LOL this is the third time i am posting this question.Johnathon & dudest please answer this)
In many of Jonathan,s articles he said that we should only trade the intra day charts like 4H,8H and 12H from the daily levels.But many times we can,t see the minor retracements and pullbacks(S&R areas) on the daily charts but we can see them on smaller intra day time frames.So is it okay to mark those pull-back areas on intra day time frames and trade from those areas?In the past i did that and had success.Am i doing right?Or i am doing wrong and developing bad trading habits which are not good for getting profitable in the long run?
Thanks
Secure Trading
I donât think weâre talking about the same thing per say. I didnât mean using the smaller TFâs as areas to draw S/R, I mean literally treating the 5M like many people here treat the 1H (scalping more or less). Iâm trying to see if a daytrading approach could be profitable with PA. Maybe drawing S/R on the 1 hr. And 15 min. Then using the 5 min. As your main chart for entries.
I also wanted to hear something other than âjonathan says,â I in no way mean to be rude I just wana know WHY he says so haha.
I hope by posting this question on the weekend it wonât interfere with the natural flow of this thread.
Thank you in advance for any comments, Just here to learn
[QUOTE=âcharlietrading;545894â]Hello everyome Iâve been reading this thread for a few days (making sure I respected the âread the first fifty pagesâ rule) and really like all of the information presented here. I was wondering though if anyone here had attempted to apply PA setups (A+ setups) to lower timeframe trades. Iâm well aware of the fact that a lower timeframe means more risk, but would just like to apply these fundamentals to my style of trading; âin the field with a shotgunâ as appose to a sniper as johnathan described in an article. There is a thread here about such trading (Forex Alchemy started it) but it has yet to take off like this beast of a thread. Iâm not critizing the larger timeframes in any way as they seem to be the safer route, just wanted to hear some oppinions from those who âknowâ why its a bad idea, rather than many who discount it without reason. Also, Iâve always heard that a good trading strategy is applicable on any TF, if that is the case shouldnât PA be the same? Oh and one more thing, what (if any) weight do the PA traders here give to FIB levels? If they run congruent with S/R would it just make your A+ trade a A++ trade, or would you ever trade soley off a great PA setup that happened at say a 50% retracement.[/QUOTE]
Let me be the first to say welcome to the thread! I hope you stick around because it is a gold mine of knowledge and information here, which is why itâs such a beast. Iâm not sure what a low timeframe is to you, some of us do trade lower timeframes, as low as 1 hour. In this thread we try to keep everything at 4 hour TF or greater. Regardless of the timeframe we still treat it the same way as the higher timeframes, and as you said act like snipers. Being a sniper is just a quick way of saying we wait for the best quality trades. Having a very high success rate on just a few trades is much more profitable than taking a ton of poor or ok quality trades and having a poor success rate. The ultimate goal is to make money , which I believe this method is superior at. A+ trades have a big edge and a high chance of success. Once you drop below 1 hour TF the quality of the signals are reduced in a way that there really are no A+ quality signals.
In this thread we donât talk about fibo just to keep things simple, Johnathon and some of us do use it in our trading. Itâs only used in pairs with clear trends and only the 50 and 61.8% levels are used as those are the most widely used by the market. It can provide areas to watch for price pullbacks in a trend when the chances of price pulling all the way back to major SR level is unlikely.
I mentioned a few things we donât cover here but Johnathon does have a website and members only forum where they do cover and discuss more advanced topics.
I do need to share with you my first PA success hope it is not off topic
GBP USD Daily pin bar on October 1st
Pin was validated the next day on October 2nd hitting my entry (green line) and then went straight up but clearly showing bears are loosing power
October 3rd the ride down starts
I had set 2 TP 1.6110 and 1.6070
I see now that mselva was right and the second TP could have been lower @ 1.6010 (how did you know it will close at that number ) but I needed to build confidence and do so gain so I took full profit at 1.6070
something I learned this week, you can be negative in pips and still make money (yea I know you told me this before but it is the first time it happens to me )
A few days ago posts about USD CHF Pinbar on D1 and D2 showed up and were discussed, I didnât take the trade because I wasnât convinced with the setup and I think the orders were never triggered as price went straight down.
At the closing of the week we have both a BUEB at D1 and weekly pinbar that is very convincing for me so i will be taking the weekly one
Entry point at .9100 (round number I donât know if it is a good idea ?)
SL @ .8955
TP1 @ .9137
TP2 @ .9277
You surprise me a bit when you talk about BUEB on the daily. The E stands for engulfing and you know that, right ?
I am not here to give lessons though, itâs just a matter of peers correcting themselves as I wish you would do as well if I was mistaken which I surely will from time to time.
For the weekly pinbar, it is definitely counter trend but it is close to a really major support, a level that most likely will be defended. Donât want to go into more details as it would be out of subject⌠The only thing that worries me is that it could have happened slightly lower which means there is still a bit of room on the downside which could invalid this pinbar.
mmhh, 2BR ? bars should be about the same length, it should look like a pinbar if consolidated. This one would have a body same size as the wick almost. Be careful !
Also, to me, the pinbar on the weekly closed below that level that hasnât been broken for months as you said. (grey line on my chart) so next key level is rather 89.4 which is slightly below the wick so a bit dodgy.
[QUOTE=âcharlietrading;545924â]I donât think weâre talking about the same thing per say. I didnât mean using the smaller TFâs as areas to draw S/R, I mean literally treating the 5M like many people here treat the 1H (scalping more or less). Iâm trying to see if a daytrading approach could be profitable with PA. Maybe drawing S/R on the 1 hr. And 15 min. Then using the 5 min. As your main chart for entries. I also wanted to hear something other than âjonathan says,â I in no way mean to be rude I just wana know WHY he says so haha. I hope by posting this question on the weekend it wonât interfere with the natural flow of this thread. Thank you in advance for any comments, Just here to learn :D[/QUOTE]
As a rule of thumb and to bust a myth , a smaller stop loss level in terms of pips has much more risk involved in comparison to a larger stop.Simply because price is less likely to spike you out.
Cheers[/QUOTE]
Thanks Kasravi
I liked this, that makes complete sense when you put it like that. Iâm not saying that I wouldnât enter a daily trade because I absolutely will when one presents itself to me. I am currently only looking at the 4hr and daily charts, I realise that the 4hr can be much choppier but I have found if I use a 10 pip buffer plus a tighter TP it seems ok. But I am still learning and wish it still said newbie under my name
Iâm glad you pointed that out because the original post from B A kind of confused me. You should be adjusting your position size to your SL. Whether you use a fixed $ or % risk model, you should always be adjusting your lots to fit how many pips are at risk. I havenât checked before but I am sure Johnathon has some articles about it over at Forex School Online. And as Kas mentioned trading lower timeframes generally makes your trade riskier.[/QUOTE]
Hi Krugman
This could be a large hole in my money management, I use the 0.01 per ÂŁ100 rule or one percent of my account per pip if that makes sense. But your right, I have not adjusted this for each trade, I tend to stick with the 1 percent per pip whether itâs on the 4hr charts or the dailyâs. Is this madness?
Also please pm me your blog details, would like to be a reader!
I used to follow the same approach until I was told here that the idea is wrong.
what we should do is
Decide on the amount you want to risk (say $100 usd)
check the SL in pips (Trade a 100 pips SL Trade B 50 pips SL)
in that case for trade a we will open 0.1 lot trade for trade B a 0.2 lot
as you notice in both cases if SL is hit we will loose 100 usd (the amount decided on in step 1) if you follow the other MM rule you will be losing double for trade 1 than what you would lose for trade 2 so the risk is not the same
I used to follow the same approach until I was told here that the idea is wrong.
what we should do is
Decide on the amount you want to risk (say $100 usd)
check the SL in pips (Trade a 100 pips SL Trade B 50 pips SL)
in that case for trade a we will open 0.1 lot trade for trade B a 0.2 lot
as you notice in both cases if SL is hit we will loose 100 usd (the amount decided on in step 1) if you follow the other MM rule you will be losing double for trade 1 than what you would lose for trade 2 so the risk is not the same[/QUOTE]
Thanks EternalNewB that is very useful, Iâm going to change the way I do things especially when trading the dailys, I will lower my lots as suggested. Thanks again for this.
Waiting for the right setup,is important to keep your success rate high.
Waiting for your setup to hit TP is important so you actually earn money from all the waiting in the first place.
) but I needed to build confidence and do so gain so I took full profit at 1.6070
(yea I know you told me this before but it is the first time it happens to me )
