You are more than welcome to take whatever there is here. After all, this is not my idea but something I put together what other traders were doing over a period of time.
Indicators are great, but they only work if we knew how to use them in relation to points in market. Price is overbought? Well overbought compared to what, since the indicator has no base value or a high and a low.
So Indicators work great when you know what to look out for in the market itself, but in the hands of a trader who is not able to judge the context of a signal being given.
But than, if we can read the context of the market, than I think we do not need a secondary confirmation, stating the obvious, like an Indicator.
Really, what is a MA? Its just the average price of x number of previous candles put together. Would they tell us anything? Yes, they will tell us whats the average price of say 20 previous candles, with the SMA 20. Other than that, they “tell” us nothing at all.
So I think that its best to come back to the basic and just trade off the charts.
Why add another thing that will always add to the risk of false signals and set ups?
Took a Short on AU yesterday with my TP 1.0382. Unfortunately I got stopped out when I moved my stop loss too close and missed half of the action. But again, A pip gain is better than a pip lost.
Hope everyone does well too. I’ve covered my 100pip loss last week and feeling real gleeful about it right now.
Hi Zellwk at least you managed to recovered which is very good. I am still in the process of recovering my losses. It is very hard recover but it’s very easy to lost.
EU hit my Trailing stop but managed to bank 30 pips which is very good for me.
Hey guys…hope everyone’s doing great… I have few queries in my mind which im putting down here.
Does anyone trade Aussie and japanese sessions ? I see that during these sessions, S&R levels are being respected atmost compared to the Euro and new york sessions.
I feel that 20-30 pips daily is possible if we follow more pairs…does anyone trade based on daily targets ? I have found the 20 pip compounding methos in Lumi ebook…does anyone follow this ?
people who’ve been trading with this method…wts ur win percentage till now or R:R ? im asking this cause, looking at the hitorical charts, when there is a bias in the D TF…It was profitable till the bias has ended…I see very low percentage of losses unless there’s a news disaster or any such thing…My risk reward is 1:2 and 1:2.5 so far(its been more than 2 months since im following this thread ).
How does monthly and weekly charts help us in determining the daily bias ? I mean, if the bias is bearish in monthly and weekly and it is bullish in daily, so wt do we do then ? follow daily TF ?
people say that u need to adjust or change ur trading style according to the market situations…But with this method, i dont feel i need to change anything regardless of the market situations…am i right this way ?
Im sry if any of these questions look silly to you. Being a newbie, i cant find answers to these questions myself.
P.S - I’ve been following the yen pairs and today i made around 90 pips on AUDJPY…which was 1:4 RR…
I trade AU during asain sessions and yes you are correct. AU does seems to respect levels more during that session than the rest. The reason is AU is the Pacific witch runs along with the asian session.
20-30 pips is very easily doable. I dont have a daily pip goal is I feel it creates to much stress on a trader to accomplish that goal. Thus causing over trading an also it impairs the trader judgment when he nows has such a short pip goal that you will not see the bigger moves playing out. Lumi is a great trader and I follow him but I dont use many of his methods as they just dont work for me.
See my trade log below
If you are only trading small intraday moves the monthly does not have much effect. Weekly will a little but minimal. I pay attention to them as I am more of a swing trader than a day trader.
If you learn to trade what you see in the charts then when the market changes you have all ready adapted to these changes. You do what the charts tells you to do and only what the chart tells you to do.
Congrats on the yen pairs 1:4 is great.
Here is my trade log for question number 5. Hope this helps
Hi Bob your trading log looks very good, 78% excellent win percentage. I am trying to follow your advise on the trailing stop, still having problem, like today I went to the GU and NU trade in very good time, but my trailing stop hit around 12:30 pm GMT.
Thnx for the quick reply Bob. That’s really helpful. Im learning a lot here…all my trades are delivering very good returns so far…very good log btw…78% is awesome…
Thnq Sharebazar and congrats on ur pips. I have bagged 25 pips in EURJPY during the japanese sessions. It was a good day overall. Btw, on an average how many trades do u take per month…
Becareful with this method of compounding. Unless you are really patient and your system really works, you are going to loose your account. Its not recommended for newbies.
The idea is the same, but the risk is way way high. unless you are trading a R2R of atleast 1:3 or higher, be very careful.
A streak of two or three losses in one go is enough to wipe out your entire account.
Finally, remember, dont set goals like 30 pips a day. Looking for trades daily is another reason why your account gets wiped out. Why must there be 30 pips daily?
Look for an entry only when there is one. When things are scrambled, save your SL, instead of guessing.
I used take 3-4 trades everyday, which is very common to the new trader like me I believe, but I have learned very important lesson from this thread as there is only 1 or 2 valid trade a day in a pair. Now I am trading according to the price action, so there is no fix amount of trades.
When I see the good opportunity to enter with very low SL I took a position.
Most of the trades I end up making are the losers and I still have a problem with making winning trades. Although I had two great runs on GU and AU on Tuesday or something, I can’t seem to find any good trades at all these two days and end up making quite some losses. Back to square one now.
Can someone reiterate on the candlesticks you use for spotting good entry points please? I know its somewhere buried in the thread and I have no idea which page it is on now. Currently, I am only able to spot hammers somehow, and had probably missed quite some trades because I was unable to spot other good ones.
One other thing I have noticed is that candlestick patterns are meaningless unless it occurs in places where there are clear resistances or support lines. Am I correct on this one? I did lose quite many times on candlestick patterns that was lying somewhere in the middle of two resistances.
Also, this might not be a good question to ask, but… Is there any good way to chase a move that has left off? For example, AU this week moved off the 1.055 area very sharply and went straight downwards. If i had missed the initial entry, are there any signals in the down move where I could have gotten in?
If you can spot hammers well then stick to that. Hammers are pretty much all I use. Go back to the school of babypips for a refreasher on candlestick formations. They have a better write up on it than I will ever be able to give. You are correct in saying candlestick formations are meaningless unless they line up with S/R levels. As a price action trader your best friend is S/R levels. Then since S/R levels are never exact you start to look for candle formations to confirm price is in fact signaling a reversal. And do not I repeat DO NOT chase price. If you missed the boat wait for the next one. Sometimes you can find an entry on a lower time frame but dont go looking at this point. All you will do is talk yourself into a losing trade. I know what you are talking about on the AU. That was a fast move and there was no other opportunity to get in. If you missed it you missed it. There is one thing about the market that people must understand. Its not going anywhere that move will happen again. Next time be ready thats all you can do. Thats the hardest part in starting out in forex is learning this one concept. I used to chase trades trying to learn valid setups. You will eventually realize you dont have to take every setup every day. Just sit back relax and wait for the ideal trade setup to come on your time. You will find that is alot more profitable and stress free than any other form of trading. If hammers stand out to you then only trade them on strong S/R levels and nothing else. So what you miss some moves. You will never get them all no matter how hard you try. So why stress over it.
Hammers are power full. If you rely Nikita’s PURE PRICE ACTION, then hammers worked well with the system. The system told us if yesterday a buy then today a buy yet look for buy at support area. If there is a hammer on support area then it will be very strong signal. Like Bob said I encourage you to stick with hammers. It will work IMHO.
But you must learn Candle stick patterns and don’t blindly follow PURE PRICE ACTION trading strategy. For example Thursday on GBP/JPY chart Daily candle printed as a Hammer. It shows a reversal. Friday it went up more than 100 pips. If we follow pure price action strategy for sell today, (because Thursday shows a bear candle) It should not work.
Hope it will help you, Please note I am a newbie also. I have not enough Knowledge like Bob, Nikita and others. Pardon me if any newbie mistake.
Ahh that speech certainly hit me. I did realize that I had been chasing trends and thats the reason why I lost over 100pips last week. After calming down, I managed to recoup the losses by winning a few trades in a row. Now Im back to this bad habit.
