One among many proves that all You need is Price action

Trading Discussion
1

This chart is what im looking at daily. i do not change it, i do not alter it untill i see a very strong reason to doso. those reasons happens rarely, like once in few months.

All this line are months old.

The red lines with interruptions are 6 months and the top one red line is 1.5 years old, bot this lines have been serving on several hits as very strong REVERSAL points and onto every reversal there were several hundrets (the last reversal from january 2016 was even +2000 points) to gain profits from.

The red full line (thin line without interruptions) is 3 months old. It has not been altered since i drawn it. The last touch of 4 weeks ago, as you can see, triggered a upwards move of 2000 points.

The firts white line has been drawn in january and stayed the same ever since. the second white line has been drawn in early february and is the youngest one.

The red dottet lines are Pivot Points (Yearly). As you can see they serve very well as entree points, points to increase your position or to catch up a trend that has been going on for days already at a safe spot to catch up and still gain a few hundret points.

As you can see… everytime these lines, no matter which one of them, gets hit, something is happening.

Elliot waves pattersn forming, reversals, pushes, triangels etc etc etc whatever fancy pattern you can immagine. but the fact is, those lines are it. that is where the price is going to or away from.

No indicators, no oscilators. only patience and points where to act upon the desired direction.

The morale/idea of this story is: learn price action before you even try to go all in. price action you can learn only by risking your own money into it but dont risk to much as the process takes much longer then to learn fancy looking pretty oscilators and indicators.

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Now lets see what hapens when the price reaches the RED LINED line again next week.

2

Hello!

Great post!!
Is that you in the profile photo?
So handsome !

Well, those charts too look handsome!

I agree: patience is the way to the money :slight_smile:

3

Gap Reading:

Gaps are a very great point to seewhere things are going. A strong gap is a 100% clear sign that things go into the desired direction. It means buying pressure. people rush in because they dont want to miss out anything.

Brakeaway Gap
Midway Gap
Exhaustion Gap

They all have their meanings.

Heres a perfect example of a brakeaway gap. and a perfect example why you must buy into gaps. As soon the prices comes back to touch the gap, it is +75% chance that the price will continue its original direction after touching the gap. The bigger the gap the stronger of a sign it is.

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4

Hey PipMeHappy! :slight_smile:

thank you for the compliments on my charts (and on my look aswell :D) yes this is a picture of me but its like 3 years old or so so not too actual to be honest hehe

5

You are welcome!!

Have a great weekend!

Gute nacht!!

6

Heres another good example where indicators and oscilators dont help you.

The red lined line is half a year old. it is the last outstanding low of the oil price.

the red full line is a trend line which is the combined low of 7 months and nearly a year ago. so basicly said two lows combined.

The red full line after it got broken (i lost money on its braking as i “betted” it wont be broken and the white line crossing its broking exactly at same point like the red line was a strong indication aswell that it wont be broken) was a very great point to buy long into the trend again a week later. basicly it got retested as it turned from resistance zone to support zone and as we can see the support held very well for a gain of 360 points so far.

The red-lined line(last remarkable low of 7 months ago) as you can see served today very strongly as a reversal line.

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7

Trend channels

This case: Brent Crude Oil

You have to love them!

once discovered you can slaughter them to the bones. every tiny move brings you a great profit.

we all can see where the price is likely to go from here on. Towards 37$-38$

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8

Now lets slaughter the Brent Chart a bit more

Gaps.

In this case all 3 gaps are present

Brake away gap
Midway gap
exhaustion gap

Brake Away Gap: happens at the beginning of a trend through buying pressure.
Midway Gap: same reasons for the brakeaway gap but serves as indication that half of the trend is over.
Exhaustion Gap: Last people (late arrivers) come into the trend pushing the price once more. All “BUYERS” are in by now, its a last sign of “LIFE” and thats why its called “exhaustion gap” as the trend gets exhausted. All buyers are in, who is left to jump on the train? = noone. After the exhaustion gap it is normal that the trend continues a bit further into the old direction but the gap will have its price sooner or later.

The tricky part here is that you have to combine it with the stuff posted before. The resistance zones, the trend lines and the candle-stick formations. when you do it good you have very clear low risk points to enter a position, where you risk a few points to gain a lot points. (risk 50-100 to gain 500-1000 or whatever)

BTW a gap to be considered a real gap falling into the 3 categories above it must be between daily sessions (when market closes and later/tomorrow opens at a competely different price)

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9

Interesting about the GAPS, I just don’ t have many in eurusd. :S But GAP or no GAP, this entry was near a standard entry of mine. I nearly always enter at the yellow line.

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10

Hey Toekan!

Yes we are very similar at your yellow line. I used the same point to increase my position and scale into the trade a bit more after buying into the gap.

The gap i used to enter was a confirmation process.
The reasons for a strong believe in a trend reversal from my side was the double bottom forming up the 4 weeks prior to this gap:

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11

Yes, that is a confirming sign. I trade EURUSD M1/M5 and my reversals are more often a bit more aggresive (I know this is just one example that you show). For me there are more strong reversals without a double bottom like that. Therefore I jump in at my yellow line or else I would miss too many of them. :S.

[for the new traders] One of the tweaks that you need to consider when adopting a trade strategy in another timeframe or currency pair.

Here is a recent example of a reversal that is common in EURUSD M1.
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Ignore the rectangle and the text. You inspired me to post the trades I made this week to show How I trade. :wink:

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12

And I agree with you that all you need is price action. The example given in my last post here are about all the lines I need to trade and I still made 250 pips in a week with 3 trades (and this was a slow week) while not trading the news.

13

Thanks for the great posts

14

Great trade!

yes i see a tripple bottom forming after a downtrend, the tripple bottom formations in downtrends often occurs shaping downwards and is of a short very quick nature and a great indication of things changing. I would have traded the same as you did, waited for comfirmation then go long at pretty much the same point as you did.

15

Here is a nother example of a great trend channel that i slaughtered to the bones, in every major move i had positions and it made nice profits of around 4110 Points in 2 months. I had 3 misstrades in this channel (end of novemeber and beginning of december) which were a combined loss of around 300 and one that was closed at brake even. so the surplus was still nice 3800 Points in 2 months.

Dow Jones channel November+December 2015

As you can see once the channel is discovered and confirmed you can (using piot points aswell) find very sharp entries where you risk a minimum and earn a maximum. Pretty much every movement, every touch of the outerside of the channel is a great entry position with very high probabilities to catch points/pips.

In those 2 months the Dow Jones moved barely 700 points, but through the channel a profit of 3800 points was no problem to realize.

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16

The gods gift of HUMAN BEHAVIOUR AND ALWAYS REPEATING CICLES!

17

Possibly a big trend channel developing on the dow jones for the next few months.

Those big channels (trending) happen very rarely in stockmarkets so im far from beeing sure yet that this could be something but it looks promising. the next week/two weeks will show what what is.

At the moment im in no position at all and waiting for moves as nothing is happening since last FED announcement.
But id like to share this here, maybe it will give someone a good trade and profits. if it shows signs of a reversal im going short with the target of 15500.

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18

You gotta love us for it…:slight_smile:

19

definately :smiley:

20

old thread lets live it up a bit with new examples

wti

descending triangle

chances of restest on triangles are above 80% so it is always best to wait for a brakeout (not try to anticipate it) and then act upon the retest. this way you increase your chances of a profitable trade AND you can define very sharp entree points and therefore can calculate your risk much more profitable (like risk 50 points earn 500) if you do it right.

descending triangles have the following psychological background:

the horisontal line is a resistance line where buying pressure hits in. the descending line is a line where participants “feel” that price should be lower. so the horisontal line is a spot where a fix resistance it which is beeing “worked off” and that is visible by the action of the descending line which as time passes people think on always lower numbers that price should be lower (they go short sooner and sooner and thereby creat “lower highs” [if you remember from BP school: lower highs are definition of a down trend] untill the only place left they can go further short is the horisontal line and it gets broken).

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