[TradeRunner]

Originally Posted by thalestrader »

Here is a suggestion (and this isn't just for you, Dinero, but anyone who wants to learn to trade price without using indicators and opinions and conjectures and unsubstantiated and unnecessary theories): Why not take a week, and watch a 15 minute chart of the EURJPY or the EURUSD or the 6J or the 6E, and just focus on what happens if you bought the break up of every low-high-higher low-higher high pivot sequence and sold short every high-low-lower high-lower low pivot sequence.

Just mark off the high and low pivots, and make it mechanical if you'd like: Buy stop above a high, with an arbitrary 15 or 20 tick stop loss, and a 30 tick Profit target. Just go ahead and see how you do. Paper trade it - as I stated elsewhere, paper trading is marginally useful, and here is an example of where it can be useful.

If you do this for a week, you will learn to read price action in a way that will put you solidly on track to where you want to be. One week. You should mark each high (H) and each low (L) and when the market turns, you should have an (H) pivot, followed by an (L) pivot, followed by a Lower High pivot (LH) followed by a Lower low (LL). If price makes a high and pulls back to a low and then rallies to the exact high tick of the previous high and then begins to pull back, consider that a Lower High unless it is bettered (and vice versa for two equal lows).

OK: 6E, 30 tick TP and 15 tick SL.





I guess it is not a good time of year to do this excercise.

[BlowFish]

Originally Posted by Cory2679 »

I kind of relate it loosely to when Livermore had to go bankrupt so he could have the burden lifted off his back so he could trade well.

-Cory

Interestingly he went back to the bucket shops a couple of times too

[BlowFish]

Originally Posted by thalestrader »

....... That is close to what I would be watching, with this caveat - I would like to see price impulse, i.e. make a relatively large move quickly (relative to what its been doing over the last hours) before I decide to do anything.

Often times the 'thrust' is what actually breaks out. In this case would you tend to wait for a correction or rest after there has been this price impulse?

[Cory2679]

Originally Posted by Cory2679 »

I'll be curious where the EJ is when I get home tonight. Right now, it's just not getting anywhere (obviously it's a poor time to trade, anyway).

Well, here's how the EJ looked when I opened it up this morning. Looks like the trade yesterday would have been profitable, had I not squeezed my stops too tight.

Also, I marked what I saw would be two trades since the last time I looked at it. (Hindsight, of course). Even though I can't guarantee how I would handle them in real time, I feel certain I would have at least taken the trades because they're pretty obvious. Although, the first one looks like the R:R isn't quite 1:1, so I don't know about that one.

Right now I'd just be playing the waiting game...

BTW, the spreads are small again this morning. Current EJ is 1.2 and I've even seen 0.5!

-Cory

[forrestang]

Here is some more stuff based on Thales' weekend reading.

We somewhat based off of support shown on the 60 min, even though we did take it out by a bit. But we did put in a 1-2-3 low(albeit this 1-2-3 was a bit unsymmetrical, in that the '2' point was waaay away from the 1.. And are now headed right into resistance so it should be interesting to see what happens up here, whether we develop a 1-2-3 high or not?

But at any rate, here are some observations. Will update this post as things develop.

Also, notice how many more hooks or swings that get put in place on the range chart on the right, some of which could easily have been traded. I am mainly using the 5min as depicted, but still I am observing the 1 point range chart.

-----UPDATE (11:08est)------
See the 2nd picture.

We are in an uptrend after putting in that 1-2-3(HL) bottom. But the 1-2-3 is a bit skewed and is a possibility of filtering trades. We put in a hook which could lead to entry, and there is a 'S' for an early entry before the BO. Note that we are at a potential resistance area and it might be good to see what develops up here.

-----UPDATE (11:26est)------
See the 3rd picture.

Comments are on chart and should make sense with current action. It's possible nothing develops all day, so this exercise of mine might just be purely academic.

-----UPDATE (11:46est)------
See 4th picture.

To avoid creating another useless post, this will be last update unless something happens. Here is the latest in what price has done.

[Cory2679]

Potential EJ short...

[forrestang]

Originally Posted by forrestang »

Here is some more stuff based on Thales' weekend reading.

We somewhat based off of support shown on the 60 min, even though we did take it out by a bit. But we did put in a 1-2-3 low(albeit this 1-2-3 was a bit unsymmetrical, in that the '2' point was waaay away from the 1.. And are now headed right into resistance so it should be interesting to see what happens up here, whether we develop a 1-2-3 high or not?

But at any rate, here are some observations. Will update this post as things develop.

Also, notice how many more hooks or swings that get put in place on the range chart on the right, some of which could easily have been traded. I am mainly using the 5min as depicted, but still I am observing the 1 point range chart.

-----UPDATE (11:08est)------
See the 2nd picture.

We are in an uptrend after putting in that 1-2-3(HL) bottom. But the 1-2-3 is a bit skewed and is a possibility of filtering trades. We put in a hook which could lead to entry, and there is a 'S' for an early entry before the BO. Note that we are at a potential resistance area and it might be good to see what develops up here.

-----UPDATE (11:26est)------
See the 3rd picture.

Comments are on chart and should make sense with current action. It's possible nothing develops all day, so this exercise of mine might just be purely academic.

-----UPDATE (11:46est)------
See 4th picture.

To avoid creating another useless post, this will be last update unless something happens. Here is the latest in what price has done.

We are currently in the middle of the price bracket from about 1810 ~1800. And it is lunch. But here are some more observations of what is happening RIGHT now.

I took the entry on the first hook(First Blue Line), but after taking a few tics for my fees on on part, small profits on my next third, was stopped BE on the 'runner' portion of the trade.

We've gotten that bounce off Resistance above, heading lower. We've hooked twice, this 2nd hook is in play. Potential entries shown on chart.

[Cory2679]

Originally Posted by Cory2679 »

Potential EJ short...

Here's an updated chart. It's dragging its feet, but the spreads are still low...

This will probably be my last post today. I doubt there will be anything worth posting later judging by how it's coiling up and dying...plus I'm probably leaving my house in an hour or two. I have an order in on my FXCM UK demo account, but like Thales said yesterday, with this coiling action I'd really like to see an impluse move to make me confident in the trade.

-Cory