Disliked{quote} please which indicator did you use to determine support after pullback has being completed.having an indicator that will help determine support will really helpIgnored
Keep in mind that you won't always have a pullback first.
Kumo Twist Acceleration: simple and profitable strategy
So I saw something right now that may be interesting to you guys following this.
I've noticed that a lot of the times there is an initial pullback before the actual move begins so if you enter immediately you will have a worse entry then what you'd have if you were to wait for that pullback.
Now waiting for that pullback and then entering would not only get you a better entry and more room for profit and less risk it would also filter out some of the bad trades like this one:
Now that we've come to understand this we can move one step further. How do we know when a reversal is coming when the pullback is happening?
A lower low lower close candle if you're looking to trade bearish or a higher high higher close candle if you're looking to go bullish.
So we would still be looking for those setups however we would only enter after we have the reversal signal on the initial pullback.
Yes this will filter out even more trades but would it be worth it?
This is an example that may or may have not been profitable depending on your stops and targets ofc.
It's something that you could look in. I haven't tested it which I would do if I had the skills to code an EA but at the moment I do not posses that.
-AntiVi
I've noticed that a lot of the times there is an initial pullback before the actual move begins so if you enter immediately you will have a worse entry then what you'd have if you were to wait for that pullback.
Now waiting for that pullback and then entering would not only get you a better entry and more room for profit and less risk it would also filter out some of the bad trades like this one:
Now that we've come to understand this we can move one step further. How do we know when a reversal is coming when the pullback is happening?
A lower low lower close candle if you're looking to trade bearish or a higher high higher close candle if you're looking to go bullish.
So we would still be looking for those setups however we would only enter after we have the reversal signal on the initial pullback.
Yes this will filter out even more trades but would it be worth it?
This is an example that may or may have not been profitable depending on your stops and targets ofc.
It's something that you could look in. I haven't tested it which I would do if I had the skills to code an EA but at the moment I do not posses that.
-AntiVi
- #224
- Nov 10, 2016 12:53am Nov 10, 2016 12:53am
So I saw something right now that may be interesting to you guys following this. I've noticed that a lot of the times there is an initial pullback before the actual move begins so if you enter immediately you will have a worse entry then what you'd have if you were to wait for that pullback. Now waiting for that pullback and then entering would not only get you a better entry and more room for profit and less risk it would also filter out some of the bad trades like this one: {image} Now that we've come to understand this we can move one step further....
I think the best way to learn to recognize when the pullback is over, is to practice trading reversals. I spent several months following and trading Davit's thread on "Pivot Trading with TDI" and this taught me how to identify reversals better. You can use basic fibonacci to look for sweet spots, or look for a reaction off of previous resistance/support, for instance in the second chart you posted:
See how the blue box area acted as support before, and now when price rallied back in to it, it began to reverse cleanly again. This trade was a bit more tricky, because it had a compound pullback (two waves, where the low of the second wave never broke the low of the first), so it would have been tempting to jump in right away, but as a general rule it seems to me that you should look for at least a 50% pullback before entering. Will continue trading and testing though and see how it goes.
Better to run, than curse the road
Verry interesting posts, but it is unclear whether the price will make a pullback or not
Only testing will tell.
{quote} Can you show that chart with the chikou line? It would be interesting to see where it was at the highest pullback point.
{quote} I think it is. Remember the fundamental market rule: You want to buy low and sell high. I think people underestimate this a lot. I've noticed that on FF, traders seem to be buying at higher average prices than they are selling at. Think about that for a moment. Now, you can immediately begin to understand why they say that 95% of traders lose money. Forex might be a bit different from stocks, but it's still financial instrument, and should be traded as such. Always look for the best price before entering.
I can agree that what you're talking about is also there but I think most people are actually able to make a profit if they actually try.
Using the pullback in this strategy leaves so much more room for profit and reduces your risk by a lot.
If you enter just straight away and you need to account for a possible pullback then your risk will be a lot bigger.
{quote} Thanks, I meant the original chart you posted with the chikou line on.
-AntiVi
- #240
- Nov 14, 2016 12:29am Nov 14, 2016 12:29am
Waiting to see some bullish price action on GU. The pullback resembles a head and shoulders pattern, which makes me a bit hesitant, but we'll see how things play out once the London session gets underway in a few hours.
Better to run, than curse the road