What Every New or Aspiring FX Trader Wants To Know

[Johnnypipster]

WOW! [B]pullice [/B]- great advice as well.

It doesn’t even have to be that difficult. I read your post - went out to the E/U, backed out to the weekly time frame and drew a line approximately in the middle. Now, if you start moving in on the closer time frames you can see EXACTLY what you were saying about the rubber band effect. Price kept snapping to the center and the obvious trades are on the extemes. GREAT INFO

[Sweet_Pip]

WOW! [B]pullice [/B]- great advice as well.

It doesn’t even have to be that difficult. I read your post - went out to the E/U, backed out to the weekly time frame and drew a line approximately in the middle. Now, if you start moving in on the closer time frames you can see EXACTLY what you were saying about the rubber band effect. Price kept snapping to the center and the obvious trades are on the extemes. GREAT INFO

Are you referring to pullice’s post which was quoting ICT’s?..cause his post is just the bolded text…

[Sweet_Pip]

Hi Everyone:

Hope it’s OK for me to chime in with my 2 pips. If you look for the turns on the chart the direction price is heading is easy to recognize. Price turned down from the pivot, criss crossed the PP a couple times then headed to S1 and turned back up.

• Ian

So what direction are you trying to say/show price is heading?

[Johnnypipster]

• my mistake Sweet Pip - thanks for pointing that out. I read it in haste. - wrong reference.

I took the meaning of the post as that if you find the center pivot point (I pointed an easy way I did it above) the further away from that center the more likely it is to snap back like a rubber band. No guarantees but it allows you to make more conservative trades towards the center and only when your systems indicators point that direction.

If you draw that line you will see the wave action towards the line.

Please correct me if I am wrong -----

[lucid]

Candlesticks hide the direction in my opinion.

[system]

I waited for price to to go down and I left the first dip, on the second dip I bought right on S1 and into the bear candle. [B]What puzzles me is that we did not break the previous low.[/B] Is this correct what I am doing or parial correct or completely pure luck

pullice,
the previous day low [PDL] had another S&R layer above it.
That S&R layer prevented GU from breaking PDL.
Please, look to last Fri for it.
It is another important technical price marker & it showed it’s importance today.

[lucid]

So what direction are you trying to say/show price is heading?

Price is heading in the direction of the line. When the line crosses down through a pivot line or other line on your chart, price is going lower.

[trav72]

Sorry about that one.

also mid S1 was within a few pips of tuesdays high @ 1.5258

[system]

No it would seem GU didn’t feel like moving much. I still have a pending buy limit order at 1.5208…[B]again not sure which level to setup for[/B]…S&R line, pivot, PDH/L, round number. Price tried to get there but didn’t quite reach the one I selected of course…lol…:rolleyes:.

1.5208 was PDL
1.5208 was last Monday’s Hi

1.5208 did hold today.

That looks like a tough nut to crack.

[lucid]

So what direction are you trying to say/show price is heading?

When the line “turns” or “reverse bends”, price has changed direction. This is a simplistic view. It may keep the “newbies”" and the “old-timers” out of draw down. Candle charts don’t show it as clearly as line charts.

[lucid]

Which Way To The Pot Of Gold?

If you look on your charts at Historic Highs and Lows and Daily Highs and Lows you have eighty percent of the ideal trading areas setups will form… just doing that! If you look at the highest and lowest levels in the last twenty to thirty days you can find solid setups at these levels as well. You can find intermediate term highs and lows on your four hour and sixty minute charts to stalk your next trade setups as well.

Very good idea. Traders get caught up in MA(20), MA(50) and MA(200). Having HIGH(20), LOW(20) , etc… on the chart seems like common sense.

What Do I Do After I Determine Key Levels?

Well, I am sure this will come as no surprise to you, but you wait. You wait for the market to come to your established level. If price is trading under the targeted high you anticipate seeing a reaction point as resistance… wait until it trades up to it. When the market gets close to your target zone for trade setups… then you need to turn your attention to your tools… NOT prior to price reaching your target zone.

You want to be like a Sniper. A Sniper will wait for days if need be for the optimal time to pull the trigger. He is not rushed to shoot his weapon just because he is loaded and ready to fire… he wants his target in his crosshairs… then bang!

You will sit and wait for price to trade up or down to your Key levels and when they do, you become the Sniper… you put your eye to the scope and train your crosshairs on price as it moves into range. What are your crosshairs as a trader you might be wondering? Your pivots and other technical tools are what you will monitor for trade execution. When price enters the kill zone or “trade zone” you want to look for optimal trade entry for your trigger to take the trade on.

This looks familiar. I remember reading about one shot, one kill trading. And somewhere else I read about different zones.

Good job, ICT. I hope it’s OK to call you ICT. My name is Ian.

[trav72]

Perhaps it was a gut feeling or you were watching the market during a particular time and saw it rally up fifty pips and figured what the heck, I might as well buy it too and grab twenty pips too. You can’t survive this business doing that and it’s nothing more than gambling.

False Sense Of Preparedness…

Just because your charts have all the latest indicator fads and whistles programmed to alert you to the next big moves, doesn’t mean it will result in a profitable price swing in your favor.

Appreciating your continued professional advice and the hysterical reality check.

[Sweet_Pip]

1.5208 was PDL
1.5208 was last Monday’s Hi

1.5208 did hold today.

That looks like a tough nut to crack.

I find it most tough when they create such a wide “zone” in a relatively small range…lol. I pretty much anticipated the 1.5208 zone would hold, but within it are a few possible levels to get in at. Going with the 1.5216 price meant possibly larger drawdown, but more assurance in getting filled whereas going with the 1.5208 or 1.5200 meant possibly lesser drawdown, and less chance of getting filled…each has its pros & cons…yes it’s a fine art…

[system]

Very good idea. Traders get caught up in MA(20), MA(50) and MA(200). Having HIGH(20), LOW(20) , etc… on the chart seems like common sense.

This looks familiar. I remember reading about one shot, one kill trading. And somewhere else I read about different zones.

Good job, ICT. I hope it’s OK to call you ICT. My name is Ian.

It has become apparent ICT is easier than InnerCircleTrader

It is fine, I can see when posts are directed to me with either.

[lucid]

1.5208 was PDL
1.5208 was last Monday’s Hi

1.5208 did hold today.

That looks like a tough nut to crack.

Thank you for the last Monday’s high clue.

Makes it easy to see the congestion or confluence when you draw those lines.

[cubanpip]

It has become apparent ICT is easier than InnerCircleTrader

It’s easier definitively

What you’re doing is very, very nice. There is GOLD in here. Now is up to us personally learn how to achieve our goals.

Thanks.

Best regards

P.S.- I appreciate the fact that this is not a “follow me” or “follow my system”. It is much more, it’s “learn by your own effort”

[system]

I find it most tough when they create such a wide “zone” in a relatively small range…lol.

But the “zone” is only 9 pips from top to bottom.
Today’s present Lo stands right in the center of that “zone”.

I pretty much anticipated the 1.5208 zone would hold, but within it are a [B]few possible levels to get in at[/B].

And they are?
And where is your [B]evidence[/B] for direction?

Going with the 1.5216 price meant possibly larger drawdown, but more assurance in getting filled whereas going with the 1.5208 or 1.5200 meant possibly lesser drawdown, and less chance of getting filled…each has its pros & cons…[B]yes it’s a fine art…[/B]

The “Fine Art of Waiting”.

It’s not even come close to my crosshairs, yet.

[system]

Which Way To The Pot Of Gold?

If you look on your charts at Historic Highs and Lows and Daily Highs and Lows you have eighty percent of the ideal trading areas setups will form… just doing that! If you look at the highest and lowest levels in the last twenty to thirty days you can find solid setups at these levels as well. You can find intermediate term highs and lows on your four hour and sixty minute charts to stalk your next trade setups as well.

Once you identify where Key Support & Resistance levels are and the relationship to the market price as it relates to each level… you have just moved from the novice or neophyte level to intermediate experienced trader. You see novice traders watch one and five minute charts because they look fast and the swings are dynamic looking. This lulls them into thinking trading this timeframe is where the gains are… remember my very first post? Their headstone is being lettered already!

Is There An Ideal Stage To Look For?

If you post your Pivot Points on your hourly charts as I recently suggested you will see the best setups occur when price has moved far away from the Central Pivot Point. When Price is at R1 or R2 this condition is awesome when you converge with Key Resistance levels and Daily Highs from previous day or Historical Highs are being tested.

Conversely, you can expect when price is at S1 or S2 and the Central Pivot is some distance away higher… you can expect some significant setups to form.

Think of price as an elastic band. When it gets pulled up so high when everyone lets go of buying it… it will snap back lower… back to the Central Pivot Point. When price trades itself down so low it will eventually snap back to Central Pivot Point higher.

This concept coupled with other profesional trading concepts will provide you a lifetime of insanely profitable setups to zero in on for your Sniper trades. When the markets are near the Central Pivot Point and we have not entered a strong trending environment… keep your expectations low. Price will enter consolidation days or periods during this condition.

Learn to take a picnic lunch or catch up on TV shows on these days. Let the neophytes force a trade in the mud… and watch and see how you feel the next day when you look and see it didn’t move much and you had a wonderful time away from the market instead!
[B]
ICT, in a nutshell you saying, sit on your hands, wait for price to to come to S1, S2 or R1,R2, with key support and resistence. Is that time to get ready pulling the trigger.

Sorry for these noob questions but please understand I and a few others are only doing trading a few months and slighly more. Please bear with us for silly questions at times because remember you have experience in this field close or more than 15 years of trading.[/B]

For your low risk high reward hunting focus here, yes.

[system]

Hey InterCircleTrader - I’m a Baltimore guy myself. Just wanted to say thanks for the info - sound advice. I recently stumbled across this thread. I have about 5 -6 months of running demo’s, reading books and occasionally reading this site. What broker do you recommend?

Which ever you feel comfortable with. I don’t point traders to any specific firm. However, I did get burned with FXCM, let’s just say that and leave it right there.

[wrtm_19]

When the market gets close to your target zone for trade setups… then you need to turn your attention to your tools… NOT prior to price reaching your target zone.

I was making it the other way round, lol.

Seriously InnerCircleTrader, I really appreciate the effort you’re putting in this thread, after all it’s your time and your knowledge and that is priceless.

I also appreciate the fact that you’re direct and humble with what you say and there is no misteriousness involved.

I’m really excited about the material that you have already presented and I know everyone here feels the same.

Thanks a lot.