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Trading Made Simple

  • #23,201
  • Edited 5:16pm Aug 13, 2013 4:16pm | Edited 5:16pm
If you haven't read this book yet...do it quick! It will put your trading & the journey into a whole new perspective (with a trip down the rabbit whole).

"Successful trading has far more to do with the trader than with the trade itself"

Attached Image
  • #23,202
  • Aug 13, 2013 5:06pm Aug 13, 2013 5:06pm
Quoting Erol
Hi all, Reading through this thread & making notes from start to finish has led me to this little gem which I compiled earlier from one of Emmanuel's generous link posts (see attached). Hope it helps people get to terms with the building blocks of PASR (Price Action (around) Support & Resistance). Please not that this pdf is based on a different trading method to the original rules in TMS but should help all the guys/girls struggling to get there heads around PASR. Please note PASR is just one of the many things Emmanuel has emphasized that the...
Following on from my previous post here is another pdf i scrambled together based on another one of Emmanuels website pointers to PASR. Hope it helps. See if you can incorporate some of the candlesticks patterns into your core TMS method to enhance it....WWED(what would Emmanuel do?)!

Attached File(s)
File Type: pdf Candle patterns doc (PASR).pdf   1.6 MB | 2,382 downloads
  • #23,203
  • Aug 13, 2013 5:34pm Aug 13, 2013 5:34pm
Quoting Erol
{quote} Following on from my previous post here is another pdf i scrambled together based on another one of Emmanuels website pointers to PASR. Hope it helps. See if you can incorporate some of the candlesticks patterns into your core TMS method to enhance it....WWED(what would Emmanuel do?)! {image}
You did an outstanding job on that PDF, Sir.
When I Buy Price Short, When I Sell Price Goes Long.
  • #23,204
  • Edited 6:08pm Aug 13, 2013 5:51pm | Edited 6:08pm
Quoting jcvmw
{quote} You did an outstanding job on that PDF, Sir.
Thanks jcvmw - another one to come tomorrow. Just felt like there was a lack of pdfs on the thread for PASR for reference material. The aim is to bump up PASR reference material this week as i feel its a lot easier to read and reference a PDF than a website, which just gets glossed over... 2 of 3 so far, watch this space.

But more importantly have you (or anyone else reading this) got your hands on trading beyond the matrix yet?
  • #23,205
  • Aug 13, 2013 6:09pm Aug 13, 2013 6:09pm
Hi All,
went into DEMO yesterday for these trades on the daily chart. Have not traded daily chart before so want to spend dome time getting used to the time frame.
took EU Sell which went nowhere for the first 8 or so hours so I moved my stop to -20 pips which got hit. a couple of hours later the pair did break the SR area and went to what was my T1, oh well.
2nd trade UJ Buy which hit my T1at 40 pips and T2 at 80 pips then hit my trailing stop at 69 pips
3rd trade EJ Buy which hit my T1 at 50 pips, T2 at 90 pips then trailing stop at 66 pips

moved to 4 hour charts to see the trade better so the charts are the 4 hour ones.

Good trading folks
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  • #23,206
  • Aug 13, 2013 6:23pm Aug 13, 2013 6:23pm
Quoting Erol
{quote} Following on from my previous post here is another pdf i scrambled together based on another one of Emmanuels website pointers to PASR. Hope it helps. See if you can incorporate some of the candlesticks patterns into your core TMS method to enhance it....WWED(what would Emmanuel do?)! {image}

Erol,
Great work on the PDF
  • #23,207
  • Aug 13, 2013 6:28pm Aug 13, 2013 6:28pm
Quoting rob Miller
Hi All, went into DEMO yesterday for these trades on the daily chart. Have not traded daily chart before so want to spend dome time getting used to the time frame. took EU Sell which went nowhere for the first 8 or so hours so I moved my stop to -20 pips which got hit. a couple of hours later the pair did break the SR area and went to what was my T1, oh well. 2nd trade UJ Buy which hit my T1at 40 pips and T2 at 80 pips then hit my trailing stop at 69 pips 3rd trade EJ Buy which hit my T1 at 50 pips, T2 at 90 pips then trailing stop at 66 pips moved...
Hi Rob,

Quick question on the EU Trade:

  1. You say you moved your stop - was this part of your plan?
  2. How did you calculate your initial stop. whats your SL method: SH/SL? ATR?
  3. Are you Using a ME/ME approach (i.e. enter 2 trades @1% if your total risk is 2% based on your MM rules then moving stop to BE when TP1 hit for a risk free trade (RFT))

Question on your approach to daily trading strategy:

  1. have you thought about sticking to your H4 methodology and then look to convert your H4 to D trades when the opportunity presents itself
  2. you could use your ME/ME approach in tandem with a RFT opportunity to convert it this way providing daily signals present them-self as well
  3. Emmanuel has posted many times on here about how converts the H1>H4 if the opportunity arises...why not try this with H4>D approach.
  4. WWED?

I know i keep pushing this on every post but get your hands on trading beyond the matrix

  • #23,208
  • Aug 13, 2013 6:52pm Aug 13, 2013 6:52pm
Quoting Erol
{quote} Hi Rob, Quick question on the EU Trade: You say you moved your stop - was this part of your plan? How did you calculate your initial stop. whats your SL method: SH/SL? ATR? Are you Using a ME/ME approach (i.e. enter 2 trades @1% if your total risk is 2% based on your MM rules then moving stop to BE when TP1 hit for a risk free trade (RFT))Question on your approach to daily trading strategy: have you thought about sticking to your H4 methodology and then look to convert your H4 to D trades when the opportunity presents itself you could use...
Hi Erol,
I normally trade either 1 hr or 4 hour charts and risk only 2% of account. ( with this one i was at 3%)
Depending on the ATR usually looking for around 40 or so pips on those charts.
Normal set up is to sell 50% of lots at 50% of overall target and move stop to BE then activate a trailing stop.
If the price action is good i may move the TP and sell my 50% a bit further into the trade.
The set ups on these trades yesterday were great looking TMS trades.
The EJ target was at 100 pips which was at the 61% retracement (130.480) and the ATR. Added a T2 at 90 pips and was going to move the TP higher, but then decided not to be greedy and stay with the original 100 pips. Still think there is more in this one.
My initial stop was 40 pips. With the set up that was on the chart I was very confident in the trade going my way, so the SL was more in case of something out of the blue happened.
For the UJ all of the above applies.

Hope this helps
  • #23,209
  • Aug 13, 2013 6:58pm Aug 13, 2013 6:58pm
Hi Erol,
Sorry i just realised I did not answer your EU question.
I liked the trade set up, but there was SR a little below the entry, but was still confident in my trade.
The SL was moved a bit because of lack of patience and to protect some capitol (although in demo) if the trade did go against me.
This trade got to about + 7 pips when i occasionally looked at it but was going nowhere.
After about 8 hours I moved the stop to 20 pips.
A couple of hours later it broke the SR and moved in my direction.

The thing i learnt from the trade was about patience and trusting the set up.

Regards
  • #23,210
  • Aug 13, 2013 7:07pm Aug 13, 2013 7:07pm
Quoting rob Miller
Hi Erol, Sorry i just realised I did not answer your EU question. I liked the trade set up, but there was SR a little below the entry, but was still confident in my trade. The SL was moved a bit because of lack of patience and to protect some capitol (although in demo) if the trade did go against me. This trade got to about + 7 pips when i occasionally looked at it but was going nowhere. After about 8 hours I moved the stop to 20 pips. A couple of hours later it broke the SR and moved in my direction. The thing i learnt from the trade was about...
Hi Rob,

If you already trade H4 would have you asked yourself questions about the trade conversion approach. i.e Building up positions in 4H swing (when in line with the D trend) and then managing them based on the Daily charts & PASR?
  • #23,211
  • Aug 13, 2013 7:09pm Aug 13, 2013 7:09pm
Quoting Phx62
{quote} It is called the Market Base Line and is a slower MA which indicated trend direction.....a cross of green and red over the MBL usually indicates a strong price movement is coming......the creator, Dean Malone at Compass FX also used the MBL as a conservative entry....when green crossed yellow a more conservative trade could be made....Big E did not use the MBL on his platform....he just used the green RSI line and the red Trade Signal Line.
could you please tell me how to use mbl?
Come tomorrow, I'll wake up new
  • #23,212
  • Aug 13, 2013 7:21pm Aug 13, 2013 7:21pm
Quoting gsbharaj
{quote} could you please tell me how to use mbl?
Hi gsbharaj

what time frame do you trade?

When we trade TMS in H4 and D timframes, we do not use the yellow Market Base Line MBL for a trade decision.

Why might this be? Back-testing will you why - but in a nutshell, you will miss many pips in the the direction of the move when TDI cross up below the MBL or when the TDI cross down above the MBL.

Learn to spot PA using using a few basic Candlesticks (see pdf on post number 23,205) / Pin bar patterns (IB, DIB, DBHLC, DBLHC, Pop Gun)

Also learn to read PA using the APB HAs for trade management (when your already in your trade)
  • #23,213
  • Aug 13, 2013 7:23pm Aug 13, 2013 7:23pm
Quoting Erol
{quote} Hi Rob, If you already trade H4 would have you asked yourself questions about the trade conversion approach. i.e Building up positions in 4H swing (when in line with the D trend) and then managing them based on the Daily charts & PASR?
Hi Erol,
I have built up positions before, but to be honest, yesterday I did not even think of it.
Spent the day running around so my thoughts were on other things.
My work shifts,(currently on days off)dictate when I can trade.
Usual routine is to do an analysis of the charts to see what trades are coming up. As i said before I usually trade 1 and 4 hr charts.
Like to be at the computer during the Frankfurt session to see how the day has been playing out, but only trade the LON session.
Lon session for me starts at 5pm my time, so I juggle between the charts and spending time with my wife. (very important to do)
  • #23,214
  • Aug 13, 2013 9:04pm Aug 13, 2013 9:04pm
Quoting thrax
{quote} Emmauel, I meanwhile closed this position by hand, because there was a bearish TDI cross. Can you please explain a bit more detailed why is it 60% of the weekly traded range that should be giving key levels? Perhaps I missed some posts... I checked the daily TF and there was a bearish TDI cross right on Monday... On my chart the red line in the middle is the open of the week, the upper red one is +160 pips and the lower one is -160 pips from the open. I removed the HA candles, so on m chart there are normal Japanese candles. My signal candle...
Hi thrax,

Sorry for this late reply as I was called away and now with lunch time, I can catch up with some posts and reply quickly.

Briefly on the 60% of the average weekly traded range, it is something I used in trade planning for my 4H swing trades. I mention before about the market type we trade in. I look at the average 52 weeks (one year) and the 100 weeks (about 2 years).

3 market types - trending and sideways wide ranging and narrow ranging.
TMS works well in the trending market type and also the wide range sideway market type.
When market is trending, you will find that the price will move away from the weekly open and target the 100%of the average weekly range.
Even in sideways wide ranging market type, most often the 60% of the average weekly range can be achieved before market either paused or correct itself.

But the TMS failure is when market type is sideways narrow ranged, that is when price hangs around the week open and do not move far from the open and swing up and down.

EU price behaviour over the past 12 weeks was quite obvious and I will explain this later when I have more time.

About your thinking, there is no problem as we all think differently. What I think is the issue is the structure of how we all think when are trading.
Trading is very much a thinking game we play with the other market participants.

Not sure you have know of the Six Thinking Hats by Dr Edward de Bono. I had some training 30 years ago and until today the thinking technique is part of my life deep in my subconscious.

Here is a short youtube video of the de Bono doing an introduction presentation juts to give a quick view what it all about. Read the book for a complete guide.

Dr Edward de Bono 6/6

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #23,215
  • Edited 10:12pm Aug 13, 2013 9:35pm | Edited 10:12pm
Quoting FxProPlayer
{quote} Emmanuel, Were there other factors (besides BEOB) that contributed to EU (H4) being a good short at that time? Also how does BRN add up to it, what is its effect? Just trying to apply TMS better. Thanks in advance. -- FxPP
FxPP,

You will see a lot more when you have done a Big Picture planning for every currency pair you want to do 4H swing trading.
With Big Picture plan done, we will be very clear what to look for before market opens on NY sunday night.

What my Big Picture plan show me:

- 1.3350 is a support turned resistance seen since 2011 and more recently. (1.33538 to exact)
- Price structure failure, this time at Prev W Fib 127% (week 31) seen last week. Most Fib127% failure results in price retracement back into the previous week range.
- The FIb127% failure happened on Friday last week, and then a TMS 4H showed a setup.
- The retracement continued when NY open on sunday this week and went into consolidation around BRN 1.3300 ahead of the key data release.
- 1.3300 is also where the WPV is just above. and also Prev W Fib 50% (week 32). PA was below these confluence area which in my opinion is Bear feeding ground.
- there are also few candlestick patterns which are my trade opportunities alerts. I don't like watching charts and therefore rely on patterns alerts. That BEOB is just one of the alert. After that was another BEOB and a better one than the first because that broke the buyers' line.
- below 1.3300 buyers attempted to move up but get pushed back down.

Another factor not mentioned before is I trade looking at the composite strength of the USD against AUD, EUR, GBP, NZD, CHF and CAD ... all 6 USD pairs. The overall assessment is a stronger USD showing this week and it may continue downwards once GBPUSD seller jump into the market. This is why I mentioned on Sunday night that I will avoid the GBP pairs this week. You saw those spikes last 2 weeks and yesterday, that make trade management very difficult even when trailing using volatility of 2xATR(10) on H4.

What is going on with GBP pairs? don't want to speculate but there is some short term demand for GBP seen on our charts.

Hope this explains a bit more on the EU trade.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #23,216
  • Edited 10:13pm Aug 13, 2013 9:42pm | Edited 10:13pm
Hi Folks,

I see some new members posts this new week which in my opinion is a healthy sign for TMS trading.
Keep the posts coming and sharing what you see on your charts. It is all part of the learning process.
You will learn a lot faster and in shorter time by being an active participants. This thread will shorten your learning curve but only when you be active member.

Those who are new to trading, don't be discourage when you read things which you do not understand. Just be patient, keep with the flow here and ask questions. Listen to others helping you in your questions. It is hard work because the road to achieve financial freedom is a very long journey with many milestones.

Take care and Trade Well.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #23,217
  • Aug 13, 2013 10:40pm Aug 13, 2013 10:40pm
Quoting emmanuel7788
{quote} FxPP, You will see a lot more when you have done a Big Picture planning for every currency pair you want to do 4H swing trading. With Big Picture plan done, we will be very clear what to look for before market opens on NY sunday night. What my Big Picture plan show me: - 1.3350 is a support turned resistance seen since 2011 and more recently. (1.33538 to exact) - Price structure failure, this time at Prev W Fib 127% (week 31) seen last week. Most Fib127% failure results in price retracement back into the previous week range. - The FIb127%...
Wow !! Just Wow. I had an idea that there there must be a lot of homework being done by successful traders well before a trade setup shows up. But I didnt realize it was this much. Perhaps with time all this analysis becomes second nature and one goes through pretty quickly.

All this info is overwhelming and I think its best for me to continue taking baby steps for now. So I have put your post in my journal, hopefully in due course I will be able to apply it better.

Many thanks for taking out the time for such a detailed response.

FxPP
  • #23,218
  • Aug 13, 2013 10:46pm Aug 13, 2013 10:46pm
shorted the EJ, currently up 12 pips.
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  • #23,219
  • Aug 13, 2013 10:53pm Aug 13, 2013 10:53pm
Quoting emmanuel7788
{quote} Hi thrax, Sorry for this late reply as I was called away and now with lunch time, I can catch up with some posts and reply quickly. Briefly on the 60% of the average weekly traded range, it is something I used in trade planning for my 4H swing trades. I mention before about the market type we trade in. I look at the average 52 weeks (one year) and the 100 weeks (about 2 years). 3 market types - trending and sideways wide ranging and narrow ranging. TMS works well in the trending market type and also the wide range sideway market type. When...
Dear Emmanuel,

thank you very much for the explanation! I will study the suggested book and watch the video!

take care,
thrax
  • #23,220
  • Aug 13, 2013 11:49pm Aug 13, 2013 11:49pm
Took a sell on EJ, missed my take profit by 1 pip so came out at +25 when M15 pulled back for a second time from the daily pivot.
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