PA, S/R, ZL, EXTREMES & MOMO

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

Postby ajaymein » Tue Mar 29, 2011 4:48 pm

newscalper wrote:Nice trading. Yeah it really is that easy, apart from when it spikes you out :cry:


Screw it, let it spike you out...you will ALWAYS have another opportunity to get back in or get into another trade. With the risk to reward ratio this type of trading has if you get in at the proper price, you can get 5 losers in a row and then when you finally get in the right direction, 1 or 2 winners will put you right back over the top...

The main thing is not let your emotions get the best of you and don't be scared to get back in for fear of getting spiked out. The markets don't care if you have won 5 in a row or lost 10 in a row, its gonna follow supply and demand. That's a fact!

YOUR MIND IS YOUR GREATEST ENEMY!

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

User avatar
newscalper
rank: 1000+ posts
rank: 1000+ posts
Posts: 1068
Joined: Tue Oct 19, 2010 5:58 pm
Reputation: 5
Gender: Female

Postby newscalper » Tue Mar 29, 2011 4:56 pm

Absolutely

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

Postby ajaymein » Tue Mar 29, 2011 5:03 pm

A lot of people get excited when they see a momo and take every single one then wonder why it didn't work out. Well, you can't just take every momo...the LOCATION of the momo in the bigger picture is almost more important then the momo itself!

Here is a perfect live example where you can take this M15 momo and target that upper supply...

Image

Now it is a good looking strong momo. However, it is still in that ZONE where there are proven to be more SELLERS than BUYERS. Ask yourself, WHY would you want to BUY into ANYTHING if a million people are selling and only few are buying?

Remember tho in forex ANYTHING can happen at ANY given time. So hell, this momo could work out perfectly and net you 100 pips...but chances are it won't because you are buying into a whole heap of sellers.

If you wait for the high probability set ups, you will greatly reduce the chances of a trade hitting your SL or spiking you out. And the good setups will normally put you into + positive PIPS fast as hell and you will never even see more then a few pips draw down.

Now let's see if the big banks can stop out the sucker buyers here on this momo, or if the buyers get lucky on this go around at the casino. ;-)

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

Postby ajaymein » Tue Mar 29, 2011 5:07 pm

Didn't even notice until now but right above that zone is the nice psych level of 1.6000 which makes it even riskier and gives price very little breathing room to rocket up

User avatar
newscalper
rank: 1000+ posts
rank: 1000+ posts
Posts: 1068
Joined: Tue Oct 19, 2010 5:58 pm
Reputation: 5
Gender: Female

Postby newscalper » Tue Mar 29, 2011 6:29 pm

Ajay - nice post. Those are only 15 min zones as well though.

If you trade the larger zones (4hr plus) as I do, which are PLENTY wide, spikes can and do happen when you take trades in the zones from smaller timeframes. The live cad trade I posted is a perfect example of that and wasn't some daft example of going long into supply either, it was long from big support.

No complaints it's just the big players sweeping stops and not just after momo bars. It happens all the time and you have to live with it. That doesn't mean you have to like it :(

What you'll find as well if you start trading the larger zones is that price does not necesarily move from one four hour zone to the next. You can bet your bottom dollar there are 1 hour zones in between. Often price will turn at a 1 hour zone, not just for a pullback, and will blast straight through the four hour zone it previously left. Smaller timeframe zones can trump larger timframe zones. Also don't forget that bars are just illusions. Within 1 four hour bar where a 15 minute entry may have been taken price can come back at you 2,3,4 times before/if taking off.

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

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

Postby ajaymein » Tue Mar 29, 2011 8:12 pm

It looks like after some struggle the gamblers made a few pips on that momo! ;-)

You're right newscalper, there are many zones inside of the larger time frames. Even on a 3 bar straight drop on a 5min chart, there will be a few zones off the 1m chart on there that you can scalp for a few pips.

What works the best is finding a D1 zone, then a H4 zone inside that, then a H1 zone inside the H4, and so on and so forth...that's when the risk goes way down and your likelihood of making pips is really good.

spa
rank: 150+ posts
rank: 150+ posts
Posts: 184
Joined: Sun Jul 26, 2009 7:32 pm
Reputation: 0
Gender: Male

Postby spa » Tue Mar 29, 2011 9:02 pm

aj...GU developed very nice ..scanning the eu on the same time didn't pan out aswell... see the zones marked on 15 min..dialing down to 5 min charts we don't get those nice mom0-zl as the ones in cable
Attachments
euzones15m.gif
euzones15m.gif (21.88 KiB) Viewed 1345 times

User avatar
TygerKrane
rank: 1000+ posts
rank: 1000+ posts
Posts: 1609
Joined: Mon Jan 25, 2010 3:36 pm
Reputation: 202
Location: Long Island, NY
Gender: Male

Postby TygerKrane » Tue Mar 29, 2011 10:44 pm

Does anyone pay attention to the day open price, as a line to observe for PA?

**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

User avatar
newscalper
rank: 1000+ posts
rank: 1000+ posts
Posts: 1068
Joined: Tue Oct 19, 2010 5:58 pm
Reputation: 5
Gender: Female

Postby newscalper » Wed Mar 30, 2011 8:28 am

Maybe this will help some (no one currently on the thread as you're all great traders but new visitors) and goes right back to some of TRO's teachings about 'with candle colour'. Of course you don't have to do it but it's a great 'safety valve' - it can prevent some spikeouts, the downside is you don't get in at such a good price.

This chart is a good example. Extreme levels have been noted on the 4 hour chart.
Image

The line we are currently at, from previously, we might expect price to go short. Note on the 1 hour chart that previously if we wait for BOTH 1hr and 4 hr to be red we wouldn't get spiked out. Look at the 4 hour chart again and imagine entering around the 4hr opens in the correct direction, travelling away from the lines...WOW :shock:

Image

So now, we are at a line, expecting to go short (maybe, it's already been tested a few times though and might break through) How do we know which way to go. OK, our bias is short but currently we don't trade short because 4hr candle is still up (if we want more risk for a better price we might go with hourly colour only, or if more advanced disregard colour altogether).

1hr is showing some action that price may be turning again. If it makes a top on the hourly, a new 4 hr starts we get 15 minute momo with both 4hr and 1 hr red, we can look for an entry short.

If however price has fallen back to our line we get 15 minute momo and both 1hr and 4hr are up, we think about going long (s/r flip).

All illusory of course but it can help. 'Training wheels'
Last edited by newscalper on Wed Mar 30, 2011 8:32 am, edited 1 time in total.

pika
rank: 50+ posts
rank: 50+ posts
Posts: 74
Joined: Tue Sep 21, 2010 5:00 pm
Reputation: 0
Gender: None specified

Postby pika » Wed Mar 30, 2011 8:28 am

TygerKrane wrote:Does anyone pay attention to the day open price, as a line to observe for PA?

O H L C of current and previous Day, Week and Month. These are pretty reliable S/R zones. I mark them on my chart.

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


Return to “TheRumpledOne”