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Price Action Momentum: Recognize it, Join it, & Profiting from it

  • #21
  • Aug 27, 2015 1:09am Aug 27, 2015 1:09am
demonl

do you use same method for hourly tf?
  • #22
  • Edited 5:04am Aug 27, 2015 4:29am | Edited 5:04am
Hello,

Thanks for sharing that interesting thread. Lots of questions

Quoting damonl
As price moves up ( in this case) against the previous bar, I may also move up the the pending order.
- What are the conditions?

Quoting damonl
Sometimes I will place the pending order even if the trade does not go at least 1/2 way back the body of the previous closed bar.
- I suppose its when there is a big trend, but how do you know it?

http://www.forexfactory.com/attachme...8&d=1440644290

- If price pull back more than the 1/2 way back of the previsous candle, you have 2 enters in the direction of the previous bars? one on close, one on open right?

- non lags and channels are only for SL and TP? or can be used to show you a big trend too?

- does your strategie is the same on trend and range market?

- does your strategie is based on observation or probabilities?


Green pips to you
Bottomless wonders spring from simple rules, which are repeated without end
  • #23
  • Aug 27, 2015 6:34am Aug 27, 2015 6:34am
Hi Damonl

I love your charts, very simple, very clean. I love the KISS principle. Thank you for starting this great thread.

Ok I love to trade trend reversals.......but more often than not I get run over by the price action as it turns around and resumes its original trend.

So can you elaborate on how do you handle trend reversals.
Looking forward to more nuggets of trading wisdom from you.

F25
  • #24
  • Aug 27, 2015 10:07am Aug 27, 2015 10:07am
Quoting Knez
demonl do you use same method for hourly tf?
Yes, the rules are the same for all TF's. But, and I can't emphasize this enough!!! If you are going to trade the 1HR bar, close the trade when the bar closes. If your trade is on the 4HR bar, close the trade on the close of the bar. Same with the daily bar. I took two trades very last night to wind down after seeing my wife too the hospital. I should have just went to bed. Then I fell asleep, and woke two hours later, only to find that I of course was not awake to close the trade after the bar I traded, and my $150.00 profit, turned into a nice loss. Dammit !!!!

That leads to the worst thing in the world...... Having to make back money that I already had banked! I hate having to do that. If only I had just went too bed !

I hope that this helps a bit and answers your questions !
"Keep your eyes on the helpers" - Mr. Rogers
  • #25
  • Aug 27, 2015 10:13am Aug 27, 2015 10:13am
Did I miss the SL placement ?
Where do you put your Stop Loss.
  • #26
  • Aug 27, 2015 10:55am Aug 27, 2015 10:55am
Quoting limprobable
Hello, Thanks for sharing that interesting thread. Lots of questions {quote} - What are the conditions? {quote} - I suppose its when there is a big trend, but how do you know it? http://www.forexfactory.com/attachme...8&d=1440644290 - If price pull back more than the 1/2 way back of the previous candle, you have 2 enters in the direction of the previous bars? one on close, one on open right? - non lags and channels are only for SL and TP? or can be used to show you a big trend too? - does your strategie is the...
Your welcome.. it is my pleasure to share with others trying to make Forex work for them. I will do my best to answer your questions, as I think I understand them. If I missed the point, please feel free to re-post it.

As price moves up ( in this case) against the previous bar, I may also move up the the pending order.
- What are the conditions?

I don't really have any set conditions. It can be dangerous to move the pending order up too much as you can get triggered by just the natural movement of the bar. However, say price moved all the the body of the previous bar. Well, then I might move the pending order up 25% of the body. Or, of the current bar moved up, beyond the whole body, and past the wick, I may move the pending order to 50% of the bar, or if the wick is really long, I may move the pending order to 100% of the body. Hope you are able to follow this.

Sometimes I will place the pending order even if the trade does not go at least 1/2 way back the body of the previous closed bar.
- I suppose its when there is a big trend, but how do you know it?

This is all about taking a chance, but here I will use the help of the non-lag. if price action is above the non-lag or if the non-lag is blue, then I will only usually implement this in a long trade situation, and visa-versa for a short trade situation. Also, read the natural waves. There is no reason to count them, but just read them. It could be a pretty obvious were price is likely to go on the next bar.

- If price pull back more than the 1/2 way back of the previsous candle, you have 2 enters in the direction of the previous bars? one on close, one on open right? - Nope.. one or the other.. not both.

- non lags and channels are only for SL and TP? or can be used to show you a big trend too? Yes.... there are many ways it can be used

- does your strategie is the same on trend and range market? Yes

- does your strategie is based on observation or probabilities? The Observation of the probabilities.....

I hope that has helped clear things up for you !
"Keep your eyes on the helpers" - Mr. Rogers
  • #27
  • Aug 27, 2015 10:57am Aug 27, 2015 10:57am
Quoting Amanfx
Did I miss the SL placement ? Where do you put your Stop Loss.
I usually place the SL above or below the current bar at the pivot point, or the place it got to before it turned around and returned to trigger my trap. If that is too much, then you can shorten it up as you wish.

I hope that I have clarified this issue for you !
"Keep your eyes on the helpers" - Mr. Rogers
  • #28
  • Aug 27, 2015 11:03am Aug 27, 2015 11:03am
Quoting Forex25
Hi Damonl I love your charts, very simple, very clean. I love the KISS principle. Thank you for starting this great thread. Ok I love to trade trend reversals.......but more often than not I get run over by the price action as it turns around and resumes its original trend. So can you elaborate on how do you handle trend reversals. Looking forward to more nuggets of trading wisdom from you. F25
Yes, I will go into that, but maybe not right now. It is a riskier type of trade, and one of the methods I was going to share with you. The problem as you noticed, is that you were wrong and price comes back and knocks you out and takes your money. The method that I have shared so far is not a reversal method. It is all about trading with momentum, which much safer and just as profitable and you will get run over much less.

But, I will get to my reversal method. Just keep checking back
"Keep your eyes on the helpers" - Mr. Rogers
  • #29
  • Aug 27, 2015 11:36am Aug 27, 2015 11:36am
Trading the Reversal:

First of all, this is the hardest type of trade to try to get right and I do not recommend it, but sometimes, I am just so sure that I do it anyway. There are a few different ways I will trade a reversal. They are very similar, but the entries are just a little different.

Type #1 :
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPYH4.png Size: 40 KB


Here is an example that would have worked out on the 4H bar.

As you can see, price action was down at the bottom of the channels. In fact, it was it's second time down there in 6 or so bars. The current bar went 2x lower then the wick of the previous bar, and it also happened to go below channel support. At that time I would have set a BS at the tip of the of the wick on the previous bar, and would place the SL at the bottom of the current bar. That is it.

Now, it is safe to say that this can be used at any place on the chart, but it is best to use it if you believe that you are at a peak or a valley.

Type 2 :
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPYDaily.png Size: 42 KB


This example is the second type of reversal that so far also would have worked out. As you can see, price action of the current bar did not go 2x below the wick of the previous bar. But, it did go at least 1X below the wick of the previous bar. At this time, I would place at BS below the body of the previous bar with a SL below the wick of the previous body. The concept is absolutely the same as in type one, but is modified to make the entry safer.

So, here is how I trade a reversal. It does not get all the pips and has a less win rate than the momentum method I already showed you, but, for a reversal system, I think it is fairly safe. And, once again, it is best to used these methods around S&R areas or know peak and valley areas.

I hope that I have stated things clear enough for understanding. If anything is unclear, please ask and I will clarify.
"Keep your eyes on the helpers" - Mr. Rogers
  • #30
  • Aug 27, 2015 12:53pm Aug 27, 2015 12:53pm
New trade entered: Here is the chart of a trade that just entered. I did not need the trade to get to the center body of the previous bar, as it got to the support level. If I wanted to be riskier I would have entered long at the support level, but I need to stick to my rules. Anyway, enjoy the chart, and I hope that the pair makes a new swing high during this 4HR move. That will be a nice profit! It is a tough trade though as it is right at resistance as well, so I went in smaller than normal.

Attached Image (click to enlarge)
Click to Enlarge Name: EURJPYH4.png Size: 40 KB
"Keep your eyes on the helpers" - Mr. Rogers
  • #31
  • Aug 27, 2015 3:19pm Aug 27, 2015 3:19pm
Quoting damonl
New trade entered: Here is the chart of a trade that just entered. I did not need the trade to get to the center body of the previous bar, as it got to the support level. If I wanted to be riskier I would have entered long at the support level, but I need to stick to my rules. Anyway, enjoy the chart, and I hope that the pair makes a new swing high during this 4HR move. That will be a nice profit! It is a tough trade though as it is right at resistance as well, so I went in smaller than normal. {image}
Hi damonl,
quick question , do you stay at the computer from the start and close of the entire 4H candle ? from the above picture it seems you do , am i right ? please correct me if i'm wrong.
  • #32
  • Aug 27, 2015 5:17pm Aug 27, 2015 5:17pm
Quoting FXnitroC
{quote} Hi damonl, quick question , do you stay at the computer from the start and close of the entire 4H candle ? from the above picture it seems you do , am i right ? please correct me if i'm wrong.
Not always. Not even close to all the time actually. I will check it out sometimes to make sure I did not make an error. I will also make sure that I am around at the end of the bar to close the trade. But no, it is not my practice to watch the charts for the whole time that I have trades open. Especially, since the best TF to trade from has got to be the DI, but that does take constant monitoring to make sure that I am around to be there to enter a trade if the opportunity comes up.

I hope that this clarifies things for you.
"Keep your eyes on the helpers" - Mr. Rogers
  • #33
  • Edited 7:35am Aug 28, 2015 12:02am | Edited 7:35am
Quoting damonl
{quote} Not always. Not even close to all the time actually. I will check it out sometimes to make sure I did not make an error. I will also make sure that I am around at the end of the bar to close the trade. But no, it is not my practice to watch the charts for the whole time that I have trades open. Especially, since the best TF to trade from has got to be the DI, but that does take constant monitoring to make sure that I am around to be there to enter a trade if the opportunity comes up. I hope that this clarifies things for you.
Perhaps this will make your life a little bit easier? https://www.mql5.com/en/market/product/10911

By the way, do you think m30 is too small?
  • #34
  • Aug 28, 2015 9:59am Aug 28, 2015 9:59am
Quoting FXnitroC
{quote} Hi damonl, quick question , do you stay at the computer from the start and close of the entire 4H candle ? from the above picture it seems you do , am i right ? please correct me if i'm wrong.
The other thing I do on a few of the pairs for the 4HR and D1 charts, is to use the MT4 alerts function. I can easily set a price at the mid point of the body of the previous bar, and have MT4 "push" me a notification. Then, set your stop order, and you do not have to return until the end of the bar.
"Keep your eyes on the helpers" - Mr. Rogers
  • #35
  • Aug 28, 2015 10:09am Aug 28, 2015 10:09am
Quoting Anusragger
{quote} Perhaps this will make your life a little bit easier? https://www.mql5.com/en/market/product/10911 By the way, do you think m30 is too small?
Hey: Thanks for that little golden nugget. I had not looked at the 30M at all until you asked, so I pulled up the geppy, and it looked like a fantastic pair to trade on the 30M chart so I am sure there are other pairs that would work a well. The only thing I can say is that there is going to be a lot of pullback on your profit on the 30 minute bar before it closes. So, you may want to close before the pullback happens so that you keep you profits, and that would mean closing before the bar does.

That is my thoughts when it comes to the 30M bar trading this system.
"Keep your eyes on the helpers" - Mr. Rogers
  • #36
  • Aug 28, 2015 10:21am Aug 28, 2015 10:21am
Quoting damonl
{quote} Hey: Thanks for that little golden nugget. I had not looked at the 30M at all until you asked, so I pulled up the geppy, and it looked like a fantastic pair to trade on the 30M chart so I am sure there are other pairs that would work a well. The only thing I can say is that there is going to be a lot of pullback on your profit on the 30 minute bar before it closes. So, you may want to close byefore the pullback happens so that you keep you profits, and that would mean closing before the bar does. That is my thoughts when it comes to the...
You could trade the 30m open on a 1m chart so you can put your stop @ last h/l for a smaller stop. Use the m-candles indie or a mtf ma.
  • #37
  • Aug 28, 2015 4:37pm Aug 28, 2015 4:37pm
Quoting Anusragger
{quote} You could trade the 30m open on a 1m chart so you can put your stop @ last h/l for a smaller stop. Use the m-candles indie or a mtf ma.
Yes, it is not a bad idea to look down to the 1M bar is trading the 30M bar to look for an exit point. Perhaps the 5M bar on the 1H chart, and the 15M bar on the 4HR chart and the 30M bar on the D1 chart. Considering that we would not bring these charts into play, it would be good to use a TF that would help us get to the exit point quickly enough, but not too quickly.

I got to the point were I thought I was on the tip of being profitable with trading a while back, and at that time, I put my charts away, as I felt I needed a break. I just recently and seriously picked them up again, and gosh am I gad that I took that break. As such, I will have to see what people are using for these other indicators that you listed, because I literally don't remember. All I know is that I don't need a lot of stuff on my chart, I should not trade when the timing is not right for me (which I have already broken and paid the price), and remember that I don't need to be at it all day. That, if I am not comfortable hitting with a big lot, then I probably should not be trading it at all. Among other things.. but that is enough to put down for now.
"Keep your eyes on the helpers" - Mr. Rogers
  • #38
  • Aug 28, 2015 4:51pm Aug 28, 2015 4:51pm
Quoting Anusragger
{quote} You could trade the 30m open on a 1m chart so you can put your stop @ last h/l for a smaller stop. Use the m-candles indie or a mtf ma.
Here is what I came up with, without even adding anything else to the charts. Lets say that I go short on the 30M TF. At that point, I would go to the 1M chart with the same template, and I would wait until I get a close above the non-lag, and then a move above that close. When that happens, it is time to close the trade on the 30M chart, and visa-versa with the other TF's and what we are using TF/non-lag close. This helps keep things simple with no reason to add anything else.

Anyway, that is my two cent piece in rebuttal to what you brought to the table. Which I appreciate very much!
"Keep your eyes on the helpers" - Mr. Rogers
  • #39
  • Aug 29, 2015 4:24pm Aug 29, 2015 4:24pm
Quoting caomisa2
Subscribed. Love to learn something new. Hope you will have long lasting topic

Thank you. Please feel free to jump in whenever you feel like it !
"Keep your eyes on the helpers" - Mr. Rogers
  • #40
  • Aug 29, 2015 4:40pm Aug 29, 2015 4:40pm
A slight update was made to the first post. It was nothing major, but as I update the post with either new or updated information, I will always make a new post and inform you that I have done so. I know that I owe you another entry or two, and I promise that I will get to that.
"Keep your eyes on the helpers" - Mr. Rogers
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