[B]EPISODE 4 [/B] >>>
By tymen4 at 2008-11-06
[U]Short entry is done!![/U] 
[U]It is a good price,[/U] with the starc bands dropping this steeply, the price action is not going to go much higher into the starc bands than what you see.
[B]All the numbers are on the chart.[/B]
[B]EPISODE 5[/B] >>>
By tymen4 at 2008-11-06
Back to the [U]main chart[/U] as required by the rules of the Intermediate level.
You can see the entry line now.
Remember, we are going [U]short[/U], so compare our entry line with a Basic level entry point. 
You can see that we have a [U]retrace first trade[/U], and the entry is a really good one because it give us a lot of pips room to travel downwards. (short).
[B]EPISODE 6[/B] >>>
By tymen4 at 2008-11-06
[B]Here is where all the excitement started.[/B]
I had no sooner worked out where my first target profit of 10 pips should be - at 688, when the [U]price action moved so fast [/U]that it had already [U]passed 688[/U] and was down to 686.
[B]Well thenā¦[/B]
There is no time to set target profits here, so I immediately clicked 5 minilots (1 amount) to [B]buy [/B] (opposite of sell - going short) on the [U]Direct Deal ticket.[/U]
Therefore I got my 1st target profit of 12 pips instead of just 10 pips.
Wow, that was fast!! :eek:
[B]EPISODE 7[/B] >>>
By tymen4 at 2008-11-06
Here, we are racing to set the 2nd target profit.
Racing because the price action is moving very fast!! :eek:
So the first thing we do is scramble to get the PCI stop loss set to [U]break [/U][U]even [/U]at the [U]entry line[/U].
You can see this on the chart with the 2 blue tags attached to the entry line.
That being done, we now have to calculate where the 2nd target profit goes. :eek:
[B]Wow, the price action is moving fast!![/B]
[B]EPISODE 8[/B] >>>
By tymen4 at 2008-11-06
We have no sooner set our T2 (2nd target), when [B]suddenly [/B]the price action hits our PCI.
Ahhhhā¦too bad!! 
Our 2nd target was set at risk = reward.
[U]PCI - entry[/U] (risk) isā¦
744 - 698 = 46 pips.
[U]entry - 46 /U isā¦
698 - 46 = 652
The subtraction instead of addition is because we are going [U]short (down)[/U]
But all this matters nothing now.
The trade is over and we have gained 12 pips.
Only 12 pips you say!!
A very poor trade.
Nah!!..better than a kick in the pants.
Look at the time on the chartā¦10.57 pm.
We started at 10.45 pm.
[B]12 pips in 12 minutes!![/B]
[B]Not bad I say!![/B]
[B]EPISODE 9 - FINAL[/B] >>>
By tymen4 at 2008-11-06
Finally, to finish we must remove all lines on the chart.
We have our unfulfilled T2 line, so this must be removed.
[B]Again, if we forget to do this, we will eventually enter a trade we do not want.[/B]
[B]END OF TRADE[/B]
[B]STATISTICS[/B]
[U]The Strategy[/U]
Intermediate level
Starc band assisted multiple amount trade.
1st amount - 5 mini lots.
2nd amount - 5 mini lots.
[U]The trade[/U]
USD/CHF
25 minute candlestick main chart with Bollinger bands added.
5 minute Starc band chart with Bollinger bands added.
Evening star pattern.
Program used - GFT Dealbook.
Magnification - 72
Short trade.
[U]Times[/U]
London open.
New York open.
Traded atā¦
Perth ļæ½ 10.45 pm.
GMT ļæ½ 2.45 pm.
New York ļæ½ 10.45 am.
Los Angeles ļæ½ 7.45 am.
Sydney ļæ½ 12.45 pm.
[U]The Figures[/U]
Entry - 1.1698
Exit 1 - 1.1688 setā¦actual 1.1686
Exit 2 - 1.1652
PCI - 1.1744
1st profit 12 pips.
2nd profit 0 pips.
Total 12 pips.
Reward = 56 pips.
Maximum price action before reversing 1.1698
Maximum profit potential 2nd amount 46 pips.
Maximum profit obtainable 58 pips.
Distance from entry to PCI - 46 pips
Risk 46 pips
Risk/Reward = 46/12
Maximum Risk/Reward = 46/58 = 1.26
Average Risk/Reward expectancy = 1.0
That is now the last example of the [B]Intermediate [/B]level trades.
I am closing on the 15th of this month - that is only 8 days to go.
I hope to post 4 [B]Advanced [/B]level trades before then.
[B][U]This is now a final call to all readersā¦[/U][/B]
Ask your questions now while there is timeā¦
I [U]do not [/U]intend to continue this thread past the closing date!! 
One of the best threads around. Hope you keep this thread open for the newcomers that hop on this forum after the fact.
The main post of this forum, post #1393 on page 140 will be clearly posted on this forum.
The UML and UMS threads will be used to continue discussing readers trading experiences.
[B]Here now are the Advanced level trade examples.[/B]
Starting with a trade in USD/CHF
A 25 minute chart of a 3 green soldiers pattern.
This means we will be trading [U]long[/U].
[B]Advanced 1 - Chart 1[/B]
By tymen4 at 2008-11-07
This is the main chart of 25 minute showing the 3 green soldiers on the chart.
The next candle has just started.
The dashed line is the PCI stop loss place 3 pips below the lowest candle.
This stop loss position will become ridiculous as you will see later.
[B]The trade was never under any threat.[/B]
[B]Advanced 1 - Chart 2[/B]
By tymen4 at 2008-11-08
[B]We now turn to the 5 minute starc band chart.
The thick blue lines are the Bollinger bands.
The pink lines are the starc bands with factor set at 0.98
The inner thin pink lines are a second starc band indicator set at factor 0.65[/B]
The little red candle at the end is where the opening just started.
According to the Advanced level rules, [U]we do not enter at the opening of the entry candle[/U].
Instead we wait for a best entry according to the starc bands on the 5 minute chart.
We are looking to go [U]long[/U].
So a best entry would be right down near the bottom starc band.
Right now the price action is at the middle starc band and near the upper Bollinger band.
[B]We must wait for the price action to go down.[/B]
[B]Advanced level - Chart 3[/B]
By tymen4 at 2008-11-08
[B][U]The price action in this trade is extremely slow moving. :mad: :mad:
Sometimes I had to wait ages for it to move just one pip!! [/U][/B]
Now you can see that the price action has gone [U]up [/U]and not down.
This then becomes a pips first trade and you would enter anyway after a 5 pip move upwards.
I did not do so since I have got my hands full doing the screen printing and filing.
You can now also see my Direct Deal ticket in the middle of the chart.
I am ready and waiting for immediate entry.
[B]We will wait for the price action to come down.[/B]
[B]Advanced level - Chart 4[/B]
By tymen4 at 2008-11-08
Here the price went down and I entered at 72 after 8 candles on this 5 minute chart. The entry candle is shown.
There is a 4 pips spread - that is why the entry line is not at the bottom of the red candle.
Note that the long entry is for [U]2 amounts[/U].
The PCI value is way, way below this at 24
The are several important points to note here :
The price action was moving very slowly. :mad: :mad: :mad:
When it did move, it moved in bursts.
The volatility was very low. You can see this on the chart with the price action moving well within the range of the 0.65 lines (the thin pink lines).
This, together with the slow movement, [U]makes for a difficult trade.[/U]
The price action was close to the upper Bollinger band (blue lines).
Therefore, [U]the trend is up[/U], although ever so slowly.
The up trend is what we are looking for since we are going [U]long[/U].
[U]Because the price action basically went nowhere, I decided to enter when I did.[/U]
Normally you would enter when the price action touches the bottom starc band or better.
[B]Advanced level - Chart 5[/B]
By tymen4 at 2008-11-08
A quick look at the main chart again.
The price action is going up and the Bollinger bands are opening which is what we need for the price to go up.
The price will walk the upper BB.
Our entry was at 72 as you can see on the chart.
This is not as good as a Basic level entry which would have been at 69
But we will make up for this very quickly as you will see.
[B]Advanced level 1 - Chart 6[/B]
By tymen4 at 2008-11-08
Back to our 5 minute starc band chart.
Finally, the starc bands go up, the Bollinger is going upwards and the price action has suddenly shot up and formed a green candle.
The candle has touched the top BB and, knowing that the volatililty is low, I made a quick exit.
[B]Now the exit line appears only for a fraction of a second and is difficult to screen print, especially while I am in the process of clicking the mouse!! [/B]
So the way you can tell that the trade is over, is by [U]noting the absence of the entry line.[/U]
The entry line disappears when we exit the trade because the round trip has now been made.
The exit was at 84 as you can see the blue line which I put in afterwards on Microsoft Paint.
Exit minus Entry = 12 pips.
But to keep the comparison fair with the Basic and Intermediate levels, this is now 24 pips which is the total pips of[U] 2 amounts.[/U]
[B]Advanced level 1 - Chart 7[/B]
By tymen4 at 2008-11-08
There is a lot in this chart so I will go thro it.
The initial opening candle is shown with the black text.
The buy (entry) and sell (exit) are shown with the blue text.
I have added the middle Bollinger band (in blue) to get a better idea of what is going on.
I know it clutters the chart a little but we need it.
The position of the stop loss was at 24 which is plain ridiculous for this trade.
The price action will simply never go there in the life of this trade.
A more useful PCI stop loss is therefore added to this chart.
It is set touching the lower BB and at value 59
[B]Advanced level 1 - Chart 8[/B]
By tymen4 at 2008-11-08
The starc bands are starting to go up which is what we want.
The mid BB is trending up which is what we want.
The price action has fallen which is what we want.
And we have a new long entry at 87
Now the entry looks bad, as though I do not know what I am doing, but such is not the case.
Yes, the entry line is above the BB. 
But the price action is at the bottom of the red candle and that is now touching the middle starc band.
[U]And that is where I entered!![/U]
Remember that there is a 4 pip spread on USD/CHF at the moment, and that is why the entry line appears higher (4 pips higher)
This higher point is above the upper BB !!
[B]
We will now wait for the price to go up.[/B]
[B]Advanced level 1 - Chart 9[/B]
By tymen4 at 2008-11-08
A look at the [U]main chart[/U] again.
The PCI is more acceptable.
The BB are opening which is what we want.
The candles (price action) are walking the upper BB which is what we want.
All is good.
The only problem is that this trade is very slow moving.
Note the time at the bottom right - 3.50 am.
[B]The trade started at 2.30 am!![/B] :mad: :mad:
[B]Advanced level 1 - Chart 10[/B]
By tymen4 at 2008-11-08
The price went up again as expected.
It is now at the 0.65 starc band line and above the upper Bollinger.
Time to exit!!
Done at 90
Exit minus Entry = 90-87 = 3 pips.
For 2 amounts, that is 6 pips.
[B]Not much but this is a slow and difficult trade.[/B] :mad:
[B]So far we have gained 30 pips altogether.[/B]