Thanks for the link.
I also did not take the USDCAD trade for the same reason.
My USDJPY long was stopped at breakeven today. This is what happens with breakouts about 50% of the time. After a brief momentum move, price comes back to test the origin of the breakout, i.e. the residual energy area. This is why I prefer taking these tests instead of the initial breakout. You get a better chance of staying in the trade 
PS: I had +65 pips profit on the trade before it turned, so it wasn’t that bad. Unfortunately, I was not in front of the PC when this advancement happened, otherwise I would have trailed my stop a bit higher and taken some 35 pips profit on the trade. Nevertheless, bounce trades are much better.
In buddhist practice, there is something called the “[B]four great efforts[/B]”. These deal with progress on the path, towards the goal of enlightenment. The same buddhist four great efforts are those a trader has to work with in order to overcome his emotional problems and consistently execute his trading plan:
- [B]Preventing destructive actions which have not yet arisen[/B] -> try to follow your plan (read it every morning until it sinks into your subconscious).
- [B]Ceasing destructive actions which have already arisen[/B]. -> when you make a mistake, write that down in your trading journal, BE AWARE of it and vow not to repeat it.
- [B]Cultivating constructive actions which have not yet arisen[/B]. -> follow plan
- [B]Maintaining constructive actions which have already arisen[/B]. -> write in trading journal and vow to repeat
The two key things that we use to work on our self-discipline and emotional management are the [B]trading plan and trading journal[/B]. The trading plan defines our goals, our ideal behaviour as successful traders. The trading journal measures our progress on the path and helps us go in the right direction again when we do stray from the path. It also keeps us motivated…
Hi,
Just checking in and saying thanks to TL for sharing this here. I am reading and re-reading everything, and I think for me, the most valuable resource for learning would be chart examples in real time, with the scoring done at the time and re-assessed as price develops.
Identifying the correct areas is obviously the key to this, followed by scoring them.
Anyway, TL, you have another follower on this thread, so please DO continue!!
Thanks,
Rob
Hi, Rob. Thanks for the feedback! I will continue tomorrow. Have been a little busy the past two days (and monday was US Bank Holiday, so I took a break from trading). Charts coming up tomorrow
Great stuff on here! Keep it up! I have also studied Sam seiden’s material for the past few months and I really like the way you have set up the score system. Although Sam gives us a basic concept of this, he doesn’t reveal everything. The rest I am hoping we can figure out with experience and looking at charts. Maybe you can give us some more insight!
Sorry guys, I just didn’t have time to do anything today. Hopefully, I will get back to you with some charts in tomorrow’s London Session.
I haven’t taken any trades this week either. I haven’t seen any level I’ve liked on any of the pairs I watch.
Yes, on the EURUSD, we are at some high timeframe supply areas and a decent hourly demand level is way below around 1.3030. Hard to say what’s going to happen while price is within this range. Right now, it’s either absorbing high timeframe supply or the other way around (high timeframe supply absorbing lower timeframe demand). Not much to do except wait and see which way it breaks and get ready for either of the two possibilities.
I was going through some original buddhist texts today and came upon this interesting passage, where the Buddha identifies 12 causes for failure. He was talking about monks failing on the road to enlightenment, but interestingly enough, these points are very relevant to traders as well:
- Disklike for the teachings (i.e. lack of interest in proper education).
- Bad men are dear to him and he approves of them (i.e. his idols are people who get rich quick by any means).
- He is fond of sleep, lazy and full of anger (laziness and anger are causes of mental confusion, which leads to bad trading).
- Although able, he does not support his parents (i.e. bad character, poor heart - this always goes hand in hand with a confused mind, not suitable for a real trader).
- Speaks untruthfully to a monk or other religious teacher (I guess forum trolls should focus on their own improvement instead of slandering others?).
- He is stingy and not generous (without losses, there are no profits; keep your risk under control and consider each loss as a business cost - give and ye shall receive).
- He is haughty because of his wealth, birth or clan (the markets always humble us when we become ****y and overconfident).
- He squanders money (overtrading, taking too many risks, throwing your money away)
- He is dissatisfied with his own spouse and seeks others (all emotional disturbances, especially coming from your love life, will greatly influence your trading!)
- Envy (don’t envy other traders, just learn from them!)
- He places a person in authority of questionable character (carefully pick your mentors)
[B]12. Too much craving and unrealistic expectations![/B]
#12 really strikes a chord, doesn’t it?
Hi, guys!
Rob (a.k.a. 599GTO) was kind enough to compile a PDF of the most important posts in this thread. I am sharing the link to the PDF file: here.
Muchos gracias, Rob
No worries mate!! I should add that the file is up to date as far as post 90 on page 9.
As the thread progresses, I will update and share again.
TL - maybe you should add the link to your first post?
Awesome job, Rob! Thanks for your efforts.
OK! I’ll try to start some discussion here!!
EURUSD D1 chart shown.
Am I right in saying that the prior area of supply is what is preventing price going up? [for now at least]
And the H4 demand zone is holding it up from below? [again, for now]
This H4 demand zone has been hit several times and is therefore spent [as per second image].
I’ve also shown a D1 demand zone.
Would appreciate feedback and correction if necessary!!
I’m looking at the same levels, there’s a lot of accumulation going and it’s hard to tell which way it’s going to break. I guess we will see what plays out but I would certainly look at the levels u marked up.
Thanks for the feedback Strider.
Just a technical point: if it’s accumulation, price WILL go up. If it’s distribution, it WILL go down. We don’t know which it is yet, although as I write, price is breaking upwards.
Of course, this could be the [very common] stop hunt to get all the retail traders puking their shorts and entering long. This creates liquidity and a better entry price for the big boys to get short…
TL - I’d appreciate your feedback on my charts!
Excellent, Rob. You are getting the hang of it. I will get back to you in a few minutes with my own EURUSD analysis, but you are right about the levels. Good job!
Supply will most likely be absorbed.
So, we are expecting EURUSD to absorb supply on the daily. Where could price be heading then? For that, we turn to the higher timeframe: the weekly:
Probable first target is 1.3880.
Now, based on fractality (higher timeframes), we are expecting price to move up. So let’s see what we have on the lower timeframes: hourly chart.
We have demand building up, the green demand areas should be good places to try some longs. In case price wants to break to the downside, it first has to absorb these areas. They haven’t been tested yet and this gives us a clue that the uptrend is still strong and this trend will hold on for a while, at least until both those green levels are tested at least once.