trading by price, wasp stylee

[Claudia123]

lol foredog is right - how can one trade without mr bollinger, fibs, stochs and all the other pretty lines. Being serious for once it was/is a good thread and very useful for newbies.

 

[rags2riches]

This is turning into a quality thread Mr. Wasp.

More trade examples would really reinforce the principles you have explained.

For example would you be looking for a trade in a 1hr congestion zone? [See attached gj chart]

 

[westernforce]

Well done WASP, a thread worthy of a subcription.
Keep this up and your reputation will have more stars than the Milky Way.

 

[wasp]

great stuff. im a fan. i've read ur journal 2 times over.

because ur s/r levels are based on price closes. What if u needlessly get stopped out by wicks? What would u do? Do u ever reenter and what is the criteria for that?

The following post from yours goes into a bit of detail in regards to entries and stops. Essentially, you are looking for the last signs of strength in the last directional move, waiting for strength in your direction and thus, the wicks shouldn't be anything to worry about.

hey.. u missed my qns.
I also have been meaning to ask. in a clear triangle formation. How would u know which way price can break. It's like a 50/50 whenever i see it. Theres really no clues because the each successive highs is lower and each successive lows is higher. And its really 100% u cant tell whether its going to break or get rejected by the trendline and break the other direction.
And the previous trend direction doesnt affect in most of these cases. So its not always a continuous breakout triangle.

thanks

This is turning into a quality thread Mr. Wasp.

More trade examples would really reinforce the principles you have explained.

For example would you be looking for a trade in a 1hr congestion zone? [See attached gj chart]

For triangles and congestions...

All you need to do is think about it.

HF's and CB's and IB's are looking moreso on the larger TF so where is price in relation to S/D at this triangle/congestion?

What is the current trend... Flat already, strong move...? With the relation to S/D, is it more likely to continue or falter?

Then its S/D and either buy S and sell R, or, wait for the breakout and if its a triangle, well, its HrL's and LrH's which, are signs of weakness so whichever was the last to produce, means the strength is to head away. (ie, HrL so chances are it will break North). That said, there are no gurantees of course.

End of the day, NO ONE knows 100% where its going so you just guage strength and weakness, supply and demand and the trend on the differing TF's and think... What are the big boys watching and who is proving stronger.

 

[wasp]

More trade examples would really reinforce the principles you have explained.

The last page of my journal is full of examples rather than copy over to her... there just isn't any arrows on them to explain!

 

[foredog]

Been out wasp?

U buzzin'?????!!!!

 

[wasp]

Only for dinner! I rarely drink... just a dozen gin martini's!

EDIT: must have been drunk, only just got the joke!

 

[firewalker99]

Unfortunately I can't rep each of your posts here wasp... but it should be clear by now that anyone reading that this thread probably has the highest quality information density out there.

Each sentence, each word is spot on in your posts. Whether it's about stops, about KISS, about "they say", about predicting... this thread alone is worth 5 stars

There's not much more I can say, too many gems in this thread on a Sunday morning...

 

[wasp]

Risk

As per the earlier post, a good rule of thumb should be if you cannot get your stop in at 2-3 times the spread, (ie cable 3 = 6 or 9 MAX) you are getting your entries incorrect. Whether scalping or swing trading.

 

[wasp]

if you can get in on swing trades with a 6 or 9 pip stop you dont need advice from "experts". they on the other hand could probably learn a lot from you

It all depends how much effort you are willing to extend to your business?

 

[TheBramble]

Interestingly my stops on any currency pair is 6 +spread. Either you're right or you're wrong - as Wasp says.








Don't agree with any of the cobblers he's on about, but it takes all sorts. :}

 

[wasp]

Nice to see you Tony, been a while!

Oh, and I know a few e-mini traders who will agree on their markets too.

 

[Splitlink]

hey.. u missed my qns.
I also have been meaning to ask. in a clear triangle formation. How would u know which way price can break. It's like a 50/50 whenever i see it. Theres really no clues because the each successive highs is lower and each successive lows is higher. And its really 100% u cant tell whether its going to break or get rejected by the trendline and break the other direction.
And the previous trend direction doesnt affect in most of these cases. So its not always a continuous breakout triangle.

thanks

I believe that you have to be expecting a certain trend before you get to the triangle. The triangle is, simply the culmination of your strategy, to time your entry.

 

[wasp]

Yep, as Split says, the trend always assists but not to say a triangle on its own is not enough to trade from.

EVERYTHING, from every tick on any timeframe, tells a story. EVERYTHING happens for a reason and thus, read right, every action is an opportunity. A trader worth his salts doesn't do well in only one condition, a good trader can see potential in every condition as they see each for what it is and acts per the market action at the time, not a set of criteria.

 

[mr.marcus]

EVERYTHING, from every tick on any timeframe, tells a story. EVERYTHING happens for a reason and thus, read right, every action is an opportunity.

...looking forward to hearing THE STORY.....reasoning and intent etc...as albert used to say.....the audience is taking thier place in the stalls...just getting me popcorn.

 

[wasp]

...looking forward to hearing THE STORY.....reasoning and intent etc...as albert used to say.....the audience is taking thier place in the stalls...just getting me popcorn.

Who said there was a story coming? I'd hold the popcorn and go the pub mate... I'm not about to analyze every bleedin' tick on here! Only started the thread for some context behind what I watch whilst occasionally in chatzy..... I may be online alot but I don't have that much time! Maybe one day....

 

[mr.marcus]

Who said their was a story coming? I'd hold the popcorn and go the pub mate... I'm not about to analyze every bleedin' tick on here! Only started the thread for some context behind what I watch whilst occasionally in chatzy..... I may be online alot but I don't have that much time! Maybe one day....

The slow hand clapping has started.....:clap:....only kidding......ill shall get a refund my nibbles...hope they dont see the bite marks on my wiener.

Shame...was looking forward to bouncing camp fire tales...

 

[wasp]

Kumbaya my lord.......:cheesy: later though, busy at the moment.

Attached the first week of 2009 (gbpjpy) [keeping with prior thread posts] for anyone who fancies a play in the meantime... I'll do something later if your real lucky!

As Albert would say though... its all screamingly obvious of course.

 

[RedGreenBen]

It seems that it is considered a bit naff to thank people, but that isn't going to stop me!

Thanks Wasp for this great thread. I'm a (still just) unprofitable FX trader (but the indices keep the wolf from the door) and it has really made my Sunday afternoon to know that my simple approach is not doomed to failure. It has renewed my confidence, that had got a little bit shaken recently, that I just need more experience and not eleven indicators.

Ben

 

[teojh]

thanks wasp. the information is very helpful

Regarding the lower time frame precision entry, i presume u first decide the point of entry on the higher time frame. Then using the lower one to enter a long by buying its support or breakout. What if price at the lower time frame does not consolidate at all. At the point u decided u would drill down to the lower time frame to enter, you won't even get a chance and price blasts up. In this case, this would be a trade that escaped?