Patterns Observation.

[Yirbu]

This week I was playing with some elements from your trading style as I got inspired by your trades.
Objective was to see if and how I could have a trade setup that brings great R and wipe out a session.
(So the patterns and the bias are not in this story)
Hope you don’t mind me posting it at your thread as I haven’t decided yet if I want to start my own thread.

I’m just starting to explore this idea but this is where I am now:

If price is at a previous sessions extreme it will most likely break through or reverse and this will happen right before or after the start of the session.

For the reversals:
Rejection of price above/below the extreme or at the level of the candle that precedes the extreme (SD candle)
(This is the candle that precedes the sessions extreme in the previous session)

For the breakouts:
Haven’t worked on these yet (I find breakouts difficult so I am going to enjoy your post on breakouts)

I know there are elements in this idea I picked from Don, from ICT and probably numerous other places (it might even be an existing idea) but I just can’t remember what came from where and to be honest, it doesn’t matter.

Attached are some examples.
I haven't traded all of these trades but they are good examples of what I mean.
Good thing is they happen multiple times every week and sometimes a couple of times per day.
Some of my entries were really bad and I had to enter 2 or even 3 times but this has more to do with my trading experience than it has with the setup. (Read: I can’t handle 3 pip SL … yet) The setups were there and they worked.
I’m visually backtesting EU and gold as these pairs seem to work out particularly good. (And because EU is my pair now)

What I am going to try now is to detect the good trade setups and don't spend too much time in perfecting the entry. (This is what I did with the deadhorse...watch Aliases screenprints over and over and over and over again to print the setup in my mind)
I can always work on the entry later and maybe the whole idea doesn't work out.

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[Don_xyZ]

Yesterday I also had a bad trading day.
I lost nearly 2.5%.
Today I took a trade "inspired" by Don.
Wiped away all my losses from yesterday

It al started at the top SD zone from Asia.
When London trades into it there are a couple of things that can happen. One of them is reverse from that zone, this is what happened today.
Price went down and bounced on the red line (previous H1 support) and came back up. I took 28pips.
Now the m5 was making a swing and I went down again with price.
Took a cup of coffee but price rallied back up so I closed it at BE.
When price filled that tiny FVG I went short again (at nearly the same price as before) and took another 21 pips.
Price went right to a previous support of the H1 (which was the target) at x20 but I wasn't fearless enough to keep it past X15.

I was thinking about a setup like this all weekend so I am really happy it worked out.

220816 - EURUSD.png

Good. I'm happy for you too. I can see that you have progressed well. I hope you'll keep posting in the forum as well coz many went missing as soon as they get what they want from kreslik lolz

There are situations you can risk more as you suggest on a funded account. A 2 pip SL is 1.6% risk and a 3 pip SL is 2.4%. You can do these after a few percent are gained that day.

If you hit a 10R using .5% risk early then bumping the risk up to 1% could make some nice gains. There are various ways to do it. The key is it has to be done in one day because it starts over each 24 hour period.

Yes, using more risk is in line with the funded account model. However, there are times where the anchor trade hit first before we have a buffer to do the parlay/risk gearing. Also, there are times when we don't get a chance to do parlay at all because the momentum is just too strong up or down.

I was experimenting a bit with the bigger risk but blew my new trial account at FTMO, ha, ha.
Guess I need to do it a bit more careful.

Don't worry about me leaving.
I will most likely post a bit less because I need to start my day job again soon.
This week I have been trading the deadhorse and figuring out how I can wrap my trading around my dayjob.
I think I might scale up to a higher tf on the deadhorse and or trade some days in the NY session after lunch on indices.

Also I have been working on a trading approach of my own.
Not there yet but thanks to you guys it's progressing.
I'll explain in an other post.

Owh, that's too bad.

When you do parlay you must be uber picky with your entries because now that you use bigger risk your chances to get it right (and encounter loss) is more limited. I would suggest you to go to a bigger tf if you don't have a thick list of WIL for your trade grading because at least the bigger tf will limit your trade count.

I'm all for people who want to progress and make their own strategies.

This week I was playing with some elements from your trading style as I got inspired by your trades.
Objective was to see if and how I could have a trade setup that brings great R and wipe out a session.
(So the patterns and the bias are not in this story)
Hope you don’t mind me posting it at your thread as I haven’t decided yet if I want to start my own thread.

I’m just starting to explore this idea but this is where I am now:

If price is at a previous sessions extreme it will most likely break through or reverse and this will happen right before or after the start of the session.

For the reversals:
Rejection of price above/below the extreme or at the level of the candle that precedes the extreme (SD candle)
(This is the candle that precedes the sessions extreme in the previous session)

For the breakouts:
Haven’t worked on these yet (I find breakouts difficult so I am going to enjoy your post on breakouts)

I know there are elements in this idea I picked from Don, from ICT and probably numerous other places (it might even be an existing idea) but I just can’t remember what came from where and to be honest, it doesn’t matter.

Attached are some examples.
I haven't traded all of these trades but they are good examples of what I mean.
Good thing is they happen multiple times every week and sometimes a couple of times per day.
Some of my entries were really bad and I had to enter 2 or even 3 times but this has more to do with my trading experience than it has with the setup. (Read: I can’t handle 3 pip SL … yet) The setups were there and they worked.
I’m visually backtesting EU and gold as these pairs seem to work out particularly good. (And because EU is my pair now)

What I am going to try now is to detect the good trade setups and don't spend too much time in perfecting the entry. (This is what I did with the deadhorse...watch Aliases screenprints over and over and over and over again to print the setup in my mind)
I can always work on the entry later and maybe the whole idea doesn't work out.

220818 - XAUUSDM5.png

220819 - XAUUSDM5.png

220817 - EURUSDM5.png

ROFL.... it is my stuff because you've read it from here

post150731#p150731

Scenario 1. Let the Asian session define the extreme, attack it during the European session.

As for the breakout... it's my FTR concept. Check it again.

The idea does work but I've since moved on coz I've found a way to tackle the problems presented by using Asian extreme. Maybe you won't encounter those problems because you might be trying to look at other stuff than the ones I was paying attention to.

[Yirbu]

ROFL.... it is my stuff because you've read it from here

post150731#p150731

Scenario 1. Let the Asian session define the extreme, attack it during the European session.

As for the breakout... it's my FTR concept. Check it again.

The idea does work but I've since moved on coz I've found a way to tackle the problems presented by using Asian extreme. Maybe you won't encounter those problems because you might be trying to look at other stuff than the ones I was paying attention to.

Ha, ha, ha, ha, ha...this is funny...
Well...at least I am at the right place...

[Don_xyZ]

I haven't seen this before, but after looking at them for some time I'll take a shot:

BO 1: You drew the fib off that M1 swing. Use the 50% to check if price retraced at least to that point and the go short at the entry line?
BO 2: This time the fib is drawn off the swing after the first, which this time is in the opposite direction. I assume now you'd take the break short? (Don't know if you use the 50% here).
BO 3: Looks like the first one. Swing and wait for a pullback to the 50% then short.

These 3 you say they're similar but they're not, maybe there's some candle-by-candle stuff on all of these that I'm not picking up.

BO 4: If I saw this after a run I'd be hesitant to go in that direction because it stopped doing what it was doing and could reverse. But since you say it's momentum based, the idea is "price stopping" and then continuing? Or do you mean as a strong move that happened within that M1 candle that would make you take the break?

BO 5: In that one I see the continuation of a reversal pattern at the bottom; being the long bar the one that you take the break off (I mean, after you draw the fib, entering on the green candle after the small red candle).

BO 6: First time I hear about that one. But I don't think I'm seeing how you used that candle to draw the fibs off that one, seemed like it was still within that range.

Could you go into one of those? Maybe the 'simpler' to get a grasp on that one.

---

One more question. Do these entries follow a specific set of rules (in terms of candle by candle) or is it more about entry patterns that look 'about there'?

The first 3 methods are the simplest because many people are using them. They may have different filter than me but the general idea is most likely the same.

But I will tell about #4. It's fairly a simple one, it's based on immediate momentum. This is a 3-bar play.

EURUSDM1 BO 4.png (52.14 KiB) Viewed 1935 times

The general rules are:

1. Have a bias of where the market is from and possibly going to
2. check the validity of the 3 candles
3. the first candle (the initiation candle) must be smaller than the second candle
4. the second candle must be bigger than both the first and last (third) candle
5. the third candle must be smaller than the second candle both in body and entire range
6. open a pending stop order into the direction of the momentum. if it's a sell order then the pending stop order is at the low of the third candle
7. SL at the high of third candle
8. TP is 1R but if you think you can stretch it, do it. Just make sure the momentum is backing you up strongly. When in doubt, just get out at 1R.

These rules are not everything there is coz I have my WIL and I strongly suggest you also use yours.

Hope you like it.

[Don_xyZ]

They say you have to enter after a confirmation or a trigger or this candle formation and that formation.
But what if you can enter at a place where other people don't even think about? Like when go short when the candle is looking bullish or go long when the candle when the candle is bearish? Like this one...

EURUSDM5 ghost entry.png (50.87 KiB) Viewed 1841 times

38 pips. 95 R. 1 trade. Enter at the close of the red bar. Super aggressive trade.

This trade can only happen if you have 0 spread and a very low commission.

I explored this concept some months back and this is the reason how someone can make hundreds of R in one go. The Ghost Entry, the Sub 1 pip SL trade. Yes, they do exist. I'll give more examples later for the curious minds of Kreslik.

[Yirbu]

They say you have to enter after a confirmation or a trigger or this candle formation and that formation.
But what if you can enter at a place where other people don't even think about? Like when go short when the candle is looking bullish or go long when the candle when the candle is bearish? Like this one...

EURUSDM5 ghost entry.png

38 pips. 95 R. 1 trade. Enter at the close of the red bar. Super aggressive trade.

This trade can only happen if you have 0 spread and a very low commission.

I explored this concept some months back and this is the reason how someone can make hundreds of R in one go. The Ghost Entry, the Sub 1 pip SL trade. Yes, they do exist. I'll give more examples later for the curious minds of Kreslik.

I am curious

[Jhx]

They say you have to enter after a confirmation or a trigger or this candle formation and that formation.
But what if you can enter at a place where other people don't even think about? Like when go short when the candle is looking bullish or go long when the candle when the candle is bearish? Like this one...

EURUSDM5 ghost entry.png

38 pips. 95 R. 1 trade. Enter at the close of the red bar. Super aggressive trade.

This trade can only happen if you have 0 spread and a very low commission.

I explored this concept some months back and this is the reason how someone can make hundreds of R in one go. The Ghost Entry, the Sub 1 pip SL trade. Yes, they do exist. I'll give more examples later for the curious minds of Kreslik.

If I were looking at the RR lines from the fib and those candles I would think that's a HTF chart and there was an entry in much lower timeframe. Then I look at the TF and it's an M5 chart

[Yirbu]

This is what I was working on (when I thought I was original but actually took Don's idea).
The only thing is that I actually forgot that I was in it because I was on the phone, ha, ha, but is still fun to see.

Besides from being late it worked out. In reality I don't know if I would stay in that long.
That second down candle after the up move on the m5 would have tested my nerves and I probably would have closed half.

Not all of the text is in the pic. Should be: "this is asian session LOW" and "this is yesterday's LOW". etc...fill in the missing words

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[Don_xyZ]

More than 130 R ++ today but nuff said. Monstrous R. Now… charts…

Ghost entries are not that often on M5 but it’s there. Sub 1 pip is even more uncommon. This one is straight off M1. So far I gave you a trend following stuff but now I’m gonna show you the other side of the game, the counter trade. On a big TF (D1). It’s still a daily anchor trade. That fib tool is 60R wide and it’s the max but I’m too lazy to add another one to show the total R coz it still won’t fit anyway lolz welcome to my world.

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Now you see that when I said 300 to 500 R a trade a few posts back, it’s really not that far from reality questions are…can you find the entry? Can you hold it?

I have now given you another food for thought for your weekend. Hope it suit your palate.

Enjoy your weekend folks!

[Don_xyZ]

Out of the 3 common breakoits method I posted, #2 is the most favorited by a lot of BO traders because it’s based on the most recent retracement. It can do this….

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