Reading Charts in Real Time

[thalestrader 14]

"This is not a right or wrong game. Trading a technical methodology or a technical pattern is not about being right or wrong. It is an odds game. That is all it is." - Mark Douglas

 

This is, without a doubt, the Achilles heal of many traders. Most traders focus too much on "not being wrong" ever to let their edge work for them. I do this myself every time I move my stop to break even before price has gone to the point at which I planned the break even move. Invariably, these are the trades where price comes back to stop me out, and then immediately and too quickly for me to gain a new entry it sprints off to my profit targets.

 

Best Wishes,

 

Thales

[MidKnight 12]

Heavy down day on Friday as breaking down from the previously strong weekly support at 1.5700 area. There was a good reaction from the initial probe, but once NFP came out it hammered that pretty hard. Their are two areas I will be happy to short as marked on the 60m chart. Shorts will be more aggressive to enter in these zones and targets will be larger scaling out in 1/4ths. Any longs will just be scalps unless we get a clear capitulative drop. If that happens I will scale out in 1/3rds. Not much to do but sell rallies and sell often.....

[patrader 10]

YM 5m and 15m charts(2/4-2/5)

[Cory2679 11]

Current look at the EUR/JPY...

[thalestrader 14]

Current look at the EUR/JPY...

 

 

I was about to post this look at the EURUSD ... though this action looks more corrective of the last hours rally than a reversal of it.

 

Best Wishes,

 

Thales

[Cory2679 11]

Current look at the EUR/JPY...

 

Pulled it for -14.8...I'd be prepared to re-enter on a break of the low...

[BlowFish 10]

 

 

The reason I share the Gann article has nothing to do with Gann's more esoteric teachings, but everything to do with his nuts and bolts, reall world approach to understanding the markets.

 

 

Mention Gann and it conjures up images of astrology, numerology and other strange and esoteric stuff. His writing on more practical matters like money management and price action are as robust as any.

 

Fibonacci Trader - The first Multiple Time Frame Software for Traders has some good info on Ganns price action stuff. Go to the downloads section in the left margin and click on FT Journals. The first 4 have a really solid presentation of PA. (ignore the fib channels bit at the end of issue 1 and 2 unless it is of interest). Like Dunnigan it takes you through simply defining structure and then utilising this in an actual trading plan. It's good stuff.

[thalestrader 14]

...the EURUSD ... though this action looks more corrective of the last hours rally than a reversal of it.

 

Here is the EURUSD from last night showing the price action I referred to as lokng more corrective, i.e. consolidation as prelude to continuation) than a reversal:

 

 

 

This is how it looks this morning (second chart showing the 6E):

 

 

Last night's opening action looked more corrective than impulsive, and proved to be so as the day has unfolded. The second impulse leg fell a few ticks short of equality with the first, so caution o n the long side is warranted, as this make what would be a third wave that is shorter than the first. Though we might also be witnessing a subdivision into a series of 1-2's that could mean a much larger rally is getting underway.

 

 

Best Wishes,

 

Thales

[Cory2679 11]

Possible long on the EUR/USD...

[thalestrader 14]

6B/GBPUSD looking for direction out of the chop zone ...

 

 

Best Wishes,

 

Thales

[thalestrader 14]

6B/GBPUSD looking for direction out of the chop zone ...

 

This would be an early entry as price is still in the chop zone, but a buy stop at 1.5611 appeals to me. Price tickled it just now by dancing as close as 1.5610 and pulling back to 1.5604 currently. We shall see...

 

 

 

Best Wishes,

 

Thales

[thalestrader 14]

This would be an early entry as price is still in the chop zone, but a buy stop at 1.5611 appeals to me. Price tickled it just now by dancing as close as 1.5610 and pulling back to 1.5604 currently. We shall see...

 

A quick -9 ticks to start the week as I again need to relearn the lesson of why my mother always told me not to play in the chop zone. I told her it was all Cory's fault!

 

 

 

Best Wishes,

 

Thales

[fxThunder 10]

Currently stalking a long on GU...

 

EDIT: entry triggered, sweaty hands on the mouse button now

Edited February 8, 2010 by fxThunder

[Mr_black 10]

long on 6e

[Mr_black 10]

long on 6e

trade closed +21

[thalestrader 14]

A quick -9 ticks to start the week as I again need to relearn the lesson of why my mother always told me not to play in the chop zone.

 

This is the proper way to behave when visiting the Chop Zone: sit on your hands and take your cues from the last real high and last real low.

 

 

 

Best Wishes,

 

Thales

[fxThunder 10]

took off half on GU here - balance at b/e, going to let pa help me detemine exit.

 

UPDATE:

 

out rest of GU - leaving 1 car as a runner

Edited February 8, 2010 by fxThunder

[Mr_black 10]

possible long on YM

[Cory2679 11]

GBP/USD has come up on a level of potential major resistance...

[thalestrader 14]

GBP/USD has come up on a level of potential major resistance...

 

Good eye, Cory. As with the 6E/EURUSD last night, this PA following the high seems to have the character of a pause more than a reversal. And, as price fell short of my BE threshold, I am holding for my targets - 1.5690/1.5782 basis the 6B. Price may have a chance if MidK would stop selling right here!

 

We shall see ...

 

 

Best Wishes,

 

Thales

[Mr_black 10]

possible long on YM

I cancel my stop buy

[johnjohn1hew 10]

The Effective Trader

 

"To be of no-mind” (mushin) means the “everyday mind” (heiji-shin), and when

this is attained, everything goes on well. In the beginning, one naturally endeavors

to do his best in handling the sword, as in learning any other art. The technique has

to be mastered. But as soon as his mind is fixed on anything, for instance if he

desires to do well, or to display his skill, or to excel others, or if he is too anxiously

bent on mastering his art, he is sure to commit more mistakes than are actually

necessary. Why? Because his self-consciousness or ego-consciousness is too con-

spicuously present over the entire range of his attention which fact interferes with a

free display of whatever proficiency he has so far acquired or is going to acquire. He

must get rid of this obtruding self- or ego-consciousness and apply himself to the

work to be done as if nothing particular were taking place at the moment. When

things are performed in a state of “no-mind” (mushin) or “nothought” (munen),

which means the absence of all modes of self- or ego-consciousness, the actor is

perfectly free from inhibitions and feels nothing thwarting his line of behavior. If he

is shooting, he just takes out his bow, puts an arrow to it, stretches the string, fixes

his eyes on the target, and when he judges the adjustment to be right he lets the

arrow go. He has no feeling of doing anything specifically good or bad, important

or trivial; it is as if he hears a sound, turns around, and finds a bird in the court. This

is one’s “everyday mind.”"

[Mr_black 10]

long @ 51 on YM target 10010 stop 9920

[Mr_black 10]

long @ 51 on YM target 10010 stop 9920

stop was hit....eating all my ym points ....done for today

[thalestrader 14]

I am holding for my targets - 1.5690/1.5782 basis the 6B. Price may have a chance if MidK would stop selling right here!

 

MidK was a relentless seller, and I am out for -22 ticks.

 

Best Wishes,

 

Thales