Welcome Daren. Don’t worry about the losses. It will take time to get in the right track. By the way nice real trade. I leave it to Chris to reply your post. See you around mate 
Not trying to hijack here, but would like to contribute because this is a common theme.
Just because something works for one trader, doesn’t mean it will work for another.
It needs to feel “natural” to you.
For me, MACD doesn’t feel “right”.
Stochastics do.
It’s just like any other hobby.
Take Golf for example- just because Tiger Woods uses Nike, doesn’t mean only professionals can use Nike. There are people out there who can do just as well, with different brands.
When it comes to trading, think of brands (in the above example) as different styles to trade.
You’ll only determine what feels natural, after hands-on experience.
Experience comes from screen-time.
So, try out new things, and don’t give up on them if they don’t work immediately.
Eventually you’ll figure out what fits you as a person.
Jake
Hello Daren - nicely done on this trade.
Can you give me a few more details about these trades, such as…you mentioned a ‘trading plan’. Can you give me more details about this trading plan?
Also, regarding these trades, what were you seeing in this trade that made you want to trade it the way you did? What in the price action did you see that led you to short this?
What was your SL and was your TP fixed, or based on reading the momentum in real time?
Any information is appreciated, so I can get an idea of what you were seeing, why, and then go from there.
Let me know.
Kind Regards,
Chris Capre
Hola Traders,
While all the other global indices are making new swing highs, the FTSE 100 is getting ‘stuck’ at a major resistance level at 6900.
Its formed a 1hr pin bar rejection, which led to a brief sell-off. But notice how after the large red bar, it was bought back up? (1hr chart below).
Buyers happy to buy on the dip and still looking to take out the 6900 barrier.
However, we’ve had a double rejection at 6903/04, which has resulted in a small pullback, but it seems to be under-pinned short term with 6875 holding and the 1hr 20 EMA.
If we get a bull close after this, it should continue pressuring the highs. But if we get a 1hr close below 6875 and 6860, then we’ll likely see some further unwinding towards 6850 and 6830.
Kind Regards,
Chris Capre
Hi Chris
OK my trading plan, in short. Please understand this is a work in progress and have other elements to add as and when I fully understand them. As FXunlimited pointed out it may not all work for me and need to develop what feels right.
GBP/USD Only
Trade off 1 hour
15m to pinpoint entry,
1d to identify trend
Trade with the trend (in this case downward)
Stop Loss set to just above last resistance
Enter trade based on candle formation in relation to support and resistance levels. I know this a little vague but there are a multitude of patterns, I generally wait for resistance to be tested at least once usually twice before entering a trade.
What I seen on this particular trade, on Demo when I took the trade resistance was holding and waited for a 15m engulfing candle to form, on this particular trade I was 99% sure that BOE interest rates would remain unchanged had a good understanding from previous months this would cause a drop in Cable, was a bit risky but was on demo so can afford to make my mistakes here and gives me great data for my journal.
On my real trade (1 micro lot, my risk is never more that 1 or 2 pounds).
Waited for second Bearish engulfing candle.
For exit trailed my stop loss after hitting my 10 pip target. Incidentally on this trade there was no obvious support so was a little unsure how far this would drop.
I made a very healthy £5.56 on this trade.
I hope you can make sense of this otherwise it’s all down to luck lol.
Thanks
Daren
Very Nice Analysis Chris. Will keep an eye on this one
Hello Traders,
As we talked about in the FTSE 100 commentary, it was the only index to not make any new swing highs, thus suggesting an internal weakness, and likelihood it could fall lower from the 1hr pin bar rejection we noted (chart below).
Sellers basically absorbed the bids, and then sent the index to the next major support level we mentioned ahead of time, so hopefully you profited from this.
Good trading today lads
Kind Regards,
Chris Capre
HEADS UP: NFP coming in 30 mins so note to mitigate risk
Hola Daren,
Sorry for the delay as I was hosting guests all weekend.
First off nice trade here so well done!
Here are my comments on this trade;
-
good with trend trade here on the live side.
The demo side has a solid entry, but there is a better one (can you guess where?) -
After the trade was over, did you consider shorting again? If not, por que?
-
Whenever possible, have your [B]key levels marked ahead of time[/B], and [I][B]before[/B][/I] each trade - not in real time.
-
risk seems solid, could have been a little tighter. Any ideas where?
That is my general comments for now.
Looking forward to your response - but nice trade indeed!
Kind Regards,
Chris Capre
Hi Chris
Thanks for the response specially as was so positive,
-
I thought my demo entry was to soon so could have waited for second candle for confirmation but was fairly confident price was going to move. Maybe move to a lower time frame for more exact entry?
-
I had to go to work(still learning but still have to pay the bills) but looking at the chart would say no as use key resistance lines to enter a trade so trading criteria would not have been met.
-
Struggling with setting targets usually aim for 10 pips then trail/move stop. No real logic behind this except to gain experience. Using micro lots so risk is less than 0.1%. I am concentrating on how to trade more than the result.
-
Could I have used the 20ema to help me place the stop loss?
Many Thanks
Daren
“A Negative Thinker Sees a Difficulty in Every Opportunity. A Positive Thinker Sees an Opportunity in Every Difficulty.”
Kind Regards,
Chris Capre
Good One Chris. Now I am going to find an opportunity in this difficult market.
Hola Daren,
Glad you found my comments helpful and positive.
- I wasn’t thinking of moving to a lower TF for the entry. Its actually in that chart. What about shorting at the small consolidation/resistance if you are that confident in the short side?
That would be getting in where sellers are parked.
- What about a pullback into the resistance level which you sold at? If the bears are in control, sellers will look for levels like this to get short on pullbacks. They are called ‘role reversal levels’ since the ‘role’ of the level reverses from support to resistance.
Selling on pullbacks with trend is a method definitely worth getting familiar with, as most institutional traders will look for these to trade with the trend, so something to consider.
- I think it’s good you are focusing on how to trade. Part of ‘how’ to trade is finding targets which in turn affects your risk:reward ratio. I would suggest considering something other than a fixed 10 pip target as its not natural to the market volatility. Sometimes 10 pips is all you’ll get out of a short term intra-day play, but sometimes the volatility is there for a 50-80 pip move on the same setup. It all depends upon volatility and the instrument.
Try to figure out where the next level the market will run into the opposite side of the order flow, and then look to target that.
You can also use a momentum trail, reading the momentum via the price action in real time, but this takes some time and experience to develop the skill, so I’d suggest looking for key levels first, then building into the latter skill.
- You possibly could have used the 20 ema, but it would have needed time to catch down to the PA, along with act as resistance several times for it to be viable.
Overall though, a good trade and good exchange - hopefully a solid learning experience.
Thoughts on all I said above?
Kind Regards,
Chris Capre
S&P 500 trying to roll over, but still being held up by DJ > 17000. If DJ loses 16990, then I’m expecting some stops to be tripped, and both DJ + S&P to roll over. S&P below 1985 likely signals much further losses towards 1965, so some potential downside here.
Will post a quick trade on the 5 minute S&P chart shortly.
Kind Regards,
Chris Capre
The SPX500 D1 20EMA is definitely under fire today.
Well for now, its finding some buyers on the low end. Still underpinned, and supported by DJ holding 17K.
A choppy session for ES, just glad I got a few winners in already now that NY has just opened.
Mr Capre
I saw on the first page of this thread that you made the following statement
’On top of it, I’m actually getting my personal trading accounts audited and shared at the end of each calendar year - then posting the audit on my site so people can see I’m a real trader. Hopefully that will separate me from others.'
I checked your site but couldn’t find any audited track records. What am I missing here ?
Now that the DJ has broken the 17K, the spx500 is on its way down to, just like you said Chris. Breaking 1.985 while I’m writing, the sellers are clearly dominant!
I don’t think this is necessary as he is giving us very good analysis each and every time. I am personally benefited from his lessons like others. I suggest you to do the same.
