Trading is as simple as 1-2-3

In case you were wondering about what happened.

Next hour.

I repeat this so new comers don't have to go back to the first post.


A bar makes a NEW DAILY high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar.

A bar makes a NEW DAILY low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

Let me rephrase in the form of yes/no or true/false questions.

1) Did a new daily high or new daily low happen during the previous bar. If YES/TRUE go to question 2, otherwise find another pair.

2) Did this bar test ( get near ) the new daily high or new daily low of the previous bar. If YES/TRUE go to question 3, otherwise find another pair.

3) Has price returned to the open price of the current bar. If YES/TRUE enter the trade in the direction price is crossing the open, otherwise do not enter the trade.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.


Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Thread: Trading is as simple as 1-2-3

Setting stops prevents winners from becoming losers, especially big losers.

This is an example of something that drives many traders crazy and causes them future losses.

Bar[2] established a daily high.

Bar[1] tested the high, reversed through the open and the trade has a nice profit until... it reversed and move within pips of the open price. Stops set near the open would have triggered. Traders would be upset to see their profit minimalized only to see price reverse back through their stops toward even higher profit without them.

This is the mental aspect of trading.

How would you handle it? What would you be saying to yourself?

Your answers hold the key to your success more than you probably imagine.


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Next hour.

A variation:

 

1. Bar[2] daily low.
2. Bar[1] price tested daily low but did not return to open price.
3. Bar[0] price returned to Bar[1] open.
4. Enter the trade. Place stops.

Next hour.

Price too far from daily high to enter.

Next hour.

Did you exit? Are you waiting and hoping price will go up? How much are you willing to give back before you exit? Will you let a profitable trade turn into a loser?


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
My Thread: Trading is as simple as 1-2-3

When price does not exceed the previous bar[1] high, what is price telling/showing you?


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
My Thread: Trading is as simple as 1-2-3

Next hour.



I repeat this so new comers don't have to go back to the first post.


A bar makes a NEW DAILY high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar.

A bar makes a NEW DAILY low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

Let me rephrase in the form of yes/no or true/false questions.

1) Did a new daily high or new daily low happen during the previous bar. If YES/TRUE go to question 2, otherwise find another pair.

2) Did this bar test ( get near ) the new daily high or new daily low of the previous bar. If YES/TRUE go to question 3, otherwise find another pair.

3) Has price returned to the open price of the current bar. If YES/TRUE enter the trade in the direction price is crossing the open, otherwise do not enter the trade.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.


Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!

Next hour.

Waiting...

Will have to wait for next hour...

No USDCAD trade yesterday. Sometimes you wait and never get a trade.

Next hour or the next...

Entry at open. Stop in place.

Waited over 2 hours for entry yesterday.

What is trading if not waiting for an entry and waiting for an exit?

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Yep - patience is a virtue when it comes to trading.