Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

thalestrader

Reading Charts in Real Time

Recommended Posts

In an effort to learn from the breakout masters here. I'm posting a USD/JPY trade idea from my FXGame account. The 15m chart shows the limit sell order (orange) and 2 profit targets set into the market, each for 1/3 of the position. The stop is just on the other side of that small range we see on the 15m at 90.43. The long term daily trend is down as can be seen from the other screenshot. I'll update more if it gets filled.

5aa70f4bd911a_MK01_03_Nov_2009.thumb.png.94c6f97d3a0dd351e71bd38eadcba523.png

5aa70f4be0a9a_MK02_03_Nov_2009.thumb.png.6cfe13ef4132881f5884f36723cdcf2f.png

Share this post


Link to post
Share on other sites

Quick look at the 6J.

Looks like a reasonable breakout level given past price reactions to it. The quick move up that that level always worries me. If the move up to the S/R level is large and fast, it seems like a lot of the momentum is already used up by the time we get the breakout. I would rather have tight price action just below the breakout point and then have all the momentum stored up for when the breakout occurs.

 

Thales, do you prefer a certain type of price action sequence just before a breakout?

 

attachment.php?attachmentid=14801&stc=1&d=1257201365

5aa70f4be8791_11-2-20097.thumb.png.d1c0c84840ef7d0a72aabf649e3eaebe.png

Share this post


Link to post
Share on other sites
In an effort to learn from the breakout masters here. I'm posting a USD/JPY trade idea from my FXGame account. The 15m chart shows the limit sell order (orange) and 2 profit targets set into the market, each for 1/3 of the position. The stop is just on the other side of that small range we see on the 15m at 90.43. The long term daily trend is down as can be seen from the other screenshot. I'll update more if it gets filled.

 

Gabe is going to love your charts.;)

Share this post


Link to post
Share on other sites
I would rather have tight price action just below the breakout point and then have all the momentum stored up for when the breakout occurs.

 

Thales, do you prefer a certain type of price action sequence just before a breakout?

 

I have no preferences, as a break is a break is break to me. However, there is something to be said for a strong move such as you show on the 6J up to a resistance level, followed by tight price action (perhaps for several bars). But I have learned over the years not to make moral judgments about price action. This is simple stuff - do not over think it. For example, where does the notion that that a quick move might "use up" the "momentum" necessary for the break out come from? Did I ever say that? If I did, I plead temporary something or other. I hope I never said that, or else take me out back and shoot me.

 

Best Wishes,

 

Thales

Share this post


Link to post
Share on other sites

3 hour chart of gbp/jpy looks good to me. There is enough 'air' for a move either way, especially to the downside. I'm not sure which one someone would use for a downside break. I thought the upper line was more 'valid' and could take some profits near the spike low....but I don't know. Any thoughts?

5aa70f4bf1979_MK03_03_Nov_2009.thumb.png.ae798c00c1949c823d644cd09edfdbcf.png

Share this post


Link to post
Share on other sites
I have no preferences, as a break is a break is break to me. However, there is something to be said for a strong move such as you show on the 6J up to a resistance level, followed by tight price action (perhaps for several bars). But I have learned over the years not to make moral judgments about price action. This is simple stuff - do not over think it. For example, where does the notion that that a quick move might "use up" the "momentum" necessary for the break out come from? Did I ever say that? If I did, I plead temporary something or other. I hope I never said that, or else take me out back and shoot me.

Thales

 

Nope, you never said that. Those were my own ideas in trying to interpret price action. So many fail at trading breakouts that my hope would be to add some notions of "statistical advantage" in deciding whether to take a breakout or not. Somehow you have to filter through every breakout you see in order to just take the best ones. I am still on that journey.

 

I will try not to over think it though. I really wish it were simple.

Thanks.

Edited by Dinerotrader

Share this post


Link to post
Share on other sites
3 hour chart of gbp/jpy looks good to me. There is enough 'air' for a move either way, especially to the downside. I'm not sure which one someone would use for a downside break. I thought the upper line was more 'valid' and could take some profits near the spike low....but I don't know. Any thoughts?

 

I still suck at this but I would pass on a breakout to the down side because of the one large down bar unless I was looking at a smaller time frame with a much smaller breakout profit target. My :2c:

Share this post


Link to post
Share on other sites

Thanks for the comment Dinero.

 

I'm a forum posting machine this morning. Here is another one I liked. GBP/CHF. This one is filled (by the orange triangle) with a stop on the other side of the range. We'll see how she goes....

5aa70f4c5b05d_MK05_03_Nov_2009.thumb.png.ab0a660ad6e2f60b672eb62d4fef11eb.png

Share this post


Link to post
Share on other sites
Thanks for the comment Dinero.

 

I'm a forum posting machine this morning. Here is another one I liked. GBP/CHF. This one is filled (by the orange triangle) with a stop on the other side of the range. We'll see how she goes....

 

Pretty much filled me at bottom tick, not looking so good.

5aa70f4c64d17_MK06_03_Nov_2009.thumb.png.83c9b27c0e25ffadf068626295a1b235.png

Share this post


Link to post
Share on other sites
In an effort to learn from the breakout masters here. I'm posting a USD/JPY trade idea from my FXGame account. The 15m chart shows the limit sell order (orange) and 2 profit targets set into the market, each for 1/3 of the position. The stop is just on the other side of that small range we see on the 15m at 90.43. The long term daily trend is down as can be seen from the other screenshot. I'll update more if it gets filled.

 

Shorts canceled on USD/JPY, once Tokyo opened, the market decided to go up.

5aa70f4c6f842_MK07_03_Nov_2009.thumb.png.7a4f80061c9614b85ff260aaa8700199.png

Share this post


Link to post
Share on other sites
So many fail at trading breakouts that my hope would be to add some notions of "statistical advantage" in deciding whether to take a breakout or not.

 

Perhaps you ought first to consider why so many fail at something so easy. You are looking for a solution without first knowing the problem.

 

Somehow you have to filter through every breakout you see in order to just take the best ones.

 

This thought has me worried for you. It seethes danger. Banish from your thought the concept that trades must be "filtered." You will end up with the many who fail. Guaranteed.

 

I will try not to over think it though. I really wish it were simple.

 

It really is that simple, though. Don't be like me and take ten years to accept this fact.

 

Here is a suggestion (and this isn't just for you, Dinero, but anyone who wants to learn to trade price without using indicators and opinions and conjectures and unsubstantiated and unnecessary theories): Why not take a week, and watch a 15 minute chart of the EURJPY or the EURUSD or the 6J or the 6E, and just focus on what happens if you bought the break up of every low-high-higher low-higher high pivot sequence and sold short every high-low-lower high-lower low pivot sequence.

 

Just mark off the high and low pivots, and make it mechanical if you'd like: Buy stop above a high, with an arbitrary 15 or 20 tick stop loss, and a 30 tick Profit target. Just go ahead and see how you do. Paper trade it - as I stated elsewhere, paper trading is marginally useful, and here is an example of where it can be useful.

 

If you do this for a week, you will learn to read price action in a way that will put you solidly on track to where you want to be. One week. You should mark each high (H) and each low (L) and when the market turns, you should have an (H) pivot, followed by an (L) pivot, followed by a Lower High pivot (LH) followed by a Lower low (LL). If price makes a high and pulls back to a low and then rallies to the exact high tick of the previous high and then begins to pull back, consider that a Lower High unless it is bettered (and vice versa for two equal lows).

 

I did it to my chart for the last couple of days so you can see what I mean (I did this quickly so if I made an error let me know and I'll correct it). This is it - this is the big secret. My currency trading friend always says "its all about highs and lows, higher highs and higher lows, lower highs and lower lows, and support and resistance."

 

Try this for one week. Post your chart at the end of the day here and if you have any questions I'll help you. I'll help anyone here who will put in the effort and post his or her chart (I prefer not to do this through PM as this should be individual efforts that benefit all of us as a group). I would bet that anyone who does this for one week will, after that week, have much more confidence in his or her ability to watch price and determine whether to buy, sell, or wait. I'd bet even Gabe would be willing to shed his MA's forever.

 

Best Wishes,

 

Thales

5aa70f4c75f0a_ThalessSecret1.thumb.jpg.3c6a727de541ab5e9aba5f8acbd94ee7.jpg

Share this post


Link to post
Share on other sites
How you doing now?

 

Best Wishes,

 

Thales

 

Doing better, but still not hit my close first scale. What has been hard here is the duration of the trade. I don't know how many times I've said to myself "this trade is over". In the chart, you can see the horizontal red line, that is my stop. I have moved it 10 pips beyond the last swing high just below 1.6760.

5aa70f4c7f6c6_MK08_03_Nov_2009.thumb.png.58fc48108f751b0466055c50436d9a72.png

Share this post


Link to post
Share on other sites

Current look at the EURUSD - No need to filter. You take your swings. Most of the time you will reach base. Sometimes you hit a home run, maybe even a grand slam. Other times, you strike out.

 

Best Wishes,

 

Thales

5aa70f4c84f97_11-02-2009EURUSD1.thumb.jpg.76fe4c8ab38a50b9e324ed3b19539c86.jpg

Share this post


Link to post
Share on other sites
Perhaps you ought first to consider why so many fail at something so easy. You are looking for a solution without first knowing the problem.

 

I try to spend a lot of time considering why so many fail and there seems to be a handful of various reasons that are apparently very hard to overcome since, like you said, most fail. I will try to think through this more and post a concise answer.

 

This thought has me worried for you. It seethes danger. Banish from your thought the concept that trades must be "filtered." You will end up with the many who fail. Guaranteed.

 

I understand what you mean in some ways but in general, the act of filtering trades is fundamental to having a reasonable entry point. I wouldn't think you would recommend anyone enter at random points on a chart (even TRO filters his trades) and just try to manage your way into a reasonable trade.

You would suggest, as you did in your post, that you find a "L, HL, LL" sequence of price action which would give you better odds for the price going the direction of your entry. So I suppose you are saying that there is a balance between random entry points and trying to determine a "holy grail" entry point which you need to strike and you appear to be suggesting that the "H,HL,HH" sequence is enough to get you the edge and further "filtering" will not only be a waste of time but it will likely keep your from taking profitable trades. Let me know if I am following you correctly or if I am way off.

 

I will work on taking your challenge of posting a chart each day, for a week of the EUR/JPY. I will do my best to do this each day.

 

Thanks.

Share this post


Link to post
Share on other sites

Finally a little love on this gbp/chf short. Been over 4 hours so far. 1/3 has been exited for an average gain of 25 pips. The horizontal red line is my stop sitting at BE. I gotta say, this has been a very humbling experience though as at least a dozen times (probably more) I was sure the market wouldn't go any lower.

 

Any comments on this entry, too aggressive? range not picked well?

 

With thanks,

MK

5aa70f4c8dcd5_MK09_03_Nov_2009.thumb.png.aebc91b37f86e64facd646fd30a8ef81.png

Share this post


Link to post
Share on other sites
Current look at the EURUSD - No need to filter. You take your swings. Most of the time you will reach base. Sometimes you hit a home run, maybe even a grand slam. Other times, you strike out.

 

Best Wishes,

 

Thales

 

Price dropped to within 2 ticks of the first profit target, and reversed for a breakeven effort.

 

It may still go to target(s) but I went to BE at 1.4776 - a simple plan.

 

Best Wishes,

 

Thales

5aa70f4c946e2_11-02-2009EURUSD5.thumb.jpg.1aa0a8b9b6989934b569987fe91e7363.jpg

5aa70f4c9a803_11-02-2009EURUSD6.thumb.jpg.4df74ce0c48f40aa2a9b69f1a89af8e5.jpg

Share this post


Link to post
Share on other sites
Finally a little love on this gbp/chf short. Been over 4 hours so far. 1/3 has been exited for an average gain of 25 pips. The horizontal red line is my stop sitting at BE. I gotta say, this has been a very humbling experience though as at least a dozen times (probably more) I was sure the market wouldn't go any lower.

 

Any comments on this entry, too aggressive? range not picked well?

 

With thanks,

MK

 

You set your entry, your stop, and your targets - a simple plan. You should be very pleased. As my good friend often likes to say, there are folks who trade all week long and can't manage to make a 25 pip profit for all their effort. Congratulations.

 

What was your initial risk?

 

Best Wishes,

 

Thales

Share this post


Link to post
Share on other sites

Cheers Thales. My initial risk was 34 pips. I felt that maybe I entered a bit aggressively by using the wrong range. You can see from my latest post that I entered basically at perhaps a more significant low and maybe that instead should have been the breakout point. As can be seen now that it has happened, once it did finally break this other low, it kept dribbling down and has yet to come back within that range.

Share this post


Link to post
Share on other sites

Thales - great charts. As a lurker here, up until you showed charts w/ those labels, it didn't really click for me. Now it does and if you can get this simple mind around this, just about everyone here has some hope. ;)

 

If post of the month was still going, you'd have my vote hands down.

 

Question: have you tried to automate those H, L labels? Seems like something that could be done. Maybe you have already...

Share this post


Link to post
Share on other sites
I think your entry was fine (I assume you entered at 1.6842 or so). I think you could have used a stop loss above 1.6857 instead of above 1.6874.

 

Best Wishes,

 

Thales

 

OK, I see where you mean - thanks. Had I done it with a stop like that, the R/R could have actually been decent, even at the first target hit. You are nearly correct in your assumption, the entry was 1.6744 (you type 1.68xx, I thought that must be a typo). The trade is still going...hasn't done much and is coming up on the 8 hour mark. Longest hold I've done in years ;)

 

With kind regards,

MK

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • DXCM Dexcom stock, great day off the 69.73 support area, from Stocks to Watch at https://stockconsultant.com/?DXCM
    • Depressions aren't real either... ??
    • Dear B4 #42, I heard you can't get out of bed and decided you were going celibate and shaved your head and “reconsidered” having children.  If it took Trump getting elected to get you to stop fkn every Dum, Harry, and Dick you meet, we’ll take it.  thx Sincerely just sayin’ zdo PS To all the other girls I loved B4 - https://www.youtube.com/watch?v=rVq0ONrSH-Q 😚
    • MDB MongoDB stock watch for a range breakout at https://stockconsultant.com/?MDB
    • Date: 12th November 2024. Market Buzz: Trump Trade Impact! “Trump trade” has boosted the US Dollar and US stocks, but Trump’s policies may have less favorable effects on global assets. Trump’s plan to raise tariffs is expected to negatively impact economies worldwide, especially exporters like China. Asia & European Sessions:   Bitcoin Surge! Bitcoin broke $90K, driven by Trump trade once again. Bitcoin is up roughly 110% in 2024, helped by robust demand for dedicated US ETFs, interest rate cuts by the Federal Reserve and Trump’s cryptofriendly agenda. Crypto market capitalization has exceeded its pandemic-era peak, reaching $3.1 trillion. Traders are betting on Bitcoin reaching $100,000 by year-end, according to data from the Deribit exchange. Open interest — or outstanding contracts — for CME Group Inc. futures for Bitcoin and second-ranked Ether (ETHUSD) scaled records on Monday, a sign of growing engagement by US institutional investors. Asian shares dropped, alongside European and US equity futures, as traders evaluated the implications of President-elect Donald Trump’s policy agenda and potential cabinet choices. The MSCI Asia Pacific Index fell for a third consecutive day, driven by rising Treasury yields amid concerns that Trump’s proposed tax cuts could increase inflation. There are also reports that Trump is considering two individuals for prominent roles in his administration with track records of criticizing China. DAX and FTSE100 are down -1.1% and -0.5% respectively, after a pickup in German HICP inflation and higher than expected UK wage growth dampened easing expectations. Investors await the US CPI report for insights into the Fed’s easing path, as Trump’s inflationary policies may lead to fewer rate cuts. Financial Markets Performance:   The USDIndex continues to rise and is currently at 105.75. It hit a 1-year high. EURUSD drifts to 1.0620 and GBPUSD is in a sell off, currently at 1.2800. Oil prices fell after their biggest 2-week decline, amid a weak demand outlook from China, a stronger US Dollar, and concerns over a potential oversupply. Crude oil has traded within a narrow range since mid-last month, influenced by Middle East tensions, the US election, and OPEC+ output decisions. Gold remains under pressure and is currently at just $2604.36 per ounce. It hit a one-month low, down 5% since Trump’s election victory, as a strong dollar and US equity rotation pressured the metal. Gold’s decline was also technical, breaking below the 50-day moving average, causing funds to cover long positions. Despite recent drops, gold remains up 25% for the year, supported by central bank purchases and geopolitical risks. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.