My gbp/chf trade. Stop in break even {image} upload a gif
nice touch trade, NC !!!
Market can stay irrational longer than you can stay solvent.
james16 Chart Thread
- #132,284
- Sep 16, 2014 11:13am Sep 16, 2014 11:13am
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Hi all! I trade PA with PPZ, RN over 6 monthes. I read thread, and lerned a lot usefull things, but can't find answer. In what cases it is possible to trade against the trend? Please Mike and other expirience help me clearly understand it. Sank's!
Welcome to the thread
The trend is always very relative to what else is taking place. For example just cause price is trending up doesn't mean we just can buy at any time. It's all about timing. So we want to trade with the trend when a story makes sense, just as we can trade against a trend when a story makes sense. Since markets go up and down this allows for a lot of different types of trades. You have trades in strong trending markets, trades in swinging markets, trades in sideways markets. Then we have variations of these in terms of strengths of each.
A good starting place for trading against the trend is of course confluence but if it's a strong trend you want a strong bar to be able to reverse that trend. The biggest mistake I see is people learn what a pinbar or outside bar is an assume that's all we need to get in a trade. That's a very small % of what we need to do as traders. Look for those big standout bars. Add in some confluence and you'll put yourself in a good situation. If you look back to my last pending trade you can see I am trading against the trend. But i'm doing it with a substantial size bar, and most importantly at a crucial area of the market. It's this area that afford me a pretty low risk opportunity to get in.
http://www.forexfactory.com/showthre...21#post7738221
Now we have all kinds of against the trend type trades. You have pure reversals(ie just a huge bar after a big run up/down). You have momentum loss as price rises or falls. You have breakouts to suggest a move higher(ie what eur/usd is trying to do). So it depends on the situation which is when we want to trade with/against a trend
Hope that helps a bit
Mike
- #132,288
- Sep 16, 2014 12:18pm Sep 16, 2014 12:18pm
I've got a pending order on AUD/NZD to go long. Nice outside bar engulfing more than 24 hours of price on the 12H chart.
Have a nice day
- #132,291
- Sep 16, 2014 2:51pm Sep 16, 2014 2:51pm
Mike and others, just want to know your opinion.
I want to show you a picture where you can see four trend lines:
1) Red line from #1 point through #2 point
2) Blue line from #1 point through #3 point
3) Yellow line from #2 point through #3 point
4) White line from #3 point through #4 point
What trend line in your opinion is correct for waiting some BPC or another breaks in the future? Because I see 10 traders and 10 different trend lines from them
I want to show you a picture where you can see four trend lines:
1) Red line from #1 point through #2 point
2) Blue line from #1 point through #3 point
3) Yellow line from #2 point through #3 point
4) White line from #3 point through #4 point
What trend line in your opinion is correct for waiting some BPC or another breaks in the future? Because I see 10 traders and 10 different trend lines from them
- #132,293
- Sep 16, 2014 3:26pm Sep 16, 2014 3:26pm
I've got a pending order on AUD/NZD to go long. Nice outside bar engulfing more than 24 hours of price on the 12H chart.
{quote} Hi Lester, By Pending you mean Buy Stop above the engulfing bar or Buy Limit somewhere in middle of it? Besides, do you consider the coming data on NZD as disturbing one (current account)?
I was aware of the NZD data but it didn't bother me. We were so far away from the announcement when I set the order that I felt that if it got triggered, there was a good chance that it would reach my first target and bring me to BE on the rest. If I came home from my dinner and the trade had not triggered, I may have pulled my order until the news if that makes sense. These are just discretionary choices that I make as a pre-trade plan before even executing the trade.
Questions about news are common on this thread. As an overarching statement, I really don't care about the news! I am aware of the news (i.e. I always check out what's going to be announced over the weekend prior to the week of trading) but apart from NFP or something like the Greek Debt Crisis and those bailout issues in 2010, the news never really impacts on how I trade. More so, it just makes me think that if I trigger then I'll likely get to BE fairly quickly and aim to do so before that news event to see if I can ride the news for more profit. I believe that news is built into the price.
{quote} Hi Lester, where is your target? You are running strait into traffic, don`t you?
Two things. One, great question which I'll address. Secondly, it is excellent to see you anticipating the traffic. I've scaled out and at BE for the remainder of the position now. You are right, there is close short term resistance up ahead. The way I see the potential R:R it really doesn't bother me because my plan is always to scale out at these levels and ratchet my stop.
In terms of targets, I set a target at the first area and I have an "open stop" on the remainder. What I mean by this is, I move my stop (or my EA does) once pre-determined levels are hit. My second or third position is always left as a "runner" to be "stopped out" once I'm BE or better.
Here's a more detailed view.
Follow me on twitter @FxLester
- #132,296
- Edited 5:04pm Sep 16, 2014 4:42pm | Edited 5:04pm
Hello all, I haven't been on this thread for a long time, but it's tenets have stayed with me all the way. I was wondering if any of the awesome traders here could point or link me to an indicator that can alert me when a candle's open & close engulf the previous candle's open & close? Preferably opposite candles which could signal a trend/direction change? thanks, Bry
Hi there Traderbry
I found the indicator from this thread called "PA Detect". It works for me. It alerts me as the new candle opens. It has BEOB, BUOB, Pin bars, and some other. Think this will help. The post is shown bellow. Just click on the quite to go to the post that has the indicator attached
All the best
Rudolfo
This thread and the J16 Group has turned my trading around. I first found this thread in early 2006 and have been using PA ever since. I felt like I should give a little back. Attached is an indicator I created and use myself. It alerts me of potential setups. It is not flashy but does a good job. If you use it, I am not responsible for any losses or gains. All I ask is for anyone that improves it to share.
- #132,298
- Sep 17, 2014 1:08am Sep 17, 2014 1:08am
- Joined Aug 2010 | Status: Tööröh | 14,292 Posts
AUD/JPY - Finally BE. Was very close to stop. {image}
Hero calls followed by margin calls...
- #132,299
- Sep 17, 2014 1:10am Sep 17, 2014 1:10am
{quote} Then you used a quiet good stop
Mike and others, just want to know your opinion. I want to show you a picture where you can see four trend lines: 1) Red line from #1 point through #2 point 2) Blue line from #1 point through #3 point 3) Yellow line from #2 point through #3 point 4) White line from #3 point through #4 point What trend line in your opinion is correct for waiting some BPC or another breaks in the future? Because I see 10 traders and 10 different trend lines from them
I am still learning but this is how I see it.
I think that main trend line is Red (its also called internal) because it includes most of points but I am looking on few of them.
We know that trend line is not only one attraction area because we also have other confluences that price can pick for swing low. So we have point 3 after break of Red line which is exactly at 38.2% retrace from the bottom and after that price trend continues up. To add more complexity, point 2 and 3 make us trend line (yet another) what we can see on the chart as yellow line which was valid at some point too.
As we can see on the chart, the price was breaking nicely some of these lines. Then I am asking myself if I am able to play particular breakout and this depends on price action, risk, FTA, reward, etc.
I am still not profitable but this is how I understand this for the moment. As I will be focusing on this kind of trades for the moment, I will shortly know if I am able to apply this knowledge
