Best Thread Potential setups

[omni]

Could someone explain this perhaps with a graph and how/when you would prefer to trade it? I can see an inverse head and shoulders on the daily, but the head is small (not sure how significant that is).

I read somewhere that inverse H&S requires high volume for the reversal compared with normal H&S. Any thoughts?

Hi UKSnowman,
Sorry I didnt add more explanation.
Forget head and shoulders etc on this one, it can be much simpler.

Get your daily chart up of the nasdaq or USTech100.
Now, do you see the daily highs made on 6th jan and 9th feb / 10th feb?

If yes..... what price was the high?
What was the low of today?

What did it do at the low of today?

Answer - bounced off the low of today which was the high of those 3 days.......

For me........ that's a buy signal on the price action alone, whether it is head and shoulders, inside armpit or five knuckle combination...... it doenst matter to me. It is a big fat buying opportunity.

Some of the more pattern recognition guys will hopefully be able to help you out with the h&s part...

Sorry again for lack of clarity. I only have time to post quick "heads ups".

 

[patw]

Hi UKSnowman,
Sorry I didnt add more explanation.
Forget head and shoulders etc on this one, it can be much simpler.

Get your daily chart up of the nasdaq or USTech100.
Now, do you see the daily highs made on 6th jan and 9th feb / 10th feb?

If yes..... what price was the high?
What was the low of today?

What did it do at the low of today?

Answer - bounced off the low of today which was the high of those 3 days.......

For me........ that's a buy signal on the price action alone, whether it is head and shoulders, inside armpit or five knuckle combination...... it doenst matter to me. It is a big fat buying opportunity.

Some of the more pattern recognition guys will hopefully be able to help you out with the h&s part...

Sorry again for lack of clarity. I only have time to post quick "heads ups".

did you get in at the 5pm candle omni?

 

[omni]

did you get in at the 5pm candle omni?

yes

 

[haircut]

yes

Omni
would you trade this now as a break of the high on the daily pin that has formed?!

 

[uksnowman]

Hi UKSnowman,
Sorry I didnt add more explanation.
Forget head and shoulders etc on this one, it can be much simpler.

Get your daily chart up of the nasdaq or USTech100.
Now, do you see the daily highs made on 6th jan and 9th feb / 10th feb?

If yes..... what price was the high?
What was the low of today?

What did it do at the low of today?

Answer - bounced off the low of today which was the high of those 3 days.......

For me........ that's a buy signal on the price action alone, whether it is head and shoulders, inside armpit or five knuckle combination...... it doenst matter to me. It is a big fat buying opportunity.

Some of the more pattern recognition guys will hopefully be able to help you out with the h&s part...

Sorry again for lack of clarity. I only have time to post quick "heads ups".

Nice one. No probs about the quick post I'm just making sure I'm not seeing things that aren't there! Thanks for the headsup.

 

[omni]

Omni
would you trade this now as a break of the high on the daily pin that has formed?!

well...... i am already long, so i dont think i will add at the break of the todays high.
is that what you mean?

also, it may look like a pin, but i think the "pins" that trader_dante defines are at swing low/highs...... this is not one of those.

let me know if you meant something else.

 

[trader_dante]

Hey Tom,
trade wasn't triggered today, so I have cancelled the order. Almost identical candle for the third day in a row, testing same resistance now for the 10th time since Jan.

In your opinion and experience, how many times would you deem acceptable for a chart to touch S/R before you wouldn't take the chance? This could well be one of those 'how long is a piece of string' questions.

Cheers,

Chris

I don't like S/R if it's been tested more than three times as a general rule.

I start asking myself questions:

Why is the supply not driving the market lower?

Why is the demand not strong enough to drive the market higher?

Why does the market keep returning to a price?

When I don't know the answers, I don't like to trade.

 

[haircut]

well...... i am already long, so i dont think i will add at the break of the todays high.
is that what you mean?

also, it may look like a pin, but i think the "pins" that trader_dante defines are at swing low/highs...... this is not one of those.

let me know if you meant something else.

Hi Omni
Yeah I understand this isnt the type of pin Trader Dante defines just used it as a description yeah I meant todays highs, if you were not long already would this interest you with a stop below the support level, looks like it has some legs to me
what do you think
Cheers for the help

 

[trader_dante]

Hi UKSnowman,
Sorry I didnt add more explanation.
Forget head and shoulders etc on this one, it can be much simpler.

Get your daily chart up of the nasdaq or USTech100.
Now, do you see the daily highs made on 6th jan and 9th feb / 10th feb?

If yes..... what price was the high?
What was the low of today?

What did it do at the low of today?

Answer - bounced off the low of today which was the high of those 3 days.......

For me........ that's a buy signal on the price action alone, whether it is head and shoulders, inside armpit or five knuckle combination...... it doenst matter to me. It is a big fat buying opportunity.

Someone has to rep omni for this post.

Seriously.

There are kids out there making millions off this simple sh*t.

H&S, triangles, flags etc etc, they are all good but S/R is the key to the market.

Breakout. Retest. It works like a dream.

It doesn't get any more obvious than this.

That level was an absolute no brainer.

There was a 5m pin at it too with RSI divergence for all you lower TF traders (that love your indicators)...are there any here?! There shouldn't be

 

[haircut]

Someone has to rep omni for this post.

Seriously.

There are kids out there making millions off this simple sh*t. H&S, triangles, flags etc etc, they are all good but S/R is the key to the market. Breakout. Retest. It works like a dream.

It doesn't get any more obvious than this.

That level was an absolute no brainer.

There was a 5m pin at it too with RSI divergence for all you lower TF traders...are there any here?! There shouldn't be

TD is it too late to enter tomorrow on a break of todays high with stop below support??

 

[trader_dante]

TD is it too late to enter tomorrow on a break of todays high with stop below support??

I wouldn't enter a setup late.

But tomorrow is another day.

Let's see what it brings.

Patience.

 

[omni]

Hi Omni
Yeah I understand this isnt the type of pin Trader Dante defines just used it as a description yeah I meant todays highs, if you were not long already would this interest you with a stop below the support level, looks like it has some legs to me
what do you think
Cheers for the help

it's a good question....... i think trader_dante is better equiped to answer this....... but, let's say you only trade the daily timeframe and you are faced with this setup,.

so.... you gotta break of previous strong resistance, an intraday retest..... all looking good. so you think, right, order at the top of the highs to get me long...... but then, here is the problem, your target should be minimum 3:1 (in my book), it looks like about a 40pt candle (and hence stop). so i need to know i can easily achieve 120pts above the high. ...... looking at the chart and several resistance levels prior to this....... i think chances are slim. 1:1 you might get..... 2:1, yeah,risky ...... 3:1....... i wouldnt be taking it.

There is another way..........
ok, so i dont want to buy the highs but given my risk and target levels, maybe i would be happy to get in at 50% of this daily candle..... then i can first target the highs and the next resistance level for a fairly certain return.... with risk / reward scenarios that are far more appealing....... so you enter at 50% retrace (or whateva) of this daily candle and immediately 2:1 and 3:1 are possible and within any significant overhead resistance. if you dont get filled..... u dont get filled. next trade..

 

[haircut]

I wouldn't enter a setup late.

But tomorrow is another day.

Let's see what it brings.

Patience.

ok thanks

 

[omni]

I wouldn't enter a setup late.

But tomorrow is another day.

Let's see what it brings.

Patience.

i echo the last word - sounds like you feel like you've missed it and want to chase the market - it will no doubt come back to test this level again. chill out til then.

 

[haircut]

it's a good question....... i think trader_dante is better equiped to answer this....... but, let's say you only trade the daily timeframe and you are faced with this setup,.

so.... you gotta break of previous strong resistance, an intraday retest..... all looking good. so you think, right, order at the top of the highs to get me long...... but then, here is the problem, your target should be minimum 3:1 (in my book), it looks like about a 40pt candle (and hence stop). so i need to know i can easily achieve 120pts above the high. ...... looking at the chart and several resistance levels prior to this....... i think chances are slim. 1:1 you might get..... 2:1, yeah,risky ...... 3:1....... i wouldnt be taking it.

There is another way..........
ok, so i dont want to buy the highs but given my risk and target levels, maybe i would be happy to get in at 50% of this daily candle..... then i can first target the highs and the next resistance level for a fairly certain return.... with risk / reward scenarios that are far more appealing....... so you enter at 50% retrace (or whateva) of this daily candle and immediately 2:1 and 3:1 are possible and within any significant overhead resistance. if you dont get filled..... u dont get filled. next trade..

thanks omni that is really helpful top man!!!!

 

[patw]

I wouldn't enter a setup late.

But tomorrow is another day.

Let's see what it brings.

Patience.

Hi tom

i know you dont like indicators but stochastics is in overbought region(on the dailys) but s/r levels do look good

 

[KillPhil08]

"Science tells your flying to the moon is impossible" wut?

on another note...

EJ, broke 1h uptrend over the last few days, bounced on previous high, no where near 4h uptrend. Should be good to see where this is in the morning.

 

[Blue Ruin]

Daily pin on USDJPY.

Fib confluence, both the 61 from the Aug high and the 38 from the high in june 07.

Significant level. (See chart 2)

Problem is that you'd be selling straight in 100.

 

[omni]

Daily pin on USDJPY.

Fib confluence, both the 61 from the Aug high and the 38 from the high in june 07.

Significant level. (See chart 2)

Problem is that you'd be selling straight in 100.

Problem is that you'd be selling straight in 100

 

[rags2riches]

Ej

EJ 4hr IB at an interesting location. If it heads lower there is room to at least 13200.