Thank you PanchoVilla84
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What time frame do you enter your orders and how long do you hold a trade for?
I start by identifying s/r levels on the monthly and weekly charts then I determine entry level using primarily the daily.
Trade duration varies from a couple of days to a week on average.
I dont use a T/P, so if the trade moves in my favor, I let it run as long as possible while actively adjusting my S/L at pre determined levels. I’ll let the market take me out of the trade or if price action indicates a possible reversal prior to my S/L being hit, i’ll exit the trade or I will close a portion of my position and adjust my S/L accordingly.
If the trade moves against me i’ll pyramid out at predermined levels until my s/l is hit. I will consider closing out a trade prior to my S/L being hit if the market is 40-50% of the way to my S/L from entry.
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Your welcome olupin. Im happy to help in any way I can.
@PanchoVilla84 [quote=", post:2, topic:105610"]
I honestly believe you can fail your way to being a profitable trader
[/quote]
So very very true. You can.
No doubt, PA is one of the most powerful trading strategy but only PA is not enough here! You need proper money management as well as risk management knowledge! Besides, you can’t avoid here fundamental analysis! Traders need a combo trading skill.
Well put and quite right .
I would argue however that fundamental news like nfp ecb interest rates etc are important to note so as to avoid volatile trading conditions.
One can trade successfully on TA mostly .
Please what is PA, I need the answer please thanks.
It’s learning to understand the meaning the OHLC of candles or bars on a chart over a given time period which will help in predicting which way price will go next.
Type price action into the search bar and you will find some great info.
KC
Interesting strategy Pancho.this is done on a Live Account? Sounds conservative and laid back. No Take Profit? So what determines your targets/return per trade?
Paying for a service or using free info can help. Can also hurt by not leading you anywhere.
If any service or thread that is free or paid doesnt show itself to be profitable with clear rates of returns based on the techniques it is teaching then it may be providing you with only 10 to 20% of what you need.
They will be useful…but most tend to only provide you with individual tools but not a clear plan on how to use them.
Its kinda like being given the tools to build a house without a blueprint or model of what it looks like or step by step instructions on how to use each tool. You can end up building a boat, a shed or a dog house instead of the house.
In forex, you can be told to identify Support and Resistance, Candlesticks etc. But if you arent told how to use them together, then you may end up profitable in the short term alone.
Identify a trader, service or mentor that is profitable with a clear plan on how to trade using the tools and techniques they teach. Otherwise you can end up wasting your time unnecessarily for years.
It can be fun and exciting to learn from various people and on your own. But if it is based on tools that you are not taught how to use correctly with a Clear Strategy thst is Profitable, that time and money spent may not be productive.
Hello @DRFXTRADING.
Yes this is on a live account. I respectfully disagree with it being conservative, on the contrary I think you can consider it aggressive. The logic is rooted in the time tested “limit your losers but let your winners run” philiosophy. When it comes to a SL my levels are predetermined and ironclad, however when it comes to my winners i prefer to let them run as opposed to placing a hard cap on potential profits. And sure there are times when a losing trade would have been profitable had I closed the trade out earlier, but on the other hand I would have missed out on on the occasional home runs and grand slams that more than make up for the losers.
When price action gives a confirmed signal opposite to my position is when I begin scaling out.
Hi PanchoVilla,
Could you please explain this term “Pyramid” so i know what you mean?
thanks. Miney
It means scaling in or out. Another words if you have an open trade you might add to your position or close a portion of your position at certain levels depending on the circumstances
That’s a great idea not using a definite TP just scaling up really let’s your winners run and your RR shoots up. As they say let your winners run , cut your losses .
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I haven’t used their paid service but I find their YouTube free material to be quite good ,really clearly explained with nice visuals and charting.
If you have doubts, you want to manage this LVM exchange field well, it can help you
Price action definitely works! But it is no holy grail either. Be it free or paid, there are literally hundreds of PA methods out there, but again a method that might be profitable for me might not work out for others. It boils down to the individual traders- their risk appetite and discipline.
But from my almost 10 years of experience, i have tried a lot of it. Indicators, EAs, orderflow etc. but i found my comfort level with pure PA trading, i follow my unique set of patters influenced heavily by redsword from FF.
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Thanks for pointing us to redsword. It seems like he uses supply/demand and market structure while occasionally consulting the RSI and Macd. Very interesting thread. I enjoyed some of his analysis and the correlations he mentions. Definitely a thread to visit for anyone interested in PA analysis. 