Best Thread Potential setups

[webinvester]

That 1hr pin was a beauty.

That was only going one way.

I made 1 pip trading it off the 5m.

A healthy $6.25.

Minus commissions.

Might pay for lunch.

From Boots.

Just.

But to pay in $ you'll have to add the airfare to New York - Better wait for Ryan Air's cheap flights to start and make sure you use the 'bathroom' before you get on the plane, otherwise you'll be out of pocket before you even get there!

 

[2Tall]

GBPCAD again

Hi all,
I didn't take a the daily pin yesterday due to the 230 pip stop, which is a little bigger than what I would usually have as a maximum. However, I'm intrigued by today's daily chart, where there is another pin forming.
This is the first I have experienced this setup. My first reaction has been that this second pin, immediately after yesterday's one, and almost identical in size, strengthens a decision to take this short. I would just like to hear some opinions from some of the more experienced guys and gals here.
Trader_dante, I had another look over notes I had taken form the 'Making Money Trading' thread, but I couldn't find anything specific. Did I miss something you may have pointed out at some point?

 

[superspurs]

major area gy

 

[trader_dante]

Hi all,
I didn't take a the daily pin yesterday due to the 230 pip stop, which is a little bigger than what I would usually have as a maximum. However, I'm intrigued by today's daily chart, where there is another pin forming.
This is the first I have experienced this setup. My first reaction has been that this second pin, immediately after yesterday's one, and almost identical in size, strengthens a decision to take this short. I would just like to hear some opinions from some of the more experienced guys and gals here.
Trader_dante, I had another look over notes I had taken form the 'Making Money Trading' thread, but I couldn't find anything specific. Did I miss something you may have pointed out at some point?

Hey 2Tall,

I'm not too familiar with GBP/CAD.

But I wouldn't take that setup.

On the face of it, it looks good: beautiful pin bar at a resistance level which marks the top of the range. First glance it looks like a cracking short.

And it may well be a great trade.

However,

Some things from your chart would put me off:

1. I've said in MMT thread that I am wary of shorting something when it keeps touching a resistance level. If you go back to the beginning of Jan on your chart, this it the 9th time its actually touched that level on a daily chart. Why is it constantly returning to it? I would imagine this will probably come off slightly (to paraphrase Darvas, somewhat badly, a dancer crouches down before he springs into the air) and then power through that level.

2. The 10 and 21 EMA ( I don't use them much anymore - apart from daytrading on the very low TFs at my prop firm) are just crossing the 50.

3. RSI and Stochastics (I don't use them) are in overbought but don't show any signs of turning to the downside yet.

It could be a good trade because while the GBP has gone ballistic this week and has been one of the best performing currencies it could well pull back somewhat....meanwhile the USD/CAD looks like it's about to break to the downside (CAD strength) so the crosses it is made up of could signal that GBP/CAD is about to come under pressure...but having said that...GBP could pull back/pause before continuing up on its new trend and USD/CAD could false break like USD/NOK did (same pattern) so...nothing too clear here.

But for the reasons above, I would leave it and observe from the sidelines.

Good luck if you do take it though and report back and let us know how it goes.

-Tom

 

[Joey25]

EURUSD Daily

This chart stands out for me as a good inside bar continuation play, provided it doesn't gap open up beyond the range on Sunday night.

Firstly, the trend has been reaffirmed by the test and failure to close below the 21ema.

Secondly, a breach of the top of the inside bar represents a movement beyond the 61.8% fib "line in the sand" level.

Thirdly, there's clear blue sky beyond the red descending resistance line.

As ever, the close/open can nullify the setup, but this looks good for 200-odd pips at least.

 

[mechanicaldaytrader]

see the simple truths in the market...

Update on all my trades for March using this strategy:

(Obviously this wasn't all the trades that setup - just the ones I decided to take...I missed a fair few too...)

All were taken and closed on the hourly TF.

Dax: +74 ticks (pin on major s/r fakeout)
SMI: +70 ticks (pin on s/r and 38% confluence)
Bund: -27 ticks (inside candle at daily support)
EUR/USD: +55 pips (inside candle on right side of hourly double top with major daily level close above)
Bund: -25 ticks (inside candle at support)
FTSE: +37.5 ticks (pin at resistance)
USD/CHF -47 pips (pin at resistance and 38% confluence)
GBP/USD: +51 pips (inside candle at support, hourly reverse h&S and daily pin)

Total: +188.5 ticks on the month.

On the whole, found it a real struggle this month...

I could have done much better...but as long as you learn from your mistakes...

Why not 188 pips a day Dante? You're making it way to hard on yourself, imo.

Just for laughs I threw the One MInute Methodology on the Euro/USD pair and the Kindergarten Trading Rules worked perfectly....you guys are REALLY doing it the hard way, imo. But that is your God-Given right, of course!

If you guys trade "trade setups" or "chart formations" you're only getting a slice of what is out there...if you trade INSTITUTIONAL STOPS then you get 80% (or more) of all key reversals. There's ONE indicator and ONE setting that captures the overbought and oversold points of key INSTITUTIONAL STOPS. Most of these futures contracts are manipulated...and there is a typical stop loss you would use on this currency pair that keeps you in winning trades without getting chopped up in a trading range...it just jumps out at ya on the One MInute Methodology...

The advantage of the Euro/USD is you can daytrade this market 24 hrs a day; perfect technicals, and the spreads and profit objectives look consistent vs the MiniDow which has about a 8 hr trading window.

Cheers!

The Mechanical Day Trader

 

[montmorencyt2w]

Did you actually trade it or just simulate?

 

[trader_dante]

Why not 188 pips a day Dante? You're making it way to hard on yourself, imo.

188 pips is my average day but like I said, hard month this one.

I had to trade blindfolded with only the sound of the ticker and supremegizmo for company.

Just for laughs I threw the One MInute Methodology on the Euro/USD pair and the Kindergarten Trading Rules worked perfectly....you guys are REALLY doing it the hard way, imo. But that is your God-Given right, of course!

I know. That is truly a great methodology. I'm glad you bought it up because when I used to trade part time whilst working as a web designer, I always wondered what the professionals did and how they traded the futures markets.

Now that I am a professional futures trader for a prop firm, I can see exactly how they trade. Only the other day, one of the bigger traders was at work in the Dax. I saw him up £250k and I said "mate, do you mind me asking you what you were up to today" and he said: "Dante, my friend - I was using the Kindergarten Trading Rules combined with the one minute methodology." Well, that did it for me.

 

[mechanicaldaytrader]

Did you actually trade it or just simulate?

I am trading the MiniDow exclusively; for laughs I threw the Methodology on the DAX and the Euro/USD and they work fine. I am 2 hrs behind New York and I am a early riser, so I'll stay with the MiniDow, the currencies don't move fast enuff (% of daytrading margin) for me.

Kindergarten Trading Rules are mechanical. no diff in simulating or actual trading**
Stop loss from the KT entry = same as above

Ergo,
#1 Identify KT trade entry time
#2 Identify trade entry stop at the time you identify #1
#3 Get your trade entry fill to your liking (based on technicals & chart formations)
#4 After you're filled, adjust your bracket stop to your precise stop, based on your actual fill in the market; this keeps your money management nice and tight.

Never adjust the stop, just take the loss or enter opposite your original position (before you're stopped out) if you find you're on the wrong side of the trend or missed the trading range reversal. Once you're profitable on the second trade (the actual direction of the market) then take the small loss on your first trade.

**the key to a methodology is computing your stop loss correctly; as long as your stop is not hit, your precise entry is not that important (except to your P & L) - you know the institutional stop and the direction, it's just a matter of how many points the dang thing is going after your entry.

Attitude determines Altitude


The Mechanical DayTrader

 

[trader_dante]

I am trading the MiniDow exclusively; for laughs I threw the Methodology on the DAX and the Euro/USD and they work fine. I am 2 hrs behind New York and I am a early riser, so I'll stay with the MiniDow, the currencies don't move fast enuff (% of daytrading margin) for me.

Kindergarten Trading Rules are mechanical. no diff in simulating or actual trading**
Stop loss from the KT entry = same as above

Ergo,
#1 Identify KT trade entry time
#2 Identify trade entry stop at the time you identify #1
#3 Get your trade entry fill to your liking (based on technicals & chart formations)
#4 After you're filled, adjust your bracket stop to your precise stop, based on your actual fill in the market; this keeps your money management nice and tight.

Never adjust the stop, just take the loss or enter opposite your original position (before you're stopped out) if you find you're on the wrong side of the trend or missed the trading range reversal. Once you're profitable on the second trade (the actual direction of the market) then take the small loss on your first trade.

**the key to a methodology is computing your stop loss correctly; as long as your stop is not hit, your precise entry is not that important (except to your P & L) - you know the institutional stop and the direction, it's just a matter of how many points the dang thing is going after your entry.

Attitude determines Altitude


The Mechanical DayTrader

Why just the miniDow? Seems like you're missing something, mate.

I had the fortune of getting a lesson from the second largest S&P trader in the world when he worked at our office. He has thrown your methodology on the S&P and he said it works fine. He's totally cleaning up using the Kindergarten Rules.

 

[mechanicaldaytrader]

Google Finds The Holy Grail for Free !

...hilarious...since my first post here, my website is getting hit by freeloaders at T2W trying to find the "Kindergarten Trading Rules" .....

well...here they are...THE HOLY GRAIL ! for Free!

Trading rules, and chart setups right there! Go for it freeloaders!

Here's my source (see attachment!)

 

[chilltrader]

Perhaps they just want to confirm how much of an arseh0le you really are

People do get an immense sense of pleasure looking at a snakeoil salesmen in action aka Cramer and likes - of course patting themselves on how wise they are not to fall for it ))

 

[Black Swan]

...hilarious...since my first post here, my website is getting hit by freeloaders at T2W trying to find the "Kindergarten Trading Rules" .....

well...here they are...THE HOLY GRAIL ! for Free!

Trading rules, and chart setups right there! Go for it freeloaders!

Here's my source (see attachment!)

I'd echo others' thoughts, why are you littering this potential set ups thread? The baby pips site is OK, but if you are that site owner, or involved with the set up, you're hardly making a convincing argument about yourself as a trader, or endearing yourself to a potential audience with your constant lack of respect.

 

[gedward3]

Hey MechanicalAr*etrtrader do you know any more systems........

...hilarious...since my first post here, my website is getting hit by freeloaders at T2W trying to find the "Kindergarten Trading Rules" .....

well...here they are...THE HOLY GRAIL ! for Free!

Trading rules, and chart setups right there! Go for it freeloaders!

Here's my source (see attachment!)

 

[mechanicaldaytrader]

I'd echo others' thoughts, why are you littering this potential set ups thread? The baby pips site is OK, but if you are that site owner, or involved with the set up, you're hardly making a convincing argument about yourself as a trader, or endearing yourself to a potential audience with your constant lack of respect.

Black Swan, why are you polluting this thread? Where is your trade setup in your message?

You obviously are a Johnny Come Lately to this discussion; I'm not in any way related to "baby pips" -- it's a play on words that I use for my own trading rules....

[A] the DAX and the Euro/USD pair seem to behave marvelously to my Kindergarten Trading Rules
the rules are only for paying subscribers , I teach a methodology that trades the Mini Dow
[C] there are many tire kickers at T2W that are trolling for free stuff, my website tracks search strings; since my post about KT rules occurred here many are trolling for KT rules (hey, maybe they are on a website for free!!) :cheesy:
[D] I did the same search and, just for laughs, found "baby pips" used the same verbage, so I posted it...and IT IS a valid trade setup, SO it DOES advance this thread
[E] I'm done developing the s/w,:clap: so will be posting actual trades of 1 and 2 lots here at T2W very soon - at the end of EACH trading day (no cherry picking by me)- to replicate exactly what a "real subscriber" will experience. I'll probably trade half a day (about 4 hrs) each day I trade.

To reiterate my earlier post;
The DAX and the Euro/USD are behaving the same way as the Mini Dow as regards PRICE and TIME on the One Minute Methodology chart.

Looking at the Euro/USD, there is definitely a set # of pips that the pair will honor during a legal trade (this pair is very streaky, so just hang with the trend, it almost always occurs). A stop loss of 20 pips or in the case of violent moves a stop loss of 50 pips keeps you in the trade and, of course, your profit should be 3x your stop loss (or more). I Checked back several weeks and the pair work marvelously 24/5 on the mechanical setups for KT rules.

The advantages of this chart vs the Mini Dow is the trading hours, and the absence of frequent trading ranges that the U.S. Equities indexes typically have. For the free tire kickers out there, you can go the website & the Forum and find some One Minute Methodology videos and charts FOR FREE and get an illustration of the trading rules by studying the charts.

Of course, this requires the person is willing to learn something new. -- that pretty much excludes.....??????

I'm not going to trade the DAX or the Forex due to trading hours, but perhaps one of my students that frequent T2W might (hey David, Keith, Frank, Peter, et al).

The Mechanical Day Trader

 

[glyder]

mechanicaldaytrader
utter rubbish
total waste of our time.

 

[elitejets]

Good Grief
This thread does attract some spammers and "my dick is bigger than yours" trading systems.

I've got news for Mechanical Trader ... nothing mechanical (especially ones called kindergarten), no matter how big, are better than SKILL and the REAL THING ...

 

[elitejets]

Sterling

This is not a happy article for Sterling and UK GDP outlook.
Anyone long sterling or watching it, this might cause a bit of a gap or pullback to support.
Alistair Darling: I was wrong on recession - Times Online

 

[N Rothschild]

tbh i dont think its like anyone would have given his earlier forecasts much credit anyway. i doubt the big money is going by what alistar darling says..

 

[2Tall]

Good luck if you do take it though and report back and let us know how it goes.

-Tom

Hi Tom, thanks very much for your feedback, very much appreciated. I never thought of checking how many times the S/R had been tested, another thing I need to add to my standard to do list when analysing charts.

Anyway, I've placed an order based on the pin, as I feel price is about to reverse.
Given your feedback I will be a bit more conservative when adjusting my stops though. I'll keep you updated over the next few days.