I have a third at a 100 pip increment set up as a pending sell stop.
Why is this a sell/stop and not a buy/stop?
Good question. You were wise to take the first lot off with good profit at the first sign of retracement. Iâll usually do that when I have 3 or more lots on.
So once you see a retracement forming identified as your top lot, in this case your fourth, starts to turn negative, you take the first lot off with nice big pips profit and continue to watch it. At least, thatâs the method I use.
You watch the last two lots you have put on, in this case your third and fourth lots. The fourth is going negative as you are in retracement. If the sum of the pips loss on the fourth and profit on the third looks like it will go negative, I prepare to close all lots by moving the stop loss to 10 pips on all three remaining lots still running, the 2nd, 3rd, and 4th. I do this at the time that another 10 pips loss on the last two lots, the 3rd and 4th in your case, would stop them out at break even.
So the end result of the trade is, you took off the first lot at near the max profit. The third and fourth lots stopped out at near break even, and the 2nd lot also stopped out with a nice profit. using this system, Iâve never taken a loss once the third lot is on as worst case is 2nd and third lots break even and 1st lot was taken off with near max profit.
As you get more lots on, you have more you can take off at profit at the beginning of a retracement. You can work with these concepts as you trade since you have all the time in the world to make decisions when long term trading.
One thing you want to keep in mind with these long term trades is you donât want to over trade them. Itâs almost always better to wait for price confirmation of some type before making a decision. These trades are designed to run for days, weeks and months, so you should be able to be away from your computer for a day or two once they are running well without much impact.
So the approach is, upon entry we are watching every tiny move carefully to see we get a good entry. We have a detailed plan for that entry and we identify price action that would signify that the entry isnât going to plan. If price doesnât go according to plan on entry, we exit quickly and try again later or try something else if we can find something better.
If the entry does go just according to our entry plan, for the first hour the trade is still suspect and we are prepared to exit quickly if it turns against us.
After that we let it run with our stop loss protecting us against any sharp reversal. We still donât want to take a major loss at that point and can exit anytime we decide our trade basis is no longer valid. As long as our trade basis is still valid though, and certainly if we are into profit, we just let it work for us.
I think youâve managed the trade well so far. The overriding goal now is donât let a big win turn into a big loss. Using these principles, I donât think itâs possible to have a big win turn into a big loss.
Now itâs a little different once you get 7 to 10 lots on, since your stop losses will guarantee you canât lose on the trade. At that point itâs all about maximizing profit. Thatâs a very nice point to arrive at and if you long term trade for years youâll find yourself there quite often. Weâll discuss that if it happens and probably even if it doesnât, so I can wrap this thread up and send everyone on their merry way.
At the end, I will do a very broad summary of every thing weâve covered and lessons learned with the help of the other posters on this thread. After that I will answer any remaining questions to the best of my ability and then Iâll close the thread.
Anyone who isnât participating in these final exercises in long term trading is missing the meat of what I wanted to present. For me, the long term trading makes me a much better day trader, and the day trading makes me a much better long term trader. Even my wasted days as a scalper turn out to not be a total waste as I use that experience to optimize my entries. Hopefully weâll get a PDF at the end and you can go it solo later if you wish.
Happy Trading
Yes, I have been keeping a running PDF on this thread and will post it when you feel like we have covered everything.
Emergency SL hit on EUR/USD at 1,2242.Second lot closed with +166,third and fourth lot combined with +12.Total of trade +470 pips.
Graviton, I am very happy you gave me compass and map 
I still have some details unclear
You were wise to take the first lot off with good profit at the first sign of retracement.
I was following PA and I figured out that first sing of retracement we can see on 1 min chart then 5, 15, 30 min and so on.
As we trade long term charts daily, weekly we may will trade monthly chart I would like to ask
What TF to look for first sing of retrace?
I was using s/r lines to show where i thought price action would go and to us as potential tpâs. I did use the cbl for entry.
The following pic is the closest I have to my entry.
Now out of both trades +492 pipsâŚ
I took the EUR/USD long term trade in a demo account⌠and I think a big pip light bulb has turned on for me.
The CBL day trades I am taking as part of my trading plan are excellent entry opportunities to add lots to a long term trade. I still need to do alot more testing but I like this world of big pips.
[B]Ex trade[/B].
The EUR/USD has retraced to the mid bb on the H1. I am looking for a CBL daytrade on the 30M. To me this looks like a very good entry to add another lot into my long term EUR/USD short.
That is my picture of price but only time will tell if it is accurate or not. ;)wow! its great idea ⌠I am going to pay attention to lower TF charts in my demo account
I just looked at 15M there is sausage Band, btw :rolleyes:
Ok bad example⌠let me try to explain my idea another wayâŚ
We have a daytrading strategy that gets us good entries into trades as Tymen teaches us with his CBL entry method.
We have a swing trade strategy that keeps trades running on longer time frames to capture massive moves as Graviton teaches us.
If our daytrade entries could get caught up in the swing trade move⌠we would have a very happy account. 
Iâve read it somewhere
Iâm interested in MPâs suggestion though to use a fib to determine exit point
Just want to post two charts for PA picture
first is monthly chart for NZD/USD, there is Fib levels and I drew channel(just I use to do)
Today the price was bounced off 32.8 monthly fib level
below is 5min chart
lowest line is 32.8 fib level of the monthly nzd/usd chart
Great results Lucominato. Now we need to get together and create another class project for any who missed the first one or would like more practice.
Almost every trade offers an entry if you are patient. At the moment eurusd is offering a good M30 cbl entry. But itâs the first in two days. I can usually find some entry somewhere on some pair. But if I canât I go plan and plot and scheme and come back later. Itâs not unusual to have to wait a couple days to get a good entry. In this business we are paid to wait. Better to wait and not lose anything than to take a stinky entry and regret it.
I may have mistyped. I had pending sell entries going on eu and pending buy entries going on uchf.
We could write a book on this subject. It depends on the timeframe you are trading. If you are trading the H1, you arenât concerned with small retrace of the 5M. As long as you are getting higher lows on your home chart, you are still in the uptrend, even if the price runs up 100 pips quickly and back down 95 slowly. You are still in an uptrend until price makes a new lower low in the timeframe you are trading. Using a trend line on your home chart time frame is a good way to keep track of this, so you can look closely anytime price drops below the trendline. Price crossing that trendline might be the first reliable sign of retracement.
Absolutely! You already have every thing you need, and more.
Look at the H4 chart on EURUSD. You have a very nice extreme candle on Friday May 21 that kicked off our class project swing trade on Monday May 24th (Sunday US CST). At the very bottom of the swing trade, you get a slim little doji extreme candle signaling the end of the down swing. Since both daily and weekly higher reference charts are in a sustained down trend, youâd only take down trades on this chart. This is a 500 pip trade using multi lot. This sort of trade is usually called a swing trade. Youâll see these quite often. Of course you could trade the counter trend back up, but why be greedy?
Want more? Easy. Look at the EURUSD daily chart. The weekly is trending down, so you only want to take down trades. You get an extreme candle on April 15 and a 1 candle CBL entry signal April 16 at about 1.3480 pips. In fact we are still in this formation. It has moved over 1000 pips, or easily 3000 pips using a multi lot. This is typically referred to as a position trade. Itâs not like these occur every few hours and itâs confusing which ones to take and which ones not to take. They occur every couple or few months and we should take them all. They are the most reliable and biggest pip trades the Forex has to offer. Not really that much work either. Of course, as always, protect yourself at all times. 
We had a nice little class exercise and I believe everyone made many pips. Some people that havenât ever made pips made hundreds. This is the point I wanted to lead everyone to from the beginning. Can it be as simple as that? Just glancing quickly at a few charts and making hundreds and thousands of pips? YES!! Itâs that easy. It amazing though when you tell people how they will resist it. Iâll be brutally frank. Most people donât want to make hundreds and thousands of pips easily. They want to struggle and fail and cry about their bad luck and hopefully get a little human attention and sympathy. I wonât offer you any sympathy because it just feeds a hunger that trading can never fill. I will tell you that the simple fact is, Tymenâs CBL entry method applied to swing and position trading is the simplest and most reliable method of making big pips that I have ever found, hands down.
If you read Tymenâs thread carefully, youâll see that he says his method works on [U]any[/U] time frame. That is true. Yes, you can use it to scalp 10 pips at a time, and some have done so with success. You donât dare take your eyes off the computer for a second or your pips may vaporize. You can use it to day trade and make 30 to 100 pips at a time, and many have done that. Itâs fun and engaging and you see a lot of situations and learn a lot of techniques in a very short period of time. But once you have wasted your youth doing those things, you can use it to swing trade and make hundreds of pips off the 4H chart, or position trade and make thousands of pips off the daily chart. [B]The simple fact is, the CBL & 5 lot works much better with longer time frames.[/B]
This is the end of a long road. Thousands of pips, hardly any work. You can spend time with your family, work your day job, or just chat with newbies on-line. Do what ever you want. You now know how to spot these opportunities, plan your entries, enter, manage the trades and exit with profit. All you need is practice and experience. I canât do that for you but Iâll help any way I can.
There is not anything else I can teach you thatâs worth your time. If you want to do another class project Iâll be happy to help as best I can. Swing trades come around every week so they are easiest to set up for a class project. Position trades only come up once a month or so, so we might have to wait a while to find one, or there may be one forming today. But just as I promised hundreds of pips on swing trades, and delivered, Iâll promise thousands on position trades. Not on every trade of course. It is possible to lose a position trade. I never have, but it could happen some day.
So, let me know what you want to do, another class project or go your separate ways. In any case, I wish everyone well and good fortune. It has truly been an honor and a privilege to help so many good minds find their path.
I know I want another class.
I am trying to find another pair that looks good right now. I think I am going to have to wait to for things to settle down today. But after that I hope to have some suggestions for you.
Thank you I have learned a lot and hope to continue to do so.
interesting thread i would like to ask anyone who is trading using this method, how often does the entry signals present themselves ?
Thank you Graviton. It has been a real gift to have you as an instructor. I have learned more in this past month than all 4 years in college:D It is obvious you are passionate about trading and your willingness to share your expertise is commendable. Many will journey through this thread in the coming weeks/months and it should keep a good number at the least out of trouble and at the best richer in pips.
I have attached a PDF of this thread. Itâs 97 pages long:eek: For those of you who choose to download it I did not include every single post. I left out a lot of the chatter and many of the platitudes to Graviton. But it has the essintial meat of Gravitons teachings. There are scattered Post#'s and Page#'s preceding some of the Posts for my reference as we were going along.
âŚand I am definatley in for more swing/postion trade pair analysis.
Graviton Final.pdf (1.11 MB)
Thatâs fine with me. If you want to do another class project, select a good candidate and weâll work on it.
Like I said, good swing trades set up every week. They are easy to find. If an extreme candle touches the outer BB, check to see the trend of the daily chart. If itâs setting up a CBL in the direction of the daily chart trend, good. If the weekly chart trend is in the same direction, better, but not necessary.
Iâd be happy to go through a position trade with you, but those only set up every month or so. All the concepts are the same though. Find a daily chart setting up a CBL in the direction of the weekly chart, good. If the monthly is in the same direction, better, but not necessary.
If someone sees one of these beasties, we can plan an entry and go for it.