A simple price action approach
- Thread starter metal
- Start date
Hi do you think you could clarify this a little bit for me? My understanding of confirmation as it is used in this thread is when, for example, a five minute candle breaks, say, a lower trendline, and closes outside of the trendline. And then the confirmation for an entry is when a subsequent five minute candle reenters this same trend line, and closes inside of it. This would be the confirmation to go long, correct? I got confused when you wrote "I have a stop order in place to initiate a trade", or I place a limit order to...." The stop order terminology still confuses me after two years of studying. Could you give me a scenario to explain what you mean by the sentence i quoted? Thanks!
I don't treat trendlines as a concrete base for trades, rather a gauge for trend cycles. In this sense all 3 of your charts have nice profitable trades (hint: BSOT's don't have to be precise, actually nothing has to be precise as it's not an exact science, a few ticks up or down are not critical
).
Quote from eurusdzn:
Substance and content from a veteran trader on a good Price Action thread and Ammo is
Critiqued for grammar? Tough crowd. Dead Sea Scrolls are fair game if there is something to it.
Back to my Shakespear
It's not the grammar, it's a lot more than that, person has a very poor writing style.
Quote from eurusdzn:
Substance and content from a veteran trader on a good Price Action thread and Ammo is
Critiqued for grammar? Tough crowd. Dead Sea Scrolls are fair game if there is something to it.
Back to my Shakespear
Why are you so defensive? Your name wasn't even mentioned.
Perhaps Ammo isn't as sensitive as you, and will accept the constructive criticism. If I have a comment or critique on someone's writing clarity, I think I should be allowed to say so without getting attacked with snide remarks.
Well yeah, I had noticed you didn't use tl's for many trades in eur/usd from way back last year and that now you are using trendlines even less.
Wasn't really putting up the charts to make a point to you, more just something to show some troubles I had and the realities of trading a method like this. The hindsight charts posted earlier in the thread are deceiving.
Still don't see winning tl trades in those charts, apart from some small scalps for 8 ticks or so in the choppy action.
Quote from dv4632:
Well yeah, I had noticed you didn't use tl's for many trades in eur/usd from way back last year and that now you are using trendlines even less.
Wasn't really putting up the charts to make a point to you, more just something to show some troubles I had and the realities of trading a method like this. The hindsight charts posted earlier in the thread are deceiving.
Still don't see winning tl trades in those charts, apart from some small scalps for 8 ticks or so in the choppy action.
8 ticks consistent scalps can be very good trades too.
But there I see much more potential... all hindsight of course, not sure how it would develop in real-time and what the context was.
It's not that I don't use trendlines at all. Just trendlines/levels/moving averages etc. are tools to measure potential momentum/areas where it may fade/stop. Key decision is always price action in relation to these indicators of momentum.