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Mastering the Art of Trading

  • #421
  • Sep 5, 2013 4:07pm Sep 5, 2013 4:07pm
Well 1 more trade set up, EURGBP- not seen much of price rejection and fake outs lately on this. Previously it has been straight reverse. Let me know your views-

H4

http://imageshack.us/scaled/large/62/bm79.png

D1
http://imageshack.us/scaled/large/59/2frp.png


Thanks,
Maddy
Wherever Market Goes, I follow and return back after getting my 10 Pips.
  • #422
  • Sep 5, 2013 9:34pm Sep 5, 2013 9:34pm
Hello Ghous ... Take this job considering the TL short price and should seek the next support.
Attached Image (click to enlarge)
Click to Enlarge Name: EUR-CAD 2013-09-05 21:25:55.png Size: 45 KB
  • #423
  • Sep 5, 2013 11:02pm Sep 5, 2013 11:02pm
Quoting cesar8
Hello Ghous ... Take this job considering the TL short price and should seek the next support. {image}

Hey Cesar8

I am looking at your chart and wondering if you really understand the method that Ghous is teaching here.
I say that because, I can not see any relationship to a fake out on the chart you are in which, you are have a sell order on.

This may initially appear like a very simple question but, just think about it for 5 or 10 mins.

Why would you want to sell at a low price, instead of a high price?

Whether that trade works out or not, just think about it.
  • #424
  • Sep 6, 2013 12:46am Sep 6, 2013 12:46am
Quoting madaneeraj
Make sense! so at best we can assume that price at max will dance around between 1.6200 and 1.6400 before getting into uptrend or downtrend. Actually it is doing the same in daily chart at the moment. {image} Uploaded with ImageShack.us In other words, for understanding in logical terms we are very close to the support at 1.6200 and price bar forming a doji signifies that. Bull bear Battle is on!!! Thanks Ghous and please correct my interpretation if required
Not really. All that I am saying is, that price broke out of a trend line and PPZ and simply pulled back to it to confirm support off it. Its up to the market really if it wants to continue to dance around or simply shoot of north. Either ways a short opportunity isn't on.

g.
I believe . . .
  • #425
  • Sep 6, 2013 12:47am Sep 6, 2013 12:47am
Quoting madaneeraj
Well 1 more trade set up, EURGBP- not seen much of price rejection and fake outs lately on this. Previously it has been straight reverse. Let me know your views- H4 {image} D1 {image} Thanks, Maddy
yeah this one is on my watch list too.

g.
I believe . . .
  • #426
  • Edited 3:38am Sep 6, 2013 12:52am | Edited 3:38am
A short explanation of the how to look for these levels and how to trade them for people not sure.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpsekdaily.png Size: 89 KB
  • #427
  • Sep 6, 2013 12:53am Sep 6, 2013 12:53am
Quoting cesar8
Hello Ghous ... Take this job considering the TL short price and should seek the next support. {image}
I don't see a fake out. But wow. You have shorted straight in the middle of a down trend straight into support. That's either very gutsy or just pure submissive

g.
I believe . . .
  • #428
  • Sep 6, 2013 1:57am Sep 6, 2013 1:57am
Hi Ghous,

Much impressed with the thread. Analysis and explanations by you and other contributors like Pinbar is very detailed and done with patience. Look forward to learning how to trade using higher time frame.

Best wishes for your thread.

Dot
Dot
  • #429
  • Sep 6, 2013 2:49am Sep 6, 2013 2:49am
Quoting ghous
{quote} yeah this one is on my watch list too. g.

Great! would be interesting to see your entry (if you can share). As its a slow moving pair would you be waiting for retest?

Thanks,
Maddy
Wherever Market Goes, I follow and return back after getting my 10 Pips.
  • #430
  • Sep 6, 2013 4:51am Sep 6, 2013 4:51am
Guys...

Yesterday I watched a video on order flow partly...

He mention that banks also have to bear a execution cost (may be spread) which is a big concern for them.. is it true????????.. Do banks or big boys also have to pay spread...or execution cost....

If they unable to find high liquid market for their big lots then this execution cost go high as price vary.....

Sorry if this question is off the track but I like to learn more on this Order flow scenario.... What I think is once you understand the work behind the stage it is easy to understand what those candles are telling us...

If you know good source to learn basics of this order flow please direct me... Of course what G, PIN and other members explanations are more than enough to become profitable

Thanks

KOS
80% effort, 20% luck
  • #431
  • Sep 6, 2013 5:03am Sep 6, 2013 5:03am
Hi Kos,
You might find this website useful. There is a lot of information here and you can download and save the articles as an ebook. BTW i don't have any sort of affiliation with this website. www.traderplanet.com

Best Wishes
Steve
  • #432
  • Sep 6, 2013 5:21am Sep 6, 2013 5:21am
Hi Ghous,

Great work with analysis of the big boys' play! I see people here are working hard to get the fake-out strategy on 4H charts, with some success and losses due to "fake" fake-outs. I am of the opinion that looking for fake-outs and using them would be much less stressful and successful on the daily charts, than on the 4H. I can see how it would present fewer opportunities for entry but they would be few "good ones" rather than more "bad ones". Again that's just my opinion.

I kinda wish there were more threads like these exposing the psychology of the big sharks feeding off us little fish, rather than introducing trading systems that people spend months demoing, and still fail in live...me being one of them.
  • #433
  • Sep 6, 2013 5:48am Sep 6, 2013 5:48am
I hear you on understanding why the order flow works as such but, then again, I feel it is rather like knowing how a car engine and transmission work, which I know well. It does not make you a better driver. All we need to know is how to drive the car, occasionally use a map & avoid other traffic, just like trading.
  • #434
  • Sep 6, 2013 6:40am Sep 6, 2013 6:40am
Hi Ghous and Pinbar Thanks for sharing your knowledge. great thread. my views on GBPCAD pair correct me where i am wrong..

thanks

jeet
Attached Image (click to enlarge)
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  • #435
  • Sep 6, 2013 6:48am Sep 6, 2013 6:48am
Quoting jeetvirk
Hi Ghous and Pinbar Thanks for sharing your knowledge. great thread. my views on GBPCAD pair correct me where i am wrong.. thanks jeet {image}
I think you will find that the SP this occured at is a long way back in time, too long in my opinion.
Also, the pullback is not part of a fake out setup, once it pulls back that far, we are probably already out of the trade.
Or should be.

Price has been trying to brake out of this consolidation since 2010, the current area of where price is, is tricky and it could find support there for a push up.
I would not short this. right now.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpcaddaily.png Size: 46 KB
  • #436
  • Sep 6, 2013 8:04am Sep 6, 2013 8:04am
Quoting ghous
{quote} I don't see a fake out. But wow. You have shorted straight in the middle of a down trend straight into support. That's either very gutsy or just pure submissive g.
Well, this trade worked and best price keeps falling. but I play the take profit. The breaking of S & R is best, combining it with the price action.
Ghous Thank you for your dedication, keep going.
Attached Image (click to enlarge)
Click to Enlarge Name: EUR-CAD 2013-09-26.PNG Size: 20 KB
  • #437
  • Sep 6, 2013 8:06am Sep 6, 2013 8:06am
Hi Ghous, hi everybody!
Just wanted to jump in and thank you all for such a clear and patient explanation of how and WHY this system works. I just catched up with the thread and hope to be a little more active from now on.

Quoting KOS-fx
Guys... Yesterday I watched a video on order flow partly... He mention that banks also have to bear a execution cost (may be spread) which is a big concern for them.. is it true????????.. Do banks or big boys also have to pay spread...or execution cost.... If they unable to find high liquid market for their big lots then this execution cost go high as price vary..... Sorry if this question is off the track but I like to learn more on this Order flow scenario.... What I think is once you understand the work behind the stage it is easy to understand...
Hi Kos,
everybody got to pay the cost of doing business, even the big players. Of course their "spread" is much much smaller then ours. But their main issue is having to move huge amounts of currencies without driving the price agains them. Imagine you have to sell 500 million dollars: this starts to get big even for forex. So as you sell them, the price drops, because essentially you are flooding the market with liquidity. You could be able to sell the first 100 millions at, let's say 1.4, other 100 at 1.35 as price drops because of your selling, other 100 millions at 1.3 and so on. This is the main problem for the big guys. And this is the orderflow all this system is based on. Ghous explained it very well in his first post here.
Regards,
Zul
  • #438
  • Sep 6, 2013 8:24am Sep 6, 2013 8:24am
Quoting Dr_Zulu
Hi Ghous, hi everybody! Just wanted to jump in and thank you all for such a clear and patient explanation of how and WHY this system works. I just catched up with the thread and hope to be a little more active from now on. {quote} Hi Kos, everybody got to pay the cost of doing business, even the big players. Of course their "spread" is much much smaller then ours. But their main issue is having to move huge amounts of currencies without driving the price agains them. Imagine you have to sell 500 million dollars: this starts to get big even for...
I recently saw a youtube video (im not linking it on purpose cause then i might be stamped as commercial member lol)
In the example 75m was sold. The guy has some nice slippage of 1pip. (i think it was like 24m got filled at market price, then 25m with 0.5 pip slippage and the rest had 1pip slippage.)
With this slippage they lost 7k more than without slippage. The example was supposed to be realistic...
Anyway if you trade during the day (small swings etc) then you see how much this can mean...
It's all psychology...
  • #439
  • Sep 6, 2013 8:39am Sep 6, 2013 8:39am
Quoting cesar8
{quote} Well, this trade worked and best price keeps falling. but I play the take profit. The breaking of S & R is best, combining it with the price action. Ghous Thank you for your dedication, keep going. {image}
cesar8

Funny how things look different to different people, and from the view they see it.

My take is the weekly the trendline could be drawn as below. Also see price is compressing up. Also, note that Ghous method explained in this thread is NOT about breaking S&R, but playing the 'fake break' - very different. You seem to be playing the game that the big boys capitilise on - (a bull/bear trap could be another way to express it)
Attached Image (click to enlarge)
Click to Enlarge Name: chfjpy-w1-forex-capital-markets.png Size: 16 KB


And a pin bar could form on the daily later on signalling a buy - we'll have to wait and see.
Attached Image (click to enlarge)
Click to Enlarge Name: chfjpy-d1-forex-capital-markets.png Size: 18 KB


PS - I'm not sure about the buy trade, just pointing out the difference
  • #440
  • Sep 6, 2013 8:54am Sep 6, 2013 8:54am
Quoting LamerTrader
{quote} I recently saw a youtube video (im not linking it on purpose cause then i might be stamped as commercial member lol) In the example 75m was sold. The guy has some nice slippage of 1pip. (i think it was like 24m got filled at market price, then 25m with 0.5 pip slippage and the rest had 1pip slippage.) With this slippage they lost 7k more than without slippage. The example was supposed to be realistic... Anyway if you trade during the day (small swings etc) then you see how much this can mean...
And 75M in some situations is nothing. Billions are moved in few hours for a given pair. Moreover if you want to sell such amounts you've got to find someone who is willing to buy such amounts. And who the hell wants to buy when price's sinking like a stone? Certainly not other big fishes out there. Here the need to artificially create buying pressure by fooling the less informed players (retailers, or in other words, US).
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