Welcome to the thread! In Johnathons PA method you don’t need to close your positions on Friday. Also there isn’t anything saying you can’t trade intranet day signs when the next week opens. Every once in a while the Asian session on Sunday opens and quickly fires off good signals. Just beware of big spreads.[/QUOTE]
Thanks Krugman, that clears things up for me. I should check my spread for the weekend with my broker, coming from an intra day back ground 5min and 30min time frames, Johnathons technique has been a massive eye opener.
Agreed- Spreads toward NY close on FRIDAY can get massive, thus throwing out potentially false signals. I’m coming from the same place you are (i.e. trading 1M, 5M, 15M) TF’s…the stress was eating me alive. I don’t even bother looking at any chart with anything less than 4 HR candles now. My stress level has decreased easily by 75%, and I feel more comfortable that I’m getting better quality signals. Think about it:
Agreed- Spreads toward NY close on FRIDAY can get massive, thus throwing out potentially false signals. I’m coming from the same place you are (i.e. trading 1M, 5M, 15M) TF’s…the stress was eating me alive. I don’t even bother looking at any chart with anything less than 4 HR candles now. My stress level has decreased easily by 75%, and I feel more comfortable that I’m getting better quality signals. Think about it:
I’m with you bigcheefer, I don’t miss those 5 and 15 min chart frames at all! I much prefer this approach although I am yet to place a trade as I haven’t caught anything I feel strong enough about. So I am first learning patience which has been interesting.
As most everyone here has been saying, “the quality of the setups that we’re posting these days are not top notch”. The main reason why this is I believe is because we get impatient when the market is not giving us any A+ trades so we start forcing them. The irony is that when we start over-trading or forcing trades it takes us out of our niches & therefore out of our performance zones. As I write this I’m not only writing for anyone whose taken setups they are not particularly proud of but also for me to remind myself to stay on the “high road”.
This will be a big breath of fresh air then. As time goes on I have detached from the charts more and more, which makes trading much more enjoyable. I check the charts then go all day without even thinking about them, then maybe remember to check it once more in the evening. The beauty of trading daily/4H
I really like seeing the setup at H4 chart, it really looks like a good A+ setup. Good job for those who take the trade!
However, I don’t think it’s a good habit to compare your H4 chart with H8, then D1, then W1 chart at all. The reason is simple, we really do not want to overthink our trade. If you already find a good trade setup in one single tf, then by all means execute it. No need to go to to a lot more tf for that one single pair as you may end up having doubt in your own trade setup and confusing yourself. Even worse, you may choose to cancel your trade setup just because you don’t like how the chart looks in the other tf. Just my two pipettes.
1: Marked support/resistance on D1 chart
2: Flicked to lower TF’s to search for PA (as shared by Kasravi)
3: Found PA on 4HR chart & 8HR (krugman) chart around key level
4: Analyzed 4HR & 8HR chart (trend, key levels, looked into PA deeper)
5: Kept key levels from D1 chart, looked to see if S/R held in the past (needed to go to higher TF (i.e. Weekly) to go further back in time)
This trade could have been played off the 8HR or the 4HR chart in my opinion. Only reason I went to weekly was to examine whether or not the D1 key level was historically significant. Ensuring that the zone is relevant, to me, simply stacks the odds in your favor.
Bigcheefer was right in checking the S/R on the multiple timeframes. The problem isn’t when you look at weekly timeframes to find good S/R for 4H trades. The problem is when you use 4H S/R to find weekly price action. I.E. don’t use lower timeframe S/R for higher timeframe price action.
When price climbs into territory it hasn’t been for years, you don’t really have a choice but zoom way out. It’s just easier looking at 3 years of historical data when the candles are weekly or monthly.
Fair enough, in that situation I will most likely do the same.
I will not make this a general habit of any trade setup, though. Most of the time, it’s kinda pointless to zoom way out until 3 years of historical data.
And search out 2 Bar Reversal on the internet. Do you think it is a valid 2BR? Why, or why not? I came in here with the same mindset (Post questions, get answers, and not do any leg work). I didn’t learn anything with that methodology. I learned by answering my own questions with solid research. Hope this helps.
Hi,
Belive me i read all these articles and now at page 140 on these great thread . I was doing well last 2 weeks i get 5 wining trades without any lose .But today i open long position thinking its 2Bar reversal but after that go against me.
And i am already start reading earlier post related to 2Bar Reversal and my notes to figure it out .
My previous post trying to find where i made mistake .
Sorry
No worries- this isn’t easy stuff to comprehend. I learn something new everyday, and plan on that being the case for years. That third link I posted is an amazing resource. Just remember, as of late, some of the senior members posting how many A+ setups occur over a given month… (consensus is 2-5 on [I]average[/I]- with [B]more[/B] emphasis on the low end toward [U]2[/U]). You said in two weeks you’ve opened 6 positions.
Can you see the difference? Formation of PA at a recent key level/zone. That first bearish candle with the long wick facing south would have negated this as an opportunity for me to go long. I was taught: Long wick in the direction you want the trade to go, short in opposite.
Thanks for all the tips guys, I am just looking at a pin on the NZDCHF 4hr chart which looks pretty good other than I believe it is against the trend. However I have it marked against an RS level, thinking about going short but wondering if my eyes are just getting desperate. Would post a pic but I am unable to at the moment.
