Ratios & Harmonics: a Different Way to Trade
- #22,523
- Edited 11:00am Dec 14, 2016 10:42am | Edited 11:00am
- | Joined Mar 2016 | Status: Trader | 1,068 Posts
no trades for me this session. I find the european session more enjoyable than the american and asian. The last couple of days the ym is moving different then normal imo (and yes i have rolled forward to h7). I was watching a 6j 89 tick chart today but didn't like it very much and got confused when it was time to enter. I got a little distracted with l/t and s/t orderflow. I usually trade s/t orderflow but when l/t gives me a nice r:r trade i go for the l/t opportunity. S/t expectation was for a nsl which was projected past the prz for the l/t trade...
Edit - forgot some info.
- #22,525
- Dec 14, 2016 10:56am Dec 14, 2016 10:56am
- Joined Mar 2008 | Status: He who believes has eternal life. | 3,764 Posts
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
- #22,528
- Dec 14, 2016 11:16am Dec 14, 2016 11:16am
- Joined Mar 2008 | Status: He who believes has eternal life. | 3,764 Posts
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
- #22,529
- Dec 14, 2016 12:52pm Dec 14, 2016 12:52pm
- Joined Mar 2009 | Status: Hobby Trader | 4,477 Posts
- #22,530
- Dec 14, 2016 2:04pm Dec 14, 2016 2:04pm
YM, CFD-version, +67 points. Notes on the chart...
I want to emphasize that the main reason for entry came from the struggle bears had on the way down. For me this was a strong signal that bulls had more in the tank and I look at it as bulls took a coffee break before they continue to push price higher.
EDIT: Green line in notes should be purple line...
I want to emphasize that the main reason for entry came from the struggle bears had on the way down. For me this was a strong signal that bulls had more in the tank and I look at it as bulls took a coffee break before they continue to push price higher.
EDIT: Green line in notes should be purple line...
Rise and rise again until lambs become lions
- #22,532
- Dec 14, 2016 7:17pm Dec 14, 2016 7:17pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} @Masterrmind You did manage it well. I was wondering as it is rare you post such a trade with poor odds did you consider a re-entry (see red arrow just after a LL) ? {image}
Order flow was to the downside.
Entry was made at a higher level but still below previous swing high.
No matter what trade you take the market will do whatever it likes and this situation the bulls simply grabbed hold and ran with price up the chart.
Trades like this happen and you can never tell in advance how far a given pullback will be before price heads down again ... if it does.
A trader could simply look to short or go long from say the 88.6 level to reduce risk but this is not how I trade in every situation although I do tend to look at the 786 and 886 area if the intention is to employ a C-Buy/Sell entry.
I make the best judgement I can under the prevailing conditions and then I manage the trade after appropriate stops and TPs have been applied.
This is trading.
ps. I welcome constructive criticism.
Masterrmind............
Master your Mind then Master your Trades
- #22,533
- Dec 14, 2016 9:28pm Dec 14, 2016 9:28pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
EURAUD [M5 Chart]
2 longs in action.
Trades will be managed and monitored throughout.
Depending on favorable progress the stops will be moved to BE + a few pips initially.
If price reaches the next higher Fib level the stops will be moved up to just below the lower Fib and so on until trades are closed out.
For example, price hits the 61.8 Fib the SLs will be moved up to just below the 50 'Fib' level etc.
Will post the results once both trades have been closed out.
Masterrmind..........
2 longs in action.
Trades will be managed and monitored throughout.
Depending on favorable progress the stops will be moved to BE + a few pips initially.
If price reaches the next higher Fib level the stops will be moved up to just below the lower Fib and so on until trades are closed out.
For example, price hits the 61.8 Fib the SLs will be moved up to just below the 50 'Fib' level etc.
Will post the results once both trades have been closed out.
Masterrmind..........
Master your Mind then Master your Trades
EURAUD [M5 Chart] {image} 2 longs in action. Trades will be managed and monitored throughout. Depending on favorable progress the stops will be moved to BE + a few pips initially. If price reaches the next higher Fib level the stops will be moved up to just below the lower Fib and so on until trades are closed out. For example, price hits the 61.8 Fib the SLs will be moved up to just below the 50 'Fib' level etc. Will post the results once both trades have been closed out. Masterrmind..........
- #22,536
- Dec 14, 2016 10:53pm Dec 14, 2016 10:53pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Curious, what are your reasons for taking the trade? Wedge?
Obviously it has to do with the shorter term order flow but there is alot more going on here than that!
Other factors include but are not limited to the following:
1. Over-reaction of the market to the AUD data
2. Mean reversion tendency after an over-reaction to data.
3. Nice solid support base not far below my entries
4. Risk to reward ratio is appealing
5. I believe the EA pair is at a level currently that is ideal for buying-up.
With regards to the wedge you are right however, price could head out of the compressive end and head aggressively down.
This is why I need to be alert and look to close out the trades based on PA at the time if price shows acceleration downward.
The 38.2 Fib is holding tight as a resistance level so it is also an area to be closely monitored since I want price to smash up through all these Fibs.
Trades could still lose but I think the setup represents good value.
ps. other traders may have a different view.
pps. please do not ask me to elaborate on trading factors unrelated to this thread (thanks in advance).
Masterrmind............
Master your Mind then Master your Trades
EURAUD [M5 Chart] {image} 2 longs in action. Trades will be managed and monitored throughout. Depending on favorable progress the stops will be moved to BE + a few pips initially. If price reaches the next higher Fib level the stops will be moved up to just below the lower Fib and so on until trades are closed out. For example, price hits the 61.8 Fib the SLs will be moved up to just below the 50 'Fib' level etc. Will post the results once both trades have been closed out. Masterrmind..........
Will be interesting to see how it plays out!
- #22,538
- Dec 14, 2016 11:25pm Dec 14, 2016 11:25pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} I think the "mean" or area of value is around the 1.4200 area (1.4203-1.4205 to be more precise) since that seems like where price is oscillating around. Will be interesting to see how it plays out!
I am looking for price to make its way back up to the 1.42 area though this is true.
ps. if both trades hit the 1.42200 level that's over 5K however there is an enormous journey ahead for this to occur.
Masterrmind...........
Master your Mind then Master your Trades
{quote} If both trades progress favorably the TP is not really the key necessity here as its always better to move it up nice and high out of the way and continue to manage the trades until the stops get taken out by the PA. I am looking for price to make its way back up to the 1.42 area though this is true. Masterrmind...........
Hope you don't mind me analyzing the trade, not trying to prove or disprove it at all. Just participating to learn since I can't trade it with you!
See attached, on second look, the area that price is in now IS an area of value.... so price MAY move up during the London session to test the top area but it currently is in a previous area of value.
- #22,540
- Dec 14, 2016 11:34pm Dec 14, 2016 11:34pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Hope you don't mind me analyzing the trade, not trying to prove or disprove it at all. Just participating to learn since I can't trade it with you! See attached, on second look, the area that price is in now IS an area of value.... so price MAY move up during the London session to test the top area but it currently is in a previous area of value. {image}
You are right again ... I will be very keen to see where price drives to either from the Frankfurt or London Opens.
Should be interesting to say the least.
ps. note also that the 1.42 level is just above the 61.8 Fib (30 pips above current price) and this is where I want price to at least reach but lets see.
Masterrmind............
Master your Mind then Master your Trades