Mastering the Art of Trading | Page 72 | 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

  • #1,421
  • Edited 12:05pm Jun 22, 2014 10:48am | Edited 12:05pm
Quoting RelaxRay
{quote} Ghous, Do kindly further elaborate on this, or if I am on the right track, or not, do guide please. I have added a few other boxes in the picture on the left, do highlight if it can be classified of the same kind. My understanding of it is that, price moves to new levels, however in that space, it gets rejected due possibly it being too sudden and hence, orders does not catch up/or no orders as well. It then drops back down to try find a more stable range. In other words, it is the corrective move/pull back. But because it was a spike, and...
Hey there,

One of the moves that you highlighted there is very valid. The other two, I see represent tight consolidation within a wedge that eventually broke to the upside but more importantly, aren't extended moves like the other ones.

These work just fine even in sideways market where the range is wide enough to allow for these vacuums to exist. Of course there are less likely to appear where price is tightening say in a wedge, until price actually breaks to one side.

And Great idea on a the liquidity equilibrium vs vacuum video. I have been running short with time lately, but I'll see if I can squeeze in some time this week for a video.

Thanks for dropping by and I am glad you're enjoying the material.

g.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdcadh4.png Size: 57 KB
Click to Enlarge Name: usdcad.png Size: 70 KB
I believe . . .
  • #1,422
  • Jun 23, 2014 11:49am Jun 23, 2014 11:49am
Quoting ghous
{quote} Hey there, One of the moves that you highlighted there is very valid. The other two, I see represent tight consolidation within a wedge that eventually broke to the upside but more importantly, aren't extended moves like the other ones. These work just fine even in sideways market where the range is wide enough to allow for these vacuums to exist. Of course there are less likely to appear where price is tightening say in a wedge, until price actually breaks to one side. And Great idea on a the liquidity equilibrium vs vacuum video. I have...
Ah. I see. Thanks for your reply Ghous. I surely enjoyed reading this. Thank you for your time writing it as well: )

Noted on examples, I see, the general concept of a vacuum would be price falling back to previous area after a break out right? Hence the term vacuum, due to a sudden surge in bid / ask, caused a sudden lack of the opposite?
where else an equilibrium would be it, finding it's 'average' and am wondering, if it can be somewhat similar to a PPZ? As the cause, is probably that it is still within the range of big / ask and hence, buyers and sellers are finding feeling their way too.

Do correct as necessary. Looking forward for your video

Thank you
Fall in love with the process, and the outcome takes care of itself.
  • #1,423
  • Jun 24, 2014 7:52pm Jun 24, 2014 7:52pm
Hey ghous,

Really great thread you have here! Since I'm new to trading it is really opening my eyes to many great concepts. I have two questions for you or who ever else would like to answer.

1) You explained early on that large players in the market take their positions out of the market to bait people into a fake out trade in order to eat up the liquidity from buyers or sellers. I completely understand that, but what I'm trying to wrap my head around is for example they are long the EUR/USD. As soon as they pull their orders out of the market, trying to bait traders into taking a fake out trade, they get a worse price than if there was not high liquidity. I must be missing something. Why do large players pull their money out of a position to allow for more movement and a break of the resistance or support line, but still place a sell or buy order just after they pulled their sell or buy order previous to the break of a support and resistance line?

2) I know you are looking for pin bars, S/R, PPZ, deep swing points, divergence, but what aspect of a chart do you look at first to determine if further analysis of the pair is needed or if the pair is not ready to trade yet? Is it simply the amount of traffic around the current price action and the deep swing points, or do you look for HHR or LLR lines? Could you walk us through your though process when you initially look at a new chart cold turkey?
  • #1,424
  • Jun 25, 2014 9:00am Jun 25, 2014 9:00am
charts from today, would this qualify?

entered base on it falling, feels like a retractment leg and supply zone.

a little risk, will see how it holds.

//
ignore previous entries, was not at screen till later point. thankful for positive swaps.
Attached Image (click to enlarge)
Click to Enlarge Name: fresh entry exit eurusd eliott and res.jpg Size: 219 KB
Fall in love with the process, and the outcome takes care of itself.
  • #1,425
  • Jun 26, 2014 9:11am Jun 26, 2014 9:11am
Quoting DrumandTrade
Hey ghous, Really great thread you have here! Since I'm new to trading it is really opening my eyes to many great concepts. I have two questions for you or who ever else would like to answer. 1) You explained early on that large players in the market take their positions out of the market to bait people into a fake out trade in order to eat up the liquidity from buyers or sellers. I completely understand that, but what I'm trying to wrap my head around is for example they are long the EUR/USD. As soon as they pull their orders out of the market,...
Hey Drumand,

Ans 1) What I meant in that post was that the bigger players are extremely unlikely to take action in a sharply moving market. If anything, they are already in the market at an earlier price level and are now just watching the pips unloading in their bank accounts. So as price is heading into resistance, chances are bigger players aren't dragging it there and instead have their short orders lined up at or above resistance. Lack of selling pressure can entice retail buyers into thinking they are in control and can push at the resistance hurdle. This is what causes the fake out activity, as massive orders from bigger players will then squeeze the retail traders out.

Ans 2) My analysis process is extremely simple. All I look at is bar to bar price action in a completely visual sense. Once I spot favorable activity on a currency pair, I will then use the cross hair to locate round numbers and just visually study the nearby trouble areas and PPZs. If all's good I am headed to my position calculator.

Some people like to watch their charts right into the setup and dress the chart up with PPZs, but for me it just gets me married to the setup if I am watching it too much. So I am completely on the sidelines till I actually spot a tradable opportunity which is when I will visually analyze it.

Hope I answered your questions.

g.
I believe . . .
  • #1,426
  • Jun 26, 2014 9:16am Jun 26, 2014 9:16am
Quoting RelaxRay
charts from today, would this qualify? entered base on it falling, feels like a retractment leg and supply zone. a little risk, will see how it holds. // ignore previous entries, was not at screen till
later point. thankful for positive swaps. {image}
Ahh...no. Its always a huge gamble trying to bet against such a strong move in the first place. Add to that the velocity of the 1 minute time frame and you're taking on some serious chances.

g.
I believe . . .
  • #1,427
  • Jun 26, 2014 12:35pm Jun 26, 2014 12:35pm
Quoting ghous
{quote} Ahh...no. Its always a huge gamble trying to bet against such a strong move in the first place. Add to that the velocity of the 1 minute time frame and you're taking on some serious chances. g.
ah yes.. i agree with you. it was a risky trade.
Fall in love with the process, and the outcome takes care of itself.
  • #1,428
  • Edited 9:51pm Jun 26, 2014 9:06pm | Edited 9:51pm
Hey ghous,

I think this method is amazing and super valid! I spent the last two days looking for these fake out trades on the daily and H4 time frame for over 8 hours and I did not come across any setups. I was looking for a bearish/bullish pin bar at a swing high or swing low, as well as fake out bars that close back above or below a strong line of resistance or support It's a bit frustrating waiting around all day and not trading at all. So my question is do you trade this technique exclusively? If so, have you found that these setups occur frequent enough to become a successful trader trading just this methodology, or do you always have fakeouts in the back of your mind, but also trade other methodologies as well more frequently? I'm trying to find the fine line between being extremely picky with your trades, and not trading at all!

Thanks so much,
D&T
  • #1,429
  • Jun 29, 2014 10:53am Jun 29, 2014 10:53am
Quoting DrumandTrade
Hey ghous, I think this method is amazing and super valid! I spent the last two days looking for these fake out trades on the daily and H4 time frame for over 8 hours and I did not come across any setups. I was looking for a bearish/bullish pin bar at a swing high or swing low, as well as fake out bars that close back above or below a strong line of resistance or support It's a bit frustrating waiting around all day and not trading at all. So my question is do you trade this technique exclusively? If so, have you found that these setups occur frequent...
Hey Durmand,

Yes if you be as selective as waiting for only a pin bar at a swing point that is also a fake out, trades will be far apart for you. However, I don't only pick typical PA bars as fake out setups. While a confirmation of a typical bar such as a pin bar or an outside bar can be a strong sign, other more normal bars can also serve the purpose of a trigger if the story around supports it.

Its hard for me to put this in words as so much of my trading has gone beyond objectivity and a particular system. I am hunting for fake out scenarios, and then pulling triggers on bars that I feel show the ultimate strangle. These aren't always big pin bars and outside bars. In fact, they are often smaller follow up bars to a main larger fake out bar that mark a tight pull back to confirm the fake out attempt. But taking small range bars is obviously more tricky and risky then hiding the stop behind a larger bar, and that's where you gotta weigh your trading against your risk appetite.

The debate goes right back down to taking a couple of A+++ trades a month, or take 10 and manage them well enough to ultimately emerge profitable with a proven and consistent edge.

g.
I believe . . .
  • #1,430
  • Jun 30, 2014 12:15am Jun 30, 2014 12:15am
Quoting ghous
{quote} Hey Durmand, Yes if you be as selective as waiting for only a pin bar at a swing point that is also a fake out, trades will be far apart for you. However, I don't only pick typical PA bars as fake out setups. While a confirmation of a typical bar such as a pin bar or an outside bar can be a strong sign, other more normal bars can also serve the purpose of a trigger if the story around supports it. Its hard for me to put this in words as so much of my trading has gone beyond objectivity and a particular system. I am hunting for fake out scenarios,...
Ghous,

Can you kindly upload a chart example that shows such a story?

Also, please read the following post in j16 thread

  1. Post 131,363

Thanks,

Neytiri

  • #1,431
  • Edited 7:05am Jun 30, 2014 2:06am | Edited 7:05am
Attached Image (click to enlarge)
Click to Enlarge Name: 6-30-2014 12-16-45 PM_EURNZD_FAKEOUT.png Size: 32 KB


... hoping that price shall drill through the consolidation.

N
  • #1,432
  • Jul 1, 2014 12:49am Jul 1, 2014 12:49am
Quoting Neytiri
{image} ... hoping that price shall drill through the consolidation. N
That does look pretty good even in lower timeframe best of luck.
  • #1,433
  • Jul 1, 2014 10:45pm Jul 1, 2014 10:45pm
Quoting Neytiri
{quote} Ghous, Can you kindly upload a chart example that shows such a story? Also, please read the following post in j16 thread Post 131,363 Thanks, Neytiri
Hey N,

Here you go. This one's a recent blast.

Oh and great work with those trades.

Attached Image (click to enlarge)
Click to Enlarge Name: aj 1.png Size: 49 KB


Attached Image (click to enlarge)
Click to Enlarge Name: aj 2.png Size: 37 KB




g.
I believe . . .
  • #1,434
  • Jul 1, 2014 10:52pm Jul 1, 2014 10:52pm
Quoting Neytiri
{image} ... hoping that price shall drill through the consolidation. N
Taking a breakout / fake out trade before the bar close is crossing your fingers in the hope that you are right.

Also notice how your headed against a larger bearish wedge breakout and a strong down move that led us to the wedge breakout in the first place. The LLS isn't too exciting either.

Attached Image (click to enlarge)
Click to Enlarge Name: eurnzddaily.png Size: 54 KB


g.
I believe . . .
  • #1,435
  • Jul 2, 2014 4:17am Jul 2, 2014 4:17am
Quoting ghous
{quote} Hey N, Here you go. This one's a recent blast. Oh and great work with those trades. {image} {image} g.
Thanks so much.
  • #1,436
  • Jul 2, 2014 9:31am Jul 2, 2014 9:31am
Hi Ghous, do you still use FxPro?
  • #1,437
  • Jul 2, 2014 12:57pm Jul 2, 2014 12:57pm
Quoting lawrencew
Hi Ghous, do you still use FxPro?
Yes.

g.
I believe . . .
  • #1,438
  • Jul 2, 2014 3:43pm Jul 2, 2014 3:43pm
Hey Ghous,

Thx for your explanation about Drumand Qst and relative screen shot.. It was very helpful to me..

Regards,
Adhavan
  • #1,439
  • Jul 8, 2014 8:46pm Jul 8, 2014 8:46pm
Attached Image (click to enlarge)
Click to Enlarge Name: 7-9-2014 7-10-48 AM_usdjpy_h4.png Size: 37 KB
  • #1,440
  • Jul 9, 2014 10:21am Jul 9, 2014 10:21am
Hi Neytiri,

A good entry point you have chosen... but little but confused with ur entry point, don't mistaken me. It's about my knowledge not about ur system..

U take a entry based on fakeout, even though there is no second confirm signal and more ever the first fake out not that much value and it has lot of traffic also.
Its clearly shows on your analysis skill and hope of this system too...

can u tell how u chose this point and how the main key factors played here.
1. Initial fakeout
2.single fakeout bar in lower time frame with confirmation signal...

Thanks,
Adhavan
0 traders viewing now