
  • Apr 17, 2013 1:57am Apr 17, 2013 1:57am
Quoting the_wizard
In the webinar I explained why this did not appeal to me as much when I dropped down to the H1 and why (if I traded the crosses) I would bid at the white dashed line down at 96.32. I have attached a chart - if there is anyone that has attended the webinars or read the thread and does not immediately know from looking at this chart why 96.32 was the best level to buy out of all those significant s/r pivots marked, you have missed something VERY, VERY important. {image}

Hi Guys
Can someone explain me why 96.32 was good area to buy? What did i miss?

thank you in advance
  • #5,295
  • Apr 17, 2013 4:46am Apr 17, 2013 4:46am
I am eyeing this up on multi TFs.

Any thoughts on this from people that have been practicing the SFP for a while?

Thanks in advance
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  • #5,296
  • Apr 17, 2013 2:49pm Apr 17, 2013 2:49pm
Divergence Question: I understand that we are supposed to connect tops and bottoms. Which line is connecting the proper lows? Red or Green?
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  • #5,297
  • Apr 18, 2013 4:07pm Apr 18, 2013 4:07pm
Caught this one on the H4 tf but, the spread caused me to get in too late after the H4 SFP and candle close.

Bullish divergence kicking in.

And in answer to the above posters question, you draw divergence at clear swing lows and highs, as in this chart.
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  • #5,298
  • Apr 19, 2013 10:54am Apr 19, 2013 10:54am
  •  Hummar
  • | Joined Sep 2012 | Status: May the price action be with you | 27 Posts
Quoting Pinbar
Caught this one on the H4 tf but, the spread caused me to get in too late after the H4 SFP and candle close. Bullish divergence kicking in. And in answer to the above posters question, you draw divergence at clear swing lows and highs, as in this chart. {image}

Hi Pinbar,

I am glad to see you here, I have read many of your posts at J16 thread. I am not an expert of SFP, using it since two months. Beside it is very profitable it help us to understand how the sharks move this market. I use it with a divergence to increase my strike rate, only on the major swings. (on H1 and D1 directly). There is one thing which is very important in SFP play - method of setting of SL. Nice explanation can be found on the blog of Ghous (http://ghousfx.blogspot.com/p/newbies.html) - a lot of information about SFP. I use similar method (mental SL).

If you didn't read entire thread till now, I can recommend to you other Tom's method:
- Level play with rounded retest (RR)
- mental SL (stops are for buses )
- BE is not a good thing, there is not such a thing like "free trade" (since I have stopped use it I started to be very profitable)
- and one the most important things- statistics of every setup which you use.

Many thanks
  • #5,299
  • Apr 19, 2013 6:05pm Apr 19, 2013 6:05pm
Quoting Hummar
Hi Pinbar, I am glad to see you here, I have read many of your posts at J16 thread. I am not an expert of SFP, using it since two months. Beside it is very profitable it help us to understand how the sharks move this market. I use it with a divergence to increase my strike rate, only on the major swings. (on H1 and D1 directly). There is one thing which is very important in SFP play - method of setting of SL. Nice explanation can be found on the blog of Ghous (http://ghousfx.blogspot.com/p/newbies.html) - a lot of information about SFP....

Thanks Hummar

Yeah, I thought this thread was looking a bit dead.
  • #5,300
  • Apr 19, 2013 9:25pm Apr 19, 2013 9:25pm
Quoting Pinbar
Caught this one on the H4 tf but, the spread caused me to get in too late after the H4 SFP and candle close. Bullish divergence kicking in. And in answer to the above posters question, you draw divergence at clear swing lows and highs, as in this chart. {image}
I do apologize pin, but I have to ask...where exactly is the SFP in your pic?
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