A simple price action approach
- Thread starter metal
- Start date
Revisiting this chart I want to look at Trend Lines without the Channels to see what it throws up. Most if not all reversal points are related in many different ways, and Jack didn't know it, but he was on his way to proving a good reversal point for the low in advance of pa. Explaining that is going to take the focus away from the main swings.
The white lines show a rising wedge which not only gives us 3 selling points and 2 buying points, it tells us that the most likely outcome is a break to the downside. If we have read the larger time frames and expect lower prices then these are confirming each other.
Note the faint green line on the first move up and how if this line is moved to the next up thrust it gives the angle of ascent. I have shown this in previous charts.
50% is a very common springboard and our first fast move up pulls back to the 50% before completing the move: this chart is full of relationships like this.
The top sequence is a Double Top failure and this PA shape suggests the shorts are taking over and the break of the wedge is in play.
Can you really do this live? If you can do it on the daily then why not on the 60min. If you can do it on the 60 min why not the 15m. If you can do it on the 15m why not the 5m. Initially you need to develop your eye and how fast you become is all a matter of gift and practice. Some struggle regardless of effort and some see it very quickly. Artistic people tend to learn this quickly.
Even so you won't always see every line and it is good to work with a group of traders who can call out set ups that you might miss. Compare this chart to my last and see if you can understand how they work together.
The white lines show a rising wedge which not only gives us 3 selling points and 2 buying points, it tells us that the most likely outcome is a break to the downside. If we have read the larger time frames and expect lower prices then these are confirming each other.
Note the faint green line on the first move up and how if this line is moved to the next up thrust it gives the angle of ascent. I have shown this in previous charts.
50% is a very common springboard and our first fast move up pulls back to the 50% before completing the move: this chart is full of relationships like this.
The top sequence is a Double Top failure and this PA shape suggests the shorts are taking over and the break of the wedge is in play.
Can you really do this live? If you can do it on the daily then why not on the 60min. If you can do it on the 60 min why not the 15m. If you can do it on the 15m why not the 5m. Initially you need to develop your eye and how fast you become is all a matter of gift and practice. Some struggle regardless of effort and some see it very quickly. Artistic people tend to learn this quickly.
Even so you won't always see every line and it is good to work with a group of traders who can call out set ups that you might miss. Compare this chart to my last and see if you can understand how they work together.
this is not to put anyone on the spot to prove one way or the other, ok?
just how many of you trade live and for real?
from reading many of the posts herein, it does not appear that most of you are ready to trade live with real money yet?
there are just too many ifs and ifs not.... on many of the posts....
on the other hands, maybe, just maybe, it is just me.... who is just too ignorant to appreciate the finality and finesse of what are being offered herein.... don't know anymore? anyway, thanks for all the interesting posts.
Quote from nakachalet:
on the other hands, maybe, just maybe, it is just me.... who is just too ignorant to appreciate the finality and finesse of what are being offered herein.... don't know anymore? anyway, thanks for all the interesting posts.
You're consistent, I'll give you that. You can't work out how your guru is trading and you are paying him and watching him live! You even ask us to work out if his trade is possible and now you think this is trading with finesse. LOL.
This is Chapter 1 content and a very, very long way from trading with finesse. The question I have is can we make progress? Why not start with an hourly chart and see if you can work out where the swings might terminate. You'll never know if you don't try. Post your efforts and I might even help
I generally post after the market close unless things are slow or in a big trend and I'll let you figure out why that might be.
I trade live about 20-30 times a day off a 5-min time frame.
It appears many are here to learn.
There are many "ifs and if nots" because the outcome of EVERY trade is uncertain. Trend lines, channel lines and retracement levels are merely guides.
Do I want to put on a trade when price is in "no-man's land"? No.
I want to put on a trade when price reaches an S/R level that is commonly used as a buy/sell point. I can anticipate it will hold via a limit to buy or sell there; or I can wait for price to confirm that the level is holding (at least for while) via a buy or sell stop that's triggered by a demonstration of strength or weakness.
As always with price action trading, if the level is breached you exit the trade and wait for the next clue to what the majority of players are doing.
Agreed, I normally have 50% levels of previous moves noted, because a break of that level very often takes price back to a test of the previous swing high or low.
I found that the smaller the time frame, the more difficult it becomes. You have to be prepared in advance or you'll missed your entry and in smaller time frames missing the ideal entry can mean half or more of your anticipated profit is gone by the time you react to price. Trading larger TFs vs smaller ones is like the difference between performing a well-rehearsed comedy act vs doing live comedy improv.
Trading with a Skype group was the best thing I ever did. The extra eyes pointing out setups hones your own eye.
What do you need to put on trade after trade and be successful over time?
Entry rules, exit rules, money management rules, and stop placement rules.
This thread is not that. There are other threads here at ET, in books, across the web, et cetera, that will give you hard and fast trading system rules.
Trendlines and the resulting channel lines are just a useful way of looking at a market, one that many people use to get into and out of trades.
But, they still have those rules. If this happens, I do this. If that happens, I do this.
So, essentially, trendlines are tools, and rules can be built around them. But there are no hard rules in this thread. It is up to you to either find some rules you can follow easily or make some rules that you can follow easily.
And about that other thing: the real answer is - we could all be paper traders. You must decide if you are getting useful information out of this thread.
If you don't understand trendlines, you don't have to use them to be a successful trader. Check out any number of other ways of looking at market data, market profile, volume studies, or any number of indicators out there. There's a bajillion of them.
And one last thing: don't take my word for it. I'm actually just a daschound at my master's computer. Pick up any number of well regarded books - Technical Analysis of the Financial Markets or Futures and Options or whatever. Read what other people say about trendlines, or whatever other tools you decide to use that can alleviate your doubt.
Entry rules, exit rules, money management rules, and stop placement rules.
This thread is not that. There are other threads here at ET, in books, across the web, et cetera, that will give you hard and fast trading system rules.
Trendlines and the resulting channel lines are just a useful way of looking at a market, one that many people use to get into and out of trades.
But, they still have those rules. If this happens, I do this. If that happens, I do this.
So, essentially, trendlines are tools, and rules can be built around them. But there are no hard rules in this thread. It is up to you to either find some rules you can follow easily or make some rules that you can follow easily.
And about that other thing: the real answer is - we could all be paper traders. You must decide if you are getting useful information out of this thread.
If you don't understand trendlines, you don't have to use them to be a successful trader. Check out any number of other ways of looking at market data, market profile, volume studies, or any number of indicators out there. There's a bajillion of them.
And one last thing: don't take my word for it. I'm actually just a daschound at my master's computer. Pick up any number of well regarded books - Technical Analysis of the Financial Markets or Futures and Options or whatever. Read what other people say about trendlines, or whatever other tools you decide to use that can alleviate your doubt.
Quote from Xspurt:
You're consistent, I'll give you that. You can't work out how your guru is trading and you are paying him and watching him live! You even ask us to work out if his trade is possible and now you think this is trading with finesse. LOL.
This is Chapter 1 content and a very, very long way from trading with finesse. The question I have is can we make progress? Why not start with an hourly chart and see if you can work out where the swings might terminate. You'll never know if you don't try. Post your efforts and I might even help
I generally post after the market close unless things are slow or in a big trend and I'll let you figure out why that might be.
you are very generous indeed. much appreciate your offer.
however, if you could not figure out my trading chart that was posted per your reference,
how could you ever figure out what is even less obvious and on going by the tic of the second hand.... when it generates trading signals....
by the way, the three fees paid trading rooms do use their own charts for trading, and i do have my own charts which are distinctively different from those trading rooms.... just for your info....
several traders might wonder why the need of 3 trading rooms....?
each group has its own strengths and products that each is enticing its own members.... and all these three are currently profitable but i'd be less than telling the truth.... if i'd say that i agreed with all their calls.... lol
and my current interest centers around tf, gc, cl....
thx again for your offer to help figure out charts and sticks that you are not familiar with.... i am afraid it would only multiply your headache and confusion.... but thx any way, trader. some day, i just might enlist your help. thx much everyone.
You need a strong trend for channel trading to work also if you go to small timeframes they become erratic as the trend there is constantly changing so a bit of patience is definitely required but the stuff definitely works if done properly.
Eur/US$ is a great pair for this kind of trading.
Just keep in mind, if its not trending stay the heck out.
Patience people patience is key in this technique.
Nice thread lot of good quality info.
FoN
Eur/US$ is a great pair for this kind of trading.
Just keep in mind, if its not trending stay the heck out.
Patience people patience is key in this technique.
Nice thread lot of good quality info.
FoN
thx much nodoji, for your response.
to put on trades 25-30 times a day....
do you mean to say that you execute 25-30 trades a day with your 5 min chart.... is that what you mean, pls?
(1)....if i may ask.... which product or products are you trading so frequently, pls?
got to be fun and exciting to be able to execute a trade every 12 minutes or so.... am envious really? .... lol
trading in a group using skype sounds like something really new....
(2)....what is it like, pls? if you have the time. thx much as usual.