Trading Naked - Part 2

[HawkTrader]

Did okay with Cable this morning, only made 0.6% but I consider it better than a loss!!

 

[mb325]

Quite annoyed I packed up at 6...nice break of resistance around 16800 about an hour later!

Price has put in a LrH and if it wasn't so late I'd look to short a break of the low at 841.

 

[Bloodhound]

Just back from the pub, so apologies for the random request, but, is there any chance of a few more charts? The only way I have learnt to see price (to date) is from looking at charts. I genuinely believe that sharing charts / ideas etc. is how idiots like me can learn. One of the greatest disciplines I have under my belt (I think) is that, every time I see an opportunity, I save the chart and then review it. Maybe a bit dull as I have ended up with 1000's of charts but the action of annotating, then saving, charts / price in realtime has made a big difference to how I see things.

 

[foredog]

First trade ofthe day, always nice for it to be a profitable one ...:clap:

Alos not got a chart of this one, but if you have a SB feed, look at the Dow jones just before the open yesterday there was a lovely double high at 10330, and then just after the open price broke through there and with little pullback was as high as 10400 before any real problems.

 

[mb325]

Nice trade Foredog. I'm pretty annoyed I missed it...been slowly trying to wake up earlier and earlier and have got it down to 07.10 now which is about 15 mins too late this morning!

I tend to not look for formations such as pin bars anymore as I think that on a lower timeframe they can be very misleading. A pinbar on a monthly/weekly/daily tf is a good indication of reversal as anyone can see that price did NOT want to be there as it took a long period to form and therefore probably involved a hell of a lot of market participants. To me this gives the 'setup' a lot more validity. IMO though a pin bar on a 5min TF could be caused by 2 market participants and therefore might not be such a good indication of a change in sentiment.

I've attached a chart to show how I think i might have traded that move if i'd been up this morning. Interestingly if you look back to about 11.00 GMT yesterday you can see exactly the same 'setup' occurs which would've got you in long from pretty much the low of the day (if you can hold on, which i can't!). Price puts in a new low, then a lower high, but then fails to break the previous low and I think I might have had a buy order in just above the blue line.

I'm nowhere near being even a rookie with this style/tf though and these are just my thoughts so take them with a pinch of salt!

 

[Bloodhound]

Nice trade Foredog. I'm pretty annoyed I missed it...been slowly trying to wake up earlier and earlier and have got it down to 07.10 now which is about 15 mins too late this morning!

I tend to not look for formations such as pin bars anymore as I think that on a lower timeframe they can be very misleading. A pinbar on a monthly/weekly/daily tf is a good indication of reversal as anyone can see that price did NOT want to be there as it took a long period to form and therefore probably involved a hell of a lot of market participants. To me this gives the 'setup' a lot more validity. IMO though a pin bar on a 5min TF could be caused by 2 market participants and therefore might not be such a good indication of a change in sentiment.

I've attached a chart to show how I think i might have traded that move if i'd been up this morning. Interestingly if you look back to about 11.00 GMT yesterday you can see exactly the same 'setup' occurs which would've got you in all day (if you can hold on, which i can't!). Price puts in a new low, then a lower high, but then fails to break the previous low and I think I might have had a buy order in just above the blue line.

I'm nowhere near being even a rookie with this style/tf though and these are just my thoughts so take them with a pinch of salt!

Classic set-up IMO MB. Price giving a handy hint....

 

[foredog]

I tend to not look for formations such as pin bars anymore as I think that on a lower timeframe they can be very misleading.

You're right that a lower TF pin is not much of an indication, look at it in context, price wnt down, then pulled back a little tried to push through thelows, was rejected and then rallied back to the previous resistance where it then broke, little things in a bigger picture.

 

[Bloodhound]

You're right that a lower TF pin is not much of an indication, look at it in context, price wnt down, then pulled back a little tried to push through thelows, was rejected and then rallied back to the previous resistance where it then broke, little things in a bigger picture.

Funnily enough I actually think an M5 pin is more 'honest' than a higher timeframe pin, for the simple reason that a higher timeframe pin masks the length of time that price has spent at a certain level better than an M5 pin. At the end of the day, and please correct me if I'm wrong Foredog, but what you liked about that long was the level it started at?

 

[HawkTrader]

My my, look at these lasts few posts, almost all of them have been recommended. This thread is full of little gems .

Anyway, I'm finished trading for the day! Yep, sounds unusual but I only trade the morning 6-8am breakout and then I'm done, whats the point in trading in more... might lose. I'll post charts in a bit.

 

[foredog]

but what you liked about that long was the level it started at?

Yes, pushed down but didn't break below 16800 so possible support from that level to push it up/not enough sellers to send it through the level.

 

[Bloodhound]

Quick question. What are the rules on posting links to other forums etc. as there is a thread that I think some might find extremely useful in terms of background research and education regarding trading support and resistance levels etc?

 

[foredog]

I think so long as it's not a commercial site then you're fine (eg Forexfactory link ok)

 

[Bloodhound]

I think so long as it's not a commercial site then you're fine (eg Forexfactory link ok)

OK - here goes. Vinnie, if you'd like me to delete please say

This is a thread I have been reading for a while now and, in terms of its educational content, is well worth a read for anyone who isn't 'seeing' price action quite as some are seeing it on this thread. Sadly, whilst I'm doing OK trading this way, I certainly am nowhere near experienced enough to even begin to offer advice, education etc. and feel I would be letting people down if I didn't give a heads up to this excellent thread as it may explain some of the principles that I don't feel qualified to explain myself.

http://www.traderslaboratory.com/forums/f208/reading-charts-real-time-6151.html

I also think that it may help anyone who might be seeing and understanding how this method of trading works, but is struggling to form a cohesive trading plan.

All that said, this is not an invitation to run off to another forum - simply an excellent resource.

 

[trendie]

My my, look at these lasts few posts, almost all of them have been recommended. This thread is full of little gems .

Anyway, I'm finished trading for the day! Yep, sounds unusual but I only trade the morning 6-8am breakout and then I'm done, whats the point in trading in more... might lose. I'll post charts in a bit.

wow! whats your experience, in terms of returns in this time-window?
is this full-time for you? or do you simply trade big to maximise smaller pip returns?
I think Claudia trades similarly to you. I think she goes for 10-20 pips and done.
actually, I think neil does the breakout too.


EDIT: KJ, I will defer from posting charts, since this is essentially a PA thread. I dont want to clutter up the thread with my indicators.

 

[Bloodhound]

EDIT: KJ, I will defer from posting charts, since this is essentially a PA thread. I dont want to clutter up the thread with my indicators.

Not sure if it would be of any interest to anyone else but I think it would fascinating to see some indicator based entries and see how they match up to PA entries. It would also be a huge shame if you didn't continue to post here Trendie as your input is greatly valued.

 

[HawkTrader]

wow! whats your experience, in terms of returns in this time-window?
is this full-time for you? or do you simply trade big to maximise smaller pip returns?
I think Claudia trades similarly to you. I think she goes for 10-20 pips and done.
actually, I think neil does the breakout too.

Well, I'd assume the returns are just as good as other methods of trading. I aim for 2% per day, 4 days a week monday to thursday. I don't bother with Fridays, seem to find the volume isn't as good for breakouts.
It's not full-time, although I reckon I could survive on it if I had to. That being said I couldn't actually survive WITHOUT it!
Claudia does trade similairly to me however I actually trade just before the break. I aim for about 20-30 pips, sometimes 40 if I feel that running a trade is the best thing to do. I almost always have a TP though.

Some people trade eg, 1% per trade, make 5 trades per day, 3 winners, 1 loser and 1 breakeven, then that's about 2% per day too but they spend longer (assuming R:R is 1). I aim for 4% per week to be happy. Thing about it is that you can't really expect more than 1:1, although most of the time I'm trying to risk 25 pips to gain 30 and that extra 5 makes a big difference to me. As long as your win percentage is more than 55%, you should make money!

Edit:

Not sure if it would be of any interest to anyone else but I think it would fascinating to see some indicator based entries and see how they match up to PA entries. It would also be a huge shame if you didn't continue to post here Trendie as your input is greatly valued.

Agree with you there KJ, please keep posting Trendie!

 

[Vaco]

slip me a few £££ and you can post any link you like, gotta make a little something on the side this mod job don't pay too well

 

[Bloodhound]

slip me a few £££ and you can post any link you like, gotta make a little something on the side this mod job don't pay too well

That's great to know Vinnie although I'm shocked that you don't get paid already. When I was asked I was offered a salary, company car and a pension???!!!

 

[Vaco]

That's great to know Vinnie although I'm shocked that you don't get paid already. When I was asked I was offered a salary, company car and a pension???!!!

 

[foredog]

That's great to know Vinnie although I'm shocked that you don't get paid already. When I was asked I was offered a salary, matchbox car and a penny???!!