Have you ventured to the dark side yet?

[wannagetstacked]

Just closed trade at 1.5391(my revised second profit target,see doc7d)
Will post chart when i have made it

 

[wannagetstacked]

The following chart contains a summary of the whole trade detailing my reasons for every part of the trade, including exact stop loss,entry,and profit taking levels.

Indicators are no longer featured in my charts as a visual aid or for any other use.

Feel free to ask questions,

Nathan

 

[wannagetstacked]

Thought i'd add another example trade for anyone interested.
It was the first price formation for the day I thought was tradeable, took 2.5 hours waiting for me and occurred at 11.15 am uk time on eur/usd 5 min chart.

Nathan

 

[JumpOff]

Another Basic Question

Ok, so if you are only using price, volume, support and resistance, are there times when volume is random, and should be ignored? Here's what I mean, there are times when the price is in a channel, and you get a lot of random chop - there really isn't much to do except wait for price action (and volume) to start building up and punch through with a break out. Trying to nitpick and analyze the price is while it's chopping around in the channel seems pointless. Do situations happen like this happen with volume also?

The reason I ask, is that sometimes I can see recognize patterns in the volume that help me understand why the price is moving. In the first chart below, the price is slowly trending up, and each time the price attempts to drop, supporting volume comes in and pushes it along again. The chart below is one I had handy - I know people don't usually look at volume on a tick chart - but imagine its a five minute chart or something - the general pattern is the same, a noticeable spike of volume each time the price sags in an uptrending market.

The second chart is a 10 minute chart where the price is moving sideways after a rise. At about 17:20 on this chart the price and volume both loose volatility. There are still little spikes and they seem to define the upper and lower bounds of the range. Is there anything to do at this point besides wait, and look for an increase in volatility in price and vol?

Thanks,
JO

 

[wannagetstacked]

We may need some input from DbPhoenix on this volume issue. As I trade forex I have still to come to a decision whether to use volume or stick to just observing the action of prices. I would no doubt observe volume more intensely if I traded an instrument that had an accurate measurement of it.
Regarding your graphs, it may be better to use a chart on a more tradeable timeframe with respect to trading late in the day. I personally have found a loss of reliability in price action signals when trading european pairs after 5pm and US pairs after 8.30pm.

On the 10 second chart i would have noted the 4 tests of support and would have entered one tick above the high of the 3rd or 4th test of support on a long, the 3rd test of support gave no entry but the 4th gave a possible entry on a 1:1 risk/reward.

As for the ten minute chart, I would have only found two entries, these would have been ross hook entries long following the first and second swing highs on the graph,the first provided 1:1 R/R, Second entry also providing 1:1.

These entries would have been without the use of volume and don't know if i could have improved them further with its use.

If in doubt about the trading environment i always prefer to wait until my conditions are met.

Nathan

 

[wannagetstacked]

tradeable resistance developing on 5 min eur/gbp at 0.6925 at 11.34am, looking for possible breakout or reversal trade

 

[wannagetstacked]

5 min accompanying chart

 

[wannagetstacked]

Also watching resistance develop on 5 min eur/usd at price 1.3409, look out for possible trades if it is tested for a third time.

Time now 11.41, no trade as of yet

 

[wannagetstacked]

Accompanying 5 min eur/usd chart

 

[wannagetstacked]

If only requiring 2 tests of support/resistance as a confirmation then a trade could have been entered on eur/usd at 11.40 on a reversal.

Chart explaining to be attatched soon.

Nathan

 

[wannagetstacked]

5 min eur/usd showing entry from a reversal at resistance.
Resistance on this trade formed from two swing highs, i usually require 3 tests of S/R so would class this as more risky, profit taking using a 1:1 R/R seems achieveable.

Chart attatched

Nathan

 

[wannagetstacked]

Update at 11.57am on eur/gbp.
1 pip away from breakout buy order at 0.6927

 

[Roberto]

Very interesting indeed, Nathan: thank you. Looks similar here. Under such circumstances, when so close to entering short on EUR/USD and long on EUR/GBP do you think of trading Cable?

 

[wannagetstacked]

No tradebale S and R at the mo for me on cable, keep an eye out for a long on the breakout of a right angle triangle, should pop soon, I wouldn't take this trade howver as it doesn't meet my S and R filters, check it out however if you only follow patterns, looks good for 10-20 pips long soon

 

[wannagetstacked]

eur/usd looks like it is falling towards my 1.3390/91 profit target, price now at 1.3397

 

[Roberto]

No tradebale S and R at the mo for me on cable.

No; nor for me.

check it out however if you only follow patterns, looks good for 10-20 pips long soon

Seems bizarre, though. Makes me question my chart-reading too much to trade here ... Eur/USD nearly ready for short trade; Eur/GBP nearly ready for long trade, therefore Cable "ought" to be a short trade, not long, no? Something not quite right about this!

 

[wannagetstacked]

Keep your eyes on eur/gbp 5 mins (12.20 am). Its in a nice tight consolidation and looks ready to go somewhere soon, Don't know yet whether this will be long or short, very tight channel however so minimal risk when placing stops.

 

[wannagetstacked]

To be honest Roberto, cable could go either way right now and i don't think i'd be able to find an entry and exit to fit my risk requirements, I cannot see an appropriate place for a stop yet and so wouldn't take the trade.
Eur/Usd is taking its time to fall, is now just hovering halfway between my entry and profit taking level, Patience......


The direction of Eur/gbp 5 min right now is anybodys guess, I'd feel more confident in the trade after the lunch hour also.

Nathan

 

[wannagetstacked]

Tempted to exit eur/usd soon.
Short term support possibly forming at 1.3396 with my exit at 1.3391. I can exit at 1.3396 but would only have a Risk/Reward of 1/0.6
I will have to keep an eye on this and assess futher my options if new support is tested again.

 

[wannagetstacked]

Current price bar breaking out of range on eur/gbp by 1 pip. (0.6927)
This was my previous entry point but I have now highered this to 0.6928/29 and require two confirming price bars of this entry.
May wait until after lunch as I am uncertain.

Nathan