As I am learning to trade with mastergunner99’s methodology, two of the things that have helped me is to get confident with candlestick recognition and to zoom out the charts.
I used to look at my demo charts at the same zoom you have shown us (worked out it was my inexperience at candle recognition that was the cause of this) and was pulling the trigger on what I thought were good trades. A lot of the trades turned against me. I was getting frustrated just as you probably are. I have printed off Babypips '[B]Summary: Japanese candlesticks[/B] and have it next to me as I demo trade.
Zooming out the charts to see more historic candles has made it easier to see the bigger trends, S/R lines and Fibs.
Hope this helps.
Ltrader. Your very good reply to Vargoose’s questions have helped reinforce my interpretation of Mastergunner99’s methodology.
thanks for the tips LT and Kiwi! Hopefully I can take this and apply it! I especially liked the fact that you referenced my own trade, taking the theoretical into the practical. It was very educational! Thanks for taking the time, I’m looking forward to becoming more deft at recognizing Longterm trends and finding good entry points!
What actually I should be observing on a pair? At which intervals they are rising or at which intervals they are falling! And by how much price they are doing so! or what if I am wrong!
Its better, I like when you say : No indicators are used for any analysis at all!! This surely helps newbies as it becomes hard to be knowledgeable on so many indicators, tools when I am a newbie! And all these makes thinks unnecessarily clumsy!I will definitely going to read all though I am late to find this thread!
How far are you actually into the thread? I would say, although not fast-paced, this thread has addressed the methodology in a very patient and concrete manner. Give it time! The only thing I am concerned about is since I haven’t dabbled in indicators much, I don’t know what I’m missing. I came to this thread, when all of my BP School of pipsology indicators knowledge left me feeling that indicators were not as indicative as I thought BP was telling me.
Is MG alone in thinking that indicators are just price-followers, some are faster than others. What about the MACD that I read so much about? It seems MAGIC happens when the lines cross. Any insight?
MG is not alone in thinking indicators are a waste of time, and money! there are lots of good traders here on BP who do not and will not use them. A lot of traders do use them in moderation and in the correct manner and they are profitable with them. The problem with indicators is that newbies in particular [B]rely on them[/B]
instead of using them as a confirmatory tool.
It is all too easy to stick an indicator on a chart like MACD and go back in time and cherry pick a time when everything lined up to show what a great trade was had!
Minimal use of indicators( 2 or 3 at most). No more…the rest is all upto the price action. its quite easy to forget that the market doesn’t know that indicators exist but people do know.
Take a look at GBPCAD. When I zoom out even more it’s ranging between the top and bottom lines. My question here, is how I should bias this… DO I wait for it to hit 38.2, or do I jump in now as seemingly there is an uptrend. Or does the methodology not really specify which way to go.
It helps if you draw your S/R lines. On your chart price has just hit a resistance level and you would be buying right into that. Wait to see if it breaks through or bounces.
I started reading this thread last week, and just finished it yesterday. I have read every post, word-for-word, and I have to say it was an enjoyable read. I’m impressed that so many of you have had immediate success trading with this methodology, and I’m eager to give it a test-drive, as well.
I know that some of you have added your own tweaks, right from the get-go, and it’s clear that the simplicity of this method allows for that. But, I think I will try, instead, to replicate, as nearly as possible, exactly what mastergunner is doing, and save the tweaks for later. After I’ve figured out what I’m doing, I’ll report my progress here.
Good luck to all of you. And kudos to mastergunner for developing this method, and for sharing it on this forum.
Have just started to properly read your thread MG and now can’t stop (like when ur into a good book!). Lookin forward to some quiet time later when I can hopefully get through the rest. Thanks v much for sharing. Great stuff!
Here’s an update. Only trades I’ve closed have been negative and the average pip loss on each one has been 115. The 5 trades I have open one is in the red the others are 100+ pips. I would say this loses a lot more than it wins but when it wins it wins big. At first I was taking partial profits but now I’ve been adding to my winning positions after 200 pips and I get another entry signal. And I enter with a trailing stop of 150 pips. If I can get 2-3 big wins it will pay for all the losses I’ve had and then some. Looking for 1000 pips. Seasonal tendencies and COT.
I started trading using this methodology yesterday. I use LRC to define my bias and i want to share that all the trades that i placed yesterday are in green.
I think that long term trading using daily charts wat PA supported by support/resistance is the right way to trade.
