David Jefferson aka: Rave55 (Technical Analysis Trading Method)

Trading Systems Free Forex Trading Systems
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Hello everyone,

My name is David Jefferson (aka: Rave55 from another forum) I’m an EX city trader from London.

I have worked for various banks during my time, but recently I called it a day and decided to move to the country where I spend my time mountain biking, walking my dogs and enjoying life away from the rat race.

I trade from home now on the FX and commodities markets. I recently started a thread on another forum which gained a pretty big following and respect. But the owner of that forum and their mods proved to only be interested in one thing, and that is money via selling EA’s and affiliate deals. My thread was totally free and run for free, but the mods there were trigger happy with bans, and only seem interested if you sell something that they can make a profit from. So I have decided to stop posting there and re-start my thread here, which hopefully will gain a bigger and better following from people who are actually interested in learning how I trade.

The way of trading I’m going to outline here over the next few weeks is how most traders at banks are taught (In terms of technical analysis… there are other factors). The bank I spent most time working for was Barclay’s. Most traders get entered into a training program (run from outside sources) when they first start a position at a bank or prop firm, normally these training programs are run by the same few firms, and regardless of which banks traders go through these programs, traders change banks/jobs just like any other profession. So the same methods are pretty much industry standard due to this.

What you will learn:

[ul]
[li]How to use the industry standard MA’s correctly.
[/li][li]How to analyse multiple time frames.
[/li][li]How to correctly use Fibonacci retracement’s.
[/li][li]How to find and use proper support & resistance levels.
[/li][li]How to establish trend direction, or non trending markets.
[/li][li]How to establish trade location.
[/li][li]How to define risk.
[/li][li]How to anticipate trends before they start.
[/li][li]How to get in on a move before the crowed even know its started.
[/li][li]
[/li][/ul]

And more…

Time and time again I see the same mistakes being made. Most common one is the wrong use of moving averages.
Retail speculators tend to read the same books, websites and buy the same junk EA or trading systems for sale from a marketer. So its no wonder why the mass use the same methods and why the mass fail.

The old method that is always punted around is, one moving average to be above another before going long or one moving average to be under the other before going short, that is the age old BS that is telling you nothing more than the trend has already happened, and that you, the retail trader, are late to the party my friend. You broker and dealer love this method because it is a money maker…not for you…but for them.

Personally I do use moving averages, I use the 50-100-200 SMA’s on the daily chart the 1 hour chart and the 15 minute chart in order to make trading decisions. Are these the holly grail of moving averages and trading?..Absolutely not, they are nothing but tools that I use to help establish “Trade Action Zones”. One thing I do not do or care about is what moving average is on top or under the other. Both banks that I worked for used these common industry standard settings for their trade and analyst desks. (analysts are not traders, these are 2 different job roles). And to this day I continue to use them trading my own funds as I’m now an Independent home trader.

Please only follow and participate in this thread if you are really interested in what I have to say and post. Otherwise please direct all negative comments or other topics to me directly via PM in order to keep the thread on topic, spam free and civil.

Here is a picture of me from a year ago at one of my old trade desks. And also a picture of my new Porsche which I just recently bought from June’s profits. (I smashed my last Porsche round a poll)


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Talk Soon!

2

Sounds interesting,
So far so good, waiting to read more
Thanks for contributing and willing to help new traders.

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We seem to be attracting a lot of former bank traders lately. Hope you have a lot of [B]free and educational[/B] stuff for us here at babypips. Welcome.

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What I’m probably going to do is re-post “some” of my old posts I made on the old forum because there is a lot of information on my old thread and it explains a lot and it saves me time re-writing it all.

If thats a problem for the mods here, then let me know via PM please.

Every time I post something that I have posted before on the old forum I will market it with OLD POST as the header.

So here is something I posted yesterday which I think is important…

OLD POST:

You may think that professional money is in the market 24/7 right?

Well the question and answer is a little skewered, because the the answer is yes and no.

Professional money can be in the market 24/7 in many formats such as spot, option/derivatives, fixed income/risk ect ect ect. Mostly options.

But not all the time is fresh money coming in or being added. There is a lot more to professional trading than what price is doing at a moving average on the 1 hour or daily chart, so I don’t want to get peoples hopes up in thinking that if you learn the way to trade that I teach here, then your going to be able to go work for Barclay’s and earn �1.1 million yearly bonuses.

But understanding the charts correctly will be a major factor, and is a factor to the professional when trying to price a trade and define the risk.

That’s what I’m trying to teach you here… I’m trying to teach you HOW to use a chart in order to price a trade, define risk and anticipate moves like professionals do using a chart. The other factors that professionals use and have at their disposal is a different topic and likely beyond this forums students at the current time, in terms of experience and financially. But when a professional has a reason to enter a trade (out-side of charting), then he/she will go to the chart, and use what I teach here in order to price the trade, define the risk and anticipate the move. So even though you don’t have all of the other tools and information at your disposal, you will learn here how to spot the areas where the professionals price the trade… ie… correction zones, lines in the sand… MA’s and price action.

Once you gain the actual correct understanding and experiences, you will be able to see the moves on a chart that are retail driven, or professional driven… by the way the clues are on all of my charts I post… its not hard.

I made a joke the other day, it was more of a joky comment… the comment was… " I’m part of a trading gang, the gang is called BUY LOW, SELL HIGH, it is a ruthless and elite bunch, you wanna join?"

The clue is in that comment… how do we know when pro money is coming in and being attracted, and how do we know when its retail money coming in or being attracted.

Well first of all, Professional money always follows the gangs title as the rule… buy low/sell high.

Where as… Retail money follows the moto… enter randomly on an indicator cross or MA cross… or better still, both, and hope for the best.

You will often see large moves in the market or trend that takes shape… then you will see a small pause or small consolidation, followed by a large candle or 2, or at least a cluster of small candles all going in the direction price was moving… but then it halts again and does nothing.

That is a retail driven move!

First of all, price didn’t retrace or pull-back to a pro money zone, therefore if you entered, you would be buying high, which we all know increases your risk on the stop and minimises your profit potential, but it also increases your likely hood of facing a correction or reversal as the move is over extended. The retail crowed entered high, moved the market a tiny wee bit and not much came of it. Then they have a moan about it.

Lets see an example of this…

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Here is todays GOLD analysis…

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Okay folks, Gold held the correction zone I outlined on my analysis early on.

Hold above bulls in charge, break and hold below, the bears take control.

So here we have the bull keeping control

Updated 1 Hour Chart:

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When it comes to Gold and Silver, I like to use the 10 minute chart for entry as these commodities move a little different to the FX.

10 Minute Chart Entry:

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There is nothing really overlay technical about trading this way. Its just the same things over and over… remember this is NOT a trading system, it is a way of analysing the chart, and being able to make your own trading decisions without using stupid EA’s or some marketers latest $99 trading system!

Happy Hunting

David

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Welcome to babypips. Looking forward to learning. Seems to be a good start to a thread as we like things for free. I will be following. I will try to stay civil but I dont think I have the ability :D. Try to keep your car off polls they didnt do anything to you :stuck_out_tongue:

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I’ll certainly follow with interest, David, thanks for posting.

ST

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Great…!!! I am following the thread. Waiting for more posts. Hope I can Learn something from you…

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Hello everyone,

Simon,

I’m sure you were a member of the old forum I was posting in, your name seems familiar.

David

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Hi David,

up and running again I see, will let others know where you are from the old forum. Still in my audusd buy trade, price seems to be within a triangle now, have tightened up my stop.

Let me say what I have learnt within the past week from David from the other forum has been of great value, and I can now start to see a new direction with my trading.
In fact I took a buy on the gbpusd using this method and pocket a nice 81 pips. Still learning and have had a few losses still, but I feel I am on the right track now. Can’t wait to learn more, once again thanks David.

joffie

As I wrote this post, the audusd has just broken to the upside out of the triangle.

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Hey joffie, nice one! I’m glad you could join me here.

By the way, I was in the middle of answering your USD/CAD question yesterday on the other forum, and when I clicked on post, I got a message pop up and say I was banned. So just wanted to let you know that incase you thought I ignored you.

David

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I had guessed something like that happened, the usdcad broke the range to come back and test mid point and is now break down again. But I didn’t get a entry using the 15min, got divergence but no candle formation that I liked the look of, so am watching for a 1-2-3 entry. Have also posted letting everyone know you have started here and who wants to carry on with your trading teaching can come to here.

joffie

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Hi David.

Surely everyone has heard of the notorious Simon Templar?

I’m joking, it’s a quote… I’m a member of three fora, so yes, I have certainly seen your forum alter-ego around, although I don’t have many posts on the others. I have been here for a couple of years, the tone here suddenly got a little more aggressive and not as much fun, so I have experimented with a couple of other fora recently, but keep gravitating back here - I don’t know if I am allowed to name the other fora, but one begins with a ‘T’ and I found it a bit closed shop and aggressive, the other begins with a ‘D’ and is nice but a little quiet so I wanted to keep posting elsewhere.

It has always been a nice balance here at BP, it’s still the No.1 in my book, although it has had its moments over the past few weeks… Anyway. I’m rambling, yes we have contributed to the same threads elsewhere and I look forward to following this one.

ST

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Following :slight_smile: very interesting to see a professional. Hopefully to catch some good info and learn from your experience! Eagerly waiting for more knowledge bombs.

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David ,

Glad to see you are back in action… I am from the “Other” forum as well and was following your posts. Are you still going to be posting on the “other” forum to or is it just here now??

Also you mentioned you got banned from “other” forum…why?

Thanks ! :slight_smile:

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Subscribed…I want to trade in my Prius for a Porsche.:cool:

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Okay listen folks, when I normally make posts, it is with the latest price action (up to date) charts, with my analysis on it, and what to watch for. Over the coming days/weeks I’m pretty much going to have to start from scratch and explain to everyone here how I trade and what to do/look for and how to do it, since its a new thread on a new forum… all the way back to the beginning for me ha!

I’m about to post hindsight charts… but again, this was a trade I tool today, and in future all charts I post will be the latest PA with analysis so you can follow in real-time. So please don’t attack me for posting “an after the fact” chart and trade, this one is simply to get things started and show you some things I look for.

Since the other post was about GOLD, I will follow it up with another GOLD trade from today… this is just to help you see what I do… again all will be explained in coming days/weeks, its going to take time to get you up to speed, so bare with me okay?

Gold 1 Hour Chart:

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Gold 10 Minute Chart:

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I normally post charts and analysis in the morning for the day ahead… I only trade London.

David

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Hey pipmeister, what’s your name on the other forum if you don’t mind me asking… if you don’t want to say then no problem!

I wont be back there.

I have a [B]3 day ban[/B] there because I was defending myself against some Muppet that has a split personality. So he and me got a 3 day ban.

I told the mod and the owner of the forum via PM, that I did not agree with the 3 day ban and that it did not effect me, but it effected the members/readers of my thread, as their the ones who lose out, so a 3 day ban made absolutely no sense, what does that serve?

But this fell on deaf ears. I’m pretty much certain that if I was selling something and had an affiliate deal with them, then it would have been a different story.

To be perfectly honest, the vibe I got from them was saying FK-OFF, as I was trying to teach people how to trade for free, while they were more concerned in having people buy all the EA’s they promote.

That’s my opinion.

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I would rather not say my name on here as I do not want to put a target on myself.

Anyway I belong to various forums but do not really come on here much as my broker actually recommended this website. When a broker recommends something I have a tendency to be quite skeptical…

So as an ex pro trader did you , or do you know, ever deal with HFT? What about lower time frames like 5 min ?? I am all for getting as many pips as possible but I find it hard to trade higher time frames…I enjoy the rush of lower ones? I like to get in and get out with like 10-15 pips at a time.

thoughts?

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Hi pipmeister no probs with the name!

I’m taking your HTF comment as “High Frequency Trading”, if that’s what you are referring to then no, that does not concern institutional flow or derivatives traders, that concerns dealers and prop traders, which are totally different job titles and executions.

I do not recommend trading 5 minute charts or less without proper top/down analysis in place. When you are trading the lower time frames only, then you, as a retail trader without interbank data, or flow data, are against dealing desks, this is especially true during low volume trade.

I know that hit and run may sound good, and appealing, but really the market is stacked against you there over time. Your not trading interbank prices, you are trading your brokers prices “quotes” which are worse than interbank and carry a price… “spread”.

There is nothing to trading higher time frames, people only fail because they don’t understand, or have been educated in “how to”.

Hope this answers your question and I didn’t go off topic to much!

David

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David ,

Thanks for the response… the reason I asked this is that I wonder if any parts of your strategy would work on the lower time frames… but I will just sit back and watch what you post and try to take some nuggets :slight_smile: