ProchargedMopar's Trading Trilogy

[dojirock]

Newscalper,

Im with ya! If I could get off scalping, and see what these guys see on even a 15 min...it would help...everything looks foreign to me above a 5 min chart



dojirock

[prochargedmopar]

Both of you do this.
Turn off ye chart scroll/shift.
Take a pair you do not normally trade and open a weekly chart.
zoom way out and scroll back so the most recent 1.5yrs. is not showing.
Now start popping horizontal lines where you see candle highs and lows meet. Use multiple touches of the line as your guide.
Now drop down to a daily chart and zoom out a little more marking lnes every 80-120 pips apart but only if you find multiple touches on both highs and lows.
This should only take a couple minutes. Be sure not to look at the most recent year to year and a 1/2 or so.
Now drop to an h4 chart with current price action showing. You may or may not have to zoom back in a couple clicks but should be able to see the last 4-6 mo. of price action.
WHAT DO YOU SEE?
Would it be possible to trade from line to line?
If one line breaks could you possibly take a retest of that line to get to the next line?
Where do i take profits, where do I add to my winners?

NOW,
Being a scalper that you are. Do the same thing but start with a H1 zoomed all the way out, then drop to m15. Be sure its a pair you dont trade and try not to peak at most recent price action.
Look at m5 most recent price moves off these levels.

If you did not know the time frame could you tell the difference between the h4 and the m5????

Now. tell me again that there is any difference in small tf and large tf execpt for the range of pips between "levels"

Oh And the bigger the money involved in the level the stronger the fight will be. Pretty sure banks are not looking at 5m-h1 charts. (well, unless that little zoom minus button is shaded grey)
Look at 00 for instance. Think they care about 5 or 10 pip swings? LOL
Neither should we!!!!!!!!

[newscalper]

Pro - 'where candle highs and lows meet' - do you mean swing pivots?

And is that all you're taking into accountL swing hi/lo pivots. So no S/D zones, no momo, no mighty zones etc etc. Just swing pivot and line to line a-la James 16 etc etc?

[pp2]

PRO

Am I on the same wavelength here?



$1k account risking 2% using 30 stop.

1000x.02 = $20 risk / 30 stop = $0.67 per pip.
First trade was +20 or $13.4
$13.4 profit +$20 original risk is $34.4 risk/30 stop = $1.11 per pip

Second trade was +30 pips or $33.3
$33.3+ $13.4 + $20(original 2% risk) =$66.7/30 stop = $2.22 per pip

Third trade was +26 pips or $57.7.
$57.7+ $33.3 + $13.4 + $20(original 2% risk) =$124.4/30 stop = $4.14 per pip

If I doing this right, what I like about it is that even though the total percentage gain of all three trades is around 12% which is nice, I like the fact that trading seems less stressful and more fun because my stop has widened and risk is 2% compared with trading 5% before.

Now waiting on a fourth trade lot size would be 4.14 dollars a pip.

EDIT: why 30 pip stop?? no idea, just feel it's enough room so that I wouldn't get caught by any spikes (I think MO has a trick like 1.5 x 5 min range somewhere, I need to look)

[Remora]

Hey PP2, it has also been said that any stop larger than 20 pips and we would be forever chasing our tails, all discretionary though I suppose.

[prochargedmopar]

Pro - 'where candle highs and lows meet' - do you mean swing pivots?

And is that all you're taking into accountL swing hi/lo pivots. So no S/D zones, no momo, no mighty zones etc etc. Just swing pivot and line to line a-la James 16 etc etc?

You can use candles or bars, just drag a horizontal line up and down until you see areas wbere there are many tips that touch both top and bottom. Some of these lines in history will cut right through or be at the extremes of conjestion/consolidation areas. thats fine. Look what happens in the "future" though at these levels.

I AM NOT TALKING ABOUT TRADING SYSTEMS HERE, WE ALL TRADE DIFFERENTLY. there are plenty already available on this site and others that will do the trick.

[newscalper]

You misunderstand me - I wasn't asking about candles or bars, I was asking if you meant swing pivots?

I'll post a graphic up of what a swing pivot is if you want?



BTW, I'm not talking about systems either . I've never actually seen a proper system for manual, discretionary traders on the internet anywhere. I've seen entry methods and money management strategies but never a whole, complete system.

[prochargedmopar]

In that example your stop was not getting bigger(maybe bigger than your use to though) but look at your profit potential!!!!!!

Lot value is 6x the size of your initial trade BUT your account risk is still a paultry 2%.
You could even take the 4th trade risk free if you choose with slightly smaller lots and let that baby RUN!!!!

PRO

Am I on the same wavelength here?



$1k account risking 2% using 30 stop.

1000x.02 = $20 risk / 30 stop = $0.67 per pip.
First trade was +20 or $13.4
$13.4 profit +$20 original risk is $34.4 risk/30 stop = $1.11 per pip

Second trade was +30 pips or $33.3
$33.3+ $13.4 + $20(original 2% risk) =$66.7/30 stop = $2.22 per pip

Third trade was +26 pips or $57.7.
$57.7+ $33.3 + $13.4 + $20(original 2% risk) =$124.4/30 stop = $4.14 per pip

If I doing this right, what I like about it is that even though the total percentage gain of all three trades is around 12% which is nice, I like the fact that trading seems less stressful and more fun because my stop has widened and risk is 2% compared with trading 5% before.

Now waiting on a fourth trade lot size would be 4.14 dollars a pip.
EDIT: why 30 pip stop?? no idea, just feel it's enough room so that I wouldn't get caught by any spikes (I think MO has a trick like 1.5 x 5 min range somewhere, I need to look)

[prochargedmopar]

Hey PP2, it has also been said that any stop larger than 20 pips and we would be forever chasing our tails, all discretionary though I suppose.

Dude, your misimg the boat.
You might be correct if your risking the same exact % Profit/Loss of your account on each trade especially if your taking less on your winners.

In this case each winner either gives you more space OR Larger potential return on initial "investment".
OR both.

100 pip stop may be hard to overcome the way yourtrying to use it but if you continually re-investing until you either hit your goal % increase, lots get too big to wrap your head around while still sticking to your trading plan, OR you lose X%.

This is a psychological game (trading) so we must do what ever it takes to SUCCEED!!!!

[prochargedmopar]

You misunderstand me - I wasn't asking about candles or bars, I was asking if you meant swing pivots?

I'll post a graphic up of what a swing pivot is if you want?



BTW, I'm not talking about systems either . I've never actually seen a proper system for manual, discretionary traders on the internet anywhere. I've seen entry methods and money management strategies but never a whole, complete system.

Ahhh yes, that is an example but DO NOT MISS the fact that if you look left in the middle of the apex there were bars that also wicked the top and bottom of the line also......The future will not dissapoint. (Im talking where price action intersected left of yout 2 fat white lines. )