Trading Made Simple

... if you grab and run type.

Call it a day.

Now, a short POMO of yesterday action.
141.84 was show stopper for intraday traders.... previous resistance turned support.

TP is set at 50, I'm already at +27 roughly. I'm going to "grab" the 50 pips, hopefully and expect to re-enter at london open in a few hours.

I took this trade on TDI cross at resistance. it went in my favor 25 pips but hit my SL unfortunately.

Hi alfis,

Good questions deserves my answers:

Q1. The Tokyo 5hr range is the 1st 5 hours upon the open of the Asian session right?

Tokyo market session starts at 0900 Tokyo local time (GMT0000).
Depends on where you are located, you need to make a reference to GMT000.
For Sydney traders, that would be 1100 local time (summer time)
For Singapore, that would be 0800 local time.
London would be 0000 during winter time. (DST)
New York is 1900 local time. (DST)
You need to take in account when Daylight Savings Time kicks in and make that one hour adjustment.
There is a market session disply on FF homepage right at the bottom. Use that.

Q2. I saw some of your older posts, you've got MN Support and MN Resistance lines plotted on your charts, are those self drawn? If so what exactly are they based on?

The MN support and resistance lines are actually the significant price swings level using the monthly close prices. These lines are drawn manually as part of my Big Picture Planning.


The same I do for Weekly charts. There is a pdf put together by member Erol post#27,280 Here is the download link. BPP
This method is explained in babypips.com.

Q3. Post #21196, you mentioned to always wait for candle to close to determine PA. Assuming 10 min into the open of the hourly candle, it has broken a IB + resistance setup, do you still wait for the candle to close in 50 minutes?

First of all, the reason for breakout trading is when there is price consolidation. We look for Wide Range Bar as the first sign, then following Inside Bar(s) and /or more smaller bars which are engulfed by the WRB High-Low to form Master Candle pattern. Where these happen there is bound to be some sort of support and resistance nearby. This is when we have to anticipate and plan for a breakout trade. Be mindful that some breakouts will failed, therefore as traders we must have an alternative trade plan to join in the market. This is what I meant when I often mention to have Plan A and a Plan B. We we need also a Plan C.
When I trade breakouts, I prefer to wait for the breakout candle to close to confirm the breakout. This is an important condition because we often see the candle pull back at the last few minutes or seconds.

In that post#21,196, that was H4 example. That was a good example how price pulled back when that H4 candle closed.

If I enter before that H4 candle closes, I need to see price momentum and breaking any near term (very recent) support and resistance. I also must mitigate the fact that I may not get a good price entry. I can then enter with a smaller risk% and trade size, then add-on after the breakout is confirmed so that I can get a
better overall average price.

Now go back to that post #21,196.
Do you see near term support which could have caused a pull back?

Q4. How exactly do you determine a BEEB/BUEB? I've attached a picture of what you mentioned a BUEB is and what I've always assumed a BUEB was, appreciate if you can let me know how'd you determine one.

There are many textbooks schematics which show BEEB and BUEB for stock trading. In forex charts, those BEEB and BUEB like the schematic you posted can be seen in low timeframe like M1 and sometimes in M5 when there are gaps between close and the next open
bar.However, in forex charts in higher timeframes H1 above, there are no visible gaps between close and the next bar open. Ocassionaly you may see one or two, but these are very rare.
Gaps between close and the next open occur when there is a market close like weekends and also in the recent year-end holidays Christmas and New Year when trading hours were shortened.

There are different trading techniques to trade these BEEB and BUEB.
Here is a good easy to follow and understand website: BEEB/BUEB click link.
I am not promoting anythings here, just use those free online resources available. There are so many good resources, so we don't have to re-invent the wheel.

There is this killer website on candles and chart patterns by Thomas Bulkowski. He is the best available I know in this field. I never get tired of reading and re-reading his materials. Patterns Site click link.


Trade Well!
EMMANUEL

GBPNZD 4H trade:

One loss this week 03.



Scale-out +47pips and kept initial SL at -90pips, to reduce overal risk.
Got taken out remaining half position.

you just won big!, not allowed to
that said, this is scary AU has never been this low since 2010, also, i'm still in AU short. Lets see is Tokyo and London will push it much lower
my next support for AU is .859

I am still crying as my immoveable assets now got devalued .....
Not more US holidays this year should it stay below parity.
More downside seen

I need John Howard back as PM...

Possible EU long trade? as long as candle closes as it shows now it would be a nice BUEB on the Japanese candlestick chart and the TDI should cross at a decent angle, plus 2nd blue APB. Am i missing anything??

if i may, 1 thing i learned is to never assume. there is still 1h45mins left on your candle, chill relax go to gym or something. come back 10-15 minutes before the bar closes then you look at it and analyze.

I took this EURNZD trade last night and it hit my SL :-



- Entered short on the close of the first candle/open of the 2nd candle on the 4 hour chart. Shown with white arrow.
- Hit my SL today. The yellow straight crooked line.

Is there some way that i can pinpoint why this trade didn't work out so that i can minimize our mistakes. Or is it just one of those bad trades?

Also off topic, what software do you use to take and edit screenshots? I use paint.net which looks amaturish when i work on it lol.

Thanks Greenb, patience is one of my demons i'm trying to tame.

from a glance, what i can tell you that gone wrong is that you let it run when the closing of 2nd candle price went back to the open price.
at that point if you look at TDI, it should have been a straight line and by the rules its time to exit.
Even if you didn't exit, the next candle close should tell you that the price is not going to go down, matter of fact its trying to go up (TDI at that 1st blue candle close should be sloping up). And this should have given you warning light number 2 and 3. #2 apb candle change colour #3 tdi is on the wrong direction.

also you can easily put in arrows using your mt4 under insert

I wasnt planning on being awake when it happens, but unfortunately I can't sleep and spent the past few hours watching my TP come closer and closer until it got hit. So might as well post it now.

Entered long on EU. trade based on BUEB and price failing to break below support area. Also TDI crossed with good angle and entered on 2nd blue APB. TP set to recent resistance level and SL placed on recent support level. Lets see how this goes when i check it in 4 hours. night all!

Thanks for the help Greenb. I took the trade when i was about to go to sleep and let it run. At that time, the green line was pointing downwards and had crossed the red line. I guess my mistake was i let it run while i slept through the trade lol, which ended badly for me. Oh well, guess we can't win them all and luckily it's only demo.

Also, thanks for the tips regarding editing the charts in mt4.

So other than that, were there any other indications that the trade might go bad? Just trying to see if i could avoid any mistakes.

Took the same long trade. Got about 25 pips yesterday when the price was going down. We'll see if long will work this time.

plateau:

Some 4H swing setups will fail. I accept that.

We may be selling into a support.

Knowing where support and resistance will help us pick only the high probability setups and when we adopted a proven money management and risk management, we will eventually win with better R:R trades.

For EURNZD, we need to watch how this MN candle will close. If it will close below 1.6295, this is a historical level.

For screenshots, I use SnagIt version 9. It's not free. go to www.techsmith.com

There are other free software with some vey basic features too. Hope other members can help you here. There used to be Jing but not available anymore.

My internet connection died a few times overnight, back on a couple of minutes ago to find it had taken profit....just