This thread was started by me, but it is not about me. It is for Traders who would like to focus on trading the GBP/USD (Cable) and the EUR/USD (Fiber), and specifically from a Day Trader’s perspective. This generally means entering and exiting the trade in the same day.
This thread, or at least the template of this thread, is a gift to all serious aspiring FX traders.
Please take special note of post #2. Don’t involve yourself with predictive analysis. Post your wins, watch others post their wins and become familiar with what works… use your own losses to see what doesn’t work. Scrub lot sizes and $ signs from your screenshots… for your own benefit.
I’m not the person to help you guys out… I need to trade from now on. I am not one of the “gifted” few who can trade and teach at the same time
I’m gonna take this opportunity to clarify something, hopefully once and for all. I don’t take “signals”. I have a set of templates that I refer to and IN CULMINATION, I use those perspectives to arrive at
[B]a) a long/short Bias
b) an Entry Price (or at least zone)[/B]
I would recommend people talk about their trades after-the-fact… I really want to stress here that nobody should be trying to prove anything. Don’t need to prove the tools work, or that you can see price moves before they occur.
Don’t even have to post your losses… we all know we have losses. [B]Post wins… and how you got in… and why. Then people can hopefully just pick up on it by seeing it over and over again.[/B]
Looking forward to the thread and some good trading talk as everyone moves on from the latest happenings.
I like to utilize the Asian Range a lot as well. I haven’t traded the past week or so and I don’t have my trade station open, but how did you decide to go long at the AR low there. Looking only at that chart and with the recent downtrend in the back of my mind I may have been more inclined to take a short as it pulled back up into the AR low after the sharp move down. This would also be what appear to be yesterday’s low so a nice confluence of events there. Possibly even as it pulled up further into the AR at the blue line there.
Right, so basically the expectation of having a NYO reversal. Here we pop down below PDL, AR low, then pop back up and find support at this level with confluence of an OTE.
If I can pick your brain, did you expect this reversal because you viewed the rapid downswing as stop run of these levels (PDL, AR low). There is also a low on the daily chart back in August at the ~1.5490 level and again at ~1.5460 which seem to have provided support. Were these taken into consideration?
So, if I were to hazard guess, you viewed the rapid downswing as a stop raid or Judas or whatever you may wish to call it of the PDL/ARL and into higher time frame support levels which you expected a bounce. The OTE at the ARL gave you your entry for this bounce? Close? Completely off?
Yes, I was mindful of the Support from July/Aug 2011 in the 5450-5500 zone.
Look at the hourly chart, the candle is long, looks very Bearish… but in the context, it occurred AFTER price had been going down all week. Was smart money really interested in another leg down on a Friday morning? … or were they looking to create some panic selling so they could take profits on their shorts…
These are the things going through my mind, I’m thinking about other market participants… where they are positioning, where they have stops, where they might want to take profits.
but all in all, your assessment of my rationale is quite accurate
Looks like a great thread I started with Pattern Trading and then have gone onto study John Murphy + trying to identify L-T bias.
Unfortunately when making an entry, It comes down to intraday trading, and I like the price action tools you are all advocating so hopefully I will learn something =)
I’m curious to know, with intraday trading, in addition to considerations such as AR, ADR, SMT, FIBS, PA, S&R, USDX, EURX, BONDS, etc. aka Pure Price Analysis,
Do you combine price study with an momentum indicator? I´m not a big fan of using a lot of indicators, I prefer to stay mostly with price but I´m considering using one as a confirmation to help narrow down the amount of trades I take.
What options would you consider and do you use one? (RSI, MACD, WILLIAMS%R)??? Interested on your take on this.
I´ve tried using RSI but even so it feels like shooting in the dark. X_X
I don’t “advocate” or “recommend” anything (other than having a detailed risk management plan!), but the only oscillator I use is a Stochastic (10,3,3). I look at it on the 4H and 1H charts.
Are we trying to make a thread that actually works and creates profitable trading? I’m interested to see how this will turn out. Success will be determined from the ability to mesh being open minded with being critical. Hope to learn something from here, subbed
Akeakamai,
Apologies for my 1st post on your thread, I was making a point that with hopefully the Fiber & Cable coming back into sync with each other it would be a good opportunity to look for SMT Divergence with these pairs also I incorporated a trade I took on Friday.
Like yourself I do like to have the Asian Range up on my chart, I feel that a Day Trader should not trade without it.
So here is a run down on what tools I used to trade. First thing I do is open up a 4 hour chart this gives me direction for the day, the 4 hour stochastic was pointing up so this was my bias.
At point “A” “London Kill Zone” this was where I was poised to go long price bouncing off the Asian Range but if you look at the Stochastic “E” clearly pointing down, I was waiting for some more consolidation before a long was in play, but price sliced through this, this is where I should have gone short on the break of the Asian High but my bias being long I froze and did not take, this is one of my faults I need to let go of as a day trader and be able to take trades both ways.
At point “B” was an entry to go short but there was a distinct lack of volume at this area and it was between kill zones so passed on it but would have ended up a winner for 30 pips. At point “C” NY Kill Zone volume was building shown at point H suggesting price would go lower, but I could see this was a fake break below the previous low made in the morning also stochastic was pointing up at “F” This is where I drill down to a 1 minute chart to see what,s really going on, I do not recommend anyone going down to a 1 minute chart, I have been put down so many times by people for doing this as being a ridiculous way to trade but it suits me my stop was 7 pips target 30 so good R : R, if price was breaking out lower it would not put in 1 minute Bullish candle like it did this was my entry to go long Targeting the Asian low, for 30 pips, "I was lucky to have my 30 pips in just 2 minutes"
I had this as a possible swing trade to the long side as we could be at an area of support see my 4 hour chart and where we are regarding a trend channel.
I closed my remaining portion as the ADR to the upside had not been hit, if it had I would have kept the remainder running for a swing trade but price ended up consolidating in the Asian Range.
Apologies for the size of my charts I cannot seem to make them any bigger on this Forum for some reason.
so I have created a link to ImageShack hope it works.
The tools I used for this trade:-
VSA.
Kill Zones.
4 Hour stochastic for direction.
Standard deviation trend channels
Asian Range for possible target of 30 pips.
AK I just noticed your profile sais: “banned Fx honorary member” ?
sorry its a bit off topic… just grabbed my attention;)
I would also like to ask for a favour:
since I stumbled upon michael’s stuff very early on in my FX journey (for which I am grateful!)
I was busy working out how to appy his material and did not spend as much time reading additional material to get me where I want to be…
would you guys share some titles of the books, that you find to be a “must read” for any trader?
It would be greatly appreciated!