Disliked{quote} Just me 1. First and most important, the pin must be obvious. You should be able to spot it even if you just flip through your chart 3 seconds per chart. 2. It's wick sticking out from other bars. 3. Much longer wick than its body. The more the better 4. Has some room to move. Say you have a triple bottom that price couldn't get through... then a pin bar formed leaving only 5 pips to move down to that triple bottom. would you take it?Ignored
I don't trade this way anymore, but this setup seems to be good.
- #5,186
- Apr 16, 2014 10:06am Apr 16, 2014 10:06am
no divergence
It's by sticking to high probability setups, in combination with good r/r ratio (and compounding, which means increasing your lot size as your account grows bigger, and vice versa), that one will eventually become profitable in this business. This is why Jakone impresses the importance of developing patience and discipline AND BELIEVE THAT YOU CAN DO IT (fear and doubt will only attract more 'bad trades' - greed is fear/doubt too: fear/doubt of not being able to win the next trade(s)).
Cheers
95% of the people don't believe 100% they can win, that's why they lose
- #5,187
- Edited 11:07pm Apr 16, 2014 10:37pm | Edited 11:07pm
"Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
This disclaimer was put underneath a short article regarding divergence:
"The RSI is showing a clear sign of divergence which means that while the price is making the higher high,
the RSI is not confirming this. Therefore, the bias could be to the downside."
Then there's this article, which 'explains' why the strategy used and freely shared here by Jankone is pretty sound:
"Price manipulation in the forex market - stop running - EUR/USD
by Macplauz , 05-16-2013 at 05:24 AM (2282 Views)
Price manipulation in the Forex market - Observation in the Euro/US Dollar
A very important aspect in Trading Forex in my opinion is that price is most often pushed/ (particular at news release) to slightly penetrate or break Support/Resistance zones (for example recent Highs/Lows/Pivot Points or in general where stops are anticipated) to trigger the stops and often reversing after completing the stop run and targeting the opposite zone where stops are anticipated (for example the stops of the fooled breakout traders). The manipulation aims to catch the stops and to fool breakout traders at Support and Resistance or striking levels for example highs/lows and psychological numbers. This allows market manipulators to position themselves against the mainstream trader (setup). This may explain why most of the traders and mainstream trading strategies fail and will fail in the future.
Thus, an efficient way to successfully trade forex might be to accept and understand the way of market manipulation. Hence, it becomes important to analyze the intention of the manipulator, which is to catch stops of the mainstream traders and to fool them into bad mainstream setups by moving the market in the opposite direction targeting the mainstream stop zone e.g. at popular Support/ Resistance. Mainstream setups only work out when they are related to the manipulator's strategy. So it often falls back to the manipulator's trading strategy but if the mainstream trading strategy will work out, which probably is statistically insignificant , then this often reinforces the hype about the mainstream trading strategies, which are mostly fooling traders into bad setups and give manipulators the advantage to know how most of the traders trade, including the location of their stop/limit order positions.
Furthermore, there are many algorithmic trading programs of the market manipulators, which are automatically employed on the short term time frames like 1 min, 5 min,hourly..., programmed to use their market power to move market against the mainstream traders to shift the odds of successfully trading forex heavily against them.
In general, I would argue that stop running on at least the shorter time frames should be accepted by traders and that it should play an important part in a traders day and swing trading strategy to successfully trade forex. A wise alternativae would be to stay away from forex."
Is it clear now why trading pin bars (fake moves), in combination with divergence (showing manipulation), is the way to go? This market manipulation is also the reason that 'trading naked' (pure price action, no indicators) is another path to becoming a profitable trader - traditional trading education involves (lots of) indicators and classic trading rules, but all it does is making you more predictable, and hence more vulnerable to get trapped by the 'big boys'.
Hope this helps.
This disclaimer was put underneath a short article regarding divergence:
"The RSI is showing a clear sign of divergence which means that while the price is making the higher high,
the RSI is not confirming this. Therefore, the bias could be to the downside."
Then there's this article, which 'explains' why the strategy used and freely shared here by Jankone is pretty sound:
"Price manipulation in the forex market - stop running - EUR/USD
by Macplauz , 05-16-2013 at 05:24 AM (2282 Views)
Price manipulation in the Forex market - Observation in the Euro/US Dollar
A very important aspect in Trading Forex in my opinion is that price is most often pushed/ (particular at news release) to slightly penetrate or break Support/Resistance zones (for example recent Highs/Lows/Pivot Points or in general where stops are anticipated) to trigger the stops and often reversing after completing the stop run and targeting the opposite zone where stops are anticipated (for example the stops of the fooled breakout traders). The manipulation aims to catch the stops and to fool breakout traders at Support and Resistance or striking levels for example highs/lows and psychological numbers. This allows market manipulators to position themselves against the mainstream trader (setup). This may explain why most of the traders and mainstream trading strategies fail and will fail in the future.
Thus, an efficient way to successfully trade forex might be to accept and understand the way of market manipulation. Hence, it becomes important to analyze the intention of the manipulator, which is to catch stops of the mainstream traders and to fool them into bad mainstream setups by moving the market in the opposite direction targeting the mainstream stop zone e.g. at popular Support/ Resistance. Mainstream setups only work out when they are related to the manipulator's strategy. So it often falls back to the manipulator's trading strategy but if the mainstream trading strategy will work out, which probably is statistically insignificant , then this often reinforces the hype about the mainstream trading strategies, which are mostly fooling traders into bad setups and give manipulators the advantage to know how most of the traders trade, including the location of their stop/limit order positions.
Furthermore, there are many algorithmic trading programs of the market manipulators, which are automatically employed on the short term time frames like 1 min, 5 min,hourly..., programmed to use their market power to move market against the mainstream traders to shift the odds of successfully trading forex heavily against them.
In general, I would argue that stop running on at least the shorter time frames should be accepted by traders and that it should play an important part in a traders day and swing trading strategy to successfully trade forex. A wise alternativae would be to stay away from forex."
Is it clear now why trading pin bars (fake moves), in combination with divergence (showing manipulation), is the way to go? This market manipulation is also the reason that 'trading naked' (pure price action, no indicators) is another path to becoming a profitable trader - traditional trading education involves (lots of) indicators and classic trading rules, but all it does is making you more predictable, and hence more vulnerable to get trapped by the 'big boys'.
Hope this helps.
95% of the people don't believe 100% they can win, that's why they lose
- #5,196
- Jul 13, 2014 3:34am Jul 13, 2014 3:34am
"Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. This disclaimer was put underneath a short article regarding divergence: "The RSI is showing a clear sign of divergence which means that while the price is...
Cheers man!!!
Ronald
95% of the people don't believe 100% they can win, that's why they lose
- #5,198
- Sep 3, 2014 9:25am Sep 3, 2014 9:25am
- Joined Jan 2013 | Status: Trader | 1,410 Posts
{quote} Hey Ronald123, thanks a lot, this really cleared up some questions I had regarding these trapping sons of bi**** who keep playing their dirty games! Cheers man!!! Ronald
Hey ronald you are newbei !!!! Keep learning mate !!!
Even though I walk through the darkest valley, I will fear no evil
- #5,200
- Sep 27, 2014 12:42pm Sep 27, 2014 12:42pm
- Joined Sep 2006 | Status: Trader | 10,702 Posts
every Saint has a past. Every Sinner has a Future