How to be a MOnster

[Mira]

Ahhh I think I’m grasping the concept behind “continuation” trades.

On a big chart we have a breakout (or a line that has value for us)

A175B773-AD27-43F5-8886-3D8396066BBB.png

On a small chart, if I don’t consider what I have on the left, I’m trading off minor extremes in direction of the original BO.

263ADDF5-E852-4D86-94DF-023288A3AAEB.png

The problem is: will price come back to my line or not?

you enter on the break of the high of the green candle- the one after the Red candle - so you may think you are taking a BO trade - except you already are sitting on a profit .

I believe TRO will enter without being already in profit - he uses statistics (to me there are lies, damned lies and STATISICS)

You should read TRO's Rat Trading Thread

Thank you Captain, you’re right!

BTW I don’t know if I’d buy at the breakout
Then I’d have to wait for price to make a bounce on a lower Line. I mean: the drawdown scares me.

[MightyOne]

I know what continuation trades look like because I am usually sitting on my hands watching them

You take profit, there is a small retrace, & if price starts heading down you continue short.

But you have to keep in mind that you took profit for a reason so in light of that I would continue with half the prev. size
at each continuation point; even if you only squeeze out 1 extra line out of a quartered position that will add significantly
to your profit potential once you stack it.

Compare the candles in the circles that continued with the candles in the circles that reversed.

continuation_trades.png (26.33 KiB) Viewed 3712 times

[thepark]

I am identifying H1 and H4 patterns after a D1 momo which is itself a breakout and shows the HTF direction.

H1


I need to work out on average, whats the best way to enter on M15 at the edge of a H1 or H4 pattern?

Option1: the left cross, on M15 there is a new high, then a close low beyond the extreme. There is a pullback, wait for candle to close, enter.

Option2: the right cross, on M15 wait for a low close extreme that is lower than the previous 5 M15 indicating a breakout. Wait for a pullback in that general BO area. Wait for a down rat to enter.

M15


Which seems better to you?

[Mira]

I know what continuation trades look like because I am usually sitting on my hands watching them

You take profit, there is a small retrace, & if price starts heading down you continue short.

But you have to keep in mind that you took profit for a reason so in light of that I would continue with half the prev. size
at each continuation point; even if you only squeeze out 1 extra line out of a quartered position that will add significantly
to your profit potential once you stack it.

Compare the candles in the circles that continued with the candles in the circles that reversed.

continuation_trades.png

Very nice post MO, thank you!
It helps!

What about the Add&Trail strategy that you was proposing some months ago?
It looks like it could be powerful with EIGHTS.

[prochargedmopar]

I know what continuation trades look like because I am usually sitting on my hands watching them

You take profit, there is a small retrace, & if price starts heading down you continue short.

But you have to keep in mind that you took profit for a reason so in light of that I would continue with half the prev. size
at each continuation point; even if you only squeeze out 1 extra line out of a quartered position that will add significantly
to your profit potential once you stack it.

Compare the candles in the circles that continued with the candles in the circles that reversed.

A reversal has a 123 which is the start of a trend.
Joes law. lol

Continuation candles have many Illusions.
MOs Law. hehehe

IMG_2060.JPG (88.75 KiB) Viewed 3645 times

[Mira]

I knew that it would have been a loss: no break in with momentum, no efforts on bigger charts.. I wanted to be wrong

0EBA3E54-1966-4788-A18A-7FA232C81ADC.png (67.61 KiB) Viewed 3605 times

[Mira]

Covered with this

82E934C8-F84B-454D-9996-47A9FEEF7004.png (59.24 KiB) Viewed 3593 times

[MightyOne]

A reversal has a 123 which is the start of a trend.
Joes law. lol

...

IMG_2060.JPG

A fish would have an easier time breathing sand than a trader using 'The Law of Charts' on short-term Forex charts.

You're taking Aikido into a Judo class, you'll never learn: certain things can look similar while being very different from one another (Poisonous/!Poisonous, etc).

EURUSD_H1.png (21.93 KiB) Viewed 3574 times

[Mira]

This was a try, now i need to trade a H4 chart like this 5m

Schermata a 2017-09-27 17-25-43.png (18.49 KiB) Viewed 3554 times

[prochargedmopar]

A reversal has a 123 which is the start of a trend.
Joes law. lol

...

IMG_2060.JPG

A fish would have an easier time breathing sand than a trader using 'The Law of Charts' on short-term Forex charts.

You're taking Aikido into a Judo class, you'll never learn: certain things can look similar while being very different from one another (Poisonous/!Poisonous, etc).

EURUSD_H1.png

Oh, you'll learn one thing.
A Judo hip toss, the higher time frame chart, will send you flying onto your A$$ REAL QUICK!!!!!

Note: The aikido trickery doesn't stand a chance.