The Trader's Arms - Now Open for Business

IyaJenkei · September 11, 2012, 7:45pm

"R Carter":

Ah… that’ll mean posting another one or two ‘new fangled charts’ … you realise I’m a confirmed Ludite of course! I’ll see what I can do. In the meantime, I use two principle methods of trading. Conventional Price Action without 'indi’s and another that is way off the norm. The first … PA, is the trade your referring to that I took. When PA trading I don’t use candles but line. I also use multiple TF’s 1h, 4h, daily and weekly. Now I can simply look to the weekly (for instance) and take a trade of this TF alone, as was the case on my EU long @2300. But these trades by definition don’t come along everyday. You have to wait it out and enter only with a clear signal i.e. a solid rejection and reversal of price. This can be better judged using multiple TF’s but because I’m a correction and swing trader, Ill never consider going below 1h and frankly, even thats too fast for me but helps point an early indication on the 4h and/or daily.

When using ‘line’ instead of ‘candle’, I’m looking for a ‘V’ or inverted ‘V’ signifying PA doesn’t like this level and is rejecting. Say this was the case on 1h. If its a pronounce and sharp ‘V’ and a time of the day with high volatility, I’ll be interested. Either to get out of a trade say on the 4h or daily or to get in on a new trade. Although in all probability, I’ll wait for secondary confirmation on the 4h before entering the trade as I did today on the EU upmove.

Pic1, 4h EU chart… first circle, is where I closed out my EU long and went short. Circle two, is where I closed the short today and went long. Green dotted line is price.

Pic2, 1h EU chart… is where were at now.

Wow where did u learn to trade? Come up with it yourself? Pretty interesting using a line chart

SanJ · September 12, 2012, 5:40am

Ah, much appreciated Mr Carter… And with diagrams too :o… I feel special lol!

Very interesting indeed tho - i must admit i have never switched over to looking at things from a line chart perspective, certainly different from the all the candlesticks im so used to…

Definitely a very different angle on the S/R ive been working with… But i do like the idea of watching out for these ‘V’ and ‘/’ at important levels and see how they pan out. Out of curiosity, how are these lines determined, by the looks of things they only account for the bodies of the candle and not the wicks? News announcement fluctuations looks very different!

R_Carter:

Ah… that’ll mean posting another one or two ‘new fangled charts’ … you realise I’m a confirmed Ludite of course! I’ll see what I can do. In the meantime, I use two principle methods of trading. Conventional Price Action without 'indi’s and another that is way off the norm. The first … PA, is the trade your referring to that I took. When PA trading I don’t use candles but line. I also use multiple TF’s 1h, 4h, daily and weekly. Now I can simply look to the weekly (for instance) and take a trade of this TF alone, as was the case on my EU long @2300. But these trades by definition don’t come along everyday. You have to wait it out and enter only with a clear signal i.e. a solid rejection and reversal of price. This can be better judged using multiple TF’s but because I’m a correction and swing trader, Ill never consider going below 1h and frankly, even thats too fast for me but helps point an early indication on the 4h and/or daily.

When using ‘line’ instead of ‘candle’, I’m looking for a ‘V’ or inverted ‘V’ signifying PA doesn’t like this level and is rejecting. Say this was the case on 1h. If its a pronounce and sharp ‘V’ and a time of the day with high volatility, I’ll be interested. Either to get out of a trade say on the 4h or daily or to get in on a new trade. Although in all probability, I’ll wait for secondary confirmation on the 4h before entering the trade as I did today on the EU upmove.

Pic1, 4h EU chart… first circle, is where I closed out my EU long and went short. Circle two, is where I closed the short today and went long. Green dotted line is price.

Pic2, 1h EU chart… is where were at now.

The_Home_Of_Golf · September 12, 2012, 6:03am

Well it’s funny you should ask the question about how the line chart is formed young Merlin. I was just looking over a few things so I could start the tlpic of support and resistance on the second floor.

I would point you in the direction of babypips school of pipsology and support and resistance section in elementary school. In there it advocates the use of line charts to dtermine S&R levels, NOT candlesticks. So now I’m starting to look at it all from a slightly different angle.

I’m sure I must have read that the first time round but never noticed it because I wasn’t looking for it ( google “the invisible gorilla” for an explanation) after being taught that candlesticks were the big boys of trading.

The_Home_Of_Golf · September 12, 2012, 4:35pm

So, been looking at various sources of Support and Resistance info today. Trying to make sense of a few things, including RC’s mention of the line charts.

One thing I will say about S&R is this, today on my adventures through many a varying piece of media, I have been to ld to use these points as S&R:

price reaction levels
institutional levels
previous days highs/lows
previous weeks high/lows
previous session high/low
pivot points
sma/ema as dynamic S&R

So I plotted all of these levels on the one chart and found them to be no good. Why? Couldn’t see the fu***** candles for all the lines on my chart !!!

yunny1 · September 12, 2012, 4:40pm

Just keep it simple, here is the daily chart of E/U, here I show how I identify the first resistance level in the dailies.

Later I will explain other levels

http://i1086.photobucket.com/albums/j449/yunny11/eurusd114.png

Not saying you should take this trade…remember tomorrow is big news day…

SimonTemplar · September 12, 2012, 4:47pm

So which thread is the trading thread? And which is the larking about thread? I’m confused…

The_Home_Of_Golf · September 12, 2012, 5:01pm

Who cares, I’m working the theory that if I just keep on starting threads we’ll either corner the market or end up with the tallest pub in the UK LOL!

yunny1 · September 12, 2012, 5:07pm

Stick to:
previous weeks high/lows
previous months high/lows
weekly/monthly floor trader pivots
Fibos drawn with swing points in the daily chart
100, 200 Daily SMA

The_Home_Of_Golf · September 12, 2012, 5:15pm

I have been using “classic” pivot points on my charts. What is the difference to “Floor Trader” ??

yunny1 · September 12, 2012, 5:17pm

they are the same

R_Carter · September 12, 2012, 5:33pm

Banker928:

The way I use S/R resistance levels is this… Choose my trade direction based on fundamentals, I read monthly and weekly reports from major banks, market commentary, technical reports from professional analysts, and my own study of upcoming news events… Every weekend I draft my own report for the upcoming week based on fundamental drivers, upcoming news events, structure of market positioning etc. After I choose my bias, I tend to do this on a week to week basis, I look for price to diverge from where it should be going based on my bias, and place entries where the divergence meets a major S/R… Usually the best levels of S/R are where you get a group of different S/Rs forming together, say the 200 hourly sma is resting on an institutional level that also happens to be the weekly opening price…

Basically I am fading the faders of a trend, but instead of worrying about trend direction, I focus on fundamental bias.

This cuts down on the lines on my chart as I am only interested in the levels that the market can reasonably diverge to given the economic conditions of that week.

We have an analyst in our thread gentlemen. I’m duely impressed Banker… were all tech’s!

EDIT: So you put value in professional analysts take on shorter term moves, weekly say?

The_Home_Of_Golf · September 12, 2012, 5:34pm

I’m heading up to the 2nd floor for the foreseeable guys. May take some of the recent info posted with me at some point if that is ok with you guys.

SanJ · September 12, 2012, 5:40pm

Yunny, from what ive seen in previous charts your S/R levels are not just levels though, you consider them more an area is that correct?

I remember seeing a few times where you highlight areas you expect support or resistence in price and usually covers a range of candle wicks and bodies to where it looked like the bulls and bears have been going head to head…

Just seen your post HoG - will migrate trading related to the 2nd floor too! I feel the spin off here may have been my fault as i asked RC the initial question - apologies!

yunny1 · September 12, 2012, 6:42pm

You are right SanJ!! But the idea is also to pinpoint the best level to enter the market… to answer you, first I will post some info about S/R… all of this in the 2nd floor thread

R_Carter · September 21, 2012, 5:23am

Short off EU @ 1.3030.

bobmaninc · September 21, 2012, 6:52am

Man things have heated up in the traders arms last night. Here I just stop in for some hob nobs and tea. All of a sudden I am hearing trader talk all around me. Must be some party up there on the second floor.

PipBandit · September 21, 2012, 7:24am

Well that worked out quick! You got in where I got out it seems.

The_Home_Of_Golf · September 21, 2012, 9:58am

Well if the kettle is on bobmaninc, I take mine with milk and 2 sugars, just don’t come up without the biscuits LOL!!!

As for the trading party, it’s basic but still worth being at in my opinion. Never ever thought i’d go to a study party though.

The_Home_Of_Golf · September 21, 2012, 11:22am

Well if you are a newbie FMCalisto you might want to come upstairs to the new Trader’s Arms 2nd floor. Not long started, beginning with the basics, building our skills from there. It’s full of ruffians down here anyway LOL!!!

bobmaninc · September 21, 2012, 12:28pm

I have been called a lot of things in my day but a ruffian thats a first lol