Failed final flag on pound dollar, goal 20 pips (scalp), risk 13 pips plus spread 4, 17 pips.
Wednesday, April 22, 2009
Real trade
Failed final flag on pound dollar, goal 20 pips (scalp), risk 13 pips plus spread 4, 17 pips.
Tuesday, April 21, 2009
Common signal bars
Common Signal Bars
- Pin bars
- Inside bar
- ii or iii pattern
- Small bar near the high or low of a big bar (trend bar or outside bar) or trading range (especially if there is a body in the direction of your trade indicating that your side has taken control)
- Outside bar
- Double Bottom Twin: consecutive bars in a strong bear with identical lows and preferably small or nonexistent bottom tails (a type of bear flag)
- Double Top Twin: consecutive bars in a strong bull with identical highs and preferably small or nonexistent top tails (a type of bull flag)
- Opposite Twins: Up Down Twin Top and Down Up Twin Bottom (consecutive trend bars in opposite directions with small tails and nearly identical highs and lows)
- Reversal bar failure (for instance, buy above a bear reversal bar in a strong bull)
- Shaved bar (no tail at one or both of its extremes) in a strong trend
- Exhaustion Bar (huge trend bar)
Sunday, April 19, 2009
Trades not traded but forseen
Slowly adapting Als methods. Key is being able to read the price action as it occurs live.
Tuesday, April 14, 2009
Break
I am going to take a break from trading, unless a nice trending day appears some time this week. Start concentrating on absorbing everything from a book about trading candle by candle.
Wednesday, April 1, 2009
Challenge
Can I trade WITH stop losses that ONLY occur outside of todays daily range (New York 5pm is the open of today), and be happy with stop losses of 40 or less pips?
This was taken from post in FF and is so deep and gooood.
http://www.forexfactory.com/showpost.php?p=1948253&postcount=1005
Describing the diamond pattern: The next important thing to consider should be the sequence of the moves inside the pattern. For example, two consecutive touches of the resisting line taking place between two touches of the opposite support in a triangle are not the same as the top-bottom-top-botton sequence. Same BTW is true for channels. The trendline that has more touches than the opposite one has a bigger breaking probability. Forth approach to a trend line is a guaranteed break, either instant or delayed (with some rare exceptions but limited exception that would take too long to explain here). The line with three touches always works as a magnet. No matter how far the market goes initially in the opposite direction it always comes back for a break. It should also be remembered that the market has an absolute memory and doesn't "forget" anything that happened in the past. Such lines I call "unpaid debts" and use them mostly when the market turns around and goes towards them because the break will be imminent. Ascending resistances and descending supports are not as reliable as decsending resistances and ascending supports. First two should not be used for opening new positions but only for taking profits ahead of them. This was just the bottom line and now we can turn out attention to the chart you have posted. In this particular case the lower trendline comes at 1.5677 on Monday and rises 20-21 pips each next day. It presents an opportunity to go long ahead of it and to switch to shorts if broken. In all trading cases the stops have to be placed outside of the intraday traded range. So, if the market comes to the support line a long position can be taken and then the stops must be placed below the line. If later is makes a break of the support a position can be reversed but the stops for this new position can only be placed above the intraday high. In order to take out those stops the market has to change the direction of the main move of the day and to break a resistance that had significance not last day, week, month or century but has been freshly made and established as such during the very same trading day.
Describing the diamond pattern: The next important thing to consider should be the sequence of the moves inside the pattern. For example, two consecutive touches of the resisting line taking place between two touches of the opposite support in a triangle are not the same as the top-bottom-top-botton sequence. Same BTW is true for channels. The trendline that has more touches than the opposite one has a bigger breaking probability. Forth approach to a trend line is a guaranteed break, either instant or delayed (with some rare exceptions but limited exception that would take too long to explain here). The line with three touches always works as a magnet. No matter how far the market goes initially in the opposite direction it always comes back for a break. It should also be remembered that the market has an absolute memory and doesn't "forget" anything that happened in the past. Such lines I call "unpaid debts" and use them mostly when the market turns around and goes towards them because the break will be imminent. Ascending resistances and descending supports are not as reliable as decsending resistances and ascending supports. First two should not be used for opening new positions but only for taking profits ahead of them. This was just the bottom line and now we can turn out attention to the chart you have posted. In this particular case the lower trendline comes at 1.5677 on Monday and rises 20-21 pips each next day. It presents an opportunity to go long ahead of it and to switch to shorts if broken. In all trading cases the stops have to be placed outside of the intraday traded range. So, if the market comes to the support line a long position can be taken and then the stops must be placed below the line. If later is makes a break of the support a position can be reversed but the stops for this new position can only be placed above the intraday high. In order to take out those stops the market has to change the direction of the main move of the day and to break a resistance that had significance not last day, week, month or century but has been freshly made and established as such during the very same trading day.
Wisdom, this is simple but quite brilliant
From FF,
"How do you define a direction change, for example cable this week, the main direction this week is down, did it change to up during new york session and why?
It's easy. If the top of the week was formed first and before the bottom was formed then the direction of the main move is down and vice versa. Current week's top on Cable has been formed on Monday at 2.0444 and the bottom of the week so far is at 2.0257 which was hit yesterday. It means that the direction of the main move of the week is still down and will be changed only if Cable gets above 2.0444. "
Basically saying, if we are below the week opening we are in a weekly downtrend, if we are above it, we are in a weekly uptrend. The same goes per day. If we are above the open, we in an up direction, if it is below the days open, we are in a downward move.
"How do you define a direction change, for example cable this week, the main direction this week is down, did it change to up during new york session and why?
It's easy. If the top of the week was formed first and before the bottom was formed then the direction of the main move is down and vice versa. Current week's top on Cable has been formed on Monday at 2.0444 and the bottom of the week so far is at 2.0257 which was hit yesterday. It means that the direction of the main move of the week is still down and will be changed only if Cable gets above 2.0444. "
Basically saying, if we are below the week opening we are in a weekly downtrend, if we are above it, we are in a weekly uptrend. The same goes per day. If we are above the open, we in an up direction, if it is below the days open, we are in a downward move.
Subscribe to:
Posts (Atom)