what relative strength you are talking about here ? I am confused at this part… Please explain
Hi Rayner, I saw you mention in 1 of your videos that the only horizontal S/R you really take much notice of is the previous Monthly/Weekly/Daily highs & lows - how do you incorporate these levels into your trading? Are they Profit targets, or possibly where you would tighten up your stoploss? Or areas for entries?
Thanks
Very very interesting thread.
Yes. This is awesome. … very much helpful
Thanks
Hi kechel,
I pay attention to it but from the opposite what most traders do. They usually expect support or resistance to hold, but i always anticipate that it will break.
I am willing to short in support or long into resistance, because if it fails to hold i know many traders institutions will bail out of their existing positions and push price further my way.
If i’m wrong, i exit the trade for a loss of 1R, but if i’m right… it’s infinite R.
Rayner
Thanks David
Cheers!
Rayner
You’re welcome godzilla!
Let me know if you have further questions and i’ll be glad to help.
Rayner
It’ll be interesting to see what GBPAUD does if it can reach the previous monthly highs around 2.00. Must be all kinds of orders all around that number.
So far it’s up just over 200 pips, I’m demoing the trailing-stop using the 2xATR idea you mentioned here, which is shadowing the 50ema on the 4h nicely. If it can push on past the recent highs c1.9850, we’ll hopefully be entering the Monthly Highs with 450 pips behind us.
Decent entry opportunities with uncluttered weekly, daily & 4h charts all pointing you in the same direction - let’s see what happens…
(Further possible entries shown up on the 1h-)
Either way, decent profits would’ve already been locked in, thanks for the help,
(Infinite R…:))
bw
You’re most welcome kechel, hope it runs well for you 
Rayner
When should you set your trades to breakeven?
I hope you have enjoyed this week’s video post. As always, comments are welcomed and encouraged. Cheers!
Rayner
Hi Rayner.
I have 1 question on this chart. does last green candle is a good entry point for long position in this chart ?
your comment please.
Daily chart
Hi godzilla,
I don’t wait for any confirmation candles on the chart. In fact i don’t even use any candlestick patterns when trading, because by the time it happens i probably miss a good chunk of the move.
I usually place limit orders or stop orders in the market, at a level that i’m interested in.
Rayner
Is that a good level for entry ?
I usually place limit orders or stop orders in the market, at a level that i’m interested in.
Rayner
what if a spike takes your limit order and then comes down …would you still be in the trade ? or you wanna exit ?
This happens to limit orders sometimes and I get confused at these times and not sure what action to take here.
Ahhhh … the world famous Rayner Teo. Newbie’s would do well to heed his advice. Understanding why he takes a decision is far more important than blindly copying.
Funny that babypips still has him marked as newbie when in fact he is a well known and experienced trader. Proof that a single indicator (number of posts) can lead you in a false direction.
Very good to see you Mr. Teo. I have followed you for a while, you have an excellent common sense approach that is always backed up with rational thought.
I have employed a strategy similar to yours with some minor differences due to my approach to risk. I’ll lock in profits on a trend and then continue along with it. Yes, indeed I lose out on increased commissions and on obvious ability to pyramid, but I do pyramiding on the re-buy but adjusting the £ per R based on the previous profit.
Not sure if you said it deliberately so we are paying attention but you meant intraday trader (trader who closes in the same day). A day trader is actually who suits your strategy. Okay, now you know I’m paying attention. Thanks for the heads up!
Far be it for me to speak for Rayner, but I believe he means that he holds his trades for several days even weeks. He is not a day trader and commonly defined. He may happen to close an particular trade within a day if the market tells him that is what needs to be done.
More simply put, he does not religiously close a trade because of the time on a clock, he closes a trade because of the price.
If you notice price has been respecting a certain level number of times, e.g. at support or moving average
Then the best entry you can get is to queue at those very levels. Sure price can spike down further stopping you out and go up higher. But that’s trading. You are dealing with probabilities not certainties.
And if you’re stopped out, ask yourself whether you will re-enter again. you could trade the breakout to the upside. Then you’ll ask what if it’s a false breakout? Well i don’t rule that out, because again that’s trading for you.
You will never be 100% right. All you are trying to do is to lose as little when you’re wrong, and win big when you are right. And this is what trend following is all about.
I can lose 11 trades in a row, being stopped out by many false breakout. But i just need 1 and i repeat 1 trade to make back all the little losses i incurred along the way.
Rayner
Hi Michael,
I’m simply stating the facts. Honestly i spend about 15 mins a day trading, well partly because i mainly execute trades on the 4hour and i’ve got a feel for what markets are doing.
But you can do the same, if you are trading the 4 hour and above and know what you are looking for in the markets, then you really do not need to pay much time looking at the screen.
I’m not a intraday trader, i’m a trend follower and my trades can last anywhere from a day(if i’m stopped out) to months if i catch a good trend.
This isn’t the holy grail and honestly no trading method is. But what you can find is to have something that suits your personality and schedule. And perhaps trend following could be it, who knows?
Rayner
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Hello Truth,
Thank you for your vouch and kind words. I hope you find this thread useful and feel free to ask any questions if you have.
Cheers!
Rayner