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Mastering the Art of Trading

  • #41
  • Aug 27, 2013 8:38am Aug 27, 2013 8:38am
Hi ghous,
one point I would like to highlight is that the Daily and H4 candles may be very different from a broker to an other as the day starts at different times depending on the broker. And as the close price plays a big role then it may affect quite much the trades. What is your experience on this (I suppose that traders in James16 group use many different brokers).
On the other side H1 candles are pretty much the same on different brokers. Because of this wouldn't the be better candidates to spot the fake breakout?
  • #42
  • Aug 27, 2013 9:18am Aug 27, 2013 9:18am
Quoting jlpi
Hi ghous, one point I would like to highlight is that the Daily and H4 candles may be very different from a broker to an other as the day starts at different times depending on the broker. And as the close price plays a big role then it may affect quite much the trades. What is your experience on this (I suppose that traders in James16 group use many different brokers). On the other side H1 candles are pretty much the same on different brokers. Because of this wouldn't the be better candidates to spot the fake breakout?
Ghous once told me that New York is the most accepted "closing time" in forex. However "what you miss on one broker you gain at another one" - so at the end the results will be the same. (The second was said by james16)
But the same is with the daily close though...

Hope this helps
Stephen
It's all psychology...
  • #43
  • Aug 27, 2013 9:20am Aug 27, 2013 9:20am
Quoting dipie
I guess EUR/AUD on daily has some potential {image}
Nice RN but, too much consolidation has been going on, below the level for my liking.
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  • #44
  • Aug 27, 2013 9:21am Aug 27, 2013 9:21am
Wht a noble attempt.... THank you Ghous!
Im yet to complete my reading... but couldn't help putting in a few words of appreciation for you taking time to teach us all. Th'ats very nice of you....!

thanks a lot for your effort... time and your willingness to share knowledge!
  • #45
  • Aug 27, 2013 9:38am Aug 27, 2013 9:38am
Quoting dipie
Thx so much for this thread, awesome method I just have a question, I hope this is not a dummy one :-) let's say your HHR is 1,0, price goes thru and makes new high at 1,2, then the retracement starts...Do you still look at 1,0 now as the support....Hope you get my english
Support and resistance specially the flip where support turns into resistance and vice versa are among the most fundamental and foundational phenomenon that the market action, or price action as we like to refer to it as, is based.

If price breaks through an HHR area and on the retrace holds up at it as support, then clearly this is not a fake out scenario.

What we are looking for, is price to move beyond the HHR, hit the stops as well as the big block of orders and fall back. If this is true selling coming in and a fake out in the making then price shouldn't find it troublesome to move smoothly back into the HHR level and close below it.

As an example here is a former trade I took. Notice how price closed strongly above at first, but then next bar pops right back down without holding up at the HHR. This is very telling about the strength of the selling pressure that's coming in. A retest of the HHR from under occurs before the selling continues to confirm resistance at the HHR. Textbook stuff really.

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g.
I believe . . .
  • #46
  • Edited 10:01am Aug 27, 2013 9:50am | Edited 10:01am
Quoting dipie
I guess EUR/AUD on daily has some potential {image}
This is something that I will be getting into very soon when I get well from this stupid food poisoning.

The triggers to this method lye in spotting a swing point, demarcating an LLS/HHR and simply watching for a failed attempt to break it. This will always be very easy to spot. Bear in mind that the bigger and more critical aspect to successfully executing this method is the sound understanding of "the bigger picture". Something that comes with a lot of practice.

Now with the EUR/AUD example you showed. I see a swing high and an HHR and I see that we may have a possible fake out off of it. But ask yourself this. Is that a major former sell off area to be considering to take a short off during this strong an up trend? It took me quite a few painful burns to understand that this method was best suited to a sideways market. By nature this is a "counter trend method" and you'll find yourself in a lot of trouble if you start shorting up trends based off minor swing points.

You will have people bragging about the pips they bagged during a trending market based on an MA touch/cross system. Come a sideways period and most systems will turn on their heads. This method I have always experienced to be at its finest best (both with number of opportunities as well as the reliability) when the market is sideways. Don't get me wrong. Of course these markets can be tricky, but also extremely rewarding if you have a basic understanding of side to side support and resistance and your approach is spot on.

You'll be hearing more on this and other critical issues/aspects very soon.

g.
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I believe . . .
  • #47
  • Aug 27, 2013 9:53am Aug 27, 2013 9:53am
Quoting ghous
{quote} Support and resistance specially the flip where support turns into resistance and vice versa are among the most fundamental and foundational phenomenon that the market action, or price action as we like to refer to it as, is based. If price breaks through an HHR area and on the retrace holds up at it as support, then clearly this is not a fake out scenario. What we are looking for, is price to move beyond the HHR, hit the stops as well as the big block of orders and fall back. If this is true selling coming in and a fake out in the making...
Thank you Ghous, I asked because I am used to watch S/R flip and use it for getting in trade with PA. I wasn't sure how you deal with it in your method. You and Pinbar made it very clear for me and so far I think I understant your concept of trading. Thank you once again.... Dipie
  • #48
  • Aug 27, 2013 9:58am Aug 27, 2013 9:58am
Quoting jlpi
Hi ghous, one point I would like to highlight is that the Daily and H4 candles may be very different from a broker to an other as the day starts at different times depending on the broker. And as the close price plays a big role then it may affect quite much the trades. What is your experience on this (I suppose that traders in James16 group use many different brokers). On the other side H1 candles are pretty much the same on different brokers. Because of this wouldn't the be better candidates to spot the fake breakout?
true that.

I always just stick to the Ny close feed which tends to be unofficial close time for FX markets, in the sense that I have seen many traders use it. It makes sense too as other markets close around that time too.

In the end though it really doesn't matter all that much as in the end it all balances out. Also, the real underlying reasons for taking a trade are almost always centered towards the bigger story comprising of a big chunk of price information which doesn't change from one feed to another. So for instance if I have a former major swing high line up to the pip with a big round number, another feed might show me an HHR that either missed the RN by a few pips or closed above by a few pips. Either ways it doesn't alter the depth of the swing point nor the fact that the HHR is "more or less" lined up with a round number.

So again its not possible that people are looking at altogether different setups on different broker feeds except maybe some minor differences that tend to even further diminish when you start to look at your charts more holistically and stop treating the markets like a machine that works in perfect rhythms and behaves on a "to the pip" basis.

hope this is clear.

g.
I believe . . .
  • #49
  • Aug 27, 2013 9:59am Aug 27, 2013 9:59am
Quoting vinforex7
Wht a noble attempt.... THank you Ghous! Im yet to complete my reading... but couldn't help putting in a few words of appreciation for you taking time to teach us all. Th'ats very nice of you....! thanks a lot for your effort... time and your willingness to share knowledge!
Much appreciated Vin,

I am glad you find the material useful

g.
I believe . . .
  • #50
  • Aug 27, 2013 10:17am Aug 27, 2013 10:17am
Quoting ghous
{quote} This is something that I will be getting into very soon when I get well from this stupid food poisoning. The triggers to this method lye in spotting a swing point, demarcating an LLS/HHR and simply watching for a failed attempt to break it. This will always be very easy to spot. Bear in mind that the bigger and more critical aspect to successfully executing this method is the sound understanding of "the bigger picture". Something that comes with a lot of practice. Now with the EUR/AUD example you showed. I see a swing high and an HHR and...

I was eyeing this and your explanation was great! I went down to 5m for mini pups and sure enough price is bouncing back up.
  • #51
  • Aug 27, 2013 1:12pm Aug 27, 2013 1:12pm
Thanks for the thread. Great to read something that specializes in sideways market. I just don't quite get the definition of a "trouble area". Is it an area of many dojis that kind of stuff?
I want more brain power!
  • #52
  • Aug 27, 2013 2:30pm Aug 27, 2013 2:30pm
Hey Ghous, what a great thread. But I was wondering where did I see your name and then I remembered that I saw your video on a blog (I’m not sure if I may post the link here, but I hope you know what I’m talking about). In that video you said that you wait for price to close above/below SP and then to strongly reject, that was the trigger. And if price doesn’t close above/below SP, but only leaves a small wick, you don’t take such trade. Which is completely opposite to the stuff in this thread. So I’m wondering why did you change your rules? Did that previous method prove to be not reliable? Or is your current method just more suitable for daily charts, which you said you mostly prefer today?
  • #53
  • Aug 27, 2013 2:30pm Aug 27, 2013 2:30pm
Ghous, let me get this correct.. We are entering right after the bar closes or wait until the bar close and enter at the low/high of the bar?
  • #54
  • Aug 27, 2013 2:45pm Aug 27, 2013 2:45pm
Hello Ghous,

thank you for the informative read and good luck with the thread. I hope that people give you the attention you deserve.

+ Subscribed !

Mike
Be like water.
  • #55
  • Aug 27, 2013 7:12pm Aug 27, 2013 7:12pm
Even though, I do not like the fact that price did not spend much time away from this area, before returning to it, the close of yesterdays bar interests me.
Let's see what the rt of the HHR can do.
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  • #56
  • Aug 27, 2013 7:38pm Aug 27, 2013 7:38pm
Check out USDJPY on H4 and H1 .. nice long setup in the making around 96.90
  • #57
  • Aug 27, 2013 7:41pm Aug 27, 2013 7:41pm
Also AUDUSD around 89.25 is a potential long setup
  • #58
  • Aug 27, 2013 8:48pm Aug 27, 2013 8:48pm
Hello Master Ghous ,

since we are mastering the art of trading, I hope you wouldn't mind me calling you Master.
This is the first thread I have ever subscribed to or commented here on FF, because it is not only the most profitable way to trade but actually the coolest trying to follow the big banks or london killer whales.

I have been privy to forex trading for more than two years now, blew a few demo account gambling not actually trading and finally took the decision to do the hard work required to be a successful trader, I looked at many systems and indicators and concluded that even if you could end up with some success it was actually more difficult to follow so many indicators on your chart instead of pure price actions or motion as I like to call it.

I would like us all to work together and help many retail traders understand that this method is one of the best if not the best way to really master the art of trading but off course it requires ton of discipline and good money management, actually every system in financial trading requires discipline but in this particular style of trading that required doing the opposite of what most retail traders are doing you need to be free from emotions and strong willed to wait until your set up is cancelled before closing the trade if facing some draw-downs which do happen.

I wish we all can simply share ideas and post setups each day we find them after which we update the results, this will help many new traders come to agree that we can master the art of trading through your method, seeing indeed is believing .

Not sure how to post charts but can say set ups are in the making on the pair NZDJPY & NZDCHF daily charts.

Everyday we will learn from you and share with you Ghous, thanks for starting this thread.

NB: forgive errors in my English, its not my first language.
10 pips a day keeps poverty away
  • #59
  • Aug 27, 2013 8:49pm Aug 27, 2013 8:49pm
Pureprice could you please share your Macd Indicator with the time zones indicated on it, thanks
10 pips a day keeps poverty away
  • #60
  • Aug 27, 2013 10:17pm Aug 27, 2013 10:17pm
Hello Ghous. Congratulations on this new thread. For all will be of great help to have it in front, as moderator. Success.
I wanted to know your opinion of this pair. Price back and breaks the TL, up to the first bracket. Sere very ambitious if I run the price expected to continue tumbling, or should close the operation?
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