Alternative Technical Templates.

[erica]

Hey Tony, Tess, and Jocelyn
Where are u guys? U used to post up so much information. And Tony u used to place a smorgasbord of information every night, what you were planning and thinking.
We need your input
Erica

[tonymand]

Hi Erica. Yes I am still around. Back in November I announced that I was going to revamp my entire strategy. Tess warned me that such an undertaking was major and I never realised how big it would be. My aim was to radically reduce the number of trades I do, increase their profitability and spend less time at the computer. It has taken me more than 3 months but has been an interesting and worthwhile exercise. Initially I found myself cluttering my graphs with more and more useless information (so not only a trap for new traders) and several times lost sight of my ultimate goal. In the end I have settled for 1 major setup with a variety of action triggers. I have combined fib levels (Jimmy Youngs favoured 78.6), preferable set up on a 1H chart with action on the 15 mins, the IB and stoch as one of a small number of action triggers on the 15 min and delay of profit taking to let at least a portion of the trade run. I have reported some of these trades on the daedalus thread about fib retracement as they are pertinent to that approach but there is a beautiful example here from 2 nights ago with a classic James IB trigger and still running upwards as I write this

My aim was to get to 2-3 trades per week. There are actually probably 4-6 for instance there were entries on GU and UC last night and earlier in the EY example shown there was a retrace of the downtrend which was a legitimate entry so this week has seen a number already although I am not always available to trade them although I have devised an automatic entry at the 78.6, stop outside the retracement high/low. This can be done entirely with limit orders although the R is not going to be so good as the entry is not so tight

The other reasons for less posts relates partly to much less time in front of the computer so more time with the family and the realisation that I have shared on the various threads all that I know. There are a few little quirks which I have kept to myself but the broad guts of what I do and how I see the market is there along with in many cases real time trades to illustrate the various points.

[tonymand]

Just to follow up. Its taken all night but the raft of news releases from Canada pushed the pair against the prevailing H1 downtrend and into the 78.6 retrace area. Enter 1.0014, stop 1.0028 currently up about 1.5R. A number of ways of handling the trade. All out at the 38 works well, take part and let the rest run with a be stop or if you are early in the trend then stay with it with your full lot. A simple system. Based on using the 78.6 entry and 38 profit I have 2/3 trades profitable with winners returning 1.7R which are reasonable numbers. Tighter entries, getting in on a longer run etc can make a huge difference. For instance the EY has been up around 15R and you get to make decisions at each major supply/demand zone on the way up or down

[Tess]

Hi Erica,

We're still about. Unfortunately, we're a couple bodies light here in the office at the mo, hence our lack of visibility.

But, there's plenty of info on the thread for folks to pore over & digest. If you or anyone else has any specific questions regards the s&r material or it's interpretation, then by all means sling a question or two up.

Most of the pairs are continuing to honor the major s&r lines (if you take your time to zoom out on the hourlies) & are offering good trade plan zones in which to interact with.

Hopefully, once we get 1st quarter out of the way & the ship steadies, we'll have a bit more time to look in more frequently.

[Tess]

I'll throw these two 240min references into the mix whilst I'm here, but I'm sure one or two of you will have these firmly on the radar at current levels.

Some of you will have been chasing these up from lower levels this week via the smaller timeframes no doubt? Now that they've arrived at crucial (larger level) decision area's, you can better manage your trades if you're still positioned.

If you're flat, then these zones offer a heads up to begin focusing on your triggers to play them either side of the flows from current levels.

Decent upper & lower 1st level target zones to guage potential pare off/exit criteria too, so the risk is ok on either of these Yen based pairs.

Similar scenario on a couple more of the popular pairs out there, so a case of 'taking your pick' as to which pairs you prefer tackling really.

Good hunting

[jlmac27]

Hello everyone,
Have a question,maybe you guys could help. I have a problem with getting into trades to early,or jumping in false break throughs of S&R.I seen your post tess and I watch this pair quite a bit.So I pulled up a couple charts.The hour is looking good. Stochs are heading down, resistance level looks as it is holding price back.My 15 min. chart shows stochs down, price at the support level"With 2 previous bounces off this area".Are we getting ready to retrace a small bit then shoot threw?And if so would you wait till you fall threw the next low I have circled to enter?My timing in getting in isn't so great.What do you guys think?Is there a trade here?( think so) but where would you jump in at? Thank you much.good trading!....josh

[tonymand]

Originally Posted by jlmac27

Hello everyone,
Have a question,maybe you guys could help. I have a problem with getting into trades to early,or jumping in false break throughs of S&R.I seen your post tess and I watch this pair quite a bit.So I pulled up a couple charts.The hour is looking good. Stochs are heading down, resistance level looks as it is holding price back.My 15 min. chart shows stochs down, price at the support level"With 2 previous bounces off this area".Are we getting ready to retrace a small bit then shoot threw?And if so would you wait till you fall threw the next low I have circled to enter?My timing in getting in isn't so great.What do you guys think?Is there a trade here?( think so) but where would you jump in at? Thank you much.good trading!....josh

This was the best play zone for the rejection off the SR zone

[Jocelyn]

Originally Posted by jlmac27

maybe you guys could help. I have a problem with getting into trades to early,or jumping in false break throughs of S&R.

I seen your post tess and I watch this pair quite a bit.So I pulled up a couple charts.

My timing in getting in isn't so great.

I was going to post up that chart which Tess posted magnified into the upper resistance line, but I see Tony has hauled up a similar scenario.

When you're executing off s&r levels or supply-demand zones (which is what you're really dealing with when price approaches these zones), you have to try get your ticket at the premium entry.

It's no good shorting when prices are half way down a recognized channel, as all you're doing is increasing your risk.

The line that Tessa posted (213.50-70) is a clear, defineable area of likely supply (resistance). If you pull up your 4hr chart & take a look at prices from 3 Jan to 11 Jan, you'll see a very orderly channel of supply playing out.

Once prices pop down thru that area prices will need to be re-tested & breached in order for the GBP Bulls to advance.

You can see that price gets repelled on each attempt to break back up after 11 Jan. Therefore, that area represents stiff supply & is a decent risk play to short prices back towards the lower support bases @ 207.0-209.0

Only when demand overcomes the supply (a break & successful re-test) will this resistance level be tradeable from the long side.

Until then, shorts will hold the best odds of value & success. Stops can be placed to the topside of 214.0 to test the resolve of the GBP Bears.

As close as you can get to shorting at or near the resistance level will increase your profit potential & thus reduce your risk of loss.

By observing these clear levels from the 4 hr or 1 hr frame, you can then drill down into your favored shorter timeframe (as Tony highlights) & pick your weapon of choice (trigger) to negotiate the trade.

As ever - if a dominant flow exists....then simply run with that flow?

And the flows on this pair are still bearish.

[jlmac27]

Thanks Joss, Tony,
That answered my question perfectly.I see where I have been lacking in my trades now.At least with my entry points.

[Mr Average]

Hello,

I'm getting bored with all this ranging stuff. Thought I'd share a trade with everyone to pass the time...

This is the first of two trades I've taken this week, both short on GY. There was an IB trigger on early on Monday. It was close to an S&R area I'd highlighted, and the divergence convinced me it was a worthwhile opportunity.

Not sure if my attachment is very clear, but the first arrow is the entry, and the others are take profit points - the first at 1R. The last arrow is where I exited completely.

Personally, I still struggle staying in trades. Despite covering half my position at 1R so that I've got a BE trade at worst, I still get trigger happy. I'm getting better at hanging in there, taking profit at round numbers and other likely snagging points, but it's something I still need to work on.