Mastering the Art of Trading | Page 43 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Mastering Swing Trading using Market Framework 437 replies

Mastering the Art of Stop Loss 40 replies

Mastering short timeframe scalping 3 replies

Mastering Price Action - tunguska Journal 18 replies

Mastering the Art of Trading vs Impatience 0 replies

Attachments: Mastering the Art of Trading
Exit Attachments

Mastering the Art of Trading

  • #841
  • Sep 26, 2013 7:48am Sep 26, 2013 7:48am
I am out of the AUD/CHF trade for very nearly a breakeven trade (a very minor loss).

This trade showed no signs of moving at all right from the point that I took the entry. And in this weak state the trouble area around the 8500 region was always going to trouble price.

As price started to hold up at the FTA, I decided to move to the 4H to find a possible initial signal to exit instead of having to watch price trickle all the way back up.

I do believe that this setup isn't over yet, but its just that this lack of momentum coupled with a trouble area that price seems to be holding at makes it very tricky to stay in the trade.

What I was looking for, when we opened for the week was for price to quickly fill in the gap and show signs of some real selling coming in, but the very pull back chiseling all the way up to the HHR region set the tone and mood for the week.

Attached Image (click to enlarge)
Click to Enlarge Name: audchf.png Size: 34 KB


Attached Image (click to enlarge)
Click to Enlarge Name: audchf daily.png Size: 48 KB


g.
I believe . . .
  • #842
  • Sep 26, 2013 9:03am Sep 26, 2013 9:03am
Quoting ghous
{quote} Here's my response. In video form to stress on the point of "working out the overall story behind a trade setup" g.
Thanks ghous, exactly what I was looking for. I guess we should keep an eye out still to see if it moves back up above 1.64 in the next few days for a possible move up?
  • #843
  • Edited 10:12am Sep 26, 2013 9:57am | Edited 10:12am
Quoting ghous
{quote} Here's my response. In video form to stress on the point of "working out the overall story behind a trade setup" http://www.youtube.com/watch?v=7NiL9...73Yn690lkEpwTM g.
Huh............... What any more question after kind a CRYSTAL CLEAR explanation.................
80% effort, 20% luck
  • #844
  • Sep 26, 2013 11:23am Sep 26, 2013 11:23am
Quoting raminfx
{quote} Thanks ghous, exactly what I was looking for. I guess we should keep an eye out still to see if it moves back up above 1.64 in the next few days for a possible move up?
for sure.

g.
I believe . . .
  • #845
  • Sep 26, 2013 1:09pm Sep 26, 2013 1:09pm
Hi guys, hi Ghous!

As I'm going deeper and deeper in OF I tend to look back in the former systems and look for OF patterns. Today I examined the "Rounded Reverse" , which is one of my favorite pattern due to its simplicity.

As an order flow trader let's put ourselves in others' shoes.

From a former consolidation we got a breakout. What does this mean?

This means that this time there was more demand than supply. Could this be due to some retail traders who were too eager to buy? Well, if this was the case, then the pro traders would have seen an outstanding opportunity to sell, since nothing has changed in our product / equity / name it as you want - so what all they see is an overpriced product. - They hit the sell button and at the end of the day we see a nice fake-out bar.
This is clearly not the case this time, since price stays above the given level which tells me that something indeed happened - and pro players didn't jump to sell it.

1) The Trader who expects a pullback (aka. reverse from the resistance).
This trader enters short. Seeing price breaking out he is in loss. He either takes the loss, or waits til price reverses. As soon as rice retraces to the former resistance he will quit on break even. (Fear, greed, and now he is happy that he can quit with 0 loss) Quitting his sell order will be a buy order which will push price higher.

2) Breakout traders who went long are happy. Although as soon as price hits a minor FTA they will take profit. (Don't forget that when it's about profit taking people are much more eager to take it, as if it was up to taking a loss. At loss taking people tend to let their losses run...) Anyway these guys take profit on their buys which will result in selling, thus price will be pushed back to the former resistance.

Anyway as I mentioned above we broke out for a reason. The reason was that the product was undervalued. Now in that single moment when price retraces pros see a great opportunity to buy the product which will result in a nice bullish move...

Thats my Order Flow analysis of this setup which I tend to like more and more. Ghous and other OF guys please give me some feedback or add some comments. (Am I right about the reasons which caused price to retrace - are there more reasons? etc.)

Thanks Guys!
Stephen
Attached Image (click to enlarge)
Click to Enlarge Name: bamm baby.png Size: 64 KB
It's all psychology...
  • #846
  • Sep 26, 2013 5:32pm Sep 26, 2013 5:32pm
This ended up basically as expected.
Attached Image (click to enlarge)
Click to Enlarge Name: #jpmdaily.png Size: 53 KB
  • #847
  • Sep 26, 2013 11:40pm Sep 26, 2013 11:40pm
Damn, can't edit posts, nor can I reply to PMs now.

Also, can not find where to contact support.
  • #848
  • Sep 27, 2013 12:51am Sep 27, 2013 12:51am
Quoting LamerTrader
Hi guys, hi Ghous! As I'm going deeper and deeper in OF I tend to look back in the former systems and look for OF patterns. Today I examined the "Rounded Reverse" , which is one of my favorite pattern due to its simplicity. As an order flow trader let's put ourselves in others' shoes. From a former consolidation we got a breakout. What does this mean? This means that this time there was more demand than supply. Could this be due to some retail traders who were too eager to buy? Well, if this was the case, then the pro traders would have seen an...

Pretty much spot on lametrader,

This goes back to the video I did earlier "breakout vs fake out trading" where towards the end I get into why a rounded retest lines up the markets for breakouts whereas sharp spikes and obvious consolidations beyond HHR/LLS levels can lead to fake outs.

You have the right idea, that a rounded retest simply shows that the market isn't operating in the liquidity vacuum where it would want to sharply rise/fall to desperately seek liquidity and that block of orders from the pros. The calm soothing rounding action shows you that the market isn't perturbed by the direction of the breakout. At the same time the initial breakout often will lack the muscle to push through for a sustained breakout. It results in price pulling back to the breakout point to get in more buyers and yes, the pros will be lined up there to consume the weak order flow dragging price back to the breakout point.

You're right in that the rounded retest phenomena that precedes most true breakouts is one of the most obvious manifestations of order flow dynamics.



g.
I believe . . .
  • #849
  • Sep 27, 2013 12:52am Sep 27, 2013 12:52am
Quoting Pinbar
This ended up basically as expected. {image}
hehe. That's ok Steve. Great to see it do what it was always supposed to do though which is always refreshing to see.

g.
I believe . . .
  • #850
  • Sep 27, 2013 12:53am Sep 27, 2013 12:53am
Quoting Pinbar
Damn, can't edit posts, nor can I reply to PMs now. Also, can not find where to contact support.
Yikes.

You can contact FF here:

http://www.forexfactory.com/contact.php

g.
I believe . . .
  • #851
  • Sep 27, 2013 2:39am Sep 27, 2013 2:39am
Thanks Ghous

Yeah, great when we have a map.
  • #852
  • Sep 27, 2013 2:42am Sep 27, 2013 2:42am
Quoting ghous
I am out of the AUD/CHF trade for very nearly a breakeven trade (a very minor loss). This trade showed no signs of moving at all right from the point that I took the entry. And in this weak state the trouble area around the 8500 region was always going to trouble price. As price started to hold up at the FTA, I decided to move to the 4H to find a possible initial signal to exit instead of having to watch price trickle all the way back up. I do believe that this setup isn't over yet, but its just that this lack of momentum coupled with a trouble...
With 4 freaking days to show me this momentum it decides to move on a Friday and when I am flat.

This business never ceases to test you to the fullest.

Good to see the anticipated bigger story revealing nicely though.

Attached Image (click to enlarge)
Click to Enlarge Name: audchfdaily.png Size: 47 KB


g.
I believe . . .
  • #853
  • Sep 27, 2013 4:16am Sep 27, 2013 4:16am
Quoting ghous
{quote} With 4 freaking days to show me this momentum it decides to move on a Friday and when I am flat. This business never ceases to test you to the fullest. Good to see the anticipated bigger story revealing nicely though. {image} g.
  • #854
  • Sep 27, 2013 5:09am Sep 27, 2013 5:09am
Quoting LamerTrader
Hi guys, hi Ghous! As I'm going deeper and deeper in OF I tend to look back in the former systems and look for OF patterns. Today I examined the "Rounded Reverse" , which is one of my favorite pattern due to its simplicity. As an order flow trader let's put ourselves in others' shoes. From a former consolidation we got a breakout. What does this mean? This means that this time there was more demand than supply. Could this be due to some retail traders who were too eager to buy? Well, if this was the case, then the pro traders would have seen an...
Hi Lamertrader,

Have you read darkstar's books on orderflow trading?

Neytiri
  • #855
  • Sep 27, 2013 6:00am Sep 27, 2013 6:00am
Quoting ghous
{quote} With 4 freaking days to show me this momentum it decides to move on a Friday and when I am flat. This business never ceases to test you to the fullest. Good to see the anticipated bigger story revealing nicely though. {image} g.

Exactly the same for me. Not with this method but another i trade. Stopped out for break even over night and then it moves 100 pips today! -
  • #856
  • Sep 27, 2013 10:47am Sep 27, 2013 10:47am
Quoting Brixton
{quote} Exactly the same for me. Not with this method but another i trade. Stopped out for break even over night and then it moves 100 pips today! -
Yeah. At the end of the day I think these are the moments that make us strong and give us the chance to really prove our worth in this business. Its about moving on and choosing to not live with the disappointment to keep the head straight and emotions aside.

Just another day at the office.

Many MANY more to come

g.
I believe . . .
  • #857
  • Sep 27, 2013 2:01pm Sep 27, 2013 2:01pm
Out with a breakeven on the USD/CAD.

After a whole painstaking 5 days of waiting, eventually I know I want to be out of this one.

Price is just stuck at that prior small consolidation box and despite some attempts to break through the 1.03 it has failed to gather buyers every time.

With the weekend approaching I don't want to be taking on the gamble of predicting gaps or early Sunday/Monday illiquid movement.

Still too early to deem the setup as "failed" yet, but it doesn't fit into my risk appetite anymore now that we're sitting a couple of hours into the weekly close.

Anyway, that should be the end of the trading month for me. Hope you guys had fun and wishing everyone a great October!



Attached Image (click to enlarge)
Click to Enlarge Name: usdcaddaily.png Size: 52 KB


g.
I believe . . .
  • #858
  • Sep 27, 2013 4:46pm Sep 27, 2013 4:46pm
Quoting Neytiri
{quote} Hi Lamertrader, Have you read darkstar's books on orderflow trading? Neytiri
Hi!

Yes I did.

Stephen
It's all psychology...
  • #859
  • Sep 27, 2013 6:15pm Sep 27, 2013 6:15pm
Quoting LamerTrader
{quote} Hi! Yes I did. Stephen

I too have read darkstar's book and taken Grkfx's course.
It's nice to be on a thread where some of that thinking is being put into practical application.
  • #860
  • Sep 27, 2013 8:13pm Sep 27, 2013 8:13pm
Quoting LamerTrader
{quote} Hi! Yes I did. Stephen
Hi Lamertrader,

I am wondering how order flow trading might be helping you with respect to trading based on Ghous' fakey setups. Are you trying to build a system of your own?

Neytiri
1 trader viewing now