GER30 +25 Went in for a quicky. I got in a second too late, but market started to move fast. I got out as i started seeing a second divergence print on the htf and ltf, both STO were OS. Wanted to secure profits.{image}
- #7,325
- Edited 5:40pm Jun 10, 2016 11:41am | Edited 5:40pm
- | Joined Feb 2015 | Status: Trader | 697 Posts
{quote} hello Joshua please check my chart and please where I drew the red line ...thought is was a double top but ended up to be a 123 {image}
I misunderstood what you were saying. So basically, the point is to distinguish a 123 from a double bottom/double top. I can only say what I would see in this trade situation. I have made the same mistake many times, but the key is to support the trade with evidence, or dismiss it. If not sure - I don't take the trade. You would be surprised how many loses are avoided that way.
Lets say the red bar has closed, and I am thinking its a double top. First thing for me would be to look for evidence to support such a trade. I hope you are looking at at least 2 charts to get a bigger picture.
So I start with the 10 pip chart. Look at it and ask what has happened here - first thing I see is a divergence at BRN which was confirmed when the first 10 pip green bar closed at 10070.
Thats a huge red flag. Now does this mean a reversal? Unsure, but it is not bearish. This alone would make me feel twice about going short here. Now lets look further.
The 10 pip stoch is OS, but in reality I must admit that really doesn't tell us much as it can stay there for some time in a downtrend. You do not see it turn(confirm) until second bar close at 10080. Fine.
Now go to the 5 pip chart. What is there? MACD is clearly in the green by at least 1 bar, maybe 2. We have not had a close below the ema3. The reason the ema3 is there is to validate the trade, Jaquemate style, with MACD in support. Thats why Dee used it on the charts, even though he did take some trades without it, "out of experience".
You could also take note the PA. First 3 bull bars were all long wicked. What does this mean? Bears were trying to push this down and continue the downtrend,
but got defeated.
This combined, would discredit this "double top" and put serious doubt in the trade. Now, you built a case, it doesn't look good. Ok, try building a case for a
123. Better odds for a trade? What would need to happen to confirm it? Just some questions I would ask myself. The devil is in the details. Just my 2 cents.
Best, Josh
edit - grammar fix on chart
- #7,326
- Jun 10, 2016 2:05pm Jun 10, 2016 2:05pm
- Joined Aug 2011 | Status: Mos P from Cape to Cairo | 2,712 Posts
Let it turn and find your entry.
- #7,327
- Jun 10, 2016 2:32pm Jun 10, 2016 2:32pm
- Joined Aug 2011 | Status: Mos P from Cape to Cairo | 2,712 Posts
Let it turn and find your entry.
- #7,328
- Jun 10, 2016 2:56pm Jun 10, 2016 2:56pm
- Joined Aug 2011 | Status: Mos P from Cape to Cairo | 2,712 Posts
Let it turn and find your entry.
- #7,329
- Jun 10, 2016 3:30pm Jun 10, 2016 3:30pm
- Joined Aug 2011 | Status: Mos P from Cape to Cairo | 2,712 Posts
Let it turn and find your entry.
- #7,330
- Jun 10, 2016 3:57pm Jun 10, 2016 3:57pm
- Joined Aug 2011 | Status: Mos P from Cape to Cairo | 2,712 Posts
Let it turn and find your entry.
{quote} Thanks, I see you are no longer a captain America fan
Yeah, it was time for a change. I went with a zombie/possessed lady. hahaYes! Exactly! The JSRX and Stoch are only used as extra confirmation to price action.
I've been a little distracted this week as my wife gave birth to our first child on Wednesday.
Wow, what an experience!I also got a very aggravating email from FXCM stating that the minimum has been increased to 5k for there Standard account (low spreads + commissions). The minimum used to be 2k! So now my account is going to be switched over to a Mini account which has higher spreads and no commission. I'm pissed about this! GBP/JPY spreads are around .5 - 1.0 on there standard account and on the mini account they are 3.0 - 4.0. I'm on the lookout for a new Broker.
Hope everyone had a good week of trading. Time to go back through the thread and get caught up.
- #7,333
- Jun 11, 2016 12:21am Jun 11, 2016 12:21am
{quote}
Why don't you switch to Pepperstone? They don't have any minimum limit on the Razor accounts (low spread, 8$ / 1 lot comission)
Invincibility lies in the defence; the possibility of victory in the attack
{quote}
I agree with BBalazs, Pepperstone is the way to go, best broker I ever used.
Best, Josh
{quote}
[quote=BBalazs;8974522]{quote} Congratulations on the child's birth! You probably won't have much time to trade in the next few weeks Why don't you switch to Pepperstone? They don't have any minimum limit on the Razor accounts (low spread, 8$ / 1 lot comission)[/qu
hello blaaz what do you mean 8 dollars commission for gbp/jpy ???? plus spread???
Why don't you switch to Pepperstone? They don't have any minimum limit on the Razor accounts (low spread, 8$ / 1 lot comission)[/quhello blaaz what do you mean 8 dollars commission for gbp/jpy ???? plus spread???
- #7,340
- Jun 11, 2016 7:06am Jun 11, 2016 7:06am
- Joined Aug 2011 | Status: Mos P from Cape to Cairo | 2,712 Posts
{quote}
CONGRATULATIONS on the new born
Take a break if you must, and cherish each moment, take pictures help out with some chores and your wife will vote for another babySorry about FXCM, I hate organizations that change the rules of the game in the middle of the game, seems like most here are with Pepperstone it might be worth your while (if they accept US residents).
Let it turn and find your entry.