It is also rejecting a strong support zone at the 0.93000 area. This is a pretty good trade setup with the 2-bar reversal
[QUOTE=āPapagoy;565274ā]Okay, new try <img src=ā301 Moved Permanentlyā/> AUDUSD daily 2bar reversal + with trend + resistance+fibonacchi 50% -PA signal could be bigger (?) Edit: If my graphs are hard to watch/follow, please let me know[/QUOTE]
The 2 bar reversal is at a nice level but it could be argues that a 1-2-3 reversal pattern formed at was confirmed when price broke below the last swing low. I personally plan on waiting for price to reach the swing low of the reversal pattern @ .8430 and looking for opportunities to go short. That would also get us trading in line with the 8/21 EMA resistance.
Thatās what any wise trader would do 
Me went long at 0.9280 with no real PA I saw the rejection on support and followed the flow and longed maybe I got lucky and should be more careful next time but also maybe one has to follow the feeling sometime
I had to go out earlier, so I left Benedict to test out my new Trader 6000 buttock clencher whilst watching my long trade on the EURJPY
Just thought Iād drop an update on my trades, there is a slightly awkward atmosphere in the caravan this morning following the NZDCAD turn around resulting in the trader 6000 imploding on Benedict.
Fortunately, what I hadnāt told Benedict was that Iād moved to break even when the going got good, my USDCAD trade also began turning around but this was to be expected as it was against trend. It got to 30 plus pips and i should have cashed in when i noticed a reversal signal on the 4hr but instead I moved my stop loss to break even. In the end I took just 9 pips profits. However the real winner was my final active trade on the EURJPY which rocketed over the night netting me 95 pips. I took profit on this one at the first TP point.
Clearly the Trader 6000 needs much more work before commercial use and although Benedict may not be able to walk for a few days, I am very happy with my results this week so far. I am now just 80 pips short of my first target of 500 pips profit which is 50 percent profit. This is where I tighten up and take only the very best trades. I currently now have no active trades.
closed both these trades out with 1.4R each - my nzdcad long reached 3R while i was asleep but unfortunately my target take profit level was a bit higher so by the time i got up this morning it was back at 1.5R 
ā¦given the impending US and CAD news today, I decided to close both trades ahead of that news and book some profit - i have no other open trades now, I am unlikely to take any new setups tonight as I donāt like opening trades going into the Friday session and the weekend especially when I am in profit for the week - psychologically, I prefer to end up on the week.
I took a couple of impulsive (badly thought out) trades on Monday so instead of being up 3R this week am only up 1R ā¦
[QUOTE=āmancamy;565607ā]closed both these trades out with 1.4R each - my nzdcad long reached 3R while i was asleep but unfortunately my target take profit level was a bit higher so by the time i got up this morning it was back at 1.5R ā¦given the impending US and CAD news today, I decided to close both trades ahead of that news and book some profit - i have no other open trades now, I am unlikely to take any new setups tonight as I donāt like opening trades going into the Friday session and the weekend especially when I am in profit for the week - psychologically, I prefer to end up on the week.
I took a couple of impulsive (badly thought out) trades on Monday so instead of being up 3R this week am only up 1R ā¦
[/QUOTE]
Hey Amy
I was the same with the NZDCAD, when I went to bed it was doing beautifully which is why I moved my stop loss to break even as I felt sure it would keep going, by the time I woke up my break even stop loss had been hit so you did very well to get out with something.
BA
Thanks BAā¦find exiting trades really difficult - I think I was being a bit emotional when I closed these two outā¦looking at both pairs now and both are still moving in the right direction! typicalā¦:17:
[QUOTE=āmancamy;565649ā]Thanks BAā¦find exiting trades really difficult - I think I was being a bit emotional when I closed these two outā¦looking at both pairs now and both are still moving in the right direction! typicalā¦:17:[/QUOTE]
Hi Amy
I suppose itās all about what your comfortable with, I wonāt regret being out of that trade. For me if a trade has made 60 plus pips and then turns around very quickly all the way back to entry it begins to feel like a gamble to me. I suppose I like to see a trade react positively and desisevly to price action. Iām sure when I have more profit behind me I will be more comfortable with riding it out but for now I am taking fewer risks as I build my bank roll.
very true, me too - good to take 1Rs and 2Rs to build up capitalā¦
Totally agree with you. As long as you have followed your plan/rules and get out of a trade at break even or with profit it was a great trade!
Amy, never start to think about what could have been and what not. It will drive you crazy, believe me. I did that constantly for 10 years when trading stocksā¦ And now I AM crazy! 
My NZDCAD long position also got stopped out at BE. When I was 20 pips in profit I moved my SL to BE because I really got unsure about how price behaved. Price almost hit my TP but then shot down and hit my SL. Good trade after all.
Today I also made the best stock trade ever. Or let me rephrase, not the ābestā but the most accurate and fastest one. A positive article came out for a small Swedish company and it has a very volatile stock. Every time there is a little positive comment in the news people buy the stock like crazy. Long story short, I took a position and closed it 19 minutes later with a profit of 29%!
Sometimes when i have had a great trading period I use a little portion of my capital to gamble with like this. Even though i was very convinced that it would go up it was still a little like gambling. This time i was correct in my prediction and also 100% accurate with my order since price dropped fast again after i sold.
For the profit I will reward myself and my wife with a nice little vacation or something. That keeps me motivated and gives me energy to handle the tough times.
Why am I telling you this? I do not want to brag in any way. i just think of it as a fun thing to share and I also want to encourage you to reward yourself when you are doing really well. It does not have to be anything fancy, but something that makes you happy and gives you some positive reinforcement when you do the right things and succeed.
In this case I am not rewarding myself for gambling which would be wrong but I am using the gamble profit to reward myself for working hard and creating great results in the stock markets this year.
[QUOTE=āDiablo1505;565696ā]
Totally agree with you. As long as you have followed your plan/rules and get out of a trade at break even or with profit it was a great trade!
Amy, never start to think about what could have been and what not. It will drive you crazy, believe me. I did that constantly for 10 years when trading stocksā¦ And now I AM crazy!
My NZDCAD long position also got stopped out at BE. When I was 20 pips in profit I moved my SL to BE because I really got unsure about how price behaved. Price almost hit my TP but then shot down and hit my SL. Good trade after all.
Today I also made the best stock trade ever. Or let me rephrase, not the ābestā but the most accurate and fastest one. A positive article came out for a small Swedish company and it has a very volatile stock. Every time there is a little positive comment in the news people buy the stock like crazy. Long story short, I took a position and closed it 19 minutes later with a profit of 29%!
Sometimes when i have had a great trading period I use a little portion of my capital to gamble with like this. Even though i was very convinced that it would go up it was still a little like gambling. This time i was correct in my prediction and also 100% accurate with my order since price dropped fast again after i sold.
For the profit I will reward myself and my wife with a nice little vacation or something. That keeps me motivated and gives me energy to handle the tough times.
Why am I telling you this? I do not want to brag in any way. i just think of it as a fun thing to share and I also want to encourage you to reward yourself when you are doing really well. It does not have to be anything fancy, but something that makes you happy and gives you some positive reinforcement when you do the right things and succeed.
In this case I am not rewarding myself for gambling which would be wrong but I am using the gamble profit to reward myself for working hard and creating great results in the stock markets this year.[/QUOTE]
Hey Diablo
What a great post and well done!! It sounds like you deserve that victory and a nice holiday to boot. I havenāt a clue about the stock market but something I hope to learn more about one day. Wow there is a lot of experienced folk in this thread which is great! Your win doesnāt sound like a gamble to me, it looks like you did your homework and it paid off so good for you!
The break even move is yet another weapon I didnāt have until joining this thread and boy is it a beaut! I have also made a new tweak to my trading plan from today, my new rule is that: If I am counter trading or trading into tested near by minor resistance I will move to break even and take half profit at this point if it is struggling and providing its 30 pips or more away otherwise if I have a clear run and it is with trend I will simply move to break even at the first point of resistance if it is less than 2 - 3 times my risk away.
Hi, Iāve started being really picky with my trades therefore none this week that fit my trading plan, Bummer!!
So I was wondering as I donāt trade lower than the 4hr t/f where do i find 8 and 12 hr charts on MT4, maybe these will throw some PA signals my way. Otherwise are there any brokers out there that can offer this with New York close.
Steve.
Question on TP levelsā¦
Should my TP levels be similar to my S/R levels. When I have been entering a trade at my S/R, my TP level has been close to the next S/R level I had previously drawn. I usually put my TP slightly below the next S/R. Is that the way yāall do it? Should I be looking at lower time frames for TP levels?
Hello, my smart friends.
I have a question also. Been bugging me lately.
What is the purpose of moving your stop loss to BE? (break even) In fact, I donāt think I even understand the whole BE thing. Does anything else happen other than moving your stop loss towards profit direction?
I did try it this week, but just didnāt understand why the numbers changed.
This is what I know. I think.
You have an entry, SL, TP, open trade. The price moves in your favor. Say then price is a quarter to a half way towards your TP. So, it makes sense to move your SL in more towards your direction. To me, BE is where your entry point was, because thatās where I would break even, meaning no money loss or gained.
Now, it would make sense if price moved in your direction and you wanted to lock in some profits. Like thisā¦price moved half way towards your goal, is now coming back against you, so why not change your stop loss to the quarter of the way point (from your entry to TP). But in my mind, that would not technically be break even, thatās locking in profit of some kind.
I donāt know. I think Iām missing something. And donāt understand what you all are saying when you talk about āmoving to break evenā.
Sorry if this is a really stupid question!
Please enlighten me.
Mike
No problem at all Mike, you understand it correctly.
For example, letās say you are long. Price moves up in your favor and you see that it hits some resistance that is in the way to your target price where you want to exit. Because price has already moved a decent amount in your favor and has now hit resistance, it would suck to have this trade turn around completely and stop you out for a full sized loss. So you move your stop to break-even aka the to the entry price of the trade so that, if price does actually fails to push on and turns around against you before hitting your target, you donāt lose any money. You are stopped out at break-even, 0 profits but also 0 losses. As simple as that!
Cheers
Thanks!
So, why wouldnāt we want to move the BE point up closer, to lock in some profit?
[QUOTE=āMike Wolski;566167ā]Thanks! So, why wouldnāt we want to move the BE point up closer, to lock in some profit?[/QUOTE]
Thats easy to answer. Because you want to give price as much room as possible to ābreatheā. Many times price will move against you a little bit before turning around and moving in your favor. So instead of taking a small partial profit if price hits your SL that is set to entry price +XX pips you have a greater chance of hitting your initial TP.
You can of course do that too, but for many trades you would then make the space for it to move to the ultimate target too small, so what tends to happen a lot is that you get stopped out for your small profit and after that price resumes the trend and shoots all the way to your target.
Now you have taken, for example, a 1/4 of the size profit that you would have and this messes terribly with your risk:reward ratio and itās stuff like this that can cause a profitable trading system to still show a loss. Statistically for most systems I have seen you will be more profitable if you just give the trade room to do as it please, win or loss. If your R:R is good, it all adds up in the end.
If that trade would have made 4x profit of an average loss, you would have to take 4 losses to wipe out all the profits completely whereas now, with 1/4 profit, the next loss wipes out all the profit plus 3/4 more! Not nice
Cheers
There have already been some great answers to these questions but I wanted to throw a little in here too. Moving your SL is a very tricky game of statistics. Moving to BE protects your capital, and keeps you from losing your 1 Risk. It goes back to the post I wrote earlier this week that it is human nature to cut winners short and let losers run, but moving to BE we are making sure we cut our losers short and try as much as possible not to take a loss. One of Warren Buffetts most famous quotes is simply this āNever take a lossā. We will obviously take losses but I think that statement from Mr.Buffett stresses the fact that if you want to make money in the long term, you really have to be minimizing your losses as much as possible. Why that becomes tough is because sometimes moving your SL to BE will not only keep you from losing but also keep you from winning. If you have a trade that is 1:4(1 risk : 4 rewards) and you move to BE too early, price can temporarily swing back and hit your SL and then shoot up to your profit area. Now you have lost 4 profits, and this would be equivalent to just letting 4 trades take full losses. So in my opinion losing out on those profits was worse than risking the loss. You have to wait for price to reach an area where if it turns back, it is statistically likely you will be stopped out. Price rarely moves solidly in 1 direction for a long time. Price naturally oscillates and you donāt want to be getting stopped out from those natural price movements. You want to make sure your SL is getting hit during a true reversal. In most of my trades I find 1 or 2 minor resistance areas, and I will wait for price to reach this area before moving to BE. Other times I will only move to BE if I get a very obvious signal that price is threatening a true reversal on my position. There are ways to do it where it can protect your capital while at the same time giving your trade room to move. There are also techniques where you can move your SL with the trade and lock in profits along the way. The same principles apply in that situation.
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