Have you ventured to the dark side yet?

[wannagetstacked]

Thought i'd make a doc showing the update.

Here ya go, 12 points return, 6 risked at first,however risk reduced to break even after first profit taking level.

 

[wannagetstacked]

Another update at the bottom of the word doc showing that prices are now consolidating as i thought they might,notice also a 5 min pup forming on the moving averages. keep a close eye for a hook forming and a potential to make some more pips

Thanks

Nathan

 

[Roberto]

i will take you with me.
strange things happen on the way.

People will talk ...

 

[Ras1974]

A very wise Speculator once said "Don't try and anticipate what the market will do next - simply go with the evidence of what the market is telling you - presenting to you." (Jesse Livermore).

 

[wannagetstacked]

Another update.

Just trying to show in nearly real time how i often take and filter a trade.

Hope these are useful

Nathan

 

[wannagetstacked]

Prices now consolidating just below my profit taking level,closed position and waiting for new hook and entry to form,if one does at all. 60 minute chart forming an uptrend hook could signal some difficulties going long on 5 min chart for rest of afternoon, probably will now look at other currency pairs for a setup.

That trading period of two hours formed two hooks,both meeting all my filter requirements. Took 12 pips from first trade of hook, around 15 pips from second.

Please note that today eur/chf is really trending well which makes trades a lot easier and more frequent. Trading when prices are consolidated on all time frames(60,15,) is harder but still possible.

Nathan

 

[dbphoenix]

And that mental construct would probably look like a bar chart with tick volume bars if you could have lifted the picture from their minds?

Actually, a casual point-and-figure. Volume as most people think of it today was irrelevant. Instead they focused on the balance between buying and selling pressure. And, of course, no indicators.

 

[wannagetstacked]

Some examples of trades that would not meet my filter requirements. These all occurred in the past 4 hours, showing that this strategy requires lots of watching to pick the high probability low risk trades. This partly explain why i use 5 minute charts as each currency pair may give 2 or more of these trades a day each giving between 10-30 pips profit. If I were to use a longer timeframe i may only get trades once a day or a couple of times a week,Of course the rewards would be higher but so would the inherent risk as it is calculated technically. This would therefore mean having to place less £ per point to meet my strict money management risk parameters. The 5 minute chart works in perfect harmony with my high probability low risk style.

What do some of the boards experienced members think? Does your method bear any similarity?

Hope you enjoy

Nathan

 

[barjon]

dont worry barjon. for a small fee i will take you with me..

fc

Oh good - you can talk me through some of your more esoteric systems on the way. The 100 year trip will give me just about enough time to understand them.

good trading

jon

 

[barjon]

 

[FetteredChinos]

ah, you may mock, but as Great Uncle H.G. used to say "time travel is just a state of mind"...

 

[jamus]

Using 5 minute price chart as an example, Smaller time frame indicators (eg 1 minute) often do approximate signals on the 5 minute chart using just the price. One can definately aid the other.

 

[JumpOff]

I don't use indicators, because when I used to use them, I payed more attention to what had happened than to current price action. Now my gainers are a little bigger than my losers.
JO

 

[wannagetstacked]

Good point JumpOff. Waiting for your indicators to all line up can often let you know which way prices might go, but at the cost of lost pips that could have been had if your signals came from price action.
JumpOff, do you mind sharing how you would act on price action? Its sounds like you will be a strong advocate of the kiss methods. There is little info on how people use pure price action. I do note where fib levels, S&R, triangles,wedges,natural squares,and gann angles all occur but these still don't provide the same entry signals that price action does.
I don't however follow candlestick patterns, this is because i work from a 5 minute timeframe and candlestick patterns become of little use under 10 minutes.
So in conclusion, how would you enter trades without using any of the above "advanced" techniques. I have shown how I use hooks to enter trades and think it would be interested to get some more views as in 57 posts nobody else has revealed any different methods,Any tape readers out there for example?

Nathan

 

[JumpOff]

I've been studying the methods of dbphoenix, who posts regularly on these boards and has his own website. I am the student, he is the master.

JO

 

[wannagetstacked]

Thanks JumpOff, hopefull DB will share his thoughts.

Here is another setup from this morning. Pretty standard setup but lacked momentum.

Nathan

 

[pkfryer]

I use indicators. As bramble said before, indicators are merely derived from price and highlight things that you could easily miss. More volume on up days than down days etc, the trend without the noise, the current price in relation to recent ranges.

Its all there in the chart, an indicator just highlights it. There is no us v them, no darksiders... just those that use a highlighter pen and those that dont. For swing traders, I'd say its necessary. And for novice traders I'd say that an indicator helps prevent subjectivity. You can read many different patterns into a chart and just get confused, an indicator highlights patterns and focuses attention. An indicator is nothing mystical or magic, it is merely price movement seen at different angle. It IS price movement. If an indicator gives 'false' signals its because you are reading things into it, it is impossible for it to give false signals.. it merely is reflecting price. The inherant randomness of price casts its shadow on its derivatives also.

There are so many different people with different attitudes and opinions. Use what works for you, but dont assume that it is the only way there is. If you tried an approach and it didn't work, all you can conclude from that is that it didn't work for YOU. Use what works for you, but dont assume that its the way for everyone and feel justified in criticising them.

I know what works for me and I use it and allow others to do what works for them. That is the way to peace and happeness.

 

[wannagetstacked]

pkfryer. I agree that indicators are useful, however i cannot find an example where entering a trade using an indicator will not result in lag, I need precise points to enter a trade so that the risk encountered is minimal.
Anyway, I don't want an indicator argument as I know it will get out of control because of the shear mass of indicator followers. I'd rather keep this thread on the topic of price action indicators.

Back on topic.
Here is the 15 minute chart to accompany the previous five min chart that was posted.

Thanks

Nathan

 

[Mr. Charts]

"Any tape readers out there for example?"

Oh yes, Nathan, integrated with patterns but not TA indicators ;-)
If you check out the "Trading the US the Naz/Mr Charts Way" thread you'll see loads I've posted over the past year.
If you want to see a broker execution screen shot of today's (so far) two "tape reading" trades I'll email it to you - both nicely profitable with minimal risk ;-)
Richard

 

[Battler]

I If an indicator gives 'false' signals its because you are reading things into it, it is impossible for it to give false signals.. it merely is reflecting price. The inherant randomness of price casts its shadow on its derivatives also.

For real false signals check out a slow stochastic in a strong trending market?

I now only use price, volume and ma for my swing trading.