My Basic Chart Analysis Method

[phil838]

People keep asking me how I do my chart analysis, and I keep saying I'd have to write a book to explain it all. Well... Here's that book!

Calling it a book may be a bit of a stretch, it's only 12 pages, but I think it's a good entry point into the world of trading "without rules."

I'm happy to answer any questions you have, but I just spent the better part of a Saturday writing this, so at least read the whole thing before you ask! Your question may be answered later in the ebook.

[JAWPIP]

Phil,
Thank you for the hard work - I have read your posts and appreciate your demeanor - The system that I use is very similar to what you have posted - I use the 4 hr (and 1hr if ranging) to establish overall direction than look for PA setups on the lower TFs to enter in the direction of the current trend - taking note of S+R levels.
I have found that patience to wait for your setup is the key!
Jawpip

[mastergunner99]

Good read phil. I'm indicator free as well.

Shame that most won't learn from it as they're off looking for the holy grail.

[weijen]

Hi phil, I read elsewhere you said you've stopped using cowabunga. could you comment on indicator intensive cowabunga, and NickB's method and yours? I thought you used NickB's, but seems you've added diagonal trendlines also.

thanks!

Originally Posted by phil838

People keep asking me how I do my chart analysis, and I keep saying I'd have to write a book to explain it all. Well... Here's that book!

Calling it a book may be a bit of a stretch, it's only 12 pages, but I think it's a good entry point into the world of trading "without rules."

I'm happy to answer any questions you have, but I just spent the better part of a Saturday writing this, so at least read the whole thing before you ask! Your question may be answered later in the ebook.

[phil838]

Originally Posted by weijen

Hi phil, I read elsewhere you said you've stopped using cowabunga. could you comment on indicator intensive cowabunga, and NickB's method and yours? I thought you used NickB's, but seems you've added diagonal trendlines also.

thanks!

I haven't traded the Cowabunga system for over a year now. It was the very first forex system I traded, and I made money with it, but I stopped because I found a better way to trade that took less time and made more money.

I'd advise any newbie to throw out their indicators and learn to trade without them, but I do understand the psychological need that indicators fill. So if a person insists on using indicators I think the Cowabunga system is the way to go!

I do trade the scalp line part of the NickB method, but I don't trade reversals and S+R breaks by Nick's method anymore... I started doing them my own way late last year. You can definitely see similarities in our methods because I learned the NickB method before I developed my own trading style, and because neither one of us came up with our methods on our own. They are both based on time-tested trading strategies that have been around for decades.

There are some major differences between Nick's method and mine. The use of trends is a big one, Nick's method completely ignores trends. Figuring stoplosses and profit targets would be another big difference. Nick goes for set numbers like 50, 70, or 100, while I use chart analysis to figure mine.

Whether someone trades Nick's way or my way they will still be successful. I think mine's better, of course, or I'd still be doing it Nick's way, but they're both great trading methods!

[johnnykanoo]

Phil great book. I do my analysis the same way but i look for ob's and breakouts to.

the ob is almost always going to show you the direction of the pending movement (just look for it)

also consolidations always break out so it is easy to catcha good move using that. but the ib i love because it is breakout trading and it has alot of opportunity 80% of the time the markets are ranging.

heres a consolidation im looking at.

[phil838]

Originally Posted by johnnykanoo

Phil great book. I do my analysis the same way but i look for ob's and breakouts to.

the ob is almost always going to show you the direction of the pending movement (just look for it)

also consolidations always break out so it is easy to catcha good move using that. but the ib i love because it is breakout trading and it has alot of opportunity 80% of the time the markets are ranging.

heres a consolidation im looking at.

Thanks Johnny,

I'm one step ahead of you... I'm already working on Part 2 of my method that covers breakouts. I wanted to keep the first part pretty short and not overwhelm any new traders trying to understand it.

I'm watching that consolidation as well. I do it a little differently though. I use trendlines on a 4 hour chart and then trade the breakout of the triangle. We're pretty much watching for the same thing, just doing it in different ways.

I've never really paid much attention it OBs, but I'll start keeping an eye on them now.

[johnnykanoo]

in your chart every single "qualifying ob" was a success. there bullish or bearish nature showed the way the market moved, the only 1 that failed was a long wick ob which i would not have traded. the only thing is an ob trade can cause serious drawdown because of the size. the safe thing to do is wait for the ob to break to enter (big drawdown) or wait if price will retrace for a better entry. Like everything it takes time and confidence to imp-lement. its hard to watcha drawdown grow unless your experience shows you that the trade will work out.

I must give james16 credit for alot of my priceaction analysis. He is a tremendous trader and his methods, IMO are the best around period.

of course if I were to give everybody credit for my style the list would be quite long, Im even stealing a little from you phil

james16
tess and co, and tony
nickb
fetor
jacko (a little)
fti
feb2865
phil838
robert borowski
im sure im missing some....

[mumpips]

HI Phil,

Great to see your new book. I can't wait to read it and I know it must be a good one. Personally, I like your style of answering questions....details,patience and most important is humble.

Do you have any blogs for people like me to learn more from you.... I am just started to throw away all the indicators after I found NickB's method and I am glad that I also have found an experience trader like you, thank you for being there whenever I have those funny funny questions inside my head.

Wish you all the best in your trading journey.

[mumpips]

Originally Posted by mumpips

HI Phil,

Great to see your new book. I can't wait to read it and I know it must be a good one. Personally, I like your style of answering questions....details,patience and most important is humble.

Do you have any blogs for people like me to learn more from you.... I am just started to throw away all the indicators after I found NickB's method and I am glad that I also have found an experience trader like you, thank you for being there whenever I have those funny funny questions inside my head.

Wish you all the best in your trading journey.

HI Phil,

I have just finished reading your ebook. It's a good one. Thanks for sharing.

I have few questions, hope you can help:-

(1) Can you explain Stop loss on mini lot?
(2) Ref to IB, does the colour of candles matter? let say, red & green...the price will move up and green & red...the price will move down?
can you show more example on IB?

Thanks for your great help.