[taq]

got answer

Happy Trading
Regards,
TAQ

[thalestrader]

Originally Posted by taq »

Hi thales

EURCHF Daily
Can we consider it as a 2B long setup?
Posting my trade window also.
booked half at 1.5212 looking for probable tgt 1.5330.

Happy Trading
Regards,
TAQ

I do not know if that is a 2B or not, Taq. Part of the problem is I do not know the time frame and I am not seeing as much of the preceding price action as I would like. Also, the 2B was brought up by Forrest, and while I am familar with the term, I do not profess to be expert in either identifying or trading 2B's. Yesterday, Forrest asked if the patten I was pointing to was a 2B, and I simply acknowledged that strictly speaking, the double bottom pattern would indeed be an instance of the 2B. Here is a passage taken directly from Victor Sperandeo, and I'd suggest that if you are interested, you read the relevant chapters from his two books. I am not comfortable pretending to know any more about his 2B approach than I have already stated (I would not want to lead anyone astray from a correct understanding). From Trader Vic 1: Principles of Professional Speculation:

2B, OR NOT 2B? THAT'S WORTH SOME MONEY!
As mentioned in number 2 of the principles of a change of trend, sometimes the test of the previous high (or low) may actually break the previous high (or low) and then fail. Although this is really a special case of a test, when it occurs it usually signals a change of trend. In other words, this one observation, considered alone, has the greatest potential for catching the exact highs or lows; it carries more weight in terms of probability than any single one of the other three criteria for a change of trend. It has so much weight that it almost merits being called a rule:

The 213 Rule
In an uptrend, if a higher high is made but fails to carry through, and then prices drop below the previous high, then the trend is apt to reverse. The converse is true for downtrends. This observation applies in any of the three trends; short-term. intermediateterm, or long-term (see Figures 7.11. 7.12, and 7.13).

A 213 on a minor high or low will usually occur within one day or less of the time the high or low is made. For 2B's on intermediate highs or lows preceding a correction, the new high or low point will usually break within three to five days. At major market turning points, long-term 2B's, the new high or low will usually break within seven to ten days. In the stock market, after the new high is made, the failure to carry forward usually occurs on low to normal volume, and the confirmation of reversal occurs on higher volume.
When trading on the 2B criterion, it is essential that you admit defeat quickly if the trade moves against you. For example, if you are day-trading and you short the market on a 2B and then the market rallies to new highs again, you should immediately close your position when prices break past the new 2B high.

If they fail again, then you can short again, but you must limit your losses and let yourself get whipped out. As long as you take only small losses, you'll "stay at the table" and be able to keep trying. When day-trading, the 2B criterion may be right only 50°70 of the time, but if you limit losses when you're wrong and let your profits run when you're right, you'll make a lot of money trading on this basis. The probabilities of success using the 2B in the intermediate term are much higher.

[thalestrader]

Originally Posted by thalestrader »

Hi Folks,

Yen futures 6J waiting for decision time ...

Best Wishes,

Thales

Yen futures have made a decision - bouncing from a support zone here.

It's almost opening bell ... I'll be busy the next 30-60 minutes.

Best Wishes,

Thales

[subterfuge]

thales type trade?
.
.

[forrestang]

Originally Posted by thalestrader »

Hi Folks,

I meant to post this GBPUSD last night, but after I snapped the first picture I got involved in putting together the "double bottom" posts and forgot about the GBPUSD.

At any rate, last night GBPUSD buy point was 1.5990, targeting 1.6133 or so.

I took this trade also, my targets weren't as ambitious as yours. I also snagged a quickie on the G/J in the pic, but it was also a smaller target.

I have a question. You'll notice the price action I'm highlighting on the charts. And this occurred more or less on the 4 pairs on my screen. The time to enter was shown via the green arrow. This action I have pretty much committed to memory and is usually 'money in the bank.'

Probably goes by many names, but the point is that it occurs as price runs towards resistance, with a continuing series of HLs prior to the B.O.

You'll notice the two pairs at the top broke out of this price action, but then more or less immediately failed.

The two pairs on the bottom broke out and broke out well.

So here is a question for Thales, OR ANYONE ELSE THAT MAY HAVE AN IDEA. This is of course in hindsight, so go crazy with ideas.

My question is, does anyone spy a reason that might preclude one from taking the trades at the top, but being interested in the ones at the bottom?

[Gabe2004]

Originally Posted by subterfuge »

thales type trade?
.
.

It is interesting that the candles look different at different brokers in the same timefarem.
I assume your chart was 15min.

Gabe

[Gabe2004]

Originally Posted by forrestang »

I took this trade also, my targets weren't as ambitious as yours. I also snagged a quickie on the G/J in the pic, but it was also a smaller target.

I have a question. You'll notice the price action I'm highlighting on the charts. And this occurred more or less on the 4 pairs on my screen. The time to enter was shown via the green arrow. This action I have pretty much committed to memory and is usually 'money in the bank.'

Probably goes by many names, but the point is that it occurs as price runs towards resistance, with a continuing series of HLs prior to the B.O.

You'll notice the two pairs at the top broke out of this price action, but then more or less immediately failed.

The two pairs on the bottom broke out and broke out well.

So here is a question for Thales, OR ANYONE ELSE THAT MAY HAVE AN IDEA. This is of course in hindsight, so go crazy with ideas.

My question is, does anyone spy a reason that might preclude one from taking the trades at the top, but being interested in the ones at the bottom?
[CENTER]

As I took the same trade in GJ as you did I can tell you that eventhough I saw the setup in GU I did not take and i don't have a good reason. GU looked CLEANER but I just did not trust it.
Maybe the solution for the future would be to split your position in 2 and alocate 1/2 to one of the upper chart instruments and 1/2 to one of the lower chart instruments and ride out the more profitable one.

Gabe

[thalestrader]

Hi Folks,

Quick look at the ES ... decision time here as well.

Best Wishes,

Thales