GOOD, later on i will talk about specific entries over the course of the week specific trade set-ups… the upside and the dangers
Thanks for the info. I like the smart/dumb money approach and looking for the “footprints”…something I hear a lot of, but which seems to elude me when trying to “see it” on the charts for myself…just hasn’t really clicked for me yet even after 5 years at this. Oliver’s videos seem pretty simple, but probably leaves stuff out…they always do…lol.
Are you using the candlestick formations as described by Oliver Velez? The elephant, the topping tail, and bottoming tail types? These I suppose would be also be known as the (very large) marabozos, the hammers, the shooting stars and the dragonfly dojis?
A must Read:
Jesse Livermore
What’s so interesting
About Jesse Livermore?
Time Magazine described Jesse Livermore as the most fabulous living U.S. stock trader.
His progress from office boy to Wall Street legend - his trading lessons - his triumphs and disasters - is probably the most fascinating of any of Wall Street’s stories.
Even today, many stock and commodity traders owe Jesse Livermore a deep debt of gratitude for sharing his experiences in Reminiscences of a Stock Operator.
The techniques he made public have endured through many decades; his trading rules earned him millions of dollars, provided he stayed faithful to them.
Livermore also lost his entire fortune on more than one occasion, when he ignored his trading rules.
Jesse Livermore was a self-made man trading with his own money - not other people’s money, like modern investment banks and hedge funds. Depending how you measure it, his fortune peaked between 1.1 and 14.0 billion dollars in today’s money.
Reminiscences of a Stock Operator - Stock Trading Strategy
In a series of interviews with “Lawrence Livingstone” (a pseudonym for Jesse Livermore) the financial journalist Edwin Lefèvre got to the heart of the strategy and psychology of a master stock market trader. Lefèvre published his interviews in Reminiscences of a Stock Operator. Interviews with Livermore were highly prized because, as far as his market activities were concerned, Livermore was a secretive loner.
To give you a brief taste of where we will go, here are some comments from Jesse Livermore himself:
“The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, or for the get-rich-quick adventurer. They will die poor.”
“…the fruits of your success will be in direct ratio to the honesty and sincerity of your own effort in keeping your own records, doing your own thinking, and reaching your own conclusions.”
“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”
“The point is not so much to buy as cheap as possible or go short at top price, but to buy or sell at the right time.”
“It took me five years to learn to play the game intelligently enough to make big money when I was right.”
“When some of my stock trading operations are given, you will notice I made my first trade… when the force of movement was so strong that it simply had to carry through.”
“Speculation is far too exciting. Most people who speculate hound the brokerage offices… the ticker is always on their minds. They are so engrossed with the minor ups and downs, they miss the big movements.”
This is very Interesting, never seen it like this before
QUOTE FROM THE KING JESSE LIVERMORE "Speculation is far too exciting. Most people who speculate hound the brokerage offices... the ticker is always on their minds. They are so engrossed with the minor ups and downs, they miss the big movements." Read more: http://forums.babypips.com/melting-pot/47180-my-live-charts-if-anyone-needs-help-its-free-ok-simple-trading-simple-people-9.html#ixzz272Pz5AuXYes I do use them in the sence there in the toolbox when i see fit to use them. But the thing is about any candle is that there mostly meaningless by thereselves as each candle represents a tiny fraction of price within a short time frame. When a candle becomes important is when the candle is in a specific area of the chart that you deem to be important. i.e. on a important moving average, entering a trade and exiting.
I used to loose to but i did not trade like i do now, i got the old tools in the bin. Recomendation. On a DEMO for you.
Dump everything no ocilators dump em, master those once you can trade with this on your charts.
On your Chart , Up candles Green down Candles Red, add 200 SMA Red and 20 SMA Cream if gray background or black…dump all your indicators ok trust me. Clear charts are a clear mind. A clear mind wont miss the boat.
learn one simple technique at a time and when you master that learn another entry technique.
Please start if if you want to: DEMO OFFCOUSE
1-Determine what sort of market you are getting into, is it bulish, Bearish, Pullback coz of profit taking, 200 Sentiment fight zone
2- So you determine its bulish, Enter trades based on price being supported by the 20 and 200 i.e. if price is trading above the 200 and above the 20 enter long positions on the dips. Bear Market opposite for short positions.
3- 200 fight zone_ if price finds support on a moving average under the 200 and its next move is to the 200 where it finds support to then go long. if the 20 and 200 show as resistance go short.
Keep it that simple and see ow you do, its not easy as it takes pratice…i hope you do it, but you got to stick with it, ups and downs you know. And dont over trade its counter productive.
when they talk about smart and dumb money, really the smart money went in long then they took profit so the market pulled back its not really becuase everyone is short now. Dumb money goes in everywhere and sometimes they get it right but thats chance if you ignore the overall market. Not to sound bad. But if you look at sheep, they all move at once together in the same direction when the sheep dog comes around. And that direction could be straight of a cliff and they will all follow.
As traders, The key is to move in the right direction from the right place and time without a care about the sheep coz if there long or short it wont make a damm difference to the big move, An understanding of what market your getting into will pre determine your next move. Ignore the crowd. The big money shows its foot-print. And the big money certainly knows if price is above water or below water. I cant imagine traders in the City having any concern about a MACD signal.
They want a price simply that reversals will not pull back to, and they want that price in a place in which the other traders in the City will be on there mark to. That determined place is frequently the water mark (not always not proven) and the only thing they sometimes disagree on is long or short. And thats a good thing as to much of anything is to much for anything to happan. Price makes its foot print and theres always a footprint on the 200 as big money is the footprint.
but understand we do not enter on the 200 unless you bagged a squeez first…all will be explained as we continue
Ok for starters here’s a chart with my market sentiment comments. I’m on demo, but at work and can’t place any orders now anyways, so it’s just a paper trade.
Correct on everything however: However the bear candles that are forming below the 200 are not convincing as there small, now if you entered tight on the 200 then for example if you got 2 minis take half profit at around 12945…and have a tight stop at times of low momentum stop very close other side of 200. Now, if it plays out at you can bag say 10 pips with half profit filled then watch for some momentum in your favour or against. If against you be commited to your stop as your covered.
Its nicer to enter the 200 way before in the Sandwiche sqeeze cos then you sit much more pretty. 13 050 would have been the perfecto entry on my back to the past chart eliminating the future and replacing it with a projection based on price and the slope of the moving averages. In the sqeeze cant loose coz you wont find a sqeeze that does not at least pull to the 200.
But remember bulls or bears its difficult to know who has the power at the 200. as its like projecting which boxer will get the most points in round 3. The 200 can be like a magnet for price untill that magnetic effect is eliminated from both sides.
which is determined buy the weight of buyers or sellers. On the squeez entry you eliminate any of those concerns as the entry and SL is sound leaving you time to make good profit taking and your making money virtually on Entry.
Know what I’m getting myself into…lol…yes that’s always been the goal.
I agree…those bear candles are a bit weak…must be due to the market session. I did forget to specify a stop…however just know that I have gotten into the discipline of placing one on every trade at 2% risk, it just gets hit more often than not 
… and I have an EA that will close half the order at whatever pip profit I input, and then moves the stop to break even, but I think my pip input has been too high…I will try setting it lower to 10 pips and see how that goes.
So when price is in this 200 fight sentiment, you pretty much expect a bit of whipsaw action before it shoots off on a big move is that correct? So one needs to re-enter a couple of times when conditions are a re-go?
Yes expect whipsaw but sometimes will just pass through like a rocket or bounce of…key is to look at the chart i posted, its your chart with the future taken of…you wont get wipsawed if you entered on the Squeeze atleast untill you can bag some good profits. As you covered all the angles with the squeez entry so that means entering before you hit the 200. You entered on the 200 so thats like hope, you need to back up hope by entering on the SQ then bagging sum at the 200
Entries Squeeze.
Wil move on to other types of Entries during the Week but first lets just put down on paper the Squeeze, long and short. I have seen this called the 200 Golden Crunch and so on. This type of trade frankly is the safest trade I know of. If I loose on a trade, I know I will be itchy getting on to the next one. So as reasurance to myself, I will look for a Squeeze as i feel its a sure bet. I split the chart as I want you to see what is seen in real time, and how you project price. Offcourse regular channels and trend lines come into play as those are important always, but those need 2 points over a longer time frame to progect. I want to project on the candle now and the one before it and the slope of the Moving averages as i want to make the profit between the 20 MA to the 200 MA and know before it gets there how many pips I am bagging at T1. Its refreshing, your managing money before your filled as you know for sure you will get filled. If anyone can find a Squeeze chart on 1 hour time frame that did not work please post, I could not find one.
Here is the Strategy for trading a Squeez this is important: we do not enter the SQ for a tiny 40 pip run to the 200 SMA but we take it to get the big run in our favour from the 200 SMA. Now hope is expensive so we back our hope with bagged profit on the first hit of the 200 by taking half profit at 40 pips on average now hope is covered. How we add positions and move up SL is all on the chart. Its easy to do because your up 40 pips on average on entry 1, with half the position taken as profit, You can only loose some of the profit from Entry 1 in worst case scenario. But potentially you can make big numbers risk free after bagging the first half . The 200 is like a launch pad, so its difficult to get your first entry on it, so we play the squeeze as your covered anyway it goes. Has in a squeeze price always goes to the 200 to make up its mind. Your entry is a winner no matter if price turns back at you at the bounce. The belowis the strategy chart. 1 Sq a weak that runs is all you need to trade for a living
Ok wil move onto sq entries with bc entries here is a chart of usd cad with past and future projections live chart as of 10 48 am london…summary cad is in bullish confirmation mode again and just came out of a 200 sma sentiment area and prior to that it was in bearish squeez. Now price held above the 200 and then the 20 then from that moment your a bull again. Head and shoulders forming so i projected the future shape of the sma. How to make specific bc entries will be covered in time…The danger is with the assumption of a head and shoulders is that there also is a decending channel from the right half of the head to the collor…so sceptical right now THIS CHART IS EUR CAD NOT USD CAD
Hello there Dennis,
Have I found who I think I’ve found? Please letme know
Anyways I’m going to subscribe and see if I can get the grasp of the squeeze Relationship trade 
oH THANKS S G, if you have time to look at EUR USD I have been playing the Squeeze for the long all day one after another I did about 4 long postions each an hour between from the same squeeze zone. Not the normal plan but it looked so easy and it was.
Sorry for messy chart, I am even long on the last candle, not wise, but its ok, as i can only loose 10 pips from the 78 pips I already made, Risk reward is fine under those conditions and its certainly my last trade today. the way i set the last entry up and i just made lots of pips before hand. Risk management Risking 10 pips of the 78I already made from the SQ. EUR USD
I am posting charts now from a Demo , Why DEMO? Posting from my live account which is Java, its not easy to multitask I hit a buy the other day when i was tring to save a snap shot. So I set up the Demo on a separate keyboard and screen, safer for me. We all make mistakes …lets see live what happans with the last candle im long …
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and theres my final trade additional 20 pips in the space of 4 mins 340 pm london no more trades its weekend…if any of you want to trade for a living i will get you there the right way…its up to you, you have to pre program the brain and clear the screens.
Nice article here on Baby pips relating to Fundamentals on Sushi, I do not agree about the Sell off, I think the JPY is overbought. Heres is the chart See the 200 Brickwall…This is overbought not oversold. This is what happans when the Currency thinks its a Stochastic it does the opposite, upside down stochastic…hehe The BOJ Joins the Fun | Forex Blog: Piponomics
Have I found who I think I’ve found? Please letme know…I am Dennis Sherman in Bahrain