Hi Relativity,
What is your view on SL? Do you use a SL or are you using a mental stop?
I mean SL when entering a trade. Do you base your SL on the statistic figures, for instance do you apply the 20 pips rule to your stop? Another commen way is to place SL at recent high/low pivot, which is prone to stop hunting. How to you protect your position from market noise/stop hunts?
Hi Rela,
I sold EU here too. Nice and quick pips. May I ask you your reasons to sell here? Was it bcoz of wave analysis or market profile structure?
Regarding stop hunting, my understanding is that it is bcoz of institutions & dealers pushing price to trigger at well-known preys stop spots in order to shake out those weak participants. These are often the false moves and to hide their real intentions to direct the market to the original move.
A = Previous shakeout @ Monthly & Weekly Open
B = Price approaching Peak volume Zone in MP
C = Fibo retrace @ 75%
and last, but not least…
D = Peak hourly Volume & Fibozone
Is that “all” together?
I’ve a question: When should we start our fibzone (0 line) ? And why this time you have 2 fibozones in your chart?
Thanks!
That’s why i wrote reason B
No, it was there to evidence the Peak Volume candle
I don’t understand: the MP isn’t already 1440 minutes? And your first distribustion starts far before MP… could you clarify it plz?Btw. think I’ve missed those videos… :33:
Price ranges and narrow coz buyers and sellers agree about the “item” VALUE.So, statistically, price moves between +/- first standard deviation (i.e. not too far) from that value… giving us a Bell shape (Gaussian) distribution in MP
Hi,
Sorry, I do not get what you want us to acknowledge.
Me neither.
Seriously? lol. You’re gonna have to give us a clue here.
Also, on a different theme, you say you often keep positions for a few days, instead of just going for 40/60 pips. Could I ask what sort of exit signs you look for on these longer positions? What sort of targets are you looking at, resistance zones? What would make you decide to exit early if things change? e.t.c.
As allways, many thanks rel.
Timing is really important in trading. I agree.
What hints can the market give us to see the forces of multiple TF joining?
Question : What kind of price position forces many traders to react (meaning either 1-decide to enter or 2-decide to exit or worse lol 3-are forced to exit)?
Long body candles?
Aim to enter at an area where price has a good chance of not coming back for a long time. Where? The above post gives lots of hints.
You mean rejection areas? Otherwise I can’t know that in advance.
Therefore I worry more about entry than exit. Care take of entry well, let exit take care of itself. You can beat yourself to death to improve entry (possible), but you can’t beat yourself to death for improving exits (impossible)
I always believed that exit is more important than entry. It is exit that will decided if a trade is a winner or loser.
I saw your next post and cheated - Price Extremes!
Thank you, I see. So the positions you keep for several days are your “third lot” after you’ve 1) achieved breakeven 2) taken some profit at your first target 3) taken some protif at your second target. You can afford to let your third lot run and have some fun with it (you’ve earned it after all).
Lower timeframe traders will exit their positions sooner and have smaller targets. E.g. daytraders are out by the end of the day, they just want to catch the majority of the day’s range. This is why there is a wick at both ends of a D1 candle. The first wick is deciding on direction for the day, the second is winners taking profits. I have noticed that , for example, on a down day, the low of often around 17:00 London time. This is the European DayTraders taking their profits. These different timeframe traders perspectives of time and target is why the market moves in swings and not in straight lines.
Also, sorry for the long post but if I could check my understanding of something with you?
Here is a very nice entry I made this morning. (M30 chart EUR/USD)
What I am trying to do is to catch the major move of the day i.e. enter in the winners wick. So, in the morning the price action will end up being either the top D1 candle wick or the bottom D1 candle wick. It is my “mission” to determine which wick we are currently in.
Market profile shows me where the morning “battle field” is. The was a little attempt for the bulls to try and win but then the price moved quickly down below the battle field area with rising volume, indicating that the bears were taking control for the day.
Also, we are in a downtrend on a D1 and H5 perspective. Also, yesterday the W1 low was broken to the downside. I went short at when the price came down to the red price marker and I’m currently +67 pips and “so far” it looks like I entered pretty much in the winners wick. Nice. I should have entered with 3 positions and made exits as you suggested but I entered before reading your reply. I only have one position, so for now I am continuing to keep a 20pip trailing stop.
Am I getting some of the right ideas or was I just lucky?
Thank you! :59:
Nooooooo! Oh dear, have I said too much? I can always delete my post and we’ll go back to you sharing your wisdom?? lol
Anyway, just coz I got ONE good trade doesn’t mean I’m going to be profitable in forex now. No way. I’m not so foolish to believe that. Every day is different and it’s tough out there. It’s a minefield and I’m just beguinning my learning.
To let you know my background, I’m English, I worked as a broker for 12 years (I’m not a doctor lol it’s just a nickame). I have traded profitably and consistently for 7 years. Not forex, or commodities or indexes or even large companies, I trade small illiquid companies. I understand the importance of working out what’s going on in traders minds. This is “part” of how I make money in small companies. My problem is that I can’t scale my trading up on these companies because there just aren’t enough shares to buy. If I try to buy larger amounts, I get worse prices, that’s the way it goes when there’s no liquidity. That’s no good so I need to learn to trade more liquid securities. However, it’s a totally different world! I am just beginning my journey but I think you have guided me down a sensible path. I thank you for that. I hate all this garbage you read about MACD and Stocastics. Although I am not a programmer, I have taught myself to program indicators and backtest software (not to your standards!) and I can’t see any value in these lagging indicators. That is why I was worried when you started talking about MA crossovers and "self fulfilling prophecies”, I though Oh No, what is he doing?. However, I suppose as long as we just use MAs as a little helping hand and don’t base our decisions on them, they might have some value.
Anyway, thank you Rel and please keep posting !!
You’re a GENIUS…
Hello everyone,
Happy reading all stuff given by Relativity and still learning on it. Thank you for your kindness. Your concept of price extreme is awsome. Box of 20 pips is great too
This is actually not surprising now that I look at it. Why?
well because the way I’ve been trading I usually enter my weekly trade on Monday and I usually get out by Wednesday. This is really interesting and a really good example of how statistics are so useful for trading. I was following this sort of thing just because it was what seemed to work even though I wasn’t really specifically picking Monday as my day to go in and Wednesday as a day to go out, it just seemed to work out that way, and now I know WHY it worked out that way.
I’m starting to think that a good way to improve/maintain a system/modus operandi/method is to look at your winning trades and see what is common between and see if there’s something that connects them and then try to see if there’s statistics to back it up.
btw awesome work! I’ve been busy with my work-term as I’m gonna be finishing off soon but I just read through the thread and watched the videos and I really liked the catch a falling knife one.
Relativity, could you give me scripts for detecting price extremes as seen on your clip as well as statistics of wick and body frequent distr. Thanks
This thread so long and sometime i get lost. Later I realize that the first post is the most impotant so i came back read over again again and still on though process. Your idea is awsome but quite hard to get it fully because the way you talk here very , you know, indirect way. So i need to be slow down to read over it. Intraday traders almost kind of ADD, lol. I still consider 2 method of trading , day trading and swing. I love quick reaction of “1 min chart” and digging by statistics for longger terms as well
Sorry for using the term “1 min chart”. Here, i know that just 1 time frame, no h1 h4 d1 d5 as defined in mt4
Gray area for consolidation, white price extreme and yellow trending ? Now i see the beauty of statistics in forex
So you said you built from scratch starting with forex and now happy with trading gold. Would you like to share any customization for gold or oil based on your framework (barros, mtf, h1 tick) ? Commodities moving a lot with volatility (easy for re-entry if break-out but also kicked out by stoploss and margin call), how can you deal with that ?
Well, appreciated. I get it. Try to learn best
So what do you do for adapting to the changing market where the old way no more efficient, using your skill on statistics to discover the new pattern and build the new system ?
Btw, eager to hear about Zero line, order flow, supply demand zone and market Session timing.Am i too much 