Alternative Technical Templates.

[JimmyMac]

Originally Posted by Ray_1

GBP/USD is in a downfall again.

The resistance level is set at 1.8002 and support level is set at 1.7765. Now i will wait and see which level the price will go.

Ok, so now you've identified the general bias & you got your personal upper & lower markers, what are you planning to do when & if price arrives at either of them?

Remember the important principles that Tess & Jos have constantly tickboxed throughout the thread? :-

[JimmyMac]

Here's a typical example this morning on the Cable of identifying s&r opportunities in tandem with dominant trend flows.

There was another clear opp yesterday on both Cable & Euro, bouncing off a visible s&r pitch.

I haven't traded this one, I don't utilize this set-up, but it's a popular strategy in these parts & both of the girls have used it as a valid example in explaining the activity & behavior of price action as it vibrates around the common s&r zones.

The object is to identify decent risk-reward opportunities around dominant price action.

The generics can be utilized across all timeframes, I've simply used the timeframe which James advises & teamed it up with the concepts of lower high behavior on a buddy (1min) timeframe to magnify & focus the trigger entry.

These types of opportunities are the ones you might want to practice spotting & preparing for.

They're not difficult to identify & you already got yourself another thread (40-100pip) to work in harmony with to cut your teeth on.

[Ray_1]

Originally Posted by JimmyMac

Ok, so now you've identified the general bias & you got your personal upper & lower markers, what are you planning to do when & if price arrives at either of them?

Remember the important principles that Tess & Jos have constantly tickboxed throughout the thread? :-

Hi Jimmy,

I will wait for price to reach these levels then look for an IB/OB to short. Am I right on this?

[kagein]

Hi Jimmy, could you explain the 1,2,3 on the 1min timeframe screenshot please..thanks


George

[tonymand]

Originally Posted by Ray_1

Hi Jimmy,

I will wait for price to reach these levels then look for an IB/OB to short. Am I right on this?

Ray - you are still looking for the 'right' answer instead of what interests you. Of course you could wait for those major levels and as I am already set up thats what I am waiting for. However if I was looking for an entry (which would be short) then Jimmys example was a great opportunity if you use the IB approach. I have marked a couple others on this chart that would depend on a retest after a break (obviously I am looking particularly at the downside but the upside is marked for completeness as there will be some countertrend reaction at some point if you feel brave enough). Whatever triggers you use would of course be up to you. But do you get the idea? Move away from right or wrong and consider how you would build a strat that suits your profile around these key areas

[JimmyMac]

Originally Posted by Ray_1

Hi Jimmy,

I will wait for price to reach these levels then look for an IB/OB to short. Am I right on this?

If the Inside & Outside bar is your primary execution method, then that will form the core of your analysis preparation.

Your trading plan should include an ‘all options’ consideration.
1) What will I do if price continues in the dominant direction
2) What will I do if price fails to continue in the dominant direction
3) What will I do if price ranges or idles into a consolidation phase?

Around that core will be your decisions on the appropriate risk you’re willing to take, money management deployment (trade sizes etc) & the type of trade management structure you’re looking to adopt (do you subscribe to “an all in, all out” and/or trailing method or maybe a scaling in & out procedure).

Most of those criteria will be directly influenced by the specific strategy or strategies you utilize for the market conditions you operate under.

They’re all important ingredients of your trading structure or plan. You should be very aware of what you’re going to use & why.

If you have a clear, simple structure to work with it will minimize the potential for second guessing yourself. It will also install discipline & confidence.

Once you got a workable plan to operate from, you can then spend your valuable time concentrating & focusing on honing & firming up your technical skills.

It’s all in the preparation. If you get that sorted then it’s one thing less to worry about when the trade opportunity comes knocking.

Cover all your bases, that way nothing can surprise you or bite you on the ass when you’re least expecting it.

[JimmyMac]

Originally Posted by kagein

Hi Jimmy, could you explain the 1,2,3 on the 1min timeframe screenshot please..thanks
George

It was meant as nothing more than an easy visual focus George.

I've mentioned the price structure behavior of lower highs & lows which tend to play out as price buffers & reacts to certain zones? that was simply annotated to show how it regularly conforms, is all.

There is actually a specific 1-2-3 technical reversal play out there which some traders utilize as prices reject a major swing level. If you wish to peruse that specific method then you can google it.

It's the (technical) right shoulder of a head & shoulders formation which isolates potential reversal plays across all timeframes.

[Ray_1]

Hi jimmy and tony,

Thanks for the guidance. I will now start to draw out my plan into details. I really learn a lot from this thread.

[tonymand]

Originally Posted by Ray_1

Hi jimmy and tony,

Thanks for the guidance. I will now start to draw out my plan into details. I really learn a lot from this thread.

Good - keep on asking the questions and posting up the charts and you will eventually find your niche in this business, after which it is just practice and seeking of course to improve just like any elite athlete

[tonymand]

This is Jimmys trade idea from earlier in the day getting exactly to target for a greater than 3R return. Not a bad 3 hrs or so work!