Price Action Trading

[pppglowacki]

Originally Posted by pppglowacki

Hi, well here was the entry on the EU this early morning...

Sell @ 1.5224, Stop loss is 15 pips (with spread included) or 1 pip above high.

Trade time is @ 1:30
Profit target is not yet determined.
Lets see how it will plan out...

Stopped out after an unexpected news release came out, it seems to have shoot the EUR/USD up then back down...did not see that coming

This is one of the things a trading system nor a price action trader could predict, i think.

[Sweet Pip]

Originally Posted by pppglowacki

Stopped out after an unexpected news release came out, it seems to have shoot the EUR/USD up then back down...did not see that coming

This is one of the things a trading system nor a price action trader could predict, i think.

Did you check the calendar under the "Tools" tab?

[Airborne]

pppglowacki, interesting thread you have here. Looking forward to learning some things here. Maybe you can shed some light on my madness. So if I understand correctly you have been trained by a professional trader? I shall be looking forward to reading your charts.

[Airborne]

pppglowacki, When you mean price action does this mean just getting your trade bias from the chart only. ie higher highs, higher lows?

[pppglowacki]

Hi Sweet Pip, thanks for the calendar info but WE do not use nor look at when a news release comes out because most of the traders are already in a trade well before the actual news comes out. thanks for the link though.

Hi Airborne, yes I am still being trained by a professional traider, I am currently in a forex mentoring school. Currently developing my strategies with the help and support of students and teachers. Yes, when i mean price action I do mean we get our bias from the charts, and only charts. There are many things we learn which tell us this and that but we are mostly tought high probability setups and trades to minimize losses and increase profits.

Ok, well thats enough of the school for now, here is the trade from today on the EU which I waited all night to take, finaly when the sell trigger came, it did not fit in to my rules so I did NOT take this trade - here are the details if the trigger where to workout:

Sell @ 1.5234
Stop @ 1.5248 (This is a 17 pip stop loss with spread included)
Profit Target maybe around 1:2 with easy profit.

[pppglowacki]

Well, i have been working hard so far on a few parts of my trading method in the 401 class, i must say that it has been hard and complicated - but im seeing small improvements which i am happy about.

On the 03-05-08 the EU and GU made some great moves. I focused on the EU to do my analysis and did not have time to do the GU at this time. Here is a trade that I would have been looking at, everything looked great and according to my trading rules but finaly when it came time to make the trade i would have stayed out because the 5 minute chart did not meet my requirements. It was a nice move down for about 30 pips with a possible 10 pip stop loss (with spread included).

Later I had some key lines drawn, I noticed that a buy trigger was being created @ 3:00. The 30 minute chart worked out nicely, it did not close below the daily barrier line, the 5 minute trigger was very good. Here it is:

BUY @ 1.5157
Stop @ 1.5143 (Stop loss of 7 pips with spread included)
Profit Target = I have a set of rules that i am working on for this too but my #1 profit target would be @ 1.5200...not sure where i would have closed this trade...a nice over all trade of probably around 150 pips with a 7 pip stop loss?

[pppglowacki]

Stayed up during the London session again tonight to practice some trades. Here is my sell on the EU after a break of the barrier that i have set.

Sell @ 1.5337
Stop @ 1.5350 (13 pip stop loss with spread included)
Profit Target not set yet...think i will watch the trade and update.

[pppglowacki]

Haha and we all get stopped out tonight lol
On the EU and the GU!
That was great...

[Airborne]

Originally Posted by pppglowacki

Well, i have been working hard so far on a few parts of my trading method in the 401 class, i must say that it has been hard and complicated - but im seeing small improvements which i am happy about.

On the 03-05-08 the EU and GU made some great moves. I focused on the EU to do my analysis and did not have time to do the GU at this time. Here is a trade that I would have been looking at, everything looked great and according to my trading rules but finaly when it came time to make the trade i would have stayed out because the 5 minute chart did not meet my requirements. It was a nice move down for about 30 pips with a possible 10 pip stop loss (with spread included).

Later I had some key lines drawn, I noticed that a buy trigger was being created @ 3:00. The 30 minute chart worked out nicely, it did not close below the daily barrier line, the 5 minute trigger was very good. Here it is:

BUY @ 1.5157
Stop @ 1.5143 (Stop loss of 7 pips with spread included)
Profit Target = I have a set of rules that i am working on for this too but my #1 profit target would be @ 1.5200...not sure where i would have closed this trade...a nice over all trade of probably around 150 pips with a 7 pip stop loss?

pppglowacki, do you buy your entire position up front, or do you split it up in say 1/3rds? Then scale profits one the way up. I'm looking into this right now. I think it might allow more flexibility. So if I have a 50 pip stop and 5k account I could buy 2 lots of GU and open 3 orders of .66 each. If stopped you take the whole hit of 2%. Then I'm thinking of setting the first tgt say 15 pips then 25. Stops move to B/E once 20-25 hits. Then just hold on to the last one as long as possible... Does this make sense?

[milamber]

Originally Posted by pppglowacki

WE do not use nor look at when a news release comes out because most of the traders are already in a trade well before the actual news comes out. thanks for the link though.

IMHO, looking at the news for the day is the first thing you should do even before analysing the charts, especially when daytrading and using the shallow stops that we use, precisely because of the sudden spike towards our stops that it can cause. I always eyeball the upcoming news and give myself sufficient time till the news for my trade to happen then either i close 30mins before or hold if i think the news will spike things my way. I'd even look for a long trade (for eg.) if i see a news coming in the next 4-5 hours that will cause the market to go bullish. Unless i'm holding a position for longterm, then news has less of an effect. Just my two cents...