The Simplest Trading Method In The World

This is a discussion on The Simplest Trading Method In The World within the First Steps forums, part of the Reception category; Originally Posted by trader_dante Round numbers have never meant anything to me. There is only places where price reacted to. ...

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Old Jan 26, 2011, 11:24pm   #22
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Re: The Simplest Trading Method In The World

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Originally Posted by trader_dante View Post
Round numbers have never meant anything to me. There is only places where price reacted to. They may or may not tie in with BRN's. Go down a BRN in the NQ. What about 2200? Sweet FA. The level is at 2206 or 2193.
Fair enough. I miss a lot of trades because of my preferences, some good, some bad. Far more bad than good, but that just comes down to how I trade.

By the way, I've come from the same place you have, I'm surprised you don't like them.

I'd also question whether people are really rushing in or out of the market because price is at or near 2206. I'd be surprised if someone who's been around as long as you thinks that things happen to the point or pip.

I look at the chart and think price is pivoting around because people are interested in the area around 2200. You look at the chart and think they're interested in 2206 and 2193. That's fine, whatever you perceive is perfectly valid in my opinion.

As it happens, I far prefer it when the number is pierced, instead of just touched, I think it gives a far stronger signal. I would have thought that it would also be a fairly useful concept for someone training new traders, a very easy way of keeping people away from the traps that all new "price action" traders (for want of a better term) fall into.

What matters is finding a workable method, and that is unique to everybody - certainly to everybody who wants to trade using things like this. In the end though, it is all just opinion. You've got yours, and I've got the truth .

Thanks for dropping in by the way .

EDIT:

Also, see this comment a couple of posts up:

Round numbers are just something I happen to like - 10s and 100s on NQ, 100s and 1000s on YM etc. But you can use whatever you want - pivot points, support and resistance price flips, any area that has significance, where you think there might be interest.
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Last edited by Pazienza; Jan 26, 2011 at 11:59pm.
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Old Jan 26, 2011, 11:31pm   #23
 
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Re: The Simplest Trading Method In The World

BTW - just this tidbid on your set-up and using 15min - on another thread I said I was in that phase of sifting out the cr@p trades - this has helped - just sticking a 15m chart on with my 5m as a filter - tells me on reversals whether I've got a good un or whether I should bail on the 5mn at the first sign of weakness, take a little off the table and then fade back into the trend.....

ta
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Old Jan 26, 2011, 11:34pm   #24
 
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Re: The Simplest Trading Method In The World

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By the way, I've come from the same place you have, I'm surprised you don't like them.
I had a bad experience with them.

I mentioned them to a hugely successful trader that owned the prop work I worked at and that uses S/R primarly in his trading and he pretty much threw me out of his office.

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I'd be surprised if someone who's been around as long as you thinks that things happen to the point or pip.
I don't think anything. I've just noticed that prices react to where I draw my levels. And I draw them where I see them without looking at what the price is. That's all I'm saying :-)

At any rate, nice thread!
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Old Jan 26, 2011, 11:44pm   #25
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Re: The Simplest Trading Method In The World

Re round numbers on indices do you look at futures price, or (for want of a better term) "spot"?
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Old Jan 26, 2011, 11:46pm   #26
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Re: The Simplest Trading Method In The World

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I had a bad experience with them.

At any rate, nice thread!
LOL I kept having bad experiences without them .

And thanks, although I doubt it will run as long as yours .
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Old Jan 26, 2011, 11:56pm   #27
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Re: The Simplest Trading Method In The World

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Re round numbers on indices do you look at futures price, or (for want of a better term) "spot"?
Don't get too hung up on it. For me they are just areas of significance (as you can see above, respected and experienced people disagree with me completely, which is fine and to be expected). Try drawing them on - if they help, keep them, if they don't, ditch them. Same with anything - use MACD divergence if you want, fibs if you want (don't see much point, you can eyeball both to be honest), whatever you demonstrate to yourself helps you. The key for me is not just finding "good" trades, but giving myself an excuse to stay out of "bad" trades.

Trader Dante makes a good point - what we are looking at on is trading off support and resistance. We want to build up the case as much as possible. A number on it's own is OK, one at an S/R flip is good, one at an S/R flip and a pivot point is even better, one at an S/R flip and a pivot point and a trend line with divergence etc etc etc.

This is March futures, or rather the bucket shop equivalent, which I have never had a problem with. There's no better term than "spot" for forex, but since this is indices a better term is "cash" .
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Old Jan 27, 2011, 4:22am   #28
 
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Re: The Simplest Trading Method In The World

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For now, Kelly Brook and her delicious jelabas:
Actually - Jelabas look more like this:

Click the image to open in full size.

Good thread so far. Although you are far too uncouth.
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