Hello Nikita. I just had this doubt. Do candlesticks work like they did before ? I know this questions sounds crazy, But i remember you saying that the market was not like before where you did gain couple of hundred pips a week and nothings have changed.
So I was wondering if the candlestick patterns carry the same weight or such…!!![/QUOTE]
They do. Its just that trading higher TF or waiting for the correct levels based on candlesticks on higher TF is an absolute must.
First post after a year reading a lot of material at babypips. NikitaFX, I would like to thank you for this system. It is very useful and I learn a lot. And it is clear for me. I am testing now and I hope that I can combine trading with an other job behind the computer.
You opened this topic in 2011. My question is if you are still having profits with this system? Do you have a job besides trading or is this your main job? I’m just curious.
I use SL and TP so that I can leave the computer. I tend to check the computer every 30 minutes. AUD/USD is falling a couple of days now. I made some nice pips with this fall. There is a 11 month low. There is no resistance line whats so ever. Only psychological resistance lines as 1.000. My question is where do you put your (imaginary) TP? Like your system, I put it at 60 pips.
Again, thank you for starting this topic and sharing your experience with us. You made me enthousiastic with trading. :44:
PS Sorry for my crappy grammar. I’m not used to type in English anymore. :33:
I want to say my nzd jpy short trade now +100 pips , but unfortunately my sell limit order not trigger by spread pips , it’s miss just 4 pips , but I am happy my plan was perfect ,[/QUOTE]
Nzd jpy short trade enter , now + 75 pips I book my profit 45 pips
Funny you should ask. Be careful on the Aussie. Look at the daily all the way back to when price hit .9600. That is the next major level of support. But look at that swing do you see those little dips in price. Those could all cause a bounce at the least. From here to .9600 there is a lot of them. Price has also traveled a long way down so I am afraid this is going to run out of steam. But trade what you see not what you think. My best advise would be to highlight those dips in that swing and go back to look at them on the 4hr. From there you will find some better levels of support that may be coming up in the near future. Good luck I will be with you shorting the Aussie.
[QUOTE=“Rossem;489896”]First post after a year reading a lot of material at babypips. NikitaFX, I would like to thank you for this system. It is very useful and I learn a lot. And it is clear for me. I am testing now and I hope that I can combine trading with an other job behind the computer.
You opened this topic in 2011. My question is if you are still having profits with this system? Do you have a job besides trading or is this your main job? I’m just curious.
I use SL and TP so that I can leave the computer. I tend to check the computer every 30 minutes. AUD/USD is falling a couple of days now. I made some nice pips with this fall. There is a 11 month low. There is no resistance line whats so ever. Only psychological resistance lines as 1.000. My question is where do you put your (imaginary) TP? Like your system, I put it at 60 pips.
Again, thank you for starting this topic and sharing your experience with us. You made me enthousiastic with trading. :44:
PS Sorry for my crappy grammar. I’m not used to type in English anymore. :33:[/QUOTE]
Yes the system is still profitable. Though my entry is not as often as it used to be. I started looking at daily and weekly charts, sometimes monthly to look for trades. Only thing I have thrown out altogether from the original method, is correlation. I stopped looking for it.
My current problem is I’m not holding it long enough sometimes. Working on this now. I try to put my TP at the next resistance or support area, depending on which TF that I think the move is originating from.
But if I look at the whole picture, I think my trading is close to swing trading now.
As for holding a day job, the answer is yes, for reasons I have highlighted previously in this thread.
Yes, but the doji makes things dodgy! It signals that it has not decided what its going to do today.
Weekly is still an up for this week and this being the end of the week, i would not jump into a short just because there is a signal to do so on smaller TF, even if its on DTF.
I would wait for next weeks candle to open and climb higher, than short if there is any signs of a weakening bull, effectively reducing my stop.
Either way, I normally stay out of a Friday and a Monday. Market goes into happy hours on Friday and suffers a bad hangover on Mondays, often.
No need to be an Elliot Wave expert. Just watch and learn on how prices move in a real chart. Especially Higher Highs HH and Lower Lows LL. ( helps with TP and SL )
Candle Stick Patterns
First 6 basic patterns will do.
Support and Resistance.
I am not big on these, but basic knowledge is always an advantage.
Currency Correlation.
Read up on what this is. It helps when making a buy or sell call in general. Again no need to get your PHd on the subject matter. Just read up on what kind of an animal this is. I dont trade a single pair but I have my favorites.
Market Bias.
Get a general idea what this is.
Trading Tools / Parameters.
Time Frame ( TF )
Day TF for market bias
Hour 1 TF for entry, SL and TP
Indicators
None
Candlesticks only
Warning. Adding Indicators to this without knowing what you are doing will cause you to loose pips / money.
3.Trading Hours.
All market hours. Monday to Friday. The only thing that matters is valid bias and entry.
Preferably UK open ( 3pm GMT + 8 ) to US close ( 5 am GMT + 8 ).
4.Stop Loss ( SL )
None / Imaginary *Warning, not recommended for newbies
Practical SL. Previous wave peak. Or previous D TF wave peak if entry is on today’s HH or LL.
Holding Period
Rarely more than a few hours. Max one day. Greed occasionally makes me hold longer.
Take Profit ( TP )
40 to a 100 ++ pips per entry. Ability to read waves really helps.
Entry Per Day.
Maximum of 2 entries. Ideal is one entry per day as only one valid entry is available per day if you look at it technically.
Entry Triggers on D TF
If yesterday was a buy, then today is a buy.
If yesterday was a sell then today is a sell.
Watch for the 6 basic candle patterns
watch for the 6 basic candle patterns that indicate a reversal on D TF. When that occurs, wait for a reversal confirmation candle to complete before taking the trade.
Example : when there is a hammer or tweezer pattern on your D TF Chart, wait for a confirmation candle in D TF to strengthen your analysis.
Entry is based on H1
easiest way to trade when direction is known is to enter when price crosses the opening of D TF candle. Hold for about 40 pips.
Look for HH for a sell and LL for a buy on H1 TF. Again candle stick patterns or even support and resistance areas can be used as a guide for entry in the H1 chart.
The beauty of trading with market bias is, even if you made a mistake or entered too early on the H1 chart and it is going against you by 40 or 50 pips, you can still confidently hold the trade as you know where it will end up.
I’d agree with Bob. I sold a Double Top a couple of weeks ago, but other than that I am simply buying the dips. It’s too easy to look at a chart and think ‘it can’t go any higher!’… then a month later we’ve missed a 500 pip move. Particularly in the current climate I stick to this: trade what you see, not what you think.
[QUOTE=“bobmaninc;491712”]UJ has been going up for a long time. Why counter trend trade? Wait till these rules line up with a buy and go long.[/QUOTE]
It was a short term trade , my plan was sell @ 103.20 and tight stop Los 20 pips , but 1 hour before open the market price come down around 60-70 pips , unfortunately I miss that train , the pending order ( sell limit ) still open , because I’m outside ,
Thank you for sharing this to us. Why don’t you look at correlation anymore? Because on some trading days the correlation is out of whack?
Do you still take one trade per day? And do you take news into account when trading? For example to avoid trading before important news comes out?
Do you have some important insights/tips during trading over the last two years and willing to share? Thank you in advance. I really appreciate it. [/QUOTE]
I dont look at correlation anymore cause
A. Currencies dont always move in correlation. It only correlates when the base currency is causing the move. Example, if its yen that is actively being traded,than poundyen, euro yen, aussie yen and x over yen will move in the same direction. But if the cause of the move is because of the principle currency, than it all goes out of whack like what has happened last year. Euro up, pound dropped, aussie shot up etc etc.
B. my chart reading has improved tremendously compared to when I started this thread, thanks to the pointers and input of numerous other fellow traders who kept giving me important highlights, which on myself, im not sure I would have seen. So these days I just look at individual charts and trade what the price action is telling me.
I only take about one or two trades a week now. Max three. But I sometimes go without a trade for two or three days. Unless I can see a clear setup, I dont bother wasting equity on it.
I dont look at news anymore. I avoid NEP Friday until after the news is over, but other than that, I no longer open the forex factory news calender which I religiously used to do before. Price action has the effects of news already built into it.
The only insight I have now, which I didnt earlier is that the only thing that is important is identifying price levels. The big fish just trade these areas and the origin of a move is always at these levels. These levels are the support and resistance on the day time frame and higher.
To make money on the long run using price action trading, we need to trade the higher TFs. Smaller ones will kill your account if you dont have the experience of trading backing you as yet.
Most newbies loose money because they spend all their time trading the H1 and below. I use to do that too.
