Price trading

Pricetrading

Junior member
16 0
This is an effort to make a journal and analyse the markets taking as reference the work done by Dbphoenix (SLA/AMT), here I want to take bar charts of 1h - 4h - dailies and weeklies to define the overall context and share some ideas and thoughts about possible trading opportunities. :cool:
 
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dbphoenix

Legendary member
6,926 1,225
If you look at the Dow weekly, you'll note that it spent well over a year trying to get past 18000. Once it did so, it began ranging, eventually forming a hinge beginning in September. This is the result of efforts to find value. The trading opportunities will be found where price reverses at the limits of this hinge. At this late date, however, unless price breaks out of this hinge within the next couple of days, it is likely to drift sideways. If you don't want to trade chop, you'll have to wait until it begins trending again. At that point, you'll be able to apply the SLA.
 

Pricetrading

Junior member
16 0
my comment is ...how did you trade those charts?

First is important to understand what is going on in the overall context, in this case, as Db says we are located in a big Hinge that means that the price fits its action in a place where buyers and sellers are in search of equilibrium, that means Chop, fake signals of entries, so in this context one should look for the extremes because if not you would be trading in chop and that is something that nobody wants … so in this case I looked that the price was located around extreme and it seems that there were no willingness of the buyers to keep pushing higher, so for me it made sense to take a short trade, because the entry point was close to my risk level and the possible reward was good enough to take a chance … off course before anything you MUST have a trading plan
 

Pricetrading

Junior member
16 0
If you look at the Dow weekly, you'll note that it spent well over a year trying to get past 18000. Once it did so, it began ranging, eventually forming a hinge beginning in September. This is the result of efforts to find value. The trading opportunities will be found where price reverses at the limits of this hinge. At this late date, however, unless price breaks out of this hinge within the next couple of days, it is likely to drift sideways. If you don't want to trade chop, you'll have to wait until it begins trending again. At that point, you'll be able to apply the SLA.
Got it Db, thanks for your comment
 

Pricetrading

Junior member
16 0
Eurusd 12/10/16

Context.

As is seen in the 45 minute bar chart, one can observe that the price place its action around the extreme of the consolidated supply line (fuchsia), therefore this behavior could be consider as a test of the buyers to see if the sellers are strong enough to maintain the upper hand in this market; therefore at this point we can stay in front of a break out of the trend line or a FBO … let’s see what tell us the price.

As an observation look what have happened before when the price reached the extreme of the trend line (Red arrows), it was a point of inflection before to continue its down movement, so for now the initial hypothesis is that “MAYBE” we could be in front of an opportunity to enter short and play a possible continuation of the downtrend.



Entry and Risk placement



During the development of the trade I took partial profits and during the las phase of the movement after the LSL was broken I decided to manage the trade based on the 5m chart and understanding that the overall context is a downtrend.



5m



After this trade and understanding that the price action is below the consolidated trend line I prefer to wait and stop trading for today.
 

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Pricetrading

Junior member
16 0
Update

Update … during the afternoon I did not take any trade because I was out of my trading station, however I would like to point out something as an observation … after the price broke the LSL, the Supply line must be redrawn (Fuchsia line); look what happened after the price went to test the new Supply line, area that also matches with the LSH zone, it seems that the buyers wanted to know if they would have enough strength in order to take the upper hand in the market, however the fail once again, and one could use the same thought frame that was used during the morning to establish an Hypothesis and play a possible failed break out, looking for short positions …. Of course by now …everything said is in Hindsight but I think is important to keep a record about this behavior… look the green circle.

5m



1m

 

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Fugazsy

Veteren member
3,661 677
Update … during the afternoon I did not take any trade because I was out of my trading station, however I would like to point out something as an observation … after the price broke the LSL, the Supply line must be redrawn (Fuchsia line); look what happened after the price went to test the new Supply line, area that also matches with the LSH zone, it seems that the buyers wanted to know if they would have enough strength in order to take the upper hand in the market, however the fail once again, and one could use the same thought frame that was used during the morning to establish an Hypothesis and play a possible failed break out, looking for short positions …. Of course by now …everything said is in Hindsight but I think is important to keep a record about this behavior… look the green circle.

5m



1m

The market was gently sloping down in range into a strong bear, so fading the new extremes in a rage was the right thing to do.....

1. an Opening morning reversal also fading the previous high.
2. made a new low and shorting two attempts by the bulls was the right thing to do.
4. set the base of the new range
5. second entry fading the new extreme
6 and 7 the same as 5.

Only took 1nd 2 both covered at 4
 

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Pricetrading

Junior member
16 0
The market was gently sloping down in range into a strong bear, so fading the new extremes in a rage was the right thing to do.....
Thaks for comment, by the way it seems that we had similar thoughts :clap:

BTW: For those who want to make a reply dont reply all the post because sometimes it became too long ... with the first words is ok, because anyway the link is there... in any case thanks for posting (y)