Making Money Trading

means to me

trader_dante said:

I like to drop little breadcrumbs from time to time. You can pick them up and see if they lead you anywhere.

This morning I was on the bus to work and I read this line in my book:

"If you're going to trade with the trend then the most important step is to find the trend. It's not sufficient to simply intuit that the trend is up or down."

How the Futures Markets Work - Jake Bernstein

I have had it in my mind all day.

What does it mean to you? Have a think about it.

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The market makes many highs and many lows in a day, but only one true High and one true Low

lurkerlurker said:

I made it out of that trade with +3 pips :cheesy:

(I'm sure I would have had much more, but I've been learning how to use IG's platform today for the first time, and I didn't tell this trade to roll over, so it expired market on close). Still, a profit!

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This kind of post scares me.

trader_dante said:

This kind of post scares me.

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Why? I'll know about rollover next time. IG just do things a little differently from the other bucket shops I have been using. I've been testing my account with them this week by putting on some small trades. This trade was done at £0.50pp so I wouldn't worry too much!

Very

trader_dante said:

This kind of post scares me.

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Hi Dante,

Scares me to, Don"t look at the Dow thread, you"ll loose your mind

Sorry , could"nt resist

Lurker read the instructions before you light it, its best honest, you could loose an hand or something worse

Moderator remove it

Andy AKA

forexbee said:

Hi TD

Just checked thru USDCHF, market fib's and pivot lines as you have been teaching...
Is it ok for you to comment on this chart for marking the Pivot lines & Fibs + Pinbar circled...? To make sure iam not missing anything... or can correct myself which could help other fellow newbies....
[Personally i think the body needs to be bit more smaller for the pinbar, though not sure]
Cheers
Fxbee

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Fxbee,

I am more than happy to comment on your chart. A couple of points to make though. I cannot see the areas you have drawn your fibs from and I also cannot see the prices that your S/R lines correspond too so it is difficult for me to comment without a lot of intensive labour.

I tell you what I'll do. I'll make you a compromise. I have attached a chart of the significant S/R levels and TL's that I see in play on the USD/CHF right now on the daily TF and you can confirm them yourself

If some of them have you scratching your head, ZOOM OUT on your chart. They may interact with key levels from longer ago.

The second chart CONFIRMS that the candle you circled IS a pin. It appears at an S/R pivot AND the 50 fib from the last swing high to low so there is confluence. As you can see this trade has been good for around 200 pips as of writing.

NOTE: Look at the pin bar that hangs down in the middle of YOUR chart. Then look at the candle I got on my feed. Different feeds can give different setups. If you play them as you see them, you MAY have taken this and made good money.

Although the bars are different, the psychology is the same.

In my chart, price opened on that Monday by gapping down. It therefore opened at the low and moved up.

You chart shows the same action but it presented it in a different way. On your charting I imagine what happened is that the gap down caused a large down bar which then retreated upwards.

Market Call - Aud/Cad *Update 1*

trader_dante said:

If market hits 0.8800 I will move stop to BE.

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Now that the first target has been hit I would move my stop to BE on this.

Live Call Edits

trader_dante said:

I am looking to go long on AUD/CAD.

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For some reason, DT has decided to edit the live call post. For the avoidance of doubt, this call was made in real time. I refer to my post above indicating my intention to follow this call, and attach a screenshot of my fill.

DT - please don't edit your live calls - you could be accused of changing the direction or fill price after the fact. I can imagine that this thread will contain many successful trades, with positive expectancy in the long run - it would be nice to preserve an accurate timestamped public record of your insights.

Aud/Cad - different data provider

Hi T_d,

Just to prove your point about different data providers having different charts - when you posted the aud/cad setup, I went to look at my charts. I have no set-up - no pinbar present.

Just goes to show how different data providers (this is ProRealtime) produce different charts.

lurkerlurker said:

DT - please don't edit your live calls

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A very good point! It was a spelling mistake - honest!

Hopefully enough people saw it to trust me this time...

I must stop editing old posts...

P.S Fxbee - you asked me a question today when I was at work about the trend on AUD/CAD. I have answered it in the original post which said you would have to wait till I got home. (via an edit again) If you have asked me specific questions, please do check back a bit later to see if I have thought of anything else.

JillyB said:

Hi T_d,

Just to prove your point about different data providers having different charts - when you posted the aud/cad setup, I went to look at my charts. I have no set-up - no pinbar present.

Just goes to show how different data providers (this is ProRealtime) produce different charts.

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Aha! Thanks for showing that JillyB.

Hi T_D - Thank you for sharing your charting and technical analysis in this thread. I am new to trading and have learned more from this thread than any other book I've read or video that I've watched.

Appreciate it.


Gavin.

trader_dante said:

Fxbee,

I am more than happy to comment on your chart. A couple of points to make though. I cannot see the areas you have drawn your fibs from and I also cannot see the prices that your S/R lines correspond too so it is difficult for me to comment without a lot of intensive labour.

I tell you what I'll do. I'll make you a compromise. I have attached a chart of the significant S/R levels and TL's that I see in play on the USD/CHF right now on the daily TF and you can confirm them yourself

If some of them have you scratching your head, ZOOM OUT on your chart. They may interact with key levels from longer ago.

The second chart CONFIRMS that the candle you circled IS a pin. It appears at an S/R pivot AND the 50 fib from the last swing high to low so there is confluence. As you can see this trade has been good for around 200 pips as of writing.

NOTE: Look at the pin bar that hangs down in the middle of YOUR chart. Then look at the candle I got on my feed. Different feeds can give different setups. If you play them as you see them, you MAY have taken this and made good money.

Although the bars are different, the psychology is the same.

In my chart, price opened on that Monday by gapping down. It therefore opened at the low and moved up.

You chart shows the same action but it presented it in a different way. On your charting I imagine what happened is that the gap down caused a large down bar which then retreated upwards.

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Hi TD,

Iam glad atleast i marked Pinbar correctly in my chart which i just checked...and also one of the pivot line around 1.1981 ( i drawn around 1.2000) more or less ok

Now question time,

You have marked pivots,fibs, pinbar everything perfect and if the trade happens to give trigger which you have missed by couple of hours or couple of bars , what will you do,? Do you still look at fibs to enter the market (bcoz as per setting market goes in predicted order) or you will miss and move for fresh entry?

I checked in GBCHF, Daily shows like pinbar setup, and its nose peek thru pivot i drawn, when i see in hourly chart there is no pinbar setup...DOes it mean its not valid pinbar or can we take trade based on daily pinbar setting without confirming in hourly chart...

Fxbee

trader_dante said:

Fxbee,

I am more than happy to comment on your chart. A couple of points to make though. I cannot see the areas you have drawn your fibs from and I also cannot see the prices that your S/R lines correspond too so it is difficult for me to comment without a lot of intensive labour.
.......
You chart shows the same action but it presented it in a different way. On your charting I imagine what happened is that the gap down caused a large down bar which then retreated upwards.

Click to expand...

Hi TD (Boss)

Wow, Great explanation, CLEAN got it... just checked in MT4 platform...

Cheers
Fxbee

trader_dante said:

I KNEW that I was going to learn many things myself when I started this thread which is another reason I did it. After reading only the first couple of db's posts, I know he is going to push me further along the path to mastering this business. Thank you.

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Maybe. Maybe not. Given that you asked me via PM to react to the posts mentioning me, I'll go so far as to say that I don't know how much help I can be. The PV thread is an extremely long slog, and three-fourths of it could be deleted with no adverse effect. Maybe you can skim it and get the jist of it.

But comments that I might make now in an effort to help someone avoid that slog through the PV thread would most likely derail your thread since I don't agree with most of what's posted on T2W and elsewhere about S/R (I'm not of the school that believes that it can be found in trendlines, or MAs, or Bollinger Bands, or Fib levels, or Pivot Points, or envelopes, or other blah, which is why I rarely participate in threads that have anything to do with S/R).

So do what you have said you'd do and ignore all those who've trashed you and will likely continue to do so (there are a few who are unfortunately carrying on in the tradition of One Who Is No Longer Here in terms of hijacking threads but who aren't nearly as good at it and are therefore ignorable). If you have something, the results will show that. If you don't, the results will show that too. If all you need is a tweak, I or someone else may have a useful suggestion.

Just remember that if you're making money with it, it really doesn't matter what anybody else thinks. Somebody who's in attack mode is likely not making any money at all.

Db

forexbee said:

Iam glad atleast i marked Pinbar correctly in my chart which i just checked...and also one of the pivot line around 1.1981 ( i drawn around 1.2000) more or less ok

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Hey there! First things first - don't worry if your support/resistance areas don't match up with mine to the pip. You should think of them more as zones.

Also, don't take my charts as definitive. Support/resistance will always be a subjective art. Draw the lines at areas that make sense to you.

Sometimes they will go right through the middle of candles. This is fine.

Try and have this phrase in your mind when you are drawing your lines:

One man's ceiling is another man's floor.

You will start to see that the highs of many areas are the lows of others. This is the support/resistance flip and it is a powerful tool in your arsenal.

forexbee said:

You have marked pivots,fibs, pinbar everything perfect and if the trade happens to give trigger which you have missed by couple of hours or couple of bars , what will you do,? Do you still look at fibs to enter the market (bcoz as per setting market goes in predicted order) or you will miss and move for fresh entry?

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If you miss a great setup: Shout. Curse. Bang the table with your fist.

Move on to the next.

NEVER CHASE THE MARKET.

forexbee said:

I checked in GBCHF, Daily shows like pinbar setup, and its nose peek thru pivot i drawn, when i see in hourly chart there is no pinbar setup...DOes it mean its not valid pinbar or can we take trade based on daily pinbar setting without confirming in hourly chart...

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A daily pin par is valid WITHOUT having to be confirmed on the hourly. And vice versa.

If you have already drawn your areas in before you take the trade you will see the lines you draw on the daily filter on down to the hourly.

Play a pin bar on the timeframe you see it. Remember to exit on the same timeframe you entered. I think this is very important.

P.S That GBP/CHF chart with the circled pin would have been a very good call but you have made one mistake. You have drawn your fibs wrong. They should be drawn from the low to the high to measure the retracement. You seem to have drawn yours the inverse - from the high to the low.

FORTUNATELY IT WOULD NOT HAVE AFFECTED THE DECISION BECAUSE IT WAS A PIN BAR AT AN S/R FLIP AND IT WAS/IS PROFITABLE. BUT BE CAREFUL

Also note that on my chart once again we have different price action setup. No pin bar for me!

dbphoenix said:

I don't agree with most of what's posted on T2W and elsewhere about S/R (I'm not of the school that believes that it can be found in trendlines, or MAs, or Bollinger Bands, or Fib levels, or Pivot Points, or envelopes, or other blah, which is why I rarely participate in threads that have anything to do with S/R).

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Thank you for dropping by dbphoenix. I appreciate your honesty. I will certainly go through your thread with interest.

Market call - Aud/Cad *Update 2*

As you can see from the chart, price has stalled at the first S/R area we identified.

Is there a head and shoulders chart pattern developing?

Some traders may have wanted to take profit just beneath this S/R line and if they had done, would have closed for a small profit of around 20 pips depending on your entry.

Exits are difficult and somewhat instinctual. It will take you time to get them down.

I would be prepared to accept break even on this trade since I like to give price a little room to move/retrace. As a result, that is the call I will make.

++++++++++++++++++++++++++++++

Please be aware that I have gone to so much detail as this is my first live call. I may do this a few more times so you can get the hang of it. After that, expect things to be a lot more simpler.

hanzam said:

I have studied economics for two years since we are dealing with price action I wanted to fully define price how economists view it.

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Hanzam, this is appreciated. Hope you don't think I was being flippant. Thanks for your post. Tom

If you are spreadbetting it helps to open accounts with a few different brokers if you are going to trade multiple markets. You can then choose the broker with the tightest spread for the market you are going to trade.

I hit my AUD/CAD long with E*Trade who have a spread of 8 for this market. Lurker Lurker has just informed me that IG are quoting it with a spread of 4.

This is a very big difference and adds up if you are trading at size.

dbphoenix said:

So do what you have said you'd do and ignore all those who've trashed you and will likely continue to do so (there are a few who are unfortunately carrying on in the tradition of One Who Is No Longer Here in terms of hijacking threads but who aren't nearly as good at it and are therefore ignorable). If you have something, the results will show that. If you don't, the results will show that too. If all you need is a tweak, I or someone else may have a useful suggestion.


Db

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Well, the thread is moving along smoothly and has needed little or no mod intervention, I don't want to tempt fate , but I fully expect it to stay this way.

Searching questions will be good for the thread and will allow T_D the opportunity to demonstrate why he does things the way he does.

cv