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Price Action Pattern Recognition Live Trading

  • #1
  • First Post: Edited 8:49pm Nov 18, 2015 8:19pm | Edited 8:49pm
Hello Everyone!

I have created this thread to help new people to trading and the more experienced achieve their dream of creating either a side income or full time income trading. I will be posting up my trades including the lot sizes i am taking to show you how i achieve such results and have done so for the last 4 years full time.

A little about me?

Like most people here i took a massive interest in trading when i was around 14 and some 16 years later i'm still here and have been trading as a full time job for the last 4 years. I hold multiple qualifications in the technical analysis field including a CFTe Diploma of Technical analysis and MSTA and while these do often don't directly help with 'real world' trading plans they have given me a vast knowledge in most areas of technical analysis and more importantly correct information on how to identify patterns and use price action.

I will cover position sizing, stops and how to find effective take profit zones.

My trading philosophy is trading with the trend with fixed limited downside and precise take profits formulated from pattern analysis take profit techniques and support resistance.

Why am i making this thread?

You may see many trading systems but i very rarely see people who correctly identify patterns and more importantly actually trade them with semi serious money. I have traded full time for around 4 years now and have been trading for 16 years in total so i know the mistakes and more importantly I want to answer questions people have about their current price action pattern recognition methods.

Whos this thread for?

This thread is meant for people to ask me questions about their current setups and gain feedback on how to correctly identify what they are looking for. I will also post some of my trades here to show people what i am seeing, including take profit stop loss and any early closes i make and the reasons why.

Thanks for stopping by and feel free to contribute.
  • #2
  • Nov 18, 2015 8:20pm Nov 18, 2015 8:20pm
Usd jpy flag pattern break long:

Attached Image (click to enlarge)
Click to Enlarge Name: USD JPY SETUP.png Size: 45 KB
  • #3
  • Nov 18, 2015 8:21pm Nov 18, 2015 8:21pm
Gbp usd pattern break long:

Attached Image (click to enlarge)
Click to Enlarge Name: GBP USD SETUP.png Size: 37 KB
  • #4
  • Nov 18, 2015 8:39pm Nov 18, 2015 8:39pm
I also use pattern recognition but with a 13 tick range bar chart set to a line chart trading crude. It smoothes things out beautifully
  • #5
  • Nov 18, 2015 8:40pm Nov 18, 2015 8:40pm
Quoting larryowens
Hello Everyone! I have created this thread to help new people to trading and the more experienced achieve their dream of creating either a side income or full time income trading. I will be posting up my trades including the lot sizes i am taking to show you how i achieve such results and have done so for year. A little about me? Like most people here i took a massive interest in trading when i was around 14 and some 16 years later i'm still here and have been trading as a full time job for the last 5 years. I hold multiple qualifications in the...
It is great!
Waiting for your more examples.
Thank you
  • #6
  • Nov 18, 2015 8:44pm Nov 18, 2015 8:44pm
I took a look at your thread Divergence. I agree using a smoothing method such as yours helps in correctly identifying patterns. I use a mixture of Line, Bar and Candle charts in identifying my patterns so that i can make sure I have as many traders/funds seeing what i am seeing. I find that the idea of using the different viewing methods is often overlooked by many.
  • #7
  • Nov 18, 2015 8:46pm Nov 18, 2015 8:46pm
I do have 1 question. You said you have been trading fulltime for 4 yrs and have been profitable for 1 yr. So unless you have an abundance of capitol how have you survived until last yr?
  • #8
  • Nov 18, 2015 8:48pm Nov 18, 2015 8:48pm
That is my mistake I have indeed been going for 4 years just made a typo in the first area. I have been consistently profitable for about 6 years but only took the full time plunge 4 years ago.
  • #9
  • Nov 18, 2015 8:49pm Nov 18, 2015 8:49pm
Quoting Divergence
I do have 1 question. You said you have been trading fulltime for 4 yrs and have been profitable for 1 yr. So unless you have an abundance of capitol how have you survived until last yr?
I would have been dead and gone if I had done that haha
  • #10
  • Nov 18, 2015 8:51pm Nov 18, 2015 8:51pm
Quoting larryowens
{quote} I would have been dead and gone if I had done that haha
well you might want to correct the statement you made cause that's what you wrote lol
  • #11
  • Nov 18, 2015 8:56pm Nov 18, 2015 8:56pm
Anyway back to one of the last things i am looking at currently. I have been watching the Euro forming this pattern of the last few months and have taken it in my long term account. Massive stop and a massive take profit, I will add to the position at a break of previous lows.

Attached Image (click to enlarge)
Click to Enlarge Name: EUR USD WEEKLY.png Size: 35 KB
  • #12
  • Nov 19, 2015 1:43am Nov 19, 2015 1:43am
I'm already in the trade long but for scalpers confirmation break of USD JPY on the 5 min timeframe.

Attached Image (click to enlarge)
Click to Enlarge Name: USD JPY SCALPERS.png Size: 38 KB
  • #13
  • Nov 19, 2015 3:56am Nov 19, 2015 3:56am
Quoting larryowens
I'm already in the trade long but for scalpers confirmation break of USD JPY on the 5 min timeframe. {image}
Thanks for starting this thread and imparting your knowledge ! Looking forward to the learning.

Couple of quick questions :

  1. What are your money management rules ?
  2. Do you use SL and if so what's the basis ? How do you decide when to exit a trade (i.e. do you let it hit your SL or based on something else?)

Cheers !

D

  • #14
  • Nov 19, 2015 6:08am Nov 19, 2015 6:08am
Very interesting. Subscribed.
Greed and fear kills traders
  • #15
  • Nov 19, 2015 4:45pm Nov 19, 2015 4:45pm
Good morning guys. To start with a bit of housekeeping.

I am still in longs for USD JPY and GBP USD as well as my Long Term EUR USD short. I also picked up a nice AUD CAD move before i went to bed last night for 60 pips. I will update the other trades once i have closed them with either a profit or loss.

Attached Image (click to enlarge)
Click to Enlarge Name: AUD CAD SETUP AND TAKE.png Size: 30 KB
  • #16
  • Nov 19, 2015 5:00pm Nov 19, 2015 5:00pm
Quoting darshanag
{quote} Thanks for starting this thread and imparting your knowledge ! Looking forward to the learning. Couple of quick questions : What are your money management rules ? Do you use SL and if so what's the basis ? How do you decide when to exit a trade (i.e. do you let it hit your SL or based on something else?) Cheers ! D
Hi Darshanag

Money Management:

My money management rules are based on scoring system i have for my trades and generally i use between 1-3% of my trading balance per trade. My systems are based on 4HR Daily and Weekly charts so I focus on cutting out the smaller time frame noise as that was originally my major fault when it came to pattern/price action trading.

Take Profit Stop Loss:

When you trade patterns such as flag pennants etc you will always have hard and fast stop loss areas. I like to place them below these patterns but also draw fibonacci retracements of the last swing to see if i can put my stop just below the closest fibonacci swing as you can see in the below AUD CAD example. Exiting trades is partially the length of the pattern projected take profit and the next major support/resistance area as you can see again in my AUD CAD example. I will cover timing and take profit further in another post.

Attached Image (click to enlarge)
Click to Enlarge Name: stop loss area.png Size: 39 KB


Happy Trading
  • #17
  • Nov 19, 2015 8:05pm Nov 19, 2015 8:05pm
Nice thread.
are all your trades long term? or you take all patterns opportunities?
Sorry about my english.
At the moment Im trading (Learning to trade) part time after work or in little breaks in work and the pattern trade dont need to be all the time seeing the pc screen.
The thing I dot have very trained is the TP and SL locations. So this thread will be very nice for me.
Sorry about my english... Im in the other side of the world...
  • #18
  • Nov 20, 2015 1:39am Nov 20, 2015 1:39am
Hi larryowens. I think everybody would ask how to pick entries and target, at the end of the day this is how you make money in the market, by finding a setup.
  • #19
  • Nov 20, 2015 2:35am Nov 20, 2015 2:35am
Quoting larryowens
I'm already in the trade long but for scalpers confirmation break of USD JPY on the 5 min timeframe. {image}
I see in the market today, at usd jpy prices actually down.
indeed although there is a tendency prices will rise, therefore need to be given a stop loss.
I think this flag pattern is good in the larger time frame, is'nt it?.
By the way I like this thread coz very simple and easy, and clean chart.
very nice
  • #20
  • Nov 21, 2015 12:56pm Nov 21, 2015 12:56pm
Nice thread. Nice trades.
Best of all, simple and effective.
I will follow closelly.

Thanks for sharing your experiences. :nerd:
Best Regards!
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