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Trading is as simple as 1-2-3

  • #3,341
  • May 1, 2017 11:40am May 1, 2017 11:40am
Quoting faatkumo
anyone have idea how to avoid such freight trains? i made lines to be SL roughly 10pip, arrows are triggers candles {image}
Get into the habit of looking at the H4 and Daily time-frames. The clues are there...

Attached Image (click to enlarge)
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Attached Image (click to enlarge)
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  • #3,342
  • May 1, 2017 11:59am May 1, 2017 11:59am
Quoting lemercenaire
{quote} Get into the habit of looking at the H4 and Daily time-frames. The clues are there... {image} {image}

so now i have to include H4 and D1 resistance/supply zones too now? (for shorts)
  • #3,343
  • May 1, 2017 12:06pm May 1, 2017 12:06pm
Quoting faatkumo
anyone have idea how to avoid such freight trains? i made lines to be SL roughly 10pip, arrows are triggers candles {image}
The simple answer on how to avoid such freight trains is 'experience'. By that, I mean chart time - time spent studying charts. Before I placed my first live trade I estimated that I had spent well over 6000 hours studying charts and practicing - trying to see how the markets really work.

So in this example what did experience show me on the AUDUSD? See the attached chart and yes I did trade this long (one of only two trades I took today - I was not going to take any!) but it is a different method than what is shown here but it might give you another small insight into the markets.
AUD/USD 1Hr Chart:
Attached Image (click to enlarge)
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Essentially you have to be aware of where price is and what price has been doing previously. With time and practice things do start to become clearer and believe me when I tell you that you will never stop learning when it comes to trading. That is one of the reasons I absolutely love this game!
  • #3,344
  • May 1, 2017 12:14pm May 1, 2017 12:14pm
Quoting Pent56
{quote} The simple answer on how to avoid such freight trains is 'experience'. By that, I mean chart time - time spent studying charts. Before I placed my first live trade I estimated that I had spent well over 6000 hours studying charts and practicing - trying to see how the markets really work. So in this example what did experience show me on the AUDUSD? See the attached chart and yes I did trade this long (one of only two trades I took today - I was not going to take any!) but it is a different method than what is shown here but it might give...

Thanks for this illustration.
now i don't know if i have the patience to dissect all these rules properly as i see it being more of a rule of semantics and not objective.
  • #3,345
  • Edited 12:46pm May 1, 2017 12:27pm | Edited 12:46pm
Quoting faatkumo
{quote} Thanks for this illustration. now i don't know if i have the patience to dissect all these rules properly as i see it being more of a rule of semantics and not objective.
I love the approach in this thread and the way TooSlow approaches trading. I do trade this method successfully. The rules are very simple and it does work but you still have to be aware of where price is and what has happened previously. That is all I, and Lem previously, was trying to point out in response to the question about the freight train moves - I probably made it more complicated than it needed to be with my chart!

Trading does require a huge amount of patience though. I really cannot emphasise that enough.
  • #3,346
  • May 1, 2017 1:19pm May 1, 2017 1:19pm
Quoting lemercenaire
{quote} Get into the habit of looking at the H4 and Daily time-frames. The clues are there... {image} {image}
So im assuming valid Short signal would've been when price broke new high for the day while being in the color shaded PINK/PURPLE area?
  • #3,347
  • May 1, 2017 1:19pm May 1, 2017 1:19pm
Quoting Pent56
{quote} I love the approach in this thread and the way TooSlow approaches trading. I do trade this method successfully. The rules are very simple and it does work but you still have to be aware of where price is and what has happened previously. That is all I, and Lem previously, was trying to point out in response to the question about the freight train moves - I probably made it more complicated than it needed to be with my chart! Trading does require a huge amount of patience though. I really cannot emphasise that enough.
You did answer, i appreciate it this.
  • #3,348
  • May 1, 2017 1:32pm May 1, 2017 1:32pm
Quoting faatkumo
{quote} Thanks for this illustration. now i don't know if i have the patience to dissect all these rules properly as i see it being more of a rule of semantics and not objective.
Hi FK. I understand your sense of frustration. Possibly myself and Pent have muddied rather than cleared the waters in going into so much detail.

How about this: Yes, you can layer information on top of 1-2-3, or any method. Do you need all that additional input? Short answer, no.

When I started trading 1-2-3, I used nothing but my naked green-on-green chart and the rules. I made plenty of pips that way. Plenty. I was running HOLO most of the time and as soon as I saw a breakout move on HOLO, I would switch over into 1-2-3 mode.

It is only very recently that I have deliberately added these extra ''layers''. Purely as I was finding so many opportunities and wanted to see if I could give myself an edge into finding the ''best'' ones. However even now, I can find myself coming to a pair and hey, there's a 1-2-3 and it's just coming up to the change in the hour...No time to run my checklist...So bare rules and in I go.

My point about higher time-frames was not meant to imply another layer of complexity but simply a two-second check to see if price is at a common level. If it matches up to a high just passed on H4 or Daily, then that's too much of a hint to ignore. This pair goes to the top of my list.

I then drop back to the H1 and never think of that other stuff again.

The Supply and Demand zones are just an extra touch. They don't prove that price is going to do squat.

I do pay attention to H4 and / or Daily Wick-Zone influence but purely because that's my main method of trading elsewhere.

Finally I would say that short of trading a line, you will be hard-pressed to find a method of trading any more simple than this:

Bar #1 makes new high / low...
Bar #2 fails to make new high / low...
Enter trade as price crosses back over open level of Bar #2.

Go back and list Hal's chart pairs and look at the most popular and / or successful and start (again) there. Look at TS's faves, UJ and UC.

If you have the resources to trade the indices, then these are unbeatable for 1-2-3 imo.

Take a deep breath, wipe the slate clean, take a step back and start fresh.

Good luck.
  • #3,349
  • May 1, 2017 1:33pm May 1, 2017 1:33pm
Oh and the point about trading back to the direction of the day's open, or whatever it was - I pay zero attention to that, sorry. New High? New Low? That's it.
  • #3,350
  • May 1, 2017 1:35pm May 1, 2017 1:35pm
Quoting lemercenaire
{quote} Hi FK. I understand your sense of frustration. Possibly myself and Pent have muddied rather than cleared the waters in going into so much detail............Good luck.
Great post Lem
  • #3,351
  • May 1, 2017 1:39pm May 1, 2017 1:39pm
Quoting faatkumo
{quote} So im assuming valid Short signal would've been when price broke new high for the day while being in the color shaded PINK/PURPLE area?
It is not written in stone, these zones are dynamic. However at that moment in time if I have a choice of say three and want only one, if one has price sitting ''lost'' in the middle of space (and it's the middle of the day, for instance), one has price returning to an area it has previously tested and failed to break and one that's touching that area for the first time, my preference is: (1) The price re-testing, (2) price hitting for the first time and (3) price in the middle of space.

Things like pivots will show you another layer as well as the simple fib-levels. These things work because traders think they work. Whether you use them or not is entirely up to you.
  • #3,352
  • May 1, 2017 2:07pm May 1, 2017 2:07pm
Attached Image


How to avoid?
Do not stand in front of a freight train.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #3,353
  • May 1, 2017 2:10pm May 1, 2017 2:10pm
Attached Image (click to enlarge)
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Which bars look like freight trains?
Can a freight train stop on a dime or does it need time to slow down?
Clues.

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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #3,354
  • Edited 1:19am May 2, 2017 1:04am | Edited 1:19am
Attached Image (click to enlarge)
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Tried something a little different today. Bending the rules I took this CA after it had moved up making a new high on the hour. It came back down through the open and I was able to grab +5. I have observed this in the past and decided to try it out as I had no set ups coming into the opening hour of London. In this case it worked. but again not the strategy by rules.
  • #3,355
  • May 2, 2017 1:18am May 2, 2017 1:18am
Attached Image (click to enlarge)
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This hour picked up a quick +5 on the EG by rules.
  • #3,356
  • May 2, 2017 3:52am May 2, 2017 3:52am
Attached Image (click to enlarge)
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Took the CA long this hour, just missed getting stopped and moved up for my +5
  • #3,357
  • May 2, 2017 4:44am May 2, 2017 4:44am
A little exercise in information-gathering while I wait for The Dead Zone to kick off.

EA, a pair I don't trade much but it is setting up perfectly for this little experiment. By the rules, it's looking good. First caveat however, is that we still have 25 mins to go before the top-of-the-hour. A lot can happen in that half hour.

The second caveat - and this is more relevant to my little thing here - is that using my Supercharged-Info-Gathering-Indi-Set-Up-Thingy - which includes the pivot-points and S+D zones - is that there is a lot - a lot - of room above price.

Soooooo, here's the thing. Would I take this set-up with all that space up there?
Attached Image (click to enlarge)
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Additional info from the surrounding universe.

H4 shows we are at a probably significant pivot...
Attached Image (click to enlarge)
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While Daily shows price balancing on the slack-rope that is the 23.6 fib-line...
Attached Image (click to enlarge)
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Watch this space...
  • #3,358
  • May 2, 2017 5:26am May 2, 2017 5:26am
Quoting hal7
{image} Tried something a little different today. Bending the rules I took this CA after it had moved up making a new high on the hour. It came back down through the open and I was able to grab +5. I have observed this in the past and decided to try it out as I had no set ups coming into the opening hour of London. In this case it worked. but again not the strategy by rules.
Well done!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #3,359
  • May 2, 2017 7:44am May 2, 2017 7:44am
Quoting lemercenaire
A little exercise in information-gathering while I wait for The Dead Zone to kick off. EA, a pair I don't trade much but it is setting up perfectly for this little experiment. By the rules, it's looking good. First caveat however, is that we still have 25 mins to go before the top-of-the-hour. A lot can happen in that half hour. The second caveat - and this is more relevant to my little thing here - is that using my Supercharged-Info-Gathering-Indi-Set-Up-Thingy - which includes the pivot-points and S+D zones - is that there is a lot - a lot - of...
Well, it seems those rules will see you through...
Attached Image (click to enlarge)
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It did take a while longer than expected and I took a double-dip entry but it all paid off handsomely.
  • #3,360
  • May 2, 2017 7:48am May 2, 2017 7:48am
As an aside - no Weird Bunch trades from me today. Not because there weren't any, or there was anything wrong (there may not have been, or have been something wrong - but I have no idea). Simply because, as yet, I haven't had any time to check them out at all. I will look to at least post up how the day went for them later.
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