Technical Templates Continued

[Sean_P]

@hawkmoon

Ther is present negitive feelings in pound verses the us doller for the begining of this weeks & I am takeing notices of what you say about the yestarday lows & high when looking to entry my trades.

i tryed to put a chart to this mesage but manage attachment box not seems to work for me. sorry.

Yes, the rumors of potential QE back on the front burner isn’t doing Sterling any favors so far this week.
I assume this is the area you’re talking about hawkmoon?
The dot on that red bar being your entry point & the shaded block above 875 your stop loss cover?

If so, you’re risking approx 40 to make 85, so that’s a positive 2:1 play - which isn’t too bad a deal.
If you’re tracking prices like this in a clear peak-trough move then tucking stops above previous swing levels isn’t the worst decision in the world by any means, especially if you’ve got room for prices to run before they stretch to the average days extremes.

Cables avg range extension takes it to c1.5770-75 today, so you’re not far away.

jjay & Jocelyn were actually discussing & covering Cable live this morning as one of the likely intraday movers.
I’ll post up the chart & explanation in a bit.
It’s nothing new or anything that hasn’t already been covered on here before, but it might offer you another angle on potential entry & risk assessment when looking at these types of directional moves.

[hawkmoon]

I assume this is the area you’re talking about hawkmoon?
The dot on that red bar being your entry point & the shaded block above 875 your stop loss cover? jjay & Jocelyn were actually discussing & covering Cable live this morning as one of the likely intraday movers.
I’ll post up the chart & explanation in a bit.

Yes thank you thats is my enter trade and stoploss place.
i would be please to see how Joclyn and jjay has trded to this pair diferant or same to how my tradeing has been.

i am happy about how this has traded from the entry of mine. i am likeing very much how you all are telling us about thes best places for takeing trades.
Thank you for these coments to me today

[Sean_P]

@hawkmoon

i am happy about how this has traded from the entry of mine. i am likeing very much how you all are telling us about thes best places for takeing trades.

So you should be, that’s a nicely executed & managed trade!
Using these consistently reactive levels & zones as your cue to take action & locate opportunities in sync with the current price drivers will stand you in good stead moving forward.

The alternative option I made reference to in the previous post is still focused on yesterday’s low, just a slightly different view & decision regards entry & risk deployment.

If you read back up the thread a page or two we recently reiterated the positive potential of triggering trades ahead of key levels to get you seated in front of the breakout crowd.
One of the primary benefits being, it offers you a more favorable risk placement to test the validity of the directional bias & forward potential, especially when triggering intraday trades.

You can sit back & watch the breakout crowd taking on the elevated risk jostling for a decent seat hoping not to miss the continuation move.

Bias is clearly bearish off the weeks open, & continuing the heavy downside momentum during today’s Tokyo trade.
You rightly observed that price has covered 60-65% of it’s average range as it arrived at yesterdays lows, so that zone offered up decent odds to get aboard on a pullback from that level to check for further downside potential.

I’m not suggesting it’s a better or more effective opportunity than yours (which was a very cool entry by the way), just a potentially keener value to risk option offering up at least a 3:1 play.

[hawkmoon]

that is kind for you to show me of this exampel thank you.
Also the euro-usd it was react from its yestarday high in the japanse trade sesion and it reaches nearly the yesterday lows, also being its averege range for todays tradeing sesion.

and the gold prices react from the yesterdays low on today tradeing sesion also. You are all acurate many times about these level that the traders are moveing the prices to and back from lots of amount of times every week.

i will now also studey very carfeuly about your chart exampel today on future trades of mine to begin try ing to see better this early risk and nicer profit.
i am likeing all of thes threds informaton very much. it is helping to me be better at studeying my tradeing to improv.

[Sean_P]

Also the euro-usd it was react from its yestarday high in the japanse trade sesion and it reaches nearly the yesterday lows, also being its averege range for todays tradeing sesion.

and the gold prices react from the yesterdays low on today tradeing sesion also. You are all acurate many times about these level that the traders are moveing the prices to and back from lots of amount of times every week.

Risk aversion is ramping up big time into the New York shift as China raises interest rates 25bps. That’s having a skittle effect right across the risk board today & adding to Sterlings earlier woes.

Hope you haven’t bailed prematurely on that Cable short position

[Kevan_Reynolds]

Hi Sean,

Presumably if someone was looking to book partial profits or exit a heavily extended intraday move such as this, then I suppose targeting a round number like 1.57 would be a sensible enough option, given the usual amount of buy & sell stops that usually become attracted to these levels?

That would represent 135% of Cable’s average days range + it corresponds with the lower support zone that Tess highlighted in her chart back at the 7th October on page number 43.

[Steve_K]

Hi Sean

Thank you for your very helpful post. I understand this particular trade is an intraday position, but I would like to further understand the reasoning behind shorting this pair please.

I would have thought the slightly longer term bias would remain bullish on his pair based on the 60 min HH, HL (if somewhat sloppy) price action behavior and short term intraday trades would also therefore follow a long GBPUSD bias? Although prices have zipped clean through now, the previously mentioned demand zone on this pair was at 1.5750-5770. Would this have qualified as a zone to look for continued demand and a trigger such as a sub hourly 1-2-3 or series of momentum breaks back up towards the previous weeks high?

Is your shorting bias based on this weeks BOE QE speculation & the change in risk appetite as well as the price action below the weekly open?

My apologies if I am looking at this from too many angles. Your (and your colleagues) posts are incredibly helpful.

Steve

[Sean_P]

@Kevan_Reynolds

Presumably if someone was looking to book partial profits or exit a heavily extended intraday move such as this, then I suppose targeting a round number like 1.57 would be a sensible enough option

That would represent 135% of Cable’s average days range + it corresponds with the lower support zone that Tess highlighted in her chart back at the 7th October on page number 43.

You could also use that available information & marry it up with the common footprints that reveal traders sentiment & feelings as price vibrates these levels up & down the ladder.

Over-extended & knee jerk move
Hammer (reversal/containment type activity) prints
Round Number
Prior area of demand

15 minute hammers at the confluence zone.

Hourly hammer at the confluence zone.

[Sean_P]

I understand this particular trade is an intraday position, but I would like to further understand the reasoning behind shorting this pair please.
[B]Is your shorting bias based on this weeks BOE QE speculation & the change in risk appetite as well as the price action below the weekly open?[/B]

Hi Steve,

Yes it is.
The guys who were discussing & advising this set up earlier were biased short purely on the back of the current influences surrounding this particular currency.

Quite often I or whoever else will be running a core stake, positioned long a pair, & a couple of the others will be biased short on a jobbing exercise running a very specific agenda that will usually be based on short-range influences.
In other words, we can be trading the same pair but operating very different aims & objectives.

Last weeks low (from an hourly perspective) is the first real support test for this pairs continued upside momentum.
It tripped the first bunch of close quarter trailing stops yesterday through 1.5950.
It’ll be sniffing out demand now around this 1.5670-5700 zone & further sell stops will be layered underneath 670.

[hawkmoon]

sean & tess hello.
Can I ask plese how to simply look to a forex pair to get a acurate pictur of where I am.

some of the analist says eurousdoller is to putting in a top and some others are said that it is building to a other bull atempt to go to higher price and aiming at to the highs of the years prices.
I think to look for my dialy and my horly charts will say where I am to the curent prices.
Thank you both.

[Sean_P]

Take a quick look at the Weekly chart on that pair.

Bigger picture says that over the rolling 12 months this pair is close to netting off.
We’re 12 handles off the highs & the past 2 weeks footprints are neutral.

Price is more or less back at the weeks opening levels headed into today’s closing ticks trading with a slight negative bias.
Unless something spooks it, it’ll end the week printing another doji or spinning top type candle, signifying bulls & bears on this instrument are currently punching each other out.

If they’re attempting to put in a near term top then your first technical point of reference for confirmation will be a concerted breakthrough of last weeks lows (1.3775) & the current weeks low at 1.37.
Shorts can’t get up a head of steam until that zone gets played.

Longs will be looking for a determined bust of the current weeks highs up at 1.4050, followed by last week’s highs at 1.4160.

Always look to your close quarter levels first & work outwards from there.

If you’re an intraday punter then if you wish, you can take your marker off those 2 close quarter zones (+ the previous day high-low levels) & use them as signposts to bias your bets according to where price is being pushed & pulled in relation to those levels.

That will tell you whether you should be selling rallies, buying dips or [B]standing aside until the fog clears.[/B]

If you can’t get a clear enough read on this or any other pair, then toggle through more instruments until one offers up a cleaner view of proceedings based around those, or whatever close markers or signposts you intend to utilize.

If you haven’t already done so, try setting your charts up with a vertical line indicating the weeks opening ticks & maybe another couple to assist with highlighting the prior days & today’s open.

Stick up 2 thick horizontal lines highlighting last weeks high & low levels.

See if that set up offers you a clearer view of the current scenario.
In order for the market to grow legs in either direction it has to hurdle those levels & zones.
The behavior as it keys off those levels & the directional bias (if any) of the price action will help to offer you a view on where to place intraday bets in tandem with the day & week drivers & influences.

[catcher]

@hawkmoon

Can I ask plese how to simply look to a forex pair to get a acurate pictur of where I am.

@Sean_P

If you haven’t already done so, try setting your charts up with a vertical line indicating the weeks opening ticks & maybe another couple to assist with highlighting the prior days & today’s open.

Stick up 2 thick horizontal lines highlighting last weeks high & low levels.

See if that set up offers you a clearer view of the current scenario.
In order for the market to grow legs in either direction it has to hurdle those levels & zones.

This is the kind of thing he’s referring to. This hourly timeframe just has the previous weekly high & low levels & the weeks opening price from which to get your bearings. These levels are visible from the 4 hour chart right down to the 1 minute so they’re well lit on any timeframe I choose to view them from.

I then plot the last 2 days opening levels by putting up vertical lines so I don’t have too many horizontals clogging up my chart. These are visible from the 60 minute down through the 1 minute so they’re also clearly visible from any of those timeframe combinations.

It’s very easy to then see at a glance where price is in relation to the previous days high or low & the previous weeks high or low.
You can quickly gauge whether or not a set up is developing in accordance with your trading plan rules on & around those levels, plus you can also quickly check how much of the average days range has been covered as an additional confirmer if you use that barometer too.

The main benefits of plotting this type of information on my charts is that it keeps things clear, orderly & tidy so I’m not flapping around & constantly cross referencing timeframes.

I know exactly where price is in relation to it’s near term surroundings, which direction it’s coming from & whether it’s likely to tempt me to get involved based on whichever trigger I’m looking to employ.

[tonymand]

@hawkmoon

sean & tess hello.
Can I ask plese how to simply look to a forex pair to get a acurate pictur of where I am.

.

Another way of doing what catcher suggests if you are using MT4 is to enable the period separator function. The H1 gives you separation by day and the H4 by week

[o990l6mh]

These tools can also be handy to separate the different money centers’ business hours.

Not something I use but I have tried them and they work well.

session hours.zip (10.3 KB)

[hawkmoon]

yes this what you both say is i think very correct way to look at every days price action. Thank you also to catcher for showing chart of this coment of seans to me. it make sense for me very clear to do my chart this way also.

I would not have seen clear how the prices had move away at the low of yesterday or how the battle for the bull and bear trader go on the weeklys chart. But how you divide up this chart is nice to see this easyer. Always I ask for help with qestions and you anser to me very cleverly and with no truble for you. I am laerning much by studeying this thred of yous.

happy weekend to all evryone here.

[d-pip]

I know most of the folks following the AT threads have been focusing on daily and weekly highs and lows along with “busy zones” & “interaction areas” plotted on the 4h & 1h charts.

I’m finding out the concepts behind the AT threads can also be scaled down and seem to work really well for short term scalp-like trading, let me explain.

Because of my schedule the last few weeks there have been a lot of days that I could only do some short term scalp-like trades. With one of the strats I was scalping 5 to 15 pips on breakouts of the previous hourly bar. So I’d draw a line on the high and low of the last hour’s bar, drop down to the 1m chart and watch the price action for breakouts.

Well it didn’t take me very long to realize that if I also watched for reversal patterns I could also scalp back the other way on re-traces.

And for all practical purposes I was trading the concept put forth on the AT threads, but using the high / low of previous hourly bars instead of previous days & weeks. It’s interesting to watch how many times the price will return and interact at highs and lows of bars that are hours old.

A lot of the “noise” on the short time frames might even start to make sense. :eek: If you’ve been following the AT threads try throwing up a 1m or 5m chart with lines at the highs and lows of the past hourly bars and hopefully you’ll quickly see what I mean.

thanks!

[tonymand]

I’m finding out the concepts behind the AT threads can also be scaled down and seem to work really well for short term scalp-like trading, let me explain.

This is the whole issue of fractals isnt it. If you put up a chart without time identification you cannot tell from the pattern what period it covers

[d-pip]

[B]This is the whole issue of fractals isnt it.[/B] If you put up a chart without time identification you cannot tell from the pattern what period it covers

[B]Yes! [/B]

I’m a little embarrassed I didn’t figure this out sooner. I always liked the clear and straightforward methods described on the AT threads. But for the most part I’ve been trading the 1h and shorter time frames. I didn’t trade the ATT methods of marking up highs & lows of daily/weekly bars thinking it was just for 1h and 4h chart traders.

Well I’m pretty excited to see how well it also works on the shortest of time frames. Today I traded the New York session on the 1m EU chart looking for small 10 to 20 pip opportunities. I marked the highs and lows of the previous hours bars and traded the price up & down the ladder. It was clean, simple and straightforward, what more could I ask for?

Thanks!

[carll]

[B]Yes! [/B]
I’m a little embarrassed I didn’t figure this out sooner. I always liked the clear and straightforward methods described on the AT threads. But for the most part I’ve been trading the 1h and shorter time frames.
I didn’t trade the ATT methods of marking up highs & lows of daily/weekly bars thinking it was just for 1h and 4h chart traders.

This is the whole issue of fractals isnt it. If you put up a chart without time identification you cannot tell from the pattern what period it covers

Exactly.
They’ve been promoting this view since the original ATT thread & although the message has been very subtle & drip fed throughout the following two threads, the simple concept has flown straight over most peoples heads.

It doesn’t matter what timeframe the trade is executed from because the primary focus is always the [B][U]level or zone.[/U][/B]

A prior day or week high & low or a similar level of significance will show up & react just as clearly & visibly on a 1 minute chart as it will on a 4 hour or Daily chart. It’s the exact same information being served at precisely the same time right across the spectrum.

The ridiculous notion that a trader will only taste consistent & long term success by planning operating & executing exclusively out of longer term timeframes is one of the most misleading & clueless statements peddled around these forums.

The choice of timeframe or combinations thereof will be dictated & influenced by the individual traders preferred style & time availability.

Just because someone chooses to execute & manage their bets from sub hourly timeframes doesn’t automatically tar them with the reckless, clueless or scalper brush.

My primary timeframe template is the 5 minute chart & over the past 2 weeks I’ve executed 5 trades across 3 pairs. The reason being the levels or zones that I execute out of didn’t offer me the usual risk odds based on the set ups & triggers I work from. Therefore, my potential profit odds opportunities were less favorable.
This year over 40% of those typical trade entries have rolled into 2 or more days position holdings.

I haven’t frequented this thread for quite a while. It’s not because I lost interest in the material, far from it – it’s easily one of the finest collections of work presented anywhere on any trading forum.

The reason is that thanks to the professional, common sense, no frills/fluff, BS free approach that these guys have patiently demonstrated & encouraged month after month after month, my trading has been transformed to the point where in late June of this year I began trading a large account for a small private investment group whose access was made available via the kind introduction by Jimmy & the girls brother, Mark.

Pay little or no attention to those who try to tell you that long term success belongs to the those who trade exclusively higher timeframes – you’ll waste months, if not years following that clueless advice.

[d-pip]

Exactly.
They’ve been promoting this view since the original ATT thread & although the message has been very subtle & drip fed throughout the following two threads, the simple concept has flown straight over most peoples heads.

Carll , thanks for your comments

Like most things in life it seems you have to be “doing it” for a while before you can get your hands around how it really works, what’s important for success and what’s not.

Being a rather simple minded person myself, I like the concept of Occam’s razor [I][U]“simpler theories are, other things being equal, generally better than more complex ones”.[/U][/I]

Good luck with the investment group trading gig!

thanks