Trading from an Experienced and Successful FULL TIME Trader

Hi Doriotcapita, nice thread here about S/R to expand our knowledge especially your nuggets tips. Sorry for hijacking...

Just for sharing,:

If a S/R is strong, price usually bounce off fast and possibility of creating a reversal.

If a S/R is weak, price will cluster near it, waiting for opportunity to break it. If it fail, it will definitely come back to break it after retracements.

Price always "loiter" at a specific range/area for some serious actions. Eg, If you wanna rob a bank, you see that you are outnumbered by bank guards, you will wait for reinforcement or pick another day to rob them again.

Doriotcapita,

If we use your template there is an indicator on the chart that shows how many hours left in the london and ny session. Do you have this indicator? This way we don't have to always see 4 hours left in london and 9 hours left in ny. many thanks.

You can find everything you need in the first post of this thread:

http://www.forexfactory.com/showthread.php?t=127271

Regards

I looked in the files and even downloaded v3 but still cant find the indicator. Do you know the name of the indicator that tells the time left for each session?

This might be it.

Thats the one

it is, thanks.

Doriotcapita, would this be a valid short trade ? GCH of yesterday. Levels are from 4 H chart. Thanks.

If you were to ask me I would say no because:

Coral trend is against the trade.

Trix arrow does not confirm movement.

Now that doesn't mean the trade is not valid, I would move to smaller time frames to see what they were saying. Let's see what the expert says. I'm curious.

Vegan is very correct. This, while being a profitable trade was not a valid trade set up and let me explain why. First of all you were shorting in an UPTREND. How do we know its an uptrend? The coral is green. You will also notice the next higher time frame (30m) the coral is green as well. You NEVER go short in an uptrend. With the green coral you need to be looking to go long. Where would you go long at? Here is a good example. That upper yellow line is EXCELLENT RESISTANCE because it was hit 4 times! If you could have gotten a breakout move above that line....and then allow price to come back down to retest that level (4775) That would have been a DYNAMITE trade because #1 the trend would be up and #2 that support would be AMAZING. Also, as vegan said, remember to get in right after a thvtrix arrow shows up. Illl post a valid set up on gbpchf today in the next post so you can see what im talking about.

Here is a VALID TRADE SET UP FROM THIS MORNING about two hours before I woke up so I DID not take the trade albeit a GREAT SET UP.

In the first photo notice the white line. This is a MAJOR AREA OF SUPPORT. You will notice I placed 4 checkmarks below each time the price was tested at this line. 4 hits makes this very strong support....Here's the thing to keep in mind...if the market breaks down below this point....this area will be very tough for the market to overcome because it was at one time POWERFUL support. The powerful support will then become powerful resistance. You will notice the breakdown by the UP ARROW. You will then notice the retest by the DOWN arrow. Also notice at the time of the retest the coral moving average was RED meaning you may only take a SELL on this pair at that time. So here it is: You have a breakdown of major support and the trend is DOWN. You want to get in on a pullback to what is now MAJOR RESISTANCE. That area is 1.4715-1.4720; Remember, you are trying to get into the market at SIGNIFICANT levels where the market is trying to reverse and WITH THE TREND. Now look at the entry on picture 2. You will notice here, again the trendline is definitely down so that is the first thing you need to see for a valid trade set up. Next, you see an arrow AT RESISTANCE telling you the market is ready to reverse back down. THAT IS WHERE YOU PLACE YOUR SELL ORDER. There was a potential for 35 pips on this trade. While not alot you must remember this was a 5 minute trade set up and your stop loss is much closer on the lower time frames. I good stop area on this trade would have been 1.4736 (20-25 pips) as there was a minor swing high there about 1 hour prior to the actual trade set up. That is a level the market should not break because its the last area the market reacted at (resistance) AND the moving average was in that area and that too would have tried to stop the price. Also notice the dotted line where the arrow is. Market is overdone and needs to come down at that point. If you have questions on this at all please let me know.

Here's the EURNZD trade I have been watching since friday. VERY good set up as everything was in our favor and in addition a beautiful head and shoulders reversal pattern that I wish to share. if you do not know what a head and shoulders pattern is PLEASE do yourself a favor and look for it on investopedia or one of the other great sites out there that explain patterns in the market. These are my favorite pattern and HIGHLY reliable. Anyways on to the trade! The first picture I want you to look at is picture number 3. This is the daily chart. I want you to see what a POWERFUL level we were at. 1.6040-1.6080 had been prior support twice on that chart and has proven to be a MAJOR reversal area. The last two times the market visited these areas it reversed 400 pips and 700 pips. For this reason my eyes were on this like a hawk! Next look at photo #1. This is the 1 hour time frame. The first thing I want you to notice is the down arrows. Also notice where these are located. they are right at the moving average. For this reason, the moving average was acting as resistance. When I saw this on Friday I said, well if only this can break above the moving average!!! If it can do that, a retest would be a GREAT area to get in at because it hit the moving average 4 times last week and failed. Four hits is VERY STRONG resistance...and after the breakout...and move back to it ...that would make it EXCELLENT SUPPORT. Now notice the solid white line. The market just happened to put in a double top there and so when price came back down it was not only supportive by the moving average but it was also supported by this former double top (resistance) which would now be good support! This would be in fact a GREAT area. Next I want to draw your attention to the arc shaped lines. This is the reverse head and shoulders pattern that I was referring to. These can occur at the top of a trend or bottom of a trend. (for that matter they can occur in the middle too...) and they signify a REVERSAL. Heres the psychology behind it. Sellers came into the market and pushed it down....forming a left shoulder....then buyers came in and pushed price up a bit before more sellers came in and pushed it even lower.....this formed the head....price rallied back up...(normally to the last swing high area) and then more sellers came into the market....BUT THIS TIME THERE WERE NOT AS MANY SELLERS TO PUSH PRICE DOWN (so it formed the right shoulder and consequently a higher low!)...so buyers stepped in and rallied the market higher, BREAKING THROUGH OLD RESISTANCE. This is telling us that there are no longer enough sellers in the market to hold this thing down!!!!!!!!!!!!!! For that reason, be on the lookout because buyers are going to take over...I have seen many a time MASSIVE rallies from these set ups! They are absolutely gorgeous. So how do we make money on it? Well, we wait for the higher lows (thats where the right shoulder is formed) and then we wait for a higher high to be put in....as was in this case around Nov 8 (Friday at the close) 23:00. Once these two things are accomplished we have an OFFICIAL UP TREND. higher highs and higher lows. We stalk the market for a pullback, and then we GO LONG at support...in this case it was the moving average...and the area that was once a DOUBLE TOP. This general area is also referred to as a neckline ....which is the area where the market kept resisting and falling at while forming these three lows (shoulder, head, shoulder). this is a relatively difficult Head and shoulders to spot because its a little sideways. Even without noticing that however you should have picked up on this trade if you were experienced. Also note the coral had turned green at the up arrow, also indicating the trend was turning up. Now for the actual entry we go down to the 30 minute time frame which is picture #2. Notice here the white arrow again and the dotted line and green arrow. This is where the other moving average and double top support is as you can tell from this photo. ALSO, you see the 30 minute moving average is in this area and it too is GREEN. We have all the confirmation we need for an entry and we are ready to get rich! So far this has moved 180 pips. In my opinion, if there is a pattern you need to study and begin to recognize it is head and shoulders. They are HIGHLY RELIABLE and HIGHLY PROFITABLE. IF you have questions on this set up as it does take a trained eye to notice please ask. Would love to help u see it clearly. These are the set ups that will grow your accounts very quickly.

Great read page one. Love your system and your advice thanks for sharing.

Clean explanations. Thanks .

thanks, some times we have great support or resistance area that broken, for example euraud in pic and we waite price pull back to broken area but price have strong move and dont pull back enough to broken area, in dis condition if every things be ok (such as coral colour and thv trix ) but price away from area can we enter for trade? or price must be bunce off broken area.
cheers

hello everyone i love this thread thanks a lot doriotcapita for this lovely thread i appreciate pls am learning to pick my support and resistant zone.see the arrow on my chart indicating the SR zone i have marked am i correct pls any one can comment i appreciate

hello everyone i love this thread thanks a lot doriotcapita for this lovely thread i appreciate pls am learning to pick my support and resistant zone.see the arrow on my chart indicating the SR zone i have marked am i correct pls any one can comment i appreciate

Hi davidtrader,

I am sure you are addressing this question to doriot, but I just wanted to chime in a bit here regarding this situation and others like it.

(I hope that is OK doriot... plz let me know if not)

The main reason we are waiting for price to retest a prior level before taking any trades is so that we have confirmation of price finding support/resistance at a level that it has used before. If it does so prior to a trade setup showing up on the indicators, then we will have a much higher probability of it working out since price has shown us(using your example) that it has buyers willing to step into the market even after a move in the opposite direction and also at a place where sellers were previously thereby confirming that the bulls are in control of the price, otherwise we might get caught in a fakeout which moves right back down through previous resistance and continues to fall further.

Further more, this gives us a point of reference to monitor and track our trade from and also improves the risk to reward ratio, since if the market doesn't pull back much then we would be risking more pips to the last swing low/high for our stop loss and the profit target would have to be put up in empty space or at a prior high from a different trend in order to keep a 1-1 RR ratio or better, which will not be as consistent a target as per doriot's rules.

In the end, a trader's success lies in being able to wait for his real setup to fully form before risking any capital at all. Bending the rules will not create consistent results. The Golden rule should be -> If your setup doesn't form exactly as YOUR rules say it should, YOU DO NOT TRADE. Once you can achieve this level of discipline while utilizing a profitable methodology, your success will be guaranteed(or as guaranteed as it can be) and the pips will just fall into your pocket day after day.

Hope that was a clear explanation. Cheers and Happy pips to you!

~fighter

Hey dc, im new to this thread and i want to clarify this as i can see a good setup on GC on 5m as you mentioned earlier by you.

Hi DC,

Great Trading Strategy, very simple yet comprehensive, will be following this thread ....

Thank you for sharing.....