Trade set-ups
Trade set-ups & management
Pattern: Trade Set-ups
http://www.readthemarket.com/index.php/en/forum/journals/1564-benhur-journal?start=100#32962
I noticed that, if a FL is broken,
and then if another FL is created which hold the price up or down (It will hold
the price up or down opposite to the direction the previous FL hold) and then
the second FL is broken, that breaking swing will always go to the decision
point there it was decided to break the first FL. Noticed this almost every
time. In case of a perfect Flag (which has a big pole up/down), if its FL is
broken, the price should go to the start of the pole. Of course the start of
that pole should break another FL on the way to create the current Flag' FL.
In simplified: The Base of rally
that break the opposite level, is a high probability bounce level.
I call it Effort vs Result.
Engulf into a flipzone, then FTR. Entry: FTR area. exit:
after seeing CP.
RS flip, supply rejection, enter at supply near supply
rejection flip.
Price may move off the flip/engulf. Room to move through
compression above recent high, to the next area of interest (polebase that
supports CP).
engulfed, CPback into potential RSflip area. Short at
RSflip
Trade the FTR of a flip zone
FTR spotted, CPback into FTR, Trade at FTR
After CP/3-d Down, a POLE upmove, then retrace to the
source/polebase = Long entry at source.
False Resistance established, FO into FTR obvious to the
left.
Compression into supply after engulf.
Once there is an engulfing as it was the case here, price
will usually retrace deeply and FO. But that's what trending is, demand broken,
so sellers are strong, BUT you cannot start thinking like this when it's the
FIRST break of the prevailing "trend". That is the mistake I make A
LOT of times. So this huge retrace resulting as a FO, only/mostly happens after
a first time eng of the prevailing trend Ok. Typical stop loss hunting yes. So
vital lesson, you cannot let a trade // against the prevailing 'trend' // run
for a longer time before observing the reaction of the eng (base of prevailing
trend)
http://readthemarket.com/index.php/en/forum/trading-articles-discussions/1708-engulf?start=100#26587
Best Trade = is at the very origin
of move
Mid Range Zone = only with strong
convincing PA
So
let's do some equation math:
- Supply = RBD = Cap
- Demand = DBR = Cap as well
- DBD = FL and RBR = FL, too!
- Flag = FL
Caps and FLs after engulfing is FTR, so:
- Engulf + DBR/RBD/RBR/DBD = FTR
If: RBR/DBD = FL,
Then: FL = FTR (or vise versa!)
SR Flip = responding to FTR in LTF
In Uptrend, between first FTR and next higher FTR is PAZ. So:
- Space of FTRs = PAZ
- FTR = Edge of PAZ, which is also part of the PAZ!
- FTR = the golden spot to look for entry, TG at the other side of the PAZ
Inside a PAZ (between two FTRs), there could be one or more CPs.
Therefore:
- CP = PAZ
Note:
Compression (CP) is also a Flag (bull flag or bear flag), a Pennant, A Wedges, or any formation that hide the partial orders of the big boys, by cleaning up the supply, demand, or both for big rally/drop to the origin.
- CP = Flag = Pennant = Wedge = blabla.
No idea how to put it into equation
Next:
- QM = FTR ( the right side of QM)
- Diamond = Seeking true Edge of PAZ, which is an FTR
- CanCan = CP to LTF FTR
That's it. All my limited understanding of the market for now.
Will update with more as I progress into a deeper market understanding. Please kindly correct me if the above equations are wrong.
Currently still struggling in identifying the elephant (PAZ), especially the edge of it. Is PAZ all about CP and FTR only? But base on my noob observation, all playable zone is within Engulf + FTR only.
- Supply = RBD = Cap
- Demand = DBR = Cap as well
- DBD = FL and RBR = FL, too!
- Flag = FL
Caps and FLs after engulfing is FTR, so:
- Engulf + DBR/RBD/RBR/DBD = FTR
If: RBR/DBD = FL,
Then: FL = FTR (or vise versa!)
SR Flip = responding to FTR in LTF
In Uptrend, between first FTR and next higher FTR is PAZ. So:
- Space of FTRs = PAZ
- FTR = Edge of PAZ, which is also part of the PAZ!
- FTR = the golden spot to look for entry, TG at the other side of the PAZ
Inside a PAZ (between two FTRs), there could be one or more CPs.
Therefore:
- CP = PAZ
Note:
Compression (CP) is also a Flag (bull flag or bear flag), a Pennant, A Wedges, or any formation that hide the partial orders of the big boys, by cleaning up the supply, demand, or both for big rally/drop to the origin.
- CP = Flag = Pennant = Wedge = blabla.
No idea how to put it into equation
Next:
- QM = FTR ( the right side of QM)
- Diamond = Seeking true Edge of PAZ, which is an FTR
- CanCan = CP to LTF FTR
That's it. All my limited understanding of the market for now.
Will update with more as I progress into a deeper market understanding. Please kindly correct me if the above equations are wrong.
Currently still struggling in identifying the elephant (PAZ), especially the edge of it. Is PAZ all about CP and FTR only? But base on my noob observation, all playable zone is within Engulf + FTR only.
Trade management by IF
Say
you've taken a reversal trade and gotten in at the very bottom, and the trade
is hundreds of pips in profit, and you're now managing this trade on the daily
TF. I believe that any trade you take subsequent to this on that pair should be
taken with absolutely no regard for the original trade.
Say
your MM has you risk 2% per trade, and your original trade had you buy 1 lot,
and you now find yourself with the right PA at the extreme of a very important
daily level.
You
should be able to take this trade according to your normal MM plan, regardless
of what other trades you have on the same pair. If it calls for a purchase of 2
lots, then 2 lots is what you should buy, and you should manage this trade
completely independently.
Certainly
it's hard initially to ignore the fact that you're now in for 3 lots on the
same pair, but you've got to look at it rationally, leaving fear out of the
equation.
If
this is a currency trade, imagine that the first trade is on something else
entirely - imagine you bought a lot of coffee if you must.
Remember,
our best trades are taken at extremes, and we know the limitations of each
trade we take, so we should take every trade on its own merit.
ONLY
TRADE THE EXTREMES!!!!!!!!!!!!
That
would take the psyche out of trading :-D
Of
course, the extremes in one TF can be midrange in another TF, which is why it's
vital to manage your adds in the lower TF until they break into HTF trades.
This
makes total sense to me - I hope I've translated it well enough, or is it now
so zen that it's clear as mud unless you already understand it? :-,
I entered with tick chart PA as a Scalp and See
trade. I'm still just watching PA on it. When I get exit PA, I'll await a RT
and exit
(FXY)
Allow me to post my opinion . IF opinion can be
different.
What i see sometimes you are taking a trade in the middle and trade to the target. This is where everything goes wrong. Because you don't know on what condition you are wrong. If you are lucky your target will be hit. But next time market may not be mercy and will leave you in draw down .
When you say target what you are saying is move can be over in that level and price can be turned down from that level. So you fine tune that space and trade from that level. This is what becomes extreme. Because now you know when you are wrong not only that you can exit very quickly depends on the zone size. No draw down whatsoever and very clear decision making.
"Expectation" will lead to disaster. Because from expectation there comes fear and greed.If i can follow the price footprints from a level that would be easy and clear way of thinking.IF has made it easy for us.
Patiently waiting for a level is the key. If you are worried about return better increase the position size. But what is important is crystal clear mind to hold or exit from trades. People PM me asking what is extreme.It was difficult to answer.
But now i can answer
" Extreme is not the middle"
What i see sometimes you are taking a trade in the middle and trade to the target. This is where everything goes wrong. Because you don't know on what condition you are wrong. If you are lucky your target will be hit. But next time market may not be mercy and will leave you in draw down .
When you say target what you are saying is move can be over in that level and price can be turned down from that level. So you fine tune that space and trade from that level. This is what becomes extreme. Because now you know when you are wrong not only that you can exit very quickly depends on the zone size. No draw down whatsoever and very clear decision making.
"Expectation" will lead to disaster. Because from expectation there comes fear and greed.If i can follow the price footprints from a level that would be easy and clear way of thinking.IF has made it easy for us.
Patiently waiting for a level is the key. If you are worried about return better increase the position size. But what is important is crystal clear mind to hold or exit from trades. People PM me asking what is extreme.It was difficult to answer.
But now i can answer
" Extreme is not the middle"
I was about to give out about using 1% per pip,
but then I remembered that I've done that many times and got my rent paid in
minutes!
Just please don't anybody do it until you're fully in tune with the market.
So, I agree with you (with reservations for students) on most points, although we don't use candles or their closes as PA. Rather we use zone engulfs
Just please don't anybody do it until you're fully in tune with the market.
So, I agree with you (with reservations for students) on most points, although we don't use candles or their closes as PA. Rather we use zone engulfs
(Sali)
https://readthemarket.com/index.php/en/forum/journals/2517-the-art-of-war?start=450#54269
https://readthemarket.com/index.php/en/forum/journals/2517-the-art-of-war?start=475#54362
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2475#62111
gslao wrote: HCDE,
I recall IF answering another student about the same question you had on "I have a very very hard time finding space, engulf not hitting its target.". Yes, we need to find space otherwise, there is no trade. If it was easy to find space, then everyone would become a successful trader overnight. The ITs will not make it easy and obvious.
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2475#62114
Here is a quote from IF. " The longer I trade, the fewer trades I take. If it's not begging to be traded, I am not interested. There are lots of dead certain trades out there, each offering great returns. These can easily be missed while sweating the outcome of marginal trades."
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2475#62124
E: The further I stroll down this path, it becomes apparent that less is more. Imagine for a minute, watching 20 plus pairs and trading for limited R. How stressed and tired would you become.
On the flip side only watching a few pairs with low spread, waiting for those beautiful areas that are a monthly kink that are only a few pips wide. You then find a marvelous mpl within it with clean orders just begging to be taken. We then see the eg of the opposing FL into space on the monthly and it returns to our kink and mpl. The R can be phenominal.
The necessity to trade everyday feel the thrilland be in and out of trades is akin to modus operandi of the gambler.
Comments
Post a Comment