Alternative Technical Templates.

[tonymand]

While you could argue that there are entry signals here in terms of ib/ob etc the reality is we are locked between 2 significant areas at 40 and 70. I would want a clear close above the trendline and 70 to resume a long position and a close on a significant down candle below 40, preferably after a failed retest of 40 as resistance. Sometimes it is what you dont lose that makes the difference to your bottom line

[tonymand]

If you got into this last night well done. I couldnt get the patterns to line up and didnt want to take a punt. Disappointing after waiting all day! The break of 240 came, there was an immediate challenge, then an IB for those using that system but stoch in the wrong direction. Tweezer top was bearish then almost an IB prior to the move down. Anything after that was too close to the profit target around 2.0215 - Sigh. Always another day

[Tess]

Originally Posted by tonymand

If you got into this last night well done. I couldnt get the patterns to line up and didnt want to take a punt. Disappointing after waiting all day!

Yes, sometimes it can be a very frustrating enterprise can't it.

But that's why we adopt & engineer specific protective guidelines (to warn & prepare for area's of caution) & occasionally those guides will conflict.

Thankfully, they don't often blur the canvas, but there has been many an occasion when these warning sirens have saved a little chunk of my bacon!!

Reminds me of the old saying: "better to be out wishing you were in, than in wishing you were out"

The slip during Tokyo finally cashed out my final stake trailing stops on the 1.9995 entry @ 2.0195 from last Thursday.

And as you noted on your last post, we're now playing footsie with this Fib support channel here @ c2.0120.

This level is the minor shoulder in maintaining the hourly higher low step from last weeks journey up off 1.9890. If it falls thru here, then the close range supports @ 1.20055-75 come into focus.

That level will prove pivotal I think & if that also gives ground, it's likely the months highs up there @ 2.0360 will be relatively safe for a while!

[tonymand]

I have taken this from my GY trade earlier tonight. Following an entry signal (in this case James OB) there is often a backtrack to near to the stop. This is probably common to other entry systems too. A split entry could vastly increase profits on these short term trades although of course for those that dont retrace you would be in with substantially less lots. In the example with a stop of 46 pips say you have 1 lot then you return 1R at +46pips. However at a 20 pip stop by buying onthe retrace you could now purchae 46/20 lots with the same % risk and in addition this will return 1R at + 20 pips. I will be looking at this closer to see how tradeable an idea it is. Can anyone fault my logic here?

[daydreamer65]

Hi Tony if your still about would it be possible to
give me the formula for the calculation of R please.

:cheers:

[tonymand]

Originally Posted by daydreamer65

Hi Tony if your still about would it be possible to
give me the formula for the calculation of R please.

:cheers:

Hi DD. R is simply the risk reward ratio so a 1R trade returns the same as you have risked. So if you put on a trade with a 20 pip stop and it moves 80 pips your trade has returned 4R. I find this a better way of comparing returns. These concepts are very well covered by Van Tharp in Trade your way to financial freedom.

[tonymand]

This is one of my favourite set ups at the moment (since meeting you Tess). It has now worked well for me several times (twice last night alone). But taking a long where I did after a dramatic fall always feels like stepping in front of a speeding train (and the old heart races a bit I can tell you since in some ways I should be looking for a short). Tess, do you take such a trade at this point or do you wait for more confirmation of a turn perhaps double bottom or the first pullback of an upswing (both occurred here)

[Tess]

Originally Posted by tonymand

Tess, do you take such a trade at this point or do you wait for more confirmation of a turn perhaps double bottom or the first pullback of an upswing (both occurred here)

The example you show is of an entry within a very defined range on the GBPJPY (234.55 - 228.20).

In the example you posted I'd usually wait for a little further confirmation before firing an entry off.

But that's just my view according to the usual parameters I adopt for trading that type of environment.

If I was tackling that particular pair, looking to trade the well developed range it's currently displaying, then I'd have preferred to execute nearer the extreme boundaries.

That's not to say your entry was either dangerous or ill-prepared, simply that it wouldn't have been of interest to me.

As long as the trade fits your criteria for that particular event (a range set up) & you can locate an appropriate protective (stop-loss) zone, then you're good to go.

I've included a chart highlighting where I'd have been looking for an entry if my arm had been twisted to get aboard

But as I say - that zone wouldn't normally tempt me at all.

[Tess]

The prolonged range barriers currently playing out on Geppy.

The highlighted zones are where my interest would be sparked.

Those area's represent (for me anyway) lower risk/higher potential returns for the types of set-up I use in these environments.

If prices don't signal a green light, then I don't trade - period!

I simply look elsewhere until the pair or cross come back into line according to my specific criteria for trading that particular set-up.

Your rules & guidelines may be totally different, & that's fine. We all work to differing criteria & risk profiles.

Well done on your trade by the way....another few $$'s in the bank, which is what it's all about

[tonymand]

Just adding another view of GY here to that posted by Tess. Either way looks like we could be in for some interesting action with the mounting overhead supply