Trading from an Experienced and Successful FULL TIME Trader

This is strange. The lines look the same and on Friday the signal arrows are the same, but today I have none of the red arrows that IenDzi got on 30 min chart. Did you customize some parameters is this just broker difference? I use Forex.com.

Hey Ien,

I did not take this trade and it wasnt the best set up so I probably would not have if I would have caught it...per my rules I dont like to get into trades that are rocking higher like that...that would have been reason for concern...I would much rather see price moving slowly to that resistance point Those set ups are often much better and safer. Also, like you said the risk to reward seemed a little tough because price was so far away from your stop loss....but the biggest reason for my concern here is look at the last two highs.. price is certainly moving higher and I would question its ability to stop and reverse this trend (even tho it did). Although, I will say that price just happened to stop right at resistance AND also just below the moving average. Not to mention I see it touched the 50 period bollinger on the 30m and immediately fell. I did find a great trade on the gbpaud today which I will go over.

Kenergy, you will sometimes get a little different results as far as arrows are concerned from broker to broker. it wont really effect your results much but sometimes you will have entries on some and not on the other. I have two broker platforms on two different screens so I watch for arrows on both, although that is clearly not necessary.

Just going over a couple things today and a trade....first of all two of the numbers that I had put up sunday night nearly got tagged...first the eurusd came 1 pip from hitting the 1.3800 level and immediately sold off 50 pips. Secondly the Dow Jones came 10 points (16654) from its level and then ROCKETED up 300 points!!! Also eurgbp was tagged and fell 20 pips (decent for this pair) and the same happened on eurchf...came 2 pips from its level and then jumped about 15 pips (small but eurchf does not move much). I will say this level has been hit many times now on eurchf and I would not trust it for a long. The lows keep gettting tagged and the lows are lower...this is a descending triangle pattern which more often than not break down so I am staying away from this trade as a long. Now onto todays trade!

I took a long position on the GBPAUD. This was a setup I caught on the 15 minute but entered on the 5 minute. I do want to say that I went in with only half the risk and size as I normally take and I will explain why in a minute. First of all I want you to notice the first blue line and the first thumbs up. This was a very significant area of support as you can see if you look at the 4 hour chart (please do so!) Secondly, i want you to notice how price then rocked up before pulling back and rocking up again. Notice something here....WE ARE MAKING HIGHER HIGHS AND HIGHER LOWS. Therefore the trend is UP. For this reason This morning I was looking for a long (and yes the 15, 30 , 60 4hr and daily Moving average was GREEN). Now, this was a set up that I have mentioned in the past and so I want to bring it up because it is my favorite set up to take! As I said, notice the move was higher highs and higher lows, meaning we have and uptrend in place and I want to go long. Now notice price came all the way back to that first support area! Normally, after a trend up, when price comes back to the start of the trend (the low), you will have a bounce! For this reason I was looking for a long here.....now onto the indicators! We have established that price is probably going to bounce not only because you have major support from the 4 hour and also you see that beautiful shelf (first area marked by thumbs up and the solid blue line). Also notice at this same level where this dashed line of support is you have the 50 period bollinger band on the hourly!~ This will too enforce the market and act as support. Also, just below this area you have the 200 which will be powerful support on the 15 minute chart...this is the dashed purple line that you see. I did get in on the 5 minute also, which had given me 3 arrows up at this point and the THV was crossing up, which is bullish! Also, the 200 period bollinger was at this level. When I saw ALL OF THIS...I had to take the trade, with a stop below the lows. (Checkmark was my entry) Now the reason I went in half is because looking at the 4 hour chart we have made lower highs and since this is third hit of these lows, there was a higher probability that price may actually bust through. Remember, the more times price hits an area the higher the likelyhood and since the trend on the higher time frame was pointing to a possible move down we had to be careful here, hence the half size. Thats why I got into this trade. ALOT of levels at the lows which made for a great trade. I did take my first half off after about 40 pips....and left the rest on...was going to leave it on as a runner but we do have high impact aud news out and the AUD was starting to show some strength, which would weaken this pair so I just took off the second half for about 35 pips. It could very well go to the moon but it was not chances I was willing to take...But anyways thats the trade I took today and WHY. If you have questions let me know and Id be happy to answer them. Again, the biggest reason this was so appealing to me was because we were making higher highs and low and we came back to the ultimate low which is COMMONLY a good bounce area and often the start of a very large move. Watch out for these set ups! They are awesome. Ill be sure to post them when i see them

Heads up to anyone reading...I'm watching VERY carefully the GBPCHF. We are moving into a monster area of support on the daily chart and it just happens to be the same level as the Bollinger 50 period and the 4 hour Bollinger 200 period. Also, the THV is INSANELY oversold down here and this is one of them trades where we have made higher highs and it did not stop at the trendline but came all the way back to the last swing low...these are normally EXCELLENT bounce areas. I will be stalking this in the coming days as 1.4375-1.4425 is a monster area. Remember, get in once the trend starts to swing UP, and not before!

I want to share two charts with you guys so you can understand a little more what I mean by confluence on multiple time frames. This is SO INCREDIBLY POWERFUL !!! The second chart here is the AUDUSD from earlier today (where I took my GBPAUD LONG). Please notice the solid white line at the top. Notice this was the highest swing high in quite some time. Definately an area of resistance to watch for!!! That's the first indication that perhaps the market may have trouble at this level. Secondly, you will also notice that on the 1 hour chart (second chart) you have price at the SAME TIME hitting the blue dashed line, which is the 50 period bollinger band. More confluence! Now look at the 15 minute chart (first chart). You have the blue dashed line which is again 50 period bollinger AND the purple line which is the 200 period bollinger! ALL OF THESE ARE AT THE SAME EXACT LEVEL! This is a huge reaction level! Also notice all the wicks on those candles at the top on the 15 minute....that is signaling trouble going higher. All of these things pointed to a sell off. And remember, the first hit in a long time of the 200 period bollinger often signals a significant trend reversal (especially at resistance like this). Since then AUD has come off its highs 40 pips and who knows what will happen tonight after the news. Anyways, THESE ARE THE AREAS AND THINGS to watch for...they will make you rich but you need to be patient I hope this is helpful.

I was suprised to that it missed all three down arrows. I wouldn't have asked if it had missed or even 2 as I would be getting the same signal at some point.

Hi,

Just want to say that I enjoy very much your sound logic and the way you analyse. I use a different system but you could say that sometimes its not the system but rather the person. From your trade analysis, it can be clearly seen that you have mastered the patience to wait for the proper setup and that by itself is an inspiration and an education. You anticipate the move and then you wait for it to happen and then you enter. I would say you plan your trade exceptionally well. I often get trades correct but somehow leave it too early! Well, back to practice and control. Take care and continue the nice trade setups.

Yes, that is very odd. Then again I have not used forex.com mt4...if it continues to be a problem, using a different mt4 (i use ic markets) may not be a bad idea.

Thanks buddy. Yes, entry is EVERYTHING. Okay, well not everything but you know what Im saying. Patience is the name of this game and it will often kill even a good trader so its definately a skill that needs developed. One thing I will say here is I have noticed over the years it is RARE for a stock or currency to just take off and you miss the move....rather, in most cases I find that I get in and it goes against me even more...so being patient is really not a bad thing at all...just remember its very unlikely you have caught the top or bottom when you get into a trade

Just want to say that we are getting a ton of arrows on the 4 hour gbpchf at the 200 bollinger band...which in itself is a beautiful thing...but remember, before we go long we want to see higher highs and preferably higher lows ( I will probably look at the 1 hour for the signal and for this to happen) so we know that we are not bottom fishing and there is in fact a new trend developing! Stay patient...I really think this thing is going to be turning in the coming days. One other thing to note is Im seeing some divergences show up on the H4 as well...at support or resistance this is a VERY POWERFUL thing!!!!!

I want to show another example of what I had talked about earlier in the thread. This is one of the best set ups you can find in my opinion and I REALLY want you to see it! I have up a WEEKLY chart of the gbpjpy because, well, this works on all time frames! 1 hour and up is best. I want you to take a look at the double bottom we formed here in the last half of 2011. I also want you to notice the higher high on this chart noted by the white trendline. I want you to think for a minute what is going on here? You have PEOPLE...yes people control the market....and they are SELLING the gbpjpy until finally one day the market finds buyers and the buyers start buying up this pair and thats where you have your first swing high (the start of the trendline). Then more people come in and sell this thing and take price right back to the bottom...and this is where more buyers come in and take the market up...HOWEVER, the next time price goes even higher...WHY? Because the market found MORE buyers. This tells us that people are starting to buy this pair and we need to be on watch to be potential buyers because a shift in momentum could be happening. Remember, two equal lows...market could not go any lower...and then a higher high...certainly this looks like market may want to be reversing! So, I am looking at this thing and finding a GREAT area of support to get into...and the double bottom seems to be the only one I can find. For that reason, I am going to DEFINATELY be watching this if price is able to come back down to this level. Ironically, just below this support level you also have the 50 period bollinger band, which acts as support as well (or rather a rubber band to bring price back up). Also, you have on the daily chart at this same level a 200 period bollinger band which remember as I have said before often reverses markets in radical ways, especially if it has not been hit in a considerable amount of time. Not always, but many times you will find this to be true, ESPECIALLY AT SIGNIFICANT SUPPORT AND RESISTANCE!!!! Im not going to post a pic but go look at your weekly chart of GBPUSD. You will see that at 1.66 you have the 200 period BOLLINGER and also MEGA RESISTANCE from years past and also the 50 period bollinger is around this level (1.6700 rather). So from 1.66-1.67 you have a BRICK WALL, that has about a 95% chance of turning this pair. Its crazy bullish and people might call me crazy for making such a claim but I'm going to warn you right now if we make it up that high something will reverse this thing. Anyways, back to our gbpjpy. Again, notice where the market stopped and reversed. AT that support level (triple bottom) which was ALSO THE LOW IN 2008!!!! MEGA MEGA MEGA SUPPORT!!! This was a no brainer trade!!! And the result? 5,000 pips so far. Moves like that are very rare and you wont catch often but i just wanted to illustrate how powerful this set up is.....WATCH FOR IT. Happy Trading.

Hello, Doriot. Today I want to ask about this trade, what are your opinion, what is wrong, or what is good about it. It's GBPUSD.
On M15 there are a lot of tests, so it's important support/ resistance. Coral red, so our trade goes with trend.

Higher TF M30. Here coral is just change a color in red.

And signal TF M5. Coral acts like support too.

Thanks.

Great Strategies ... How This Strategies When News Coming ??

Hello -

That was actually a great set up because you had a break of MAJOR support and the retest...you would have to take a 5 minute entry which i dont recommend for newbies but you got a beautiful signal on the 5 minute and it just happened to be at the moving average! and also the moving average was red on the 15 minute so great set up. I would like to have seen the bollingers at that level for added confidence but overall a great set up because of that AMAZING support level that was broken.

Wanted to quickly go over a trade I was watching for today that took off without me....was hoping for a bit better price but I want to show the confluence so you can see it. This is a eurusd trade on the hourly (2nd chart) and notice how price was coming into a support zone and also the 50 bollinger. In the first chart you have at the same area the 200 period bollinger...and remember this is at support so POWERFUL area...i was hoping for a bit better price and some bottoming action but it just reversed on a dime and took off. I did get some arrows on the 5 minute but failed to act because it had been dropping for hours and I wanted to see it prove itself a little. Oh well, better to have no trade than a losing trade! chfjpy and nzdusd have similar set ups this morning as well....i was rather cautious on the three because they are making lower highs..hence the reason i would not get in unless everything was PERFECT...and well the price was not cheap enough and i didnt see the bottom formation i would have liked so its a no trade day

Hi Doriot thanks for the wonderful Strategies, i am still reading the tread what ever knowledge i got from the tread so far and i applied it on the USD/CHF pair last nite i was watching it (Chart attach) market did the same what u were telling us in your strategies.. thanks again..

There is a PERFECT trade set up on the GBPNZD short right now based off 4 hour and 1 hour...keep in mind FOMC IS OUT IN 25 MINUTES and I strongly caution against trading it. Just wanted to point it out so everyone can see the TYPE OF SET UPS that work so well. I will post charts and an explanation later.

Hi doriot,

I was looking at a couple of setups yesterday and was wondering if you could please give your thoughts on these.

The AUDJPY was support turned resistance on the 30m/1h with entry on the 30m.

The USDCHF was 1h support broken and entry on the 5m. Looking back at this I'm thinking it didn't break support enough ?

Cheers.

Very good article, simple method, strong operability, and my system somewhat similar. It is especially pointed out the callback when the end of the problem. One thing did not understand the rules, you did not say out under what circumstances positions. Please advice. Thank you.