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Consolidations on M1 0 replies

Trends and consolidations - newbie question 4 replies

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Consolidations

  • #1
  • First Post: May 25, 2016 5:35pm May 25, 2016 5:35pm
This thread is all about looking for consolidations
Diagonals, Flags, Pennants, Triangles......

I dont care what time frame they are just post a picture of it.

No position sizes or commercial stuff.

Just charts and a little convo
  • #2
  • Edited May 26, 2016 1:56am May 25, 2016 5:35pm | Edited May 26, 2016 1:56am
AU diagonal...looking for a long out of this to the 382 fib of the overall move


Edit....it broke consolidation a few hours ago. Now lets see if it will move
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  • #3
  • May 26, 2016 1:58am May 26, 2016 1:58am
Posted a chart on this a few days ago. So far so good.

Waiting for a break of the blue line to short down to the bottom trend line. From there its time to go long for the break
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  • #4
  • May 26, 2016 2:28am May 26, 2016 2:28am
I waiting on something similar with the GA, when it comes under the trendline I'll be short (then again it's like 1cent above the line atm)
  • #5
  • May 26, 2016 11:27am May 26, 2016 11:27am
Quoting nimbinsstone
I waiting on something similar with the GA, when it comes under the trendline I'll be short (then again it's like 1cent above the line atm)
Do you have a chart on it?
  • #6
  • May 26, 2016 9:29pm May 26, 2016 9:29pm
AJ
Slight bearish divergence. Going to try and sell the bounce off the trend line
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  • #7
  • May 27, 2016 8:36pm May 27, 2016 8:36pm
What is your definition of consolidation?

My definition is consolidation is an area where the market runs horizontal and the range between entry and exit is too low to profit, so it results in several break-even or small loss trades in a row. Do you have some other definition? The charts you posted are not in consolidation to me.
You cannot be extraordinary by being normal
  • #8
  • May 27, 2016 8:45pm May 27, 2016 8:45pm
Quoting dkrock
What is your definition of consolidation? My definition is consolidation is an area where the market runs horizontal and the range between entry and exit is too low to profit, so it results in several break-even or small loss trades in a row. Do you have some other definition? The charts you posted are not in consolidation to me.
Like these
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  • #9
  • Edited 9:07pm May 27, 2016 8:52pm | Edited 9:07pm
Okay. Thank you for explaining. You are calling consolidation the area of the market contained by trend lines and so I am guessing you want to trade the break-outs? That is completely different from my view. I attached a trend line indicator that might help you? It will show you breakouts and projected take profits. I experimented with it in the old days, but have moved beyond this technique.

I attached a pic showing my definition of consolidation. To me, it is the area where one cannot make any money. It is where the market is in horizontal movement, so since price is still moving up and down in a triangle, there are still legitimate trades to me. I use tools to find these types of areas so I know when to avoid the market. Good Luck
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File Type: mq4 TD_Points&Line_Auto circle change.mq4   10 KB | 883 downloads
You cannot be extraordinary by being normal
  • #10
  • May 27, 2016 10:53pm May 27, 2016 10:53pm
Quoting dkrock
Okay. Thank you for explaining. You are calling consolidation the area of the market contained by trend lines and so I am guessing you want to trade the break-outs? That is completely different from my view. I attached a trend line indicator that might help you? It will show you breakouts and projected take profits. I experimented with it in the old days, but have moved beyond this technique. I attached a pic showing my definition of consolidation. To me, it is the area where one cannot make any money. It is where the market is in horizontal movement,...
Exactly! Im basically simplifying wave theory so as to single out high probability trades. The count doesnt matter to me. As it is you can take 10 people and have them look at the same chart and probably get 3 different counts. So, the plan is to hopefully get some more posters to share the consolidations or patterns so as to have a variety of options to choose from daily if possible. As you know depending on the time frame it can take days or even weeks sometimes to develop these wave patterns and consolidations so if multiple posters are searching for the patterns then it will save time and also serve as quality control.
At least thats what im hoping to accomplish here
  • #11
  • May 28, 2016 6:14am May 28, 2016 6:14am
Quoting raiders
{quote} Exactly! Im basically simplifying wave theory so as to single out high probability trades. The count doesnt matter to me. As it is you can take 10 people and have them look at the same chart and probably get 3 different counts. So, the plan is to hopefully get some more posters to share the consolidations or patterns so as to have a variety of options to choose from daily if possible. As you know depending on the time frame it can take days or even weeks sometimes to develop these wave patterns and consolidations so if multiple posters are...
Sure. I understand. I experimented trading like that a long time ago after reading Strignano's ebook. Later I found that trading against multiple time frames makes those patterns irrelevant. That is just me though. Some people might like it, but it just didn't "fit" me. A range on one time frame is a trend on another. Rather than sitting and waiting, I just go to the view with a kill and make some money. Good Luck to you It is a valid technique if you do not get head faked on the breakout. I think you will find the indicator I sent you will show you many trend line breaks, not just the triangles you are looking for.

In time, you will also see the relevance of that pattern on 4HR and Daily charts, as reported in the news. As the triangle is formed, the trading obviously gets weak, and suddenly it is a TV news release, lol. But, we know it is nothing. There is another similar phenomenon you will discover. When the pivots collapse on each other, and then they breakout, it is usually a very big move. So, if I were you, I would track them along with the triangles. Those will be your biggest breakouts.

As for counting Elliot waves, I agree. The "experts" like to show you after-the-fact patterns, which are useless in the moment. Well, for me anyway. I need quite a bit more precision than just knowing a general direction that should occur sometime, lol. I trade momentum and just go with the flow of the market, so this technique is no longer part of my strategy. But, I think with proper stop loss management, you can profit.

Something else to consider is while this will mostly show a breakout, you also need an exit plan. Breakouts don't last forever
You cannot be extraordinary by being normal
  • #12
  • May 28, 2016 10:19am May 28, 2016 10:19am
I don't know what to tell you other than if it didn't work for you don't do it. In the end trading is a very personal thing and what works for 1 person doesn't necessarily mean it will work for another. There are more things involved in this that just seeing a few bars line up and pretending there may or may not be something to it. Not saying you might be having the issue but lots of people seem to plot lines on a chart just to plot them when if fact they were usuless. The issue is the application of them. That's why I said quality control. Like anything though not everyone is a winner. But I believe I do well enough with the application of these consolidations/patterns. As far as precision goes I believe you gotta leave a little on the chart for the chart gods but depending on the quality of what I'm looking at and the pair I've got no issues dropping a 10-20 pip sl and grabbing hundreds. I'm sure you can attest the fact that some pairs are tamer than others. That being said I'll be posting a few more charts before the weekend is up. Maybe I'll be right and maybe I'll be wrong. I don't risk management for people nor do I post trade sizes as again I feel those are very personal and very individual for every person. Hopefully since you have experience in this you can join me and we can grab pips together.
  • #13
  • May 29, 2016 12:02am May 29, 2016 12:02am
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  • #14
  • May 29, 2016 1:37am May 29, 2016 1:37am
WOW what a great page this is and really wonderful it is .... really it is useful to me ... for my long time search i got this and thank you all....
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Success is a Journey Not a Destination....... kind regards ramzam
  • #15
  • May 29, 2016 2:16am May 29, 2016 2:16am
Quoting dkrock
I did not mean to imply it was not a good trading technique. I just found a better way for me to trade. I prefer to trade with less concentration while targeting specific areas of market patterns. For me, breakout trading is not ideal. If you miss the breakout, what do you do? I missed too many, and so went hungry that day. In my opinion, I would prefer to make pips more frequently with more consistency. You can breakout trade, and you can probably make money. I did not place pending orders because I saw too many head fakes to activate them, and...
Imo flats are consolidations. There are various types of consolidation and flats are probably the most "normal" of them. I guess normal is the best way to classify them. But the structure of the consolidations or better yet the corrections can come in different shapes. I believe the key to them is just trying to capture and anticipate the move. I believe that can only come from understanding the wave structure of the consolidations, corrections or patterns(however one wants to classify them). For the most part I believe they will all have certain traits that define them. For instance a flat should have a 5-3-5 wave pattern to them regardless of the time frame. And so if we can identify the pattern then we can anticipate it's movement to a certain extent. Obviously one can't not always be correct in the assesment and what I hope to accomplish here is to create a sounding board for everyone to not be afraid to be critical of one another because ultimately what you don't see can hurt and what another person can help bring clarity to can only help. I hope I'm not rambling on too much. But in the end it's all about helping eachother find clarity and confidence in the movement of price. That said I really do hope that if even just with the flats that you can help bring clarity and information. Not for 1 second do I feel that my way of seeking clarity is the only way or that my way is the right way and other ways are incorrect. So don't take it as that.
  • #16
  • May 29, 2016 2:32am May 29, 2016 2:32am
Quoting nimbinsstone
{image}
Here is how i think i see it.

The red arrow is actually a trade i had mapped out a while back. I did not hold the entire time unfortunately but it is what it is. I actually though this pair would correct a little about a week ago but the damn gbp has been acting wild with all the brexit nonsense for a while and had me very much confused. actually tried 2 times to catch the correction and got my sl nailed at be after nice moves down.....ohh well next lol

Anyways, i think if i was going to trade this pair, the only way i could would be to wait for the AUD news that is on deck this week and hope that the price holds above the blue line. If it does that a very very nice head and shoulders pattern with major reward. There is very nice bearish divergence and it looks more than ready to correct a bit. I have a couple aussie setups that look like they want to fly also so aussie strength might just be in the cards this week.

On the other hand, alot of gbp pairs are looking like they want to correct some if not start selling off in anticipation of the stupid brexit vote so maybe a small test sell of the break with a larger sell order pending might be the ticket i like it alot though. its got very good potential

Good find dude. thanks
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  • #17
  • May 29, 2016 3:04am May 29, 2016 3:04am
Quoting ramzam
WOW what a great page this is and really wonderful it is .... really it is useful to me ... for my long time search i got this and thank you all.... {image}
are you looking for a sell off of copper or a buy? I think fundamentally copper might be weakening because of china and overall global slow down. But i think we might have to not only check seasonality of it but also try to anticipate some Chinese news for this. maybe?

I think we definitely had a strong impulse down shown by the blue arrow.
the count on it is kinda funky so who really cares, it happened lol.
so i think were in a correction now?? maybe a flat or bear flag however we want to call it? count wise i believe we got 5 up from the bottom on 1/15 and we definitely got at least equal waves down from the 2.3s so perhaps were working on finishing up the correction before the next move down? there is a nice bullish divergence showing so maybe a buy might be in order if you can get in on the cheap?

are you trying to sell this or buy it? i think i might be inclined to buy it in the blue box and target the upper parallel which would prob end up in the 2.4s if i could get a nice reversal signal but a seriously tight sl would be in order. I think the safe move though would maybe be to try and sell the bounce in the 2.4s off the parallel if it is a flat/bear flag or to wait for a break below. maybe? im not really sure though since it kinda looks like its trying to find its way?

what do you think?
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  • #18
  • May 29, 2016 5:16am May 29, 2016 5:16am
Quoting raiders
{quote} Here is how i think i see it. The red arrow is actually a trade i had mapped out a while back. I did not hold the entire time unfortunately but it is what it is. I actually though this pair would correct a little about a week ago but the damn gbp has been acting wild with all the brexit nonsense for a while and had me very much confused. actually tried 2 times to catch the correction and got my sl nailed at be after nice moves down.....ohh well next lol Anyways, i think if i was going to trade this pair, the only way i could would be to...
one of those times where patience is a virtue and I agree with your reading of the situation, just waiting on the right moment
to my mind it's been really over due since 2.02 and the same applies to the NZ version
  • #19
  • Edited 6:20pm May 29, 2016 10:36am | Edited 6:20pm
This is what im seeing in AJ. I put up the daily chart so that the bigger picture could be seen.

I think price is coiling up in this wedge and will probably sit in there until aud news drops. And while at first glance looks like a lovely pattern to try and long from I think that after looking at the bigger picture the better move would be to simply bracket the consolidation with buy and sell orders prior to the news and let the market kick us into the order. After looking closer at it i would prefer shitty data and another selloff because i think theres more pips to gain on a sell off to the 74 area and it will probably be an easier fall as opposed to a correction to maybe 82ish before another fall in the pair? Either way there will be a great RR in this trade once it does break out.


edit....well it broke to the top side to start the week. That was fast...
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  • #20
  • May 31, 2016 11:56am May 31, 2016 11:56am
EJ

Nice bullish divergence. Buy the break
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