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How to read a chart and trade properly

  • #1
  • First Post: Edited 4:21pm Jul 16, 2016 3:47pm | Edited 4:21pm
Or 'A COMPLEX THEORY OF HOW A MARKET WORKS'

Right I am going to demonstrate how to read a market and take trades with an. at least. 80% chance of hitting your target. For this we need a theory of how a market works, We will use logic. historical analysis and various tools to discover exactly where a market is in its development and based upon this I will take trades in real time with hard stops and targets. I'm also going to demonstrate the correct psychology and risk management. So if you want to discover how to be a real trader pay close attention.

Ok so what do we know about markets? Well we know they go up and down but really we know a lot about how markets behave we know that this happens a lot:
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  • #2
  • Jul 16, 2016 3:48pm Jul 16, 2016 3:48pm
You can see it here in the oil and silver markets recently
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  • #3
  • Jul 16, 2016 3:53pm Jul 16, 2016 3:53pm
But what can we say about price movement in the markets during its various stages? Well we can see this?
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  • #4
  • Jul 16, 2016 4:08pm Jul 16, 2016 4:08pm
See how price seems to move in trends, in channels? and for long periods, I mean these are monthly charts

How accurate are these trends? very accurate. amazingly so. Some people call it Market Geometry, some call it Harmonics some trade based on pivots, some with channels some with FIb some with pitchforks and guess what? they all work because they are all a part of the whole I'm going to show you that whole so you can make very high probability trades on Daily hourly or 5 min charts. Ready?

So what we going to trade? doesn't matter really a chart is a chart but Forex definately. I propose EURUSD GBPUSD AUDUSD NZDUSD USDCHF USDJPY and USDCAD. For commodities I propose Gold Oil and Copper and for Indices the Dow because the correlation between major Indices is over 90% So if we going to trade forex we must start with the USD and the monthly, where are we?
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  • #5
  • Jul 16, 2016 4:19pm Jul 16, 2016 4:19pm
Well we are Bullish thats for sure how high can this go? judging by the chart a lot higher The pitchfork seems to be at about the right angle. At a guess where would you expect this to go? Looks to me like its coming out of a correction and heading North The probable target is the medianline. it could also drop here and I will explain why later. I will drill down into the Daily and hourly in order to figure out where we are. Are we in an impulse leg or corrective leg where are the sweet spots (the places where corrections end) and everything else I will start on Monday the US Session
  • #6
  • Jul 16, 2016 4:24pm Jul 16, 2016 4:24pm
I'm fine with your opening posts and trade longer-term bias most of the time. Good luck with your thread - subscribed.
If there is ever any doubt then there is no doubt.
  • #7
  • Jul 16, 2016 4:34pm Jul 16, 2016 4:34pm
Quoting Ren1058
See how price seems to move in trends, in channels? and for long periods, I mean these are monthly charts How accurate are these trends? very accurate. amazingly so. Some people call it Market Geometry, some call it Harmonics some trade based on pivots, some with channels some with FIb some with pitchforks and guess what? they all work because they are all a part of the whole I'm going to show you that whole so you can make very high probability trades on Daily hourly or 5 min charts. Ready? So what we going to trade? doesn't matter really a chart...

I like the way you look at charts I've been trying similar for a few years trying to identify pro activity in the price action.
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I currently use volume and price strategies.

The red writing on chart should say the rally there looks like typical break out leg
Never said I was Batman,all I'm saying is you'll never see us together.
  • #8
  • Jul 16, 2016 4:41pm Jul 16, 2016 4:41pm
This is 'Idealised price movement' or perfect price movement, this is what we are looking for across all time frames it happens time after time after time, Dont ask me why I dont know why it just does.trust me. I will show it time after time going forward in real markets live this is what and how I trade, RRs on the trades will be about 1:3 but we may get some lower some higher we wont be taking trades with a negative RR
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  • #9
  • Edited 4:59pm Jul 16, 2016 4:47pm | Edited 4:59pm
and from an idealised price movement we get an idealised trade: A perfect trade Doesnt matter what time frame it is
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  • #10
  • Jul 16, 2016 4:55pm Jul 16, 2016 4:55pm
Quoting headfake
{quote} I like the way you look at charts I've been trying similar for a few years trying to identify pro activity in the price action.{image} I currently use volume and price strategies. The red writing on chart should say the rally there looks like typical break out leg
Great but I'd go for this: As you know we can make assumptions on future price movement based on the historical analysis of past price movement There a much higher probability that price will make a new high than not. The idealised price movement isnt a fantasy it happens in 80% of all price movements All you need are the tools to spot it.
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  • #11
  • Jul 16, 2016 4:57pm Jul 16, 2016 4:57pm
Quoting Kristo
I'm fine with your opening posts and trade longer-term bias most of the time. Good luck with your thread - subscribed.

I'll be taking trades on the hourly and the 5 min
  • #12
  • Jul 16, 2016 5:23pm Jul 16, 2016 5:23pm
And finally;
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  • #13
  • Jul 16, 2016 5:26pm Jul 16, 2016 5:26pm
Quoting Ren1058
{quote} Great but I'd go for this: As you know we can make assumptions on future price movement based on the historical analysis of past price movement There a much higher probability that price will make a new high than not. The idealised price movement isnt a fantasy it happens in 80% of all price movements All you need are the tools to spot it. {image}
cheers looking forward to following along.
Never said I was Batman,all I'm saying is you'll never see us together.
  • #14
  • Jul 16, 2016 5:35pm Jul 16, 2016 5:35pm
From an idealised price movement we get an idealised price channel where price retraces to about the same level every time depending on the angle creating a channel, I think some people imagine channels just appear like magic, they dont they are a product of how price behaves its important to realise this and it is this magical way price moves we are going to exploit to find low risk high probablitiy trades .
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  • #15
  • Jul 17, 2016 1:45am Jul 17, 2016 1:45am
I'll post my charts for reference so we can just start trading at the US Session Monday Start with EURUSD Charts are either daily or hourly
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  • #16
  • Jul 17, 2016 1:45am Jul 17, 2016 1:45am
GBPUSD 1 hr
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  • #17
  • Jul 17, 2016 1:46am Jul 17, 2016 1:46am
XAU Daily and hourly
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  • #18
  • Jul 17, 2016 1:47am Jul 17, 2016 1:47am
USDCHF Hourly
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  • #19
  • Jul 17, 2016 1:50am Jul 17, 2016 1:50am
AUDUSD Hourly
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  • #20
  • Jul 17, 2016 1:51am Jul 17, 2016 1:51am
USDJPY Daily and Hourly
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