Here is a losing trade I had:
AUDJPY:
The bias is up, so I was looking for long.
From the H1, I saw a higher low and a higher high.
Pending order to long around:82.80 SL at 82.46
My pending order was triggered and so was my stop loss.
Maybe there were too much pending short orders at the combination of a previous day and week high and a round number figure. Wish to hear comments from more exp traders there. 
Ray, not that I am the experience trader you are looking for, (God knows I had a problem with sticking to my plan yesterday) but like you said if you look at the daily chart, you will see price has bounced off of that 82.65-80 level 3 times in recent history and just about fallen right away.
Also, I assume this was not a swing trade, so look at what the Daily ATR would have been at your buy of 82.80. On my charts the daily low was 81.82, and the average days move is about100 pips. Basically by the time you entered the trade, the ATR was pretty much gone for the pair.
I think perhaps youâve answered your own question there Ray_1.
Iâve read on more than one occasion where they advise to try & enter either on an approach to strong previous resistance or support to give yourself a bit of leeway in case the level or zone causes whipsaw price action, or wait for a pullback of the break of the level to confirm continued demand.
The last two weeks price action on this pair is quite range bound donât you think?
82.60 â 82.80 appears quite strong on the approach all through November. If you were considering trading from the long side looking for a break up towards the years highs at 88.0, maybe the lower risk option would be to enter your long on a higher low/higher high step from further back?
What about the 81.70 or 82.40 higher low & higher high breaks?
If you take hawkmoon & Carllâs basis for determining bias, then price failed to continue making lows at 81.15 on the Tueday & Wednesday of this week. It then began forming higher lows & highs through 81.70 & 82.40.
If you also consider the average days range coverage when looking to enter, either of those possible long entries might have offered more favourable risk rather than entering right in front of strong potential resistance at the outer edge of the days range?
yes kevan it nicely made the reversel move after consoladatng and the prices move higher was suported by imf & euro zone chief bank oficails offering a big aid to Irish banks. also very worse consumor prices ther have ever been in America made euro-doller and the pound pair move even beter 
I remember to read that tess and jocalyn and guys say to use these market drivers to asisst in making the technical trade.
i like this way to see the change of the bias. it is good for getting my risk corect. when it goes wrong I am not giving much of my bets away to loss.
before i see the contents in thes threds i never pay no atention to atr or range of day movemant, but since i study carefuly this part of their work it is now very importent part of my trade to consider at entry.
i did a checks back on selecton of my tradeing and this one thing if i had included would have saved me to makeing lots of error in my enters of trades.
yes i must agree very strong also with this coment of kevan. see back to there charts and coments on other threds. they tell us a lot to watch carefuly about entering the trades before hard support or resistences.
much beter to trade into the level from above into the support and from below into the resistence. or to wait for the prices and the traders to test the break out of a importent levle first before to enter.
Tess & Co,
I was wondering if you guys are familiar with Sam Seiden? If not, then basically instead of S/R zones, he recognizes them as Supply & Demand, and all in all is pretty similar to what we talk about in here. However the execution of the trades are a bit different.
I came across some of his stuff, and the one thing I see him talking about is actually playing the bounce on zone before confirmation as the previous history is our confirmation, and if we wait we could miss the move.
Basically if we are watching a level that has previously experience fast change in direction/momentum, and we are moving toward it again, we should play the reversal. One of the key difference, is that the lesser the amount of time that prices has spent at a level, and the quicker it moves away, the stronger it is. The point would be to keep the stops tight on the opposite side of the region, and then set our T/P points as the price moves away and into previous zones.
That is about the limit of my knowledge on his style, but before I actually investigate it more, was looking to see what you guys think. So whats the general consensus from your side on this? It seems like this is a skill that takes a lot of honing, and waiting, but do you know peeps that play these well.
We know who Sam (+ Steve Misic & Sam Evans) is/are Dale.
Although weâre aware of their basic structure, interpretation & execution of support/resistance concepts, we donât have any direct experience of the specifis of the style or models utilized.
Itâs another angle on taking advantage of the imbalance of supply & demand.
Providing thereâs sufficient upside or downside profit in the trade & you can calibrate acceptable risk, then I guess thereâs as much potential as in any other preferred mode of s&r interaction with the market.
Itâs simply playing on the fact that the objective of the exercise is to continually generate high value & low risk at the expense of your competitors as consistently as possible.
As I said above, itâs another slant on trading support & resistance.
And I guess you could say Iâm a huge fan of that style of market interaction!
Unfortunately weâre not personally aware of anyone who trades or adopts their specific style of observation & execution.
I guess youâll have to contact them direct & dig a little deeper to discover if itâs worth following thru on.
I certainly wouldnât discourage anyone from investigating the merits & possible benefits of this type of market stance, whoever is practicing & operating it. 
When I took this trade, my chart shows that it was start of a new trading day. Thus the ATR should be reset when a new day starts. Is my assumption wrong? 
I never heard of those other two, I guess thats a nice little line for me to go looking at.
Really, I never knew that
I will go ahead and read a bit more, then play around with back testing to see if this is something I can mold into my own arsenal.
Hmm, not sure how to take thatâŚShould I be wary of that 3 man crew?
Thanks again, if I ever make it over there, I definitely owe you a drink. Have a great weekend and extended holiday incase you take this time of year off.
Youâre searching out & focusing in on the positive elements of the structure Ray by looking to take price on when it displays these typically consistent technical signs of likely continuation behavior, but you need to keep in mind the importance of the levels & zones that price is [B]moving away from[/B] & [B]heading towards.[/B]
That upper resistance zone is a pretty tasty looking defense. Price arrived at that level right at the tail end of the trading day having covered 130% of itâs average days range.
Taking into account our many examples of this type of scenario, [B][I]what would you normally expect to happen when prices over extend their usual trading ranges, & especially when that extension coincides with a key prior level of supply or demand?[/I][/B]
Thinking about the mileage it had covered during that session & the prior relevance of the zone it was entering, it often pays dividends to check the appetite & the strength of the markets ability to absorb the likely supply up at a key level such as that & continue to offer you signs of potential follow through.
So late into the trading cycle when the market is easing into end of week book squaring, a level such as that wonât require too much encouragement to book easy profits & hand the risk across to someone else.
Markets are now becoming thin & light on volumes as players start to readjust weightings & pull orders off the table into year end.
Expect some of these pairs to get mired in tight, choppy ranges & others to exhibit aggressive directional behavior.
No not at all, just conduct the usual due diligence & ensure the material or offerings match your aims & objectives.
Matt,
They calculate the end of day/beginning of day as 17.00est (22.00gmt), which is the internationally recognized cut-off in the spot market.
I follow my charting software, when a new trading day begins, my atr will be reset (trading what i see on my chart). Seems like my theory of calculating is wrong.
Seems like my trade planning process is still not there yet. And my ATR calculation is also wrong. Time to review and prepare myself for upcoming week.
Ray,
They advise the use of the average range simply as a guide to measure the likely value & expectancy at the entry stage.
Anything below 50% is a decent marker for entry if all other criteria stacks up, especially if itâs an exclusive intraday trade. Approaching 70-80% & the value diminishes quite rapidly.
Itâs also used as a cursory addition when considering potential scale ins, outs & profit booking at end of day, particularly if the average range coverage matches up with a technical level of interest.
If you stick a 20 & 100 atr on your daily timeframe, or better still a 40 atr (average of the 1 & 3 month) youâll get a decent view & smoothing effect of the current activity being generated on the pair.
But as a regular observer of the content youâll know that the level or zone trumps everything else. That is the most important ingredient of the pie.
The easiest thing is to simply use the atr as described in the previous post.
You donât need to be exact or precise with the math, itâs only a guide.
90% of the time the average range across the higher volume majors will get covered during London & early New York trade if itâs a busy day.
If Tokyo happens to put in an extra busy session then a good percentage of the range can get swallowed up quite easily. At that point if the bias is bullish & youâre seeking a long entry to get aboard, then youâd ideally be looking to enter via a pullback.
Yes I continue to use that set up when the conditions are ripe. It still signals 2-3 decent opportunities per week as price bounces or breaks significant levels.
Iâve become a lot more choosy with the entries, hence the lower quantity/higher quality preference.
Tess & guys,
at this times around the final end of tradeing year if any new trades are to being started do you guys continue to trade at your normal bets stakes and trete the trades as normal as possibal?
Or will you now just normaly manage any of your trades that have alredy began and are still running.
Andre & Sean are finished for the year ahead of Thanksgiving & Xmas & are on the way home today hawkmoon. Tess leaves tomorrow but I donât think sheâs returning to their office.
They should be back at work again mid January.
As per usual around this time of the year decreasing liquidity & thinning markets into year end will amplify the intraday & week volatility on some of these pairs.
Itâs been a great year for trend traders so it wonât be surprising or unexpected to see a few of them consolidating, cashing up & heading for the sidelines.
Obviously youâll trade as you see fit, but it would be prudent to stay even more alert & on your toes than normal & perhaps consider reducing bet sizes into years end if you receive a tempting trade opportunity.
Thank you Carll.
it is nice for them to finish early at this time. there office is closed for long time period over holiday time?
i will be very much look forwerd to them being back next year. i hope the thred will continu along up to holiday and beyond.
This is sensibal advise i think. my view is now being shorter term for any more trades in 2010, but still on the same structuer as normal.
No. Itâs still operational right into Xmas week, but functions on a skeleton crew from around end of November to early January.
