Usually i dont like to explain some of my trading games but this is a different case, as it goes into my favour if many people copy me in this one and boosts the strentght of having masses doing the same thing as i do (100 people go long has more impact on chart then only me going long at one special point).
Some have asked me to share my trading style, but here ill share one component which generates huge profits, and is very tight (very precise in initiating position and taking profit). I will demonstrate it with real eaxamples of today where i earned €23.500 from CET-1 19:00 Oclock till 04:00 aswell CET-1. then from CET-1 04:00 Oclock again €16.000 till CET-1 13:00 Oclock.
We have different generations of traders in this world, we have the old and the new, the youg and the old. In general and in this case i differenciate the traders between Pre-Candle-Stick-Traders (50 Years+) and post-candle-stick-traders (50- years).
I aswell differentiate in this case between Asian traders and European/American traders.
Why the differentiation?
Well habbits dont change, especially the older You get.
The old wolves use OHLC charts, the youg use Candle stick charts.
- Now whats the point of this?
Ill explain:
Different charts and different style of displaying the price. It tells you exactly the same things, the same price, the same moves etc. etc. but the tricky thing is in its calculations (i wont go into that part here as theres no need to explain how Pivot Points are being calculated on the different charts).
You probably aswell have asked yourself at some point in your trading career “hmm why the **** did the action change right now, theres nothing in sight, no lines, no channels, no bareers etc etc, no good reason for the price to revers?!?!?!?! WTF?!?!?!”
Well, in here ill show you one possible explanation.
I promised you a example of what i mean, ill post pictures here, unfortunately i can not overlay them so it will be different pictures for the different stages of forming a entry, stop loss, take profit, contra-trade.
First picture:
Today we had a strong downwards movement in the Dow Jones. the reasons for it are in this example unimportant so well skip them.
Those downwards movements have to stop somewhere. We find a good entry point (please, do not enter while it is on the movement downwards, only enter AFTER it showed clear signs - with candle sticks - that it is turning around) we look for good opportunities to go contra. Those good opportunities to go contra are monthly and yearly pivot points.
In this Picture we have a yearly HLC3 Pivot Point beeing hitted. it dropped below a bit and came back. On the first hanging man candle stick formation i saw, i initiated a LONG POSITION as you can see below. and while i initiated that position, a minute later i put the TAKE PROFIT to 235 Points exactly.
why 235 Points? youll see in picture number 2.
The Stop loss we set to 16950 which is about -50 points / Pips. why we do that? its the newest low of the hanging men formation, if it gets broken the plan is destroyed anyways and the idea died.
The interesting thing is where i put my TAKE PROFIT. You see where i put it. on +235 POINTS. Why?
Because thats the exact difference between the two different styles of calculating a PP as i explained above. If we, on our charts, change the PP background and its calculation, we will see a different PIVOT POINT. It is the Pivot point of the OHLC4 calculation.
See below:
I use situatios here that dont occure very often, (like once or twice a month) but when they occure they are highly profitable. In this case it is 235 Points in one direction (200 in the opposite direction again) and are very precise when it comes to entree and exit (thats why they are so extremely profitable, you know exactly where to go in and where to go out, no guessing).
Why is this working? half of the deciders (traders) are watching one PP-Level calculated by OHLC4, the other half is watching the PP-Level calculated by HLC3. So when the OHLC4 people see a treand change and initiate contra positions it goes up, then when it hits the second PP calculation technique (in this case PP of HLC3) the other half of traders who are not in the trade push it to reverse again (in the main direction of the trend)
So lets continue with the practical part.
Before i went to sleep (yes i hold positions over night, im no daytrader) i put a order to go short on Dow Jones on 17235 (exactly where my take profit was placed) that way i closed the first trade and immediately opened a new one. With a stop loss of 75 Points/pips. Why at 235 Points? simply because that is the second PP-Line calculated by HLC3 and which it has to brake (which it for sure wont), it is more like a retest of the HLC3 pivot point.
So while i was asleep this happened:
It is a very sharp shooting tactic which i am using here and it is very precise. as i said before its one of my tactics to generate nice profits. a short term trading which i use only in special situations next to the main tactics.
The psychology behind it (old vs new traders, asia vs west etc.) i dont need to elaborate too much for you to understand it. In fact everyone understands it it is very simple when you filter down the practical part and explain it. getting the idea and the know how to develope such thing is a different part.
I hope this is usefull for you to generate some pips.
As i see you guys constantly talking about useless oscilators and indicators i thought i might add some tactic where osc and indic. are even more useless then in the usual case.
Have fun