I am getting some good feedback so far! I have 6 stocks that I am looking at right now that I may pull the trigger on and I was hoping I would get a good consensus here so I could post the charts. I do want to make sure though everyone knows I wouldn’t be discussing the trading vehicles, platforms or techniques I use to trade stocks/options. I want to use it to show that price action works in any market with enough liquidity and volatility, and for more opportunities to look at fresh setups. I don’t know about anyone else but I always hate looking at really old chart setups. I always liked looking at setups that just took off or just hit profit. I will wait another day to see any other members opinions, but I may have a chart or two up his weekend.[/QUOTE]
Ahhhh that’s a shame, I’d be coming to this as a complete beginner and don’t even have a clue what type of platform or trading vehicle a trader would use for this. Is it possible to point us in the right direction for newbie info?
I may create a small section on the first page of this thread that has a few good links to brokers, understanding stocks & options, understanding terminology. If I see a huge demand I would probably start a separate thread to talk about the nitty gritty of trading on the stock exchanges.
Here we have a bullish price run leading into a pennant formation. Pennants are generally neutral but I like to give the bias to whatever direction was moving leading up to the pennant. The nice thing about trading stocks is that you get a lot of gaps. Gaps open the door to more unique candlestick combinations so you end up with more types of trading patterns. I feel that they can really enrich the chart and make for a more clear price story. In this case we can see the pennant was forming and then price suddenly gapped outside of the upper pennant trend line. This gives us a very bullish view of price and a clear breakout of this pattern. To play this pattern we would want to wait for the candle to close outside of the pennant. If we had price pull back to the upper trend line and fail to pull back inside of the pennant this could make for a great entry area. Right now price is in the “no mans land” right now and gives us a clearshot to our price targets. The first price target is around 37.50(no shown in picture), which is essentially the top of this pennant. The second more aggressive price target is taking the length from A to B, and measuring from the last swing low before breakout which takes us to D. I give this pattern a solid 3 star
Hey Aaron, I personally trade every pair my broker has (VantageFx) which included the S+P, DAX, FTSE, NIKKEI,DJ, GOLD, SILVER and CFD OIL.
But I would love to learn more on stocks as that is how I got into trading officially ( unofficially i loved playing the market on Guild Wars 2 and was really good at it so took it to the real world lol).
Jan was rocky but in the end finished at 5.5% gain and 57% win ratio on my live account.
in fairness I held on to some lossers too long and had one trade that I closed manually for a small loss that went on to hit tp and would of brought me 30%!!! But back in to the saddle as they say and I could of closed some winning trades early just to bump up the gain to 8.5% but thats not what this is about.
Anyway thought I would share. I would love to hear how your Jan was! :21:
January was my first month trading price action on demo accounts. Right now I’m using Oanda & FXCM as my brokers, testing each to see who I want to put money in with. FXCM uses the thread correct 5 day NY close charts, and Oanda uses 6 day midnight close charts, resulting in different price action setups.
Oanda / +705pips / 32% gain / 72% win ratio
FXCM / +559pips / 20% gain / 65% win ratio
Although it was a decent month, I quickly noticed I spent way too much time monitoring the charts throughout the day, since I only trade daily charts currently. So my goal is to drastically reduce the time I view the charts and micromanage my trades. I also got in two trades before the candlestick closed, resulting in losses, can’t do that again. My third thing I have to work on is to make sure the risk/reward is decent.
You might be interested to know that with FXCM you have the choice of using the MT4 platform with either New York Close charts or midnight GMT close charts, in case you wanted to compare them. That’s because we have multiple MT4 servers, and some are set to the time zone GMT+2, while others are set to GMT. We’re currently gathering feedback from our clients to see which time zone is preferred and would appreciate your thoughts on this.
January was my first month trading price action on demo accounts. Right now I’m using Oanda & FXCM as my brokers, testing each to see who I want to put money in with. FXCM uses the thread correct 5 day NY close charts, and Oanda uses 6 day midnight close charts, resulting in different price action setups.
Oanda / +705pips / 32% gain / 72% win ratio
FXCM / +559pips / 20% gain / 65% win ratio
Although it was a decent month, I quickly noticed I spent way too much time monitoring the charts throughout the day, since I only trade daily charts currently. So my goal is to drastically reduce the time I view the charts and micromanage my trades. I also got in two trades before the candlestick closed, resulting in losses, can’t do that again. My third thing I have to work on is to make sure the risk/reward is decent.[/QUOTE]
Very interesting results TJ, I’ve often wondered about the significants of New York close candles. Surely a decent pin bar is a pin bar is a pin bar, if it appears correctly on any chart, what’s ur thoughts on this? I have to admit I’ve only traded this method with New York close brokers but I also have a GMT close demo account and it’s interesting to notice that when a engulfing bar is formed on the NY Close charts, a pin bar usually forms on the GMT close.
I believe long term analysis have shown that different candlestick closing times will produce the same win/loss trading results, so there is no real trading advantage to it. It is required here because of the type of group forum we have, and if everyone posted different looking charts there would be mass confusion. I think the close of the NY session is pretty appropriate for daily candlestick closing since the end of NY is the last world market to close for the day.
I believe long term analysis have shown that different candlestick closing times will produce the same win/loss trading results, so there is no real trading advantage to it. It is required here because of the type of group forum we have, and if everyone posted different looking charts there would be mass confusion. I think the close of the NY session is pretty appropriate for daily candlestick closing since the end of NY is the last world market to close for the day.[/QUOTE]
Thanks Aaron, that is very interesting indeed Mr Bond and definitely answers my ponderment, I think Benedicts home brew is kicking in, I often find myself making up words.
If US allows CFDs I would most certainly trade all of them simply because I love the leveraging model that is used in Forex. Stock trading is a bit different. It’s not leveraged so you can tolerated much larger price swings. This makes making mistakes much more forgiving and takes longer to ruin your account. For example a 1% loss on the USDJPY might be a 90% loss to your forex account if you are trading extremely leverage, but on your stock broker a 1% stock loss is 1% loss to you. I am talking about trading stock outright, if you trade options of futures you are getting back into the world of leveraged type trading. I use optionshouse which has a great options platform, but still allows stock trading.
That is some serious volume lord vader, must have a fairly large stop loss attached to it but looks very impressive. I kind of liked the EURCAD 4hr bullish engulfing bar earlier.
Me and Benedict are practicing our new mantra, TAKETHEBEST-LEAVETHEREST-TAKETHEBEST-LEAVETHEREST…the caravan site owner has been round to complain twice, apparently the natives are restless.
My results are skewed because on a FXCM demo account one can only trade a max of 20 pairs and with Oanda it’s unlimited (I’m currently trading 30 pairs on Oanda). So knowing that, Krugman is correct in saying they’ll probably produce the same results.
Wow… Very impressive!! I am a fellow newbie. Can you share your daily process for approaching trading? I am also learning and looking to trade off daily charts. How many total trades did you do for the month? What were the PA signals that you took?
Hey TJ, if the account is a live account you can go to FXCM’s website and request unlimited symbols for your account and it will remove the 20 symbol limit. If you are using a demo, no such luck.
