Been a long time since I got a chance to trade news.
Was browsing through the charts and lo and behold I see GU right at the bottom of its range, compared to the rest which had climbed up north.
Dropped down to Min1 and its confirmed news push since the candles dropped off fast and sharp and I see a gap on MT4.
Signal to buy on Min 5
GU H1
Second position was and still is pure greed but its half of what the bottom position is worth and I have moved the first positions SL to BE. So in essence I am only risking half of what I wanted to risk initially.
Now all I have to do is keep my itchy fingers away from the terminal and see if this one gives me 50 or 60 pips.
Nikita, did you close this GU for a profit?
I see price came back towards your entry point.
This particular scenario has happened to me a few times in the past few weeks(price revisiting my entry point). Although, I did protect my capital by having SL @ BE, I also failed to make profit on such trades.
Just trying to improve my trade management and trying to learn when and where to take profits.
I by no means tend to “teach” my master/guru. This is just from what I learned from you.
Bias was sell for today as yesterday was a sell, Until it is confirmed on the daily chart.
Still, I could have bought where you did(If I was watching charts at that moment), as I think the three amigos were at strong support.
I sold the EU at 1.2160… price hit my entry at BE.
I think we are going to end up with a indecision candle today or a candle with a wick on the top for daily chart.
too greedy! lol if you traded the GDP news for GBP then you could have gone short for 20-40 pips then leave market. everyone said the GDP news would suck and it did.
what i find to be good practice, is place your trades then get the hell away from the computer lol. that way you wont panic or get excited and end up doing weird stuff. just come back at the end of the day and check the results. nice stress-free approach.
Make sure that your day candle closes at NY close. That would be GMT +5.
Anything else and you are on your own.
The H1 and H4 candles dont matter because they are the same regardless what time your D TF candle closes.
Many would say this is the real D TF chart. It coincides with one day in forex, the extreme most western market closing and the extreme most eastern opening.
AU D TF
This is the D TF chart that I use to decide if I am going to buy, sell, look for some other pair or just stay out for the day.
This is the first time I am posting from this chart because its a pain in the backside to draw lines and label it on tradestation.
The trick is to not only watch for price bounces. You should also be watching the price extremes, or the wicks.
This not only works for the D TF for Intraday trading but also the weekly charts for a swing ( this one I figured by watching Yunny1’s trade entries ).
Im up a 100 pips for today. I am in no rush for tomorrow.
Maybe AU will not be as clear, some other pair maybe.
But whatever it is, I dont take a bounce or a BPC on H4 or H1 if I cannot see where I want to buy or sell on D TF.
This is the final instalment to this trading method. The last piece to the puzzle.
I dont get burned badly when my trades go against me because of my SLs. Where do you think I get SL as small as 10 or 15 pips on Min 5?
You would be mad to trade Min 5 when you dont know if you would buy or sell at a certain level.
So when I say hey dont go contra and just follow bias, its so that those who are still trying to figure out can get the basic concept first.
If you are comfortable with that, than you can go the next step and really use the chart to decide on where to buy or sell, taking the guess work out of trading.
Remember, if you cannot get the first part right, than D TF is not going to be of much help.
The left upper tick is my cue to buy from the bottom.
The entry was second candle right at the wick of the candle with the tick as it was pulling up.
SL was initially right at the bottom of the wave, than moved up to below the wick immediately as price crossed ten pips from entry. So total SL is now 7 pips plus spread.
Price is now at 20 pips plus.
For 7 pips SL, I am not worried about much.
On another note, D TF is not what I would consider an ideal buy, so Risk lowered accordingly.
I always stare at the screen’s but still i miss the opportunities like the one you’ve posted. Though i’m doing well using the main concept. Trades like these are out of my attention. After you have posted i saw it, price bounced off the support level and on the opening of new candle u bought it.
Hi guys, I been following your thread with great interest. Sorry to jump straight in with a question but:
When trading price action does it matter if your signal candle was caused by reaction to the news? I.E say you are waiting for a chance to short a market and then a news annoucement comes out which creates a massive engulfing candle (and closes as such on the 1 or 4 hour chart), can this still be used as a conformation candle?
Sorry if that doesnt make much sense and again for jumping straight in with a questions but I will be trying to get more active on this thread once i finish reading it all!!
Any news push is considered abnormal market movements.
But than there are two scenarios that might happen.
Either news push is in the direction of the natural market movement, or its in the direction contra to market movement.
News push that follows market movements will see prices move in that direction after the push. Hence traders cannot capitalise on that affect.
News push that is contra to market movement will see prices return back and resume its natural movement. In other words as soon as the effects of the news is over, market will resume to go back to where it is suppose to be.
The second scenario gives us a very good opportunity to capitalise on the trade.
Now the question is, is the massive market up just now in line with natural market movement or against?
I think its with the natural market movement, where GU for an example was ripe for a buy since yesterday and today it just got pushed in that direction.
I am on a short on both EU and GU now and currently holding about 50 pips total on both, but its not a position I will hold for long because I believe market bias had changed for a buy and it will continue to go higher.
Only other thing we have to be careful buying tomorrow is tomorrow is the end of the week and a Friday. Most often, Fridays will see market go against bias because alot of traders who are buying or holding a buy will take their profits, pushing prices south.
I am sorry there is no one word answer for the question you had asked.
I have explained this in detail in this thread under postings of news trading.
and it did.