A fresh start! Doji's Trading Journal

If you don't know where to start, start here! Don't be afraid to ask questions.

Moderator: moderators

Dan
rank: 50+ posts
rank: 50+ posts
Posts: 89
Joined: Thu Jul 05, 2012 9:45 am
Reputation: 21
Location: Sydney
Gender: Male

Postby Dan » Wed Jul 03, 2013 10:17 am

MightyOne wrote:
Dan wrote:AUS/USD really gave me a hard time last week so thought i'd try a jpy pair.
I notice that zline's are respected more? Got out shortly after this trade.


I was going to respond earlier but K-lik wouldn't load.

With small charts, I would wait for price to spike with a significantly larger range than that found in the recent price history:

Image


If you condense your chart then you will see a long uptrend, recently broken, with a double top to trap short sellers.
When you believe that traders are likely to be trapped then it is a good idea to both trade a little larger and wait a bit longer than you normally would.

On 5 minute and smaller charts, you can almost always afford to wait for a candle to close and liquidate at the highest price.
There is only one highest high or lowest low so use that to your advantage when closing orders.


Thanks for your advice, just to be clear though, re my trade: are you saying to staying in would be the best option because it's making new highs?

Reason I took profit there was because I only have 3-4 hours to trade every night and i'm thinking if I can get 20-40 pips a night with reasonably safe stops I can lot them up and actually make some money.
That's the plan anyway.

Thanks again.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

seacap
rank: <50 posts
rank: <50 posts
Posts: 31
Joined: Thu Apr 04, 2013 8:01 am
Reputation: 0
Gender: None specified

Postby seacap » Wed Jul 03, 2013 9:54 pm

MightyOne wrote: The extreme at which your stop is placed is the period that you are trading.

You don't need pips more than you need a good position and larger lot size; position is your measure of safety and size is what makes money.

When you trade short term charts, you should trade about 50% larger and aim to take profits quickly.
When you have good position then you should focus on accumulation where your position naturally trails the extremes as you add to your lot size.

Don't worry about risk reward ratios as maxing out your lot size takes care of that automatically.


Ok, the question is: how to choose a good(right) position?

seacap
rank: <50 posts
rank: <50 posts
Posts: 31
Joined: Thu Apr 04, 2013 8:01 am
Reputation: 0
Gender: None specified

Postby seacap » Wed Jul 03, 2013 10:04 pm

How about this?
Attachments
eurusdh1.png
eurusdh1.png (21.86 KiB) Viewed 809 times
eurusdm15.png
eurusdm15.png (20.91 KiB) Viewed 809 times

forexjpn
rank: 150+ posts
rank: 150+ posts
Posts: 162
Joined: Thu Mar 04, 2010 3:16 pm
Reputation: 42
Gender: Male

Postby forexjpn » Thu Jul 04, 2013 4:20 am

Seacap,

I'm sure you'd rather hear from the pros here, but 2 things I would say about the entries above...........
1. I believe according to Seiden, price should not stay at the level for too long to be considered a 'good' level
2. Wide range bars that come after a long run often signal 'the end'.
VSA(Volume Spread Analysis) helped me a lot in identifying these, although I don't use volume anymore........ it 'trained' me to see them

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5877
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 1321
Gender: Male

Postby MightyOne » Thu Jul 04, 2013 10:15 pm

Dan wrote:
MightyOne wrote:
Dan wrote:AUS/USD really gave me a hard time last week so thought i'd try a jpy pair.
I notice that zline's are respected more? Got out shortly after this trade.


I was going to respond earlier but K-lik wouldn't load.

With small charts, I would wait for price to spike with a significantly larger range than that found in the recent price history:

Image


If you condense your chart then you will see a long uptrend, recently broken, with a double top to trap short sellers.
When you believe that traders are likely to be trapped then it is a good idea to both trade a little larger and wait a bit longer than you normally would.

On 5 minute and smaller charts, you can almost always afford to wait for a candle to close and liquidate at the highest price.
There is only one highest high or lowest low so use that to your advantage when closing orders.


Thanks for your advice, just to be clear though, re my trade: are you saying to staying in would be the best option because it's making new highs?

Reason I took profit there was because I only have 3-4 hours to trade every night and i'm thinking if I can get 20-40 pips a night with reasonably safe stops I can lot them up and actually make some money.
That's the plan anyway.

Thanks again.


A good reason to stay in would be the bear trap that was sprung (broken uptrend + double top).

A significantly larger range or nearly vertical trend is a good reason to exit & you can nearly always liquidate at the highest price on a small chart.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5877
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 1321
Gender: Male

Postby MightyOne » Thu Jul 04, 2013 11:09 pm

seacap wrote:
MightyOne wrote: The extreme at which your stop is placed is the period that you are trading.

You don't need pips more than you need a good position and larger lot size; position is your measure of safety and size is what makes money.

When you trade short term charts, you should trade about 50% larger and aim to take profits quickly.
When you have good position then you should focus on accumulation where your position naturally trails the extremes as you add to your lot size.

Don't worry about risk reward ratios as maxing out your lot size takes care of that automatically.


Ok, the question is: how to choose a good(right) position?


3-day extremes are pretty safe places for your stop loss.

Use a 30-60 minute chart to guide you until the large chart conforms & then trade the large chart.

Use the smallest chart that is not moving sideways to time your trades.

seacap
rank: <50 posts
rank: <50 posts
Posts: 31
Joined: Thu Apr 04, 2013 8:01 am
Reputation: 0
Gender: None specified

Postby seacap » Fri Jul 05, 2013 7:07 am

MightyOne wrote:
seacap wrote:
MightyOne wrote: The extreme at which your stop is placed is the period that you are trading.

You don't need pips more than you need a good position and larger lot size; position is your measure of safety and size is what makes money.

When you trade short term charts, you should trade about 50% larger and aim to take profits quickly.
When you have good position then you should focus on accumulation where your position naturally trails the extremes as you add to your lot size.

Don't worry about risk reward ratios as maxing out your lot size takes care of that automatically.


Ok, the question is: how to choose a good(right) position?


3-day extremes are pretty safe places for your stop loss.

Use a 30-60 minute chart to guide you until the large chart conforms & then trade the large chart.

Use the smallest chart that is not moving sideways to time your trades.


We have 3 multi-day extremes. Which direction should we trade?
Attachments
eurjpydaily.png
eurjpydaily.png (23.37 KiB) Viewed 628 times

seacap
rank: <50 posts
rank: <50 posts
Posts: 31
Joined: Thu Apr 04, 2013 8:01 am
Reputation: 0
Gender: None specified

Postby seacap » Fri Jul 05, 2013 7:16 am

forexjpn wrote:Seacap,

I'm sure you'd rather hear from the pros here, but 2 things I would say about the entries above...........
1. I believe according to Seiden, price should not stay at the level for too long to be considered a 'good' level
2. Wide range bars that come after a long run often signal 'the end'.
VSA(Volume Spread Analysis) helped me a lot in identifying these, although I don't use volume anymore........ it 'trained' me to see them


1. I see many of you guys like Seidens theory. But why? He makes more money teaching than trading. His theory has a lot of flaws. He says: "price should spend 2-4 candles at a good level". Ok, switch timeframe to a lower one and you can see 6-8-10-16 candles instead of 2-4. So this makes this level "bad". Or you can switch timeframe to a higher one, then you will see a 1-2 candle level, which makes the level "a pivot low"- again not a valid supply/demand zone according to Seidens definition.

2. I am familiar with VSA. Wide range bars with high volume often indicate a breakout of a level.

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5877
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 1321
Gender: Male

Postby MightyOne » Fri Jul 05, 2013 4:35 pm

seacap wrote:
MightyOne wrote:
seacap wrote:
MightyOne wrote: The extreme at which your stop is placed is the period that you are trading.

You don't need pips more than you need a good position and larger lot size; position is your measure of safety and size is what makes money.

When you trade short term charts, you should trade about 50% larger and aim to take profits quickly.
When you have good position then you should focus on accumulation where your position naturally trails the extremes as you add to your lot size.

Don't worry about risk reward ratios as maxing out your lot size takes care of that automatically.


Ok, the question is: how to choose a good(right) position?


3-day extremes are pretty safe places for your stop loss.

Use a 30-60 minute chart to guide you until the large chart conforms & then trade the large chart.

Use the smallest chart that is not moving sideways to time your trades.


We have 3 multi-day extremes. Which direction should we trade?


3-day extremes... stop loss.

Use a 30-60 minute chart to guide you (higher/lower than "something"?) until the large chart conforms & then trade the large chart.

Use the smallest chart that is not moving sideways to time your trades.

User avatar
dojirock
rank: 1000+ posts
rank: 1000+ posts
Posts: 1743
Joined: Tue Nov 17, 2009 10:11 pm
Reputation: 469
Gender: Male
Contact:

Postby dojirock » Sat Jul 06, 2013 5:57 am

Light trading this week.
2nd of two.
Attachments
eurjpym5.png
eurjpym5.png (53.5 KiB) Viewed 559 times
It always takes Momentum to break Momentum!
"A small loss is just as satisfying as a large gain" -MO
"Sometimes we need to stop learning and start thinking...."
"Once you stack, you'll never go back!"

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “beginners forum”