Hello All!
I’m looking for a thread which focuses on [B]Naked Trading
on very short time frames[/B], like 5-20 tick bar charts.
Just using S/R as it’s “indicator”. LOL
I’m just a NB, so I don’t want to create one but, I will
if there isn’t one already.
Thanks!
I couldn’t disagree more. Price action trading in my view is more profitable than any type of automated system and your actually focusing on whats happening, rather than looking at a MA cross etc. The fact that he’s a newbie means he should start to learn how price behaves as soon as possible. Recognising price patterns will help you achieve success and limit draw downs in the long run in my humble opinion.
Dangerous way to trade, IMO, unless you are very skilled at trading (maybe just new to forex?) Even in that case, better to spend some time getting to know the pairs and how they move first. 
No, I don’t know of any such system.
Have a look at this thread
http://forums.babypips.com/free-forex-trading-systems/6632-alternative-technical-templates.html
Its a long read, a lot of the things will fail to make sense at first but trust me it will make you a better trader.
I have a method i use based around S&R that averages around 3R every time i win a trade. There’s plenty of examples on the thread and there’s regular input from three professional traders.
Better to start learning everything sooner rather than later!!!
Excellent! Thanks for this and the other replies!
I respect and appreciate all opinions and advice but,
in the end a person has to do what is natural for them.
Very short TF’s, where I can actually watch the market unfold
and define itself is best for me. Also, I need to be able to go
completely flat when I’m not in front of the screen. Again, that’s
just best for me.
Indicators are too distracting and confusing for me and
when you start combining them, adding “filters” etc. then
they make me crazy.
I know that my way isn’t easy or even normally recommended.
If it’s better that I just keep to myself and not post on the
forum, I’ll do it. I just thought that sharing my journey might
be of interest and value to others.
Thanks again!
Absolutely! The approach that I’m suggesting is the study that you are
suggesting. My preference for the TF and approach (not a system,
barely a method LOL) is E/U.
Again I’m going to have to disagree, respectfully of course:D. Your 100% right it is discretionary and that’s the beauty of it. What people seem to forget is that the forex market is a full of emotion, human emotion. As such you have to be flexible. You should also remember that [B]you’re[/B] part of the system/method you choose to adopt.
Think about it, why do banks pay traders such huge sums of money, when they could make a bunch of systems for a one off cost, they certainly have the resources for it. The emotional element is the intangible that a system just cant analyse but you as a trader can.
What happens when market conditions change and your system is giving all sorts of signals, wouldn’t it help to adopt a flexible approach then?
Remember S&R lines are levels where there is excess supply or excess demand and hence are a low risk area to initiate a trade.
Killer for a newbie?? Have you tried?
This is my method in a nutshell. Draw my lines on the daily and 4hr charts sometimes 1 hr then wait for a break then a re-test. With inside bar’s as my trigger. Simple stuff!!!
One year? why one year? Ive been live trading 6 months now, Ive been using this method for just under 3 months and I’m doing very well with it. I’m still a newbie and I’m still smoothing out the edges but it works, you only have to look at the numerous examples in the thread i posted to realise that.
Of course it does take a lot of practice but what in life doesn’t?
Over the long run strategies revolving around S&R lines are well placed to ensure a very healthy equity growth curve long after the bells and whistle systems have lost their popularity. There will always be levels at which price hesitates, and you’ll be right there to take advantage of that.
Of course there are numerous ways to skin a cat, my point is that if you decide to initiate a trade around S&R lines you wont do too badly.
Thanks for the insight guys! A good and productive discussion
with respect for varying points of view.
What I’m looking to utilize is most often described as subjective,
it’s true. But, when Buying and Selling forces reveal themselves
real-time as S/R, this is powerful info. To me it’s very objective,
market-generated info. A real indicator of what’s happening.
Maybe not easy and for sure not for everyone but, it should
have it’s place I would think.
Well if you are using major s/r areas as your ‘indicator’ and respecting them, then yes I can see how this could work well for you … however I still think 5-50 tick is a bit … fast. I’d prefer 1-2 minute.
When I encounter a losing streak in trading, I often return to a one minute chart, put in a 200 and 50 ema and watch for a clear trend to develop … both ema’s sloping in same direction … then if price is well underneath the ma’s I short the pullbacks when they retrace between the two ma’s. Reverse if trend is long. Trading this way I can usually recoup some losses in 8-15 pip increments which can add up & rebuilds confidence. 
However I never thought of doing this off of major s/r levels … I shall give it a whirl in demo account and see what happens … thanks for the idea
Sounds like you may be a newbie to forex, but not to trading in general. 
Thanks! I am brand new. I’ve been studying Forex for about a year.
I’ve never actually traded with very much money, with the exception
of a very short-lived crash-and-burn encounter with futures trading a
while back. LOL /COL:(
Since then I’ve just been studying various approaches to trading with
caution and skepticism as my guide.
From what I’ve seen S/R is the only market-generated info that there is,
aside or course from price itself, in Forex.
Here someone can bring Forex DOM (“Level II”) into the discussion
if they wish but, I’m not currently planning on using it.
Please keep posting your ideas and experiences, that is what this site is all about. There is no one way to skin the proverbial cat and you are absolutely right to look for something that fits your personality
I really don’t think that talking about the value of human emotion is a sound thing to do when it comes to trading or heavily relying on price action. I never pay attention to the news or economical indications. It has come down to pure technical mechanical, no thinking approach. I just see the entry and I enter at always 2% risk. I don’t think about it or get emotional. I’d rather consistently and mechanically make $50-200 per trade winning 10-20 trades per day than be emotional, get greedy, and be flexible. Being totally inflexible and mechanical has worked incredibly well for me for five years. Emotional trading is the worst.
Absolutely. But, discretionary and emotional aren’t the same thing.
This is a good point and where it’s a good idea to establish a sort
of guideline for our discussion here.
I really don’t want to make this a “this versus that” discussion thread.
Too easy to get people angry which isn’t the objective.
I will go back to my first post which lays out the parameters of:
I will expand a bit on the third point, as I see it.
If you look at any chart you can see where Buying and Selling
forces have come into the market. Where price has been pushed
back and forth.
Now, look to the right on the chart.
No, I mean further right than that. LOL
Out where trading will be taking place soon. There are Buying and
Selling forces waiting there. Some are pre-positioned in the market
already. Most are watching certain price levels without orders in
place so as to not give themselves away but, must enter at some
point if they wish to participate.
They will soon be revealed. They can’t hide once the market
touches them or they enter. As soon as the market reaches
them they will become visible. This is what I mean by S/R.
Please note that I’m talking about an approach that looks ahead
but, that doesn’t try to predict anything.
I’m not sure if this is clear at all. It seems clear and simple
enough to me. I didn’t say easy. LOL
Also: Maybe I should move this discussion to another area
of the forum. Where’s the appropriate place?
how short a timeframe ?
I used to futures as you did (stock index futures, in my case), so I’m familiar with DOM platform facilities, but to my knowledge the structure of the Interbank market, at least as it is presented at the retail level, precludes real-time, comprehensive depth-of-market data. That would be invaluable: open interest, order flow, etc. Maybe an ECN broker would have something approaching this, but that is highly doubtful.
You mentioned you’re not interested (I liked DOMs when trading futures; did some exercises using naked price, but never traded that way), but in case that piques other interest I wanted to throw this in here.
On a different note: how’re you adjusting from (if you ever became accustomed to) scalping on round-trip commissions to using spreads? Do you find it more challenging to reach profitability? Also, what broker are you using?
Last thing: as you’re probably already aware (sorry if I’m teaching you to suck eggs) discretionary trading off naked price is something that always catch certain market participants (trading any instrument) as odd, and maybe as flirting with disaster. From my exposure to other traders both in futures and forex, this seems more prevalent with futures; probably because on average futures traders have a shorter time horizon.
Your thread definitely has a place in the forum, but your style of trading is definitely more niche in the noob section. Forextown might be more appropriate; but that’s entirely up to you!
No greater than 2 minutes, I’d imagine; “5-20 ticks” (with the liquidity that characterizes the market) probably correlates more closely to 10-30 seconds. I say that because most 3rd-tier retail brokers (ECNs would be a likely exception) don’t stream price any quicker.
Hello Kagein!
Thanks for your input. It seems that you see what I’m getting
at, since you’re already doing it. LOL Great going on your
progress!
Well, the TF is the one item that could really be whatever
works for the instrument and trader. Really depends on how
much exposure you “want”. LOL
Other than that, this approach will “work” on any TF due to:
1)The fractal nature of the markets.
2)The fact that when the markets hit a certain price and it
reacts to Buying and Selling forces, it will do so no matter
how zoomed in or out your charts are.
For myself, my 5 tick E/U chart normally shows about a half
an hour of activity, depending on how active the trading is.
The example that you gave in your previous post of your
trading method is perfect and doesn’t differ from what I’m
talking about at all, even though the TF is longer.
Thanks again for the input!
i actually take all my trades of the 15 min chart, i find it works well and sometimes it plays out that you catch the very bottom or top of a move and you sit pretty. This doesn’t happen often though.
Below is an example of the types of trades i take…The pair broke the level then tried to retest it. We had a IB at this point and for added confirmation divergence. I closed this trade for 3.5R.
