how much time do you spend each week trading per day, week? setting up for your trades and investigating the news and fundamentals. time is money so how is it best scaled down to be proficient and acurate for your trading week. what is say your required reading before you place a trade. can you describe please. joanne.
I spend a morning during the weekend looking over the big picture fundamentally and technically. I spend perhaps 30 mins before the Europe open looking for high probability points and deciding what I am hoping to do. I spend as little time as possible in front of the computer once started and use sms alerts for developing situations and keep my diary and bpips posts during the time I am physically waiting for something
This is the trade of the day so far I think. Rejection of higher prices as shown by the long tail above resistance leads to a break to the downside. Conservative entry is marked. The exit is based on divergence and being at the 3rd fib extension. Could trade or wait out the likely retrace and look to get back short again
Playing the odds & balancing the risk is what itâs all about Tony. As long as you attempt to tip the odds as much in your favor as possible, youâll continue to remain afloat.
Keying into the market rhythm or momentum by utilizing the basics of price action will also ensure you keep it simple & uncluttered. I note you like to trade off the price action momentum wherever possible. Thatâs a very good trait to adopt.
The British Pound also offered that option this morning as it opened into London trade earlier.
The aggressive move down yesterday through a couple of support layers kicked up a continuation signal off this mornings Asian high at 2.0618.
The lower highs off that level magnified a clear entry on the 15 & 5 minute charts. The odds & risk remained biased to the shorts & it was simply a case of where & when to be honest.
When you see dojis, spinning tops & bearish collectives springing up at lower tops in a downtrend, bouncing off previous session high & low markers, it makes for a very strong set up.
Always easier to enter with the momentum than try be a hero & pick tops/bottoms.
Nice re-entry point. US CPI out the way so no collateral damage from that. Note the trendline break occurring right on the 60SMA. First challenge will be around 161.34. After that 161 is major support on the 4H. Keep an eye on the DOW as any weakening in equities will help this move along
Nice double bottom for some or all of your profits. Clear rejection of lower prices and an inside bar with divergence allows an entry for the trip back up. My real purpsose in posting this though is to highlight the way you get another opportunity off the 60SMA although by that time I was fast asleep and unable to take advantage!
Hey there tony,
You basically trade off the 4H chart and enter/exit with the 15MIN correct?Or am I wrong in saying that.Looking at the 60MA seems one could catch some pretty big moves with it,just have to have a larger SL.What would you base a SL off of?Maybe a longer moving average could guide you to tell you when to get out?What is your take on the larger time frames?Or the bigger moves I should say.
No I dont think so. I look at the longer timeframes to guage direction and likely areas of interest and use daily 4H and 1H. However my trading frame is 15 mins or occasionally 5 and rarely (as yesterday) 1 min. So my stop is tight as it is based in the 15 min trading frame and is usually based on a reversal candle pattern. My favourites are shooting stars, tweezers and inside bars. I am currently really interested in what JimmyMac is saying. If I have got it right he is looking at the first pullback to trade rather than at the critical fulcrum point. Thats what I already do if price goes clean through an SR but on a rejection I have tended to be in straight away. It also fits with something that Tess said about being in position already as you approach a major point rather than scrambling to discerne which way to go. I am off the firm belief that there are a handful of great opportunities on each pair each week and thats all you should trade
As some of you will have read I am trying to put the things I have learned into some key workable principles so as to identify approx 3 high probability high return trades per week on the EY. The idea is to trade the price action with limited reliance on any other indicators and of course to be aware of higher timeframe SR levels. It wont surprise you from some of my posts that I have a handful of favourite tools. I have been looking at
The 60 SMA
Double/Triple tops and bottoms
Stochastic Divergence
Trading in line with the 15 min trend and using peaks and troughs for exit
Candlesticks especially inside/outside bars, tweezers and pin bars
Now the attached series of attachments show 4 easily identified trades that would have yielded 25R last week. Some of these trades I took and identified them in real time on bpips but I did not trade them as successfully as shown here so no I am not yet retiring from my real job! This is my first attempt to delineate something that might work on a regular basis and cut out much of the noise trading I tend to indulge in (usually at a loss). There were other good opportunities during the week on this pair but with smaller returns.
All comments would be appreciated. At the end of the day I would rather trade less often and more profitably
These are the other 2 attachments. They are all in sequence and show the EY on the 15 min frame for the week
As I am not currently in the EY exiting on friday night the implication is for me to look for a long entry at the 60SMA or await some other convincing reversal signal perhaps a double/triple top and divergence at a higher level area of supply. Then to trade the downtrend for as long as it lasts (or the continued uptrend for that matter) rather than my current approach of scurrying in and out. Needless to say profit taking points can be added in along the way although its always struck me that the really big returns would be made if you ADDED to the winning position as the trend progressed especially in markets like we have been experiencing recently. Over the coming weeks I am going to try and trade only these sort of setups on this pair and look to refine it and see what the win:loss and ROI is. I will try and post up each set up that I see (win or lose) so if I miss one (we all know how one eyed we can be when we are trying to prove something) then please bring it to my attention. If it is possible to get a simple version of trading price action together then I think this would help a lot of new (and not so new traders) and it would then be worth starting a separate thread
TMand, you probably wonât take much notice of what I have to say given my past record but I spent a bit of time over the weekend going over this thread, in particular what you have to say about trading the trend as indicated by the 60sma on the 15min chart.I have come to the same conclusion as you with regard to this as it applies to Jamesâs ib/ob system, but I focus on the 60sma on the 5min chart as it catches trend changes much sooner. For example Iâm currently in a trade on the G/U, short on an ob at 1:30 EST (2.0541), which is up 60pips as I write this. Further confirmation that you are going in the right direction is given (in this trade) when the price drops below the MA.This approach is not unlike the 3 ducks system.
Hi Mustang. Glad to see you back and frankly there are no hard feelings. I suspect I am like you in some ways, I listen to what everyone has to say then go and look at it for myself. I agree with what you say and also the similarities with the 3 ducks. I got in later than you today on the break of the Asian session low and am already out so it looks like you have well outplayed me today so good for you
Worth keeping an eye of GY and EY with a hammer and divergence on both. Difficult to know which is the predominant trend though ie the current downtrend as a continuation of the falls last week or a temporary retrace of the possibly new uptrend that began on friday. All in all for now the GU is much clearer - wish I was still in!
I think the âtrendâ is rather subjective and after a few weeks in Jamesâs chat room,a while ago,that was confirmed. My thoughts are that trading the 15min chart is short term trading and consequently the short term trends are more relevant.Further more the 60sma on the 15min chart is really the trend of the past 15hrs and we are not likely to stay in one of these trade for that length of time.
yes very true. I have just left James room after being there 3 months and perhaps the most important thing I learned is making a clear decision about what trend you are trading. See the retrace on GU may be underway
It seems that we all sing from the same hymn book to some extent.As I live in the southern hemisphere most action is taking place while Iâm asleep so I need to be quite discretionary when I take a trade.The most important thing Iâve learn t from this thread is the significance of s/r levels.I plot these levels on the 4hr chart, on a Sunday, and transfer them to the 15min chart ready for when the market opens.I also look to see if these levels correspond with pivot points and fibs, if so Iâll highlight them in a different colour.A good example of this is the support level I drew on my G/U chart at about 2.0466, this has held up since yesterday and may have only just been broken with any significance.I would like to try and understand better the actual significance of these levels in terms of why the market participants are reacting the way they do as price approaches these areas.
If you only learn the relevance of s&r, you�ll be several steps ahead of most of the new & well grounded traders out there mustang.
Yes, 2.0450-60 is an important range top & as you say, & continues to direct price action at this key upper level on the British Pound.
If you construct similar research on the EURJPY, youďż˝ll notice the significance of 160.50, 162.50 & 164.20. These combination levels have also attracted 2 way activity into this weeks trade. They have been pivotal from 2nd quarter really here & there, & triggered a superb IB entry into todayâs Tokyo session.
One major reason some of these levels carry more significance than others can be attributed to stop-loss & stop-order transactions. If you stand back & [B]LOOK[/B] at one or two of these levels, you�ll quite often find that they sit at critical crossroads on the price map from previous attempted runs back & forth.
It�s [B]one [/B]reason an important level is sometimes multi-tested. Price drives through, moves back for a re-test, tentatively moves away again, pops back again & attracts sufficient support to leg it to next level, where the whole process begins again.
Not the exclusive reason, but a significant one none the less. Option activity can also greatly influence a level, quite obviously too on occasion.
But, it�s not really necessary to fully understand why these magnified levels work, only that they have worked enough times in the past, & they continue to obey the laws of price action now & in future.
Many hands make light work!
Many orders at similar levels drives price!
This thread is indeed attracting some good quality work.
There are many entry signals here, triple bottom, springs below the support line, inside bars, divergence, trendline breaks all occurring at a key support level. Is this screaming buy me? There have been at least 2 subsequent entry points if you missed the initial one depending on your action trigger. Have exited all at the round number given this is right on a recent supply area and we are up 300 for the day. Took this rather than EY as it is moving better
