Intraday FX Player
- Thread starter CFerret
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Late post guys, had to go out just after the top - took this from 657 to 720. I took this in 3 trades - from the low - pretty easy; then reversed 674 - caught on what they were up to and reversed long again at 672 after a bit of a stall.
I wanted to show you a "box". Lets look at this as pure PA. If we "see" this in our minds eye in a bigger timeframe what do we get? Imagine a single big composite candle from the low to the top of the box. Next imagine the box as a small red candle. Candlestick trading says buy over the high, sell under the low of the red candle. Some traders are looking at this.
Others are looking at the box. Some will see it as a high probability continuation formation and will buy the box.
Others will bracket trade it and go with the breakout direction.
I use propritory indicators, (my design) and they clearly signalled continuation so I had to reverse my short and go long before the breakout. I took the short on the first reversal bar so I didn't have to box as a guide yet.
Now look left of the box. The wedge is supply - lots of trades fired off there and if you look further to the left on your own chart, there's a lot of space above that. Once that supply is gone price will rise... often on low volume.
Ok, here's the key: If you see that candle formation or a Box formation - it's often a money spinner: take the breakout and expect a good return. Some traders call it a coil and measure the ups and downs in the box and expect that as a minimum return. At 78 you should be long.
CV caught the other clue - the hourly chart and played the trend perfectly on the trendline. That's what I was looking for but I was trying to be clever and trade the countertrend as well. That can be very profitible but this one was B/e. 63 pips, all in all a nice move.
Remember: Box = ATM
I wanted to show you a "box". Lets look at this as pure PA. If we "see" this in our minds eye in a bigger timeframe what do we get? Imagine a single big composite candle from the low to the top of the box. Next imagine the box as a small red candle. Candlestick trading says buy over the high, sell under the low of the red candle. Some traders are looking at this.
Others are looking at the box. Some will see it as a high probability continuation formation and will buy the box.
Others will bracket trade it and go with the breakout direction.
I use propritory indicators, (my design) and they clearly signalled continuation so I had to reverse my short and go long before the breakout. I took the short on the first reversal bar so I didn't have to box as a guide yet.
Now look left of the box. The wedge is supply - lots of trades fired off there and if you look further to the left on your own chart, there's a lot of space above that. Once that supply is gone price will rise... often on low volume.
Ok, here's the key: If you see that candle formation or a Box formation - it's often a money spinner: take the breakout and expect a good return. Some traders call it a coil and measure the ups and downs in the box and expect that as a minimum return. At 78 you should be long.
CV caught the other clue - the hourly chart and played the trend perfectly on the trendline. That's what I was looking for but I was trying to be clever and trade the countertrend as well. That can be very profitible but this one was B/e. 63 pips, all in all a nice move.
Remember: Box = ATM
Quote from Charly:
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Very interesting thread - thanks to yoohoo as well.
Could you help by telling me what those reversals you mention look like?
And what are ETM - PP - PA etc. please?
Thank you.
Ch.
Of course, glad if can be helpful:
yoohoo have posted an example of bar reversal pattern yesterday and that's how most of them look like. You can also study some basics of bar/candlestick charting for reversal patterns. Those can be very useful around S/R areas.
ITM is a term I adopted from options world, means "in the money" (simply speaking in the profit
), PP - pivot point and PA is price action.- Status