My trading story - part 2

[pmha]

Originally Posted by Ek0

You bring up a good point which I will discuss my method of doing it.

My hardest problem when first begining trading was that I didnt understand how to frame price. Bollinger bands did not always work. Pivot points and general S/R levels did not work. (Hes right, these are pretty much useless in a sense...)

One thing to remember... NOTHING works always. I stress to you, always take a mental snapshot of the market and see what the market is doing. Range bound? Trending? Is there a reason that its range bound? Is there news?

You MUST ALWAYS look at the market before doing any sort of trading and understand what you should be looking for in that pair from past price. Categorize it the pair and price and if you cannot... I suggest you stay out.

S/R levels, how I find them, and how I use them...

Historic points in price (4 hour, daily, weekly, and monthly)

I will ALWAYS before entering a trade look at the following time frame charts to see where price is at. I have found historic highs and lows are extremely relevant and are taken into consideration by all traders and banks.

Zoom out on these charts... draw support and resistance levels on points of consolidation. The more times a line is tested gives the line more relevance that yes... this is a pertinent point in price which means that it is being considered by the market.

Highs and lows are extremely pertinent especially on the slower charts, daily, weekly, and monthly.

Compare current price to where it is in comparison to these support and resistances. If not near any on the slower charts such as monthly or weekly... head to faster charts and try to find them on 4 hour charts. I would not try to find S/R on charts any faster than a 4 hour chart.

Also, I keep track of fibonacci levels on these charts also.

100 EMA

I have found the 100 day ema to be an extremely relevant barrier. (To give credit, I took this from the bunnygirl crossover strategy). As she has said, I will never trade towards the 100 EMA unless there is space to make enough pips or I truly believe that it will break the 100 day ema.

Try throwing it onto a chart, you will see how price actually does react around the level of the 100 day ema. To me, it is an extremely relevant resistance or support.

EMA Crossover - (5 crossing 20) Also taken from the bunnygirl crossover strategy.

When the 5 EMA heads towards the 20, this is another support or resistance and only three things can occur.

1.) Bounce of the 5 ema off the 20 (usually tends to happen in a trend)
2.) Crossover leading to basically possible gains until the next support or resistance.
3.) It bounces or crosses and consolidates. Basically... the lines merge or move sideways.

I have found this to be extremely relevant.

Bollinger bands and trend channels can also be useful. I would consider a bollinger band or trend channel to be relevant once the price as bounced off the higher and lower lines at least twice. From there you have to consider bounces and breaks.

Trading support and resistance levels is the way to go. If you dont understand... I will start saving pictures of how I draw out my charts and post them. Just ask otherwise I will not. =]

Thanks for your answers eko,

No need to post charts for me , im fully aware of the relationship between price and s/r and the importance that it has to being successfull as a trader.

Its amazing how most people dismiss it or dont bother to learn it and apply it correctly.

Yesterday i had i fantastic day trading close on to 200 pips profit and today im well over that.

Through hard work and many thousands of hours of screen time i used a process of elimination to find what works and what doesnt , to this day i have never ever seen or heard of a way to find s/r levels as accurately as the method i developed over this time.

pmha

[Ek0]

Originally Posted by pmha

Through hard work and many thousands of hours of screen time i used a process of elimination to find what works and what doesnt , to this day i have never ever seen or heard of a way to find s/r levels as accurately as the method i developed over this time.

pmha

Isnt this the truth.

For the new traders. I read two books on how to trade the forex and found they were completely useless to me. Why? I didnt understand half of the things they were talking about such as a deeper understanding.

They can tell you to make a 30 pip stop loss but it doesnt mean its always right.

The forex itself is the BEST teacher. No one can tell you what works and what doesnt until you trade the forex yourself because following rules when you dont even understand why is pointless.

The trick to trading is developing a methodology that makes sense and which you understand WHY it works.

If you cannot explain why your methodology works there is a serious problem and I personally will say that I can assume that you will not be extremely profitable unless you're lucky. You might be able to break even if you're lucky even.

Develop a methodology... Understand why it works and when. This is more important than anything when it comes to trading. Im sure all traders will agree.

**PLEASE NOTE**

People who should NOT trade are people who cannot learn from their mistakes. You will never become a successful trader if you have a serious ego problem, just cannot think critically, or have no discipline. It doesnt mean that you cant learn though.

Another thing... people who refuse to have an attention to detail while keeping an idea of the larger picture. The best traders are traders who always keep everything and all information on their mind. Why? Just think about it.

Finance is truly about making almost no mistakes. Finance is quite possibly the fastest way to make money in this world legally. High risk vs high reward. You can make money VERY fast in the forex... you can also lose money even faster. It is about keeping ALL information constantly in your mind and truly keeping all that information in mind when making your trades. Banks understand this... thats why they have research groups and their traders are well informed of all fundamental factors. This is the age of information. Attention to detail while keeping the big picture in mind... Trading becomes easier as you spend more time with it and the things you need to keep in mind become natural. However, its not easy to keep in mind 30 different factors constantly when making every trade.

Remember this... Do you think the market makers, banks, and hedge funds care about you? Trading is about YOU making money. The banks feel the same way. Dont let people take your money.

In poker I have a saying... "You have to play with the "in it to win it" mentality. If not, you're going to lose in the long run because other people ARE playing to win. Trade to win... otherwise dont trade at all.

You think you can make money without being thorough with your analysis?

Just remember... the most brilliant people in the world are trading against you. You are trading with governments, finance groups, hedge funds, banks, and ALL other traders...

Dont think you can be an amazing trader with a half ass approach to it.

However, trading and about getting to being profitable is basically making mistakes and learning how to not make them anymore. Thats how I learned. I basically began to read resources and tried to understand what the banks and profitable traders are doing and what I was doing wrong.

PMHA... Id love to hear your methodology on how to find S/R levels.

[pmha]

Hi EK0


i think you probably know the answer that i am going to give to your question
"no".


Im saying no ,not to be awkward , i dont particularly want to reveal something that i spent years trying to understand and perfect, call me selfish but the purpose of my past post was merely to affirm that s/r is the right line to be working" , and to encourage others to look a bit deeper into how the markets work instead of relying on crap systems that are posted all over the forums.

Today i pulled 284 pips trading 4 pairs ,yesterday 195 pips and all this using support and resistance as part of my trading method.

I can tell you trading is so simple just follow what the market is doing ,the price will always give you the clues as to when it is going to move and in which direction.


regards

pmha

[Ek0]

Hehe...

Of course thats understandable. If you explained anyways it may not even work for most because everything involves your system as a whole. Not just the support and resistances

However, to catch pips like that you must be trading slower charts along with fundamentals behind your system with S/R levels.

So much money to be made in the forex. =]

[pmha]

Originally Posted by Ek0

Hehe...

Of course thats understandable. If you explained anyways it may not even work for most because everything involves your system as a whole. Not just the support and resistances

However, to catch pips like that you must be trading slower charts along with fundamentals behind your system with S/R levels.

So much money to be made in the forex. =]

Hi EK0,

The s/r levels would work all systems bases on patterns,reversals ,trends, etc as they are what i call true s/r levels ,unlike pivots etc a s/r levels can go back many years,months,weeks,days etc.

The signals i trade happen on all timeframes and at any time of the day ,price doesnt know what time of day or night it is so if there are big orders in the market at a certain price they will be activated irrespective of news.

The only time i follow the news is NFP day as it tends to nearly always be a sharp burst followed by a retracement so ill modify my exit strategy.

The method i use works on all tradable instruments ,any timeframe and has worked at least to my knowledge for at least the last 25 years so it has stood the test of time these are the true qualities of a robust system.


PMHA

[Ek0]

A pertinent point in price IS a pertinent point in price. However, i feel as though it is a truth that some points in price are definitely more relevant than others.

As you say "true S/R" levels. Which I believe come from historic points in price, wave analysis, and trend line analysis.

As trading is subjective and you find what works for you, Everyone has different beliefs, systems, and methodologies. From what you have said I can only assume that you are a more experienced trader and do longer term trades to catch that many pips.

From what I can tell... sounds like you are a more experienced trader with a methodology and make good decisions. Also I believe to be catching that many pips you must have at least an idea of fundamentals in your mind...

If you are telling me that you are basically a pure technical trader who can make 200 pips a day using ONLY 30 minute charts using only S/R levels; well I find that hard to believe. You wouldnt be able to see historic points in price from years ago with a 30 minute chart or it would take you a long long time to go back and find the years etc and see the movement of price.

Its great to be subjective and keep your secrets to yourself... but come on. Be honest or at least a bit more specific.

I look at all charts, but some are more relevant than others depending on conditions and nothing works all the time thats why you must adapt.

A good trader always adapts to the market.

If you can make 200 pips with only 30 minute charts or even a 15 second chart... I applaud you. However, i would lose my ass trying to do that in terms of risk management and stop losses I would need compared to possible gains.

If you dont want to clarify to keep your system to yourself thats good, but i just find it hard to believe when you make it sound like your system works anytime anywhere. I feel like you're ALMOST indirectly claiming the holy grail methodology or system.

[pmha]

Originally Posted by Ek0

A pertinent point in price IS a pertinent point in price. However, i feel as though it is a truth that some points in price are definitely more relevant than others.

As you say "true S/R" levels. Which I believe come from historic points in price, wave analysis, and trend line analysis.

As trading is subjective and you find what works for you, Everyone has different beliefs, systems, and methodologies. From what you have said I can only assume that you are a more experienced trader and do longer term trades to catch that many pips.

From what I can tell... sounds like you are a more experienced trader with a methodology and make good decisions. Also I believe to be catching that many pips you must have at least an idea of fundamentals in your mind...

If you are telling me that you are basically a pure technical trader who can make 200 pips a day using ONLY 30 minute charts using only S/R levels; well I find that hard to believe. You wouldnt be able to see historic points in price from years ago with a 30 minute chart or it would take you a long long time to go back and find the years etc and see the movement of price.

Its great to be subjective and keep your secrets to yourself... but come on. Be honest or at least a bit more specific.

I look at all charts, but some are more relevant than others depending on conditions and nothing works all the time thats why you must adapt.

A good trader always adapts to the market.

If you can make 200 pips with only 30 minute charts or even a 15 second chart... I applaud you. However, i would lose my ass trying to do that in terms of risk management and stop losses I would need compared to possible gains.

If you dont want to clarify to keep your system to yourself thats good, but i just find it hard to believe when you make it sound like your system works anytime anywhere. I feel like you're ALMOST indirectly claiming the holy grail methodology or system.

Hi, EKO,

Its funny that you talk about the grail because the set up i trade is known as the grail set up originally by Linda Bradford Rachke.

After developing the method i trade myself, i came upon some articles by LBR and realised that i had unwittingly improved upon her version.
This is not to say that it is the holy grail just that it is a method of trading that carries a high probability of success.

Yes i do make mistakes and no i dont make 200 pips per day ,yes i have done on many an occassions.

If you google LBR you will understand some of the statements i made in my previous post.

regards

pmha