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MightyOne
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Postby MightyOne » Fri Jun 10, 2011 6:26 pm

1. The idea that price should do something.

1a. There is only one highest high.
1b. The range will expand by a hundred or hundreds of pips.
1c. If price is closing higher then price is going higher.
1d. The same is true of higher TF charts.

2. Position & IF/THEN.

2a. You can be long/short from anywhere by simply adjusting your
position size. Your position is the point of greatest risk ie you are long/short
from your stop, not your entry.
2b. There are only two lines that count for anything:

The line you based your entry and the line you base your exit; areas count as lines.

2c. If you draw anymore than 2 lines on a chart then you are a fool.

3. Context

3a. Check to see that your trade makes sense in a daily+ picture.
3b. See that trades which are in conflict with the big picture are
liquidated early.

4. Mental Strength

4a. The end of a unit of time is a decision point.
4b. Before a decision point is reached, you should settle
for no less than the highest high or lowest low from your entry.
4c. After a decision point is reached, you either make a decision
or accept the HH/LL target as a minimum req. to exit.

5. Magnitude

5a. It just a peanut to an Elephant, a Englishman to a giant...
your risk and even your losses are nothing compared to the gains
acquired through relentless buying when things are going your way.

Keep your mind in the future, your eyes in the present, and your finger
on the past.

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mook
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Postby mook » Fri Jun 10, 2011 6:39 pm

The best lesson I have learned from trading fx is that no one knows where price is going to go. Every time you make a trade this must be your default.

However...The best way i can describe my trading is viewing the chart from 1 micro area of indecision to another micro area of indecision. It just so happens that a rat always appears when the trade is profitable. :\

If you see it as a range break out then that's what it is. I see it as areas of indecision. I don't know where its gonna go, but if candles start closing above/below these ranges there's a good chance it will continue in go in that direction.

The key is that whatever it is you see (rat, fat cat, range bo, bm) make sure that it is consistant.

This inflection method works all the time. It all depends on how much you want to take. I like to lock in pips, and I will take them as soon as I get them. I don't wait, only because the psyche levels continue to rule... this means that price will trend, reverse, trend, reverse. I want to catch em all, up and down. The buy/sell hold b.s doesn't work for me.

MO: "areas count as lines" ~ This statement should have been made more clear. The phrase 'draw a line' to most people, literally means, draw a line, a single line. That's why these people are gettin fuk'd. In light of this, I will continue to post charts with 2 lines to indicate an 'area'.

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Postby MightyOne » Sat Jun 11, 2011 1:01 am

If you consider supply/demand zones...

The higher the chart period the wider the zones/areas

To an even higher chart period the zones are just lines.

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Postby newscalper » Sat Jun 11, 2011 8:42 am

MightyOne wrote:If you consider supply/demand zones...

The higher the chart period the wider the zones/areas

To an even higher chart period the zones are just lines.


Exactamundo. Which IMO leads to further clarity of presentation of the idea i.e. if price closes over a LOS get out. The LOS NOT being the same line as the entry line when looked at on the smaller chart i.e. there's a zone there, line 1 is reason to get in, line 2 is reason to get out - stops/get outs need to be larger than presentation might lead to believe. After thinking over night I think my folly has been trying to get into the larger move, based on smaller TF PA but my LOS is also based on the smaller TF PA. It should be based on the larger one shouldn't it i.e. the other side of the s/d zone? Which perhaps points out the folly of trying to time the entry on the smaller TF anyway.

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Postby aliassmith » Sat Jun 11, 2011 2:45 pm

newscalper wrote:
MightyOne wrote:If you consider supply/demand zones...

The higher the chart period the wider the zones/areas

To an even higher chart period the zones are just lines.


Exactamundo. Which IMO leads to further clarity of presentation of the idea i.e. if price closes over a LOS get out. The LOS NOT being the same line as the entry line when looked at on the smaller chart i.e. there's a zone there, line 1 is reason to get in, line 2 is reason to get out - stops/get outs need to be larger than presentation might lead to believe. After thinking over night I think my folly has been trying to get into the larger move, based on smaller TF PA but my LOS is also based on the smaller TF PA. It should be based on the larger one shouldn't it i.e. the other side of the s/d zone? Which perhaps points out the folly of trying to time the entry on the smaller TF anyway.


No real folly with entry on smaller timeframes. Probably not great to enter
on 5M charts based on daily. How about 4H charts based on daily expectations.

When I daytrade I look at 5M, 15M, and 1H and watch how they work together.

When I played EUR/USD short recently on the daily I used the 1H/4H to
make an entry decision. It was nice because the 1H and 4H showed the
same thing.
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Postby MightyOne » Sat Jun 11, 2011 6:56 pm

If you enter short term then exit short term

If you enter long term then exit long term

If you enter short term and there is a long term close
then you can reduce your position size (if needed) to
send your position away from the current price to an
area that makes sense for that period.

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Postby newscalper » Sat Jun 11, 2011 10:50 pm

aliassmith wrote:
newscalper wrote:
MightyOne wrote:If you consider supply/demand zones...

The higher the chart period the wider the zones/areas

To an even higher chart period the zones are just lines.


Exactamundo. Which IMO leads to further clarity of presentation of the idea i.e. if price closes over a LOS get out. The LOS NOT being the same line as the entry line when looked at on the smaller chart i.e. there's a zone there, line 1 is reason to get in, line 2 is reason to get out - stops/get outs need to be larger than presentation might lead to believe. After thinking over night I think my folly has been trying to get into the larger move, based on smaller TF PA but my LOS is also based on the smaller TF PA. It should be based on the larger one shouldn't it i.e. the other side of the s/d zone? Which perhaps points out the folly of trying to time the entry on the smaller TF anyway.


No real folly with entry on smaller timeframes. Probably not great to enter
on 5M charts based on daily. How about 4H charts based on daily expectations.

When I daytrade I look at 5M, 15M, and 1H and watch how they work together.

When I played EUR/USD short recently on the daily I used the 1H/4H to
make an entry decision. It was nice because the 1H and 4H showed the
same thing.


Yeah:D, I think 4hr can be traded from the 15min/1 hour, using 15 minute for timing if using standard bars - it's a similar time factor as MOs 3s and 9s (15min, 45min, 135min) - that's what I was playing with the other day, I'm not a scalper normally but I was looking to see how things developed on a quicker chart - 5min, 15minCC, 45minCC: 45 min close over/under then taking a 5 minute entry.

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Postby newscalper » Sat Jun 11, 2011 11:51 pm

MightyOne wrote:If you enter short term then exit short term

If you enter long term then exit long term

If you enter short term and there is a long term close
then you can reduce your position size (if needed) to
send your position away from the current price to an
area that makes sense for that period.



Thanks for your time MO, I really appreciate it:D I hope my fumbling will help others that come across this too.

For the first part, I'm not sure but I think you're saying something along the lines of, while the basis of the trade is positioned on the long term chart, the trade is placed using the short TF chart, enter on the small TF chart, exit on the small TF chart. Then if that gives profit and it's possible, reenter on the larger TF chart i.e. the box has become bigger so more leeway can be used?

For the second part, I don't 100% understand that. It reads like if I enter using the 15 minute chart and (say) a 4 hour bar closes against then reduce position size (I understand that reducing lots moves the position further away)? That fits in with initially opening with multiple lots. If I prefer, or have to not initially enter with multiple lots, rather only enter with 1: I'm actually forced to only enter with 1 due to the type of account I have in the UK and account size (unless I up the risk ), close, pause, and re-enter later I've also effectively played with the box - so I'm always entering smallest and adding when a position comes good.

Have I got this right, I'm really not sure?

All lots are same size
Open 2 lots, 4 hr bar closes against 20 pips in the red, reduce by 1 lot
Lot 1 closed= -20
Price falls another 15 pips (1 remaining lot now 35 in the red):
Lot 2 = -35
Price moves 20 pips in favour
+20
Price moves another 20 pips
+20
Add 1 lot, price moves 20 pips.
Lot 1 +20 pips
Lot 2 +20 pips
Close
Profit = 25 pips less costs

Open 1 lot, 4 hr bar closes against 20 pips in the red.
Close position
-20
Price falls another 15 pips.
See reason to re-enter 1 lot, price moves 20 pips in favour
+20
Price moves another 20 pips
+20
Add 1 lot, price moves 20 pips.
Lot 1 20 pips
Lot 2 20 pips
Close
Profit = 60 pips less costs

So I'm better to pause and re-enter than to re-size down if the trade is in the red from initial entry?

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Postby MightyOne » Sun Jun 12, 2011 3:05 am

Unless you have a good reason to do otherwise, you should close your position if price closes against you.

I was talking about taking a trade on a short term chart that price closes in your favor on a long term chart. Should this happen, you may not be sized properly for the longer period. That said, if you increased your lot size during the move, you should have plenty of lots to convert into space.

Even though you enter on a short term chart, you should consider longer term checkpoint and ask yourself what opportunity the higher chart is suggesting.

Lot size is just as important as space, divisibility is extremely important.

If you are a loved and popular person *caugh* you can always borrow up to 9x your account size from friends, explain to them that their money will only be used as leverage so they risk nothing, and offer them 45% of the profits up to the amount invested.

I wad offered a million dollars when I wad still a teenager, you just have to be passionate when you speak.

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Postby aliassmith » Sun Jun 12, 2011 2:51 pm

MightyOne wrote:Unless you have a good reason to do otherwise, you should close your position if price closes against you.

I was talking about taking a trade on a short term chart that price closes in your favor on a long term chart. Should this happen, you may not be sized properly for the longer period. That said, if you increased your lot size during the move, you should have plenty of lots to convert into space.

Even though you enter on a short term chart, you should consider longer term checkpoint and ask yourself what opportunity the higher chart is suggesting.

Lot size is just as important as space, divisibility is extremely important.

If you are a loved and popular person *caugh* you can always borrow up to 9x your account size from friends, explain to them that their money will only be used as leverage so they risk nothing, and offer them 45% of the profits up to the amount invested.

I wad offered a million dollars when I wad still a teenager, you just have to be passionate when you speak.


...offer them 45% of the profits up to the amount invested.

I wad offered a million dollars when I wad still a teenager, you just have to be passionate when you speak.

I offer 70% of the profits. I have not found a million dollar investor yet, but
I am still looking. I think I need my series 3 and series 34 before I open a
legit investment firm. I would like to control about $5 to $10 million in equity.
Trade Your Way as Long as It Makes Money!

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