oohh…what im really starting to like about this is that my entries could be a little sloppy, with space, without risking more, it almost makes you feel invincible!
-dojirock
Every time I sit down to explain space I am overwhelmed because there are so many things that you can do.
Before anything else, you need to determine a launching point or “Position” by selecting a long(er) term extreme or swing.
If you have 250 or so max space and are entering based on small charts then you would mark out “limit lines” where you might enter say 8 lots within 100 pips, 5 lots within 160 pips, and 3 lots within 250 pips.
The important thing here is that you are in Position no matter where you enter on the chart.
Don’t worry about a small initial lot size as you can get that size up to the nose bleeds in no time at all.
Your day traders may want to start with a 61.8% larger lot size, when trading 1-10 minute charts, as any space
gained translates into 60-65% more space when you revert to your normal position size for a buy and hold:
If you start with 8 lots instead of 5 & gain 35 pips then you will have a 21 pip space advantage when you revert to
5 lots and 56 space.
“Shedding” lots is not the only way to gain space; if you sidestep a major correction and then re enter for the continuation then you may find that you have a higher Position and thus an excess of space.
When you have “too much space” then you increase your lot size to cut it down :59: & if you traded the correction then your lot size would go up by an even larger number :36:
I would only look to sidestep “corrections” at max and then focus on increasing the lot size as large as possible before the end of the expansion.
The dregs of an expansion with a large lot size is where all of the money is made.
Think in terms of benefit and consequence before taking any action; EVERY action that you make contains BOTH a positive and a negative.
ROFL I like that description 
Thanks for your post.
i like that very much Sword of Management…thanks for the post!
-dojirock
Is this generally what you mean?
If so I can see why you prefer long term charts - ranging markets can be ‘challenging’ on the shorter TFs with this
Wow i just had a real “a huh” moment. Thanks thats a great explanation. About time i got it haha.
Below is a small chart that is marked as if it were a large chart.
While the areas would have worked as entries, I would have been
unable to take advantage of the moves.
The best way to describe a small chart is as a Granny Square.
Yeah - I only used the M1 as that was the basis I used this morning to enter the London open. Pity I didn’t stay in all day in the end…hmmm - yes the swings are too small to add, it was just as an illustration.
As I see your picture - it’s similar to what I’m thinking in that position is placed 2 swing highs behind with the logic that if it retraces to ! before breaking out of the next low that’s 100% of the swing so maybe not a retrace.
When you say ‘body in direction of profit, wick in direction of loss’ are you describing a pin bar - which is exactly that, the body shows the way and the wick shows the way not, or are you describing 2 bars: a large bodied candle and then a pin bar? And is that the only entry type you would consider?
Also, given how the forex tends to move and (depending on timeframe) would you say that 3 adds is around the most one should be considering before a major retrace/trend change (say on H1, H4)
Are you familiar with the Turtles btw, they had a similar buy high, add and sell higher trend following model I think?
‘body in direction of profit, wick in direction of loss’
Im thinking its as simple as 1 bar.
From the open on most bars there will be 2 sides, the wick and the body.
So it looks directional based… above or below.
I guess if you can stay alive your bound to travel 100/100s of pips compared to the TF your trading.
Couldnt you just sit down, draw a line (your open) and make your own daily bar? :22:
This is a question not a statement :33:
That, to me sounds like you’re describing trading inside a larger pin bar with it hitting the opposite extreme first - daily open, low hits, comes back to open, trade long above the open, goes to high - which viewing from ‘outside’ depending on how it travelled would look like a pin bar. You can view a bar from within or from without. The one shown on the chart is looking at it from the outside. Of course more than 1 bar can also make a pin. The example I showed on the cable chart could be viewed as a pin - you have a line at the swing high, a drop then a correction of more than 100% - looks like a pin to me, just not on any timeframe that’s in your platform.
Daily bars, now there’s something, maybe not relevent to this thread, what is a day? A broker day? A session day? (I tried illustrating this only yesterday on another forum) whereby each trading session could be considered a ‘day’, it is to the guys on the desk (how often does price, session to session come down, then a low session occurs (say Asia), then London closes higher also with a higher high than Asia and so until the reverse happens and you can pretty much catch the whole trend with this space idea, if the sessions are gravitating a certain way just trading in the direction above the opens - are chart daily bars THAT relevent?
So given the image in post 123 it’s essentially a 2 ‘bar’ ‘pattern’ - some kind of large movement or a swing and then a pin to follow and you’d consider entry after the pin - on the break?. And the something line is defined as 50% of that large bar as you have it on that chart OR, are those bars just grouping together what’s inside on a smaller timeframe and you’re looking at swing highs and lows on the smaller TF? In my 1 minute chart of cable I could group the initial thrust up as a large up bar, place the something as the break of the previous swing high then…etc etc
This is what I think you’re showing, although there isn’t anything there I’d really consider a wick in that context?
If you see a body close higher than “something” & you determine that that something is significant based on the chart history then you have a reason to go long.
Whether you use a small or a large time frame or some combination is based on plan which in turn is based on an idea.
Many traders ask me the “how/where exactly” of trading & I always respond by saying that everything is an idea…
it is just simplicity mixed with a plan of action.
How far to the left would you consider ‘something’?
OK. That’s not really what I meant though. What I was getting at is that on that chart there are somethings all the way down too. Price had to close below something to get to your something in the first place.
If price is lower than something then just get into position.
If a body closes over something then you are looking as far left as the body be that 15 minutes or 15 days.
Hello SwordOFManagement
you write on one post to trade off of daily high/low. And this is very good idea because people entring on break previus daily low/high then price revers and they lose money.
Everything is good but the daily low / high is relative, and depends on the time zone on which platform you play.
So where is the truth.?
The larger the interval the better, because the weekly candle should look the same on all platforms. The same is with a candle monthly, yearly.
We have only 4 point. High,Low Close Open, but these points are time-dependent.
what you think about it? how to determinate true H/L?
