Simple Setups To Trade

this will make for some good weekend reading!

Another Trade to illustrate my point on my previous post.

This one I took exactly on London also with GBP JPY, couple days ago.
I was a bit to early to enter. But I see that entry candle climbing up north fast. So that must be it.
Earned me about 100 pips (96 pips to be exact)

SL was -15. Put to 0 after 50 pips.

No need indicator to trade this, not even a trendlines if you already get used to see the setup.
I dont have that trendline when I trade this real time. Just put it there to go along with the thread.

I try not to trust indicators. I trust the money.
The fresh money that flooding in at the open market.
No setup there. No trade.

If you examine my chart to the right. On the red vertical line (NY open) you can see another SELL setup is trade able there right at the open. But I was not on screen at that time.

Btw, I am no pro. Not yet. Getting there soon.

Hope my post will be useful for others.

If I may I would add another useful information about trading this method
during Open market session. Please see Pic attachment.

When a setup happened exactly on market, I think it's best if we clear of our mind from expecting the chart to go to direction we expect them to be. Like what happened today on tokyo with USDJPY (GBPJPY give me more than 3 pips spread on monday so I prefer USDJPY). When a setup happened, and we draw the trendline, we expect the candles to break it north. But that's not what the candles want, candles want to go south. Go with them. Its not important what we predict, think and hope. When we see the money going south. We go south.

I've read someplace on this forum a guy who keep on writing: Forget what Indicators tell you at the open market, see the money. Go with the money. I did not know what he/she means when I read that. But after long hour of training and practicing trading at the open market those words seem coming back at me and enlight me in some short of way. That word is brilliant.

Oh well, just sharing my cents here and I am no a pro. Dont take my word too seriously.

The Yellow vertical lines at the chart is Tokyo. White is Sidney. I am at +18 pips at the moment. You can see my entry and my stop loss on chart. 10 pips stop loss. I will hold this trade as long as possible. But this is monday.

Hope this information useful. And perhaps this my last post on this thread. I think there's noting important to add anymore to already great method. Sorry for my bad english.

Good luck with your trading.

while i am here....

lets see if this breaks. entered on retest of .9600, it has history and i think it will hold. lets see....

jon

got took out befor it hit the FTA.
next....



jon

well wot wud u know!....

maybe another round...


jon

2 from today. didnt get the eu/us though.


jon

some profit taken and stop to BE. will try and keep hold of rest of the position. i am eyeing 95 then posibly 93??


jon

one more from today. didnt catch this one either...


jon

Jon,

I'd somehow managed not to notice this thread until today, and am only really posting to thank you very much for starting it, and to say "watching with interest".

Threads on this subject always interest me, because what you're covering here fits in well with my own style of trading. Usually, though, I find these threads full of charts with "strange, subjective, hindsight-influenced trendlines" which I iknow I wouldn't have drawn, myself, and that always put me off. Not so on this occasion: your charts are clear, instructive, interesting and very helpful. Thank you!

thanx bro, it is still a bit of a work in progress so any opinions welcome.
glad you like.

jon

Same as Xela. I have somehow missed your thread. I swear every chart recently you have posted was almost exactly what i was looking at. Keep posting man, love the charts.

Rolo

Loving this. will keep checking this

Very nice thread. show us more charts please. Thank y very much

I just want to clear up a bit of stuff......

First, why Price Pivot Zones (PPZs) are important to me.

There is plenty of advice out there about finding the PPZs, especially on the Great J16 thread so I won’t go into it here, except to say I draw in my own and do not use floor pivots.

· Number one for me is simply to find the important areas on the chart. Areas where the orders are likely to be stacked up. These are the areas where we can expect price to react strongest. It is these orders that can turn price on a dime, and if that is going to happen we need to know about it. If price is running into one of these areas and the order stack (OS) is large enough it will reverse price in a breath. Now that reversal does not want to be confused for the type of short term retracement I am looking for, I am looking to trade a continuation of a previous move. I don’t want to be left guessing whether or not price is reversing or consolidating. I just want an excuse to get in a move and trade some pips while the momentum is strong. This why it is important to only take the shorter retracement moves and why I don’t personally like the long dragged out affairs. Don’t get me wrong price might continue just the same but I personally think it becomes less and less likely to get a strong move as time goes on.

· Secondly I want to know if price has just moved through a PPZ. If it has we can assume it has eaten the OS around that area. If this is so we can expect some kind of retracement as they run out and the smart money is looking for value bid/asks. Let’s assume we get a big drop in price and it dropped right through a good PPZ, we can expect to see the bears still in control of the market, that means to me that I can have more confidence that price is simply retracing (usually back to the PPZ....time and time again!) and not reversing or stalling. Again It may well be, but imho i think it’s a bigger probability that the retrace will result in another move down. Not only that but we now have a clear price that we can plan to trade from. Now imagine if price dropped into a PPZ but didn’t close below, what do we get? Well if we are lucky we might get a Pin Bar showing signs that price is reversing and the bears have lost control and the downward momentum I want to trade is gone.

· Lastly I want to know if price is between PPZs. As we know price tends to move in the direction of least resistance so that means there probably won’t be enough orders coming on the market (obviously there will be times, news etc) to change the direction of the trend until price reaches a PPZ. So now I know if price gives a small retracement it is probable it will continue further after the retracement, giving me a good trade opportunity if I can catch the break of the retracement.

jon

one to watch..(thanx Ken)1H chart..

big spread though

jon

this is one iv took today....lets see what happens...
not the best but iv been waiting for price to break my TL, its been looking bearish for a week to me...?
Stop now about half of the entry stop thanx to price breakin the FTA.


jon

looks great. good job