The ideas that I trade by:

[Mr. Hyde]

The contradiction in the Truth gave me the opportunity to think and to SEE.

The brain is weak in front of the chart illusion, so is easy to pick a top and a bottom and to say "price crossed a line".
The problem is that I've been trading live in these days and I saw how I CAN'T see the future (thanks MO, you was right again ). I didn't know if price was unable to close over something until price closed over something, and when a perfect "demand setup" was taken off it became a perfect "supply setup".

I know I still have a long way to go but I had a little light bulb: a pattern could be misunderstood because of its dual nature but a breakout is unequivocal.
(aka "Body In Direction of Profit")

It's still a bit mechanic for now but I'm drawing 'supply' (red line), 'demand' (green line) and BO (yellow box).

Body in the direction of profit, wick in the direction of loss; if price is closing higher than something
then it is probably not going lower. -MO

IMG_2343.PNG

I always could have two outcomes but there will be just One.

Still studying, Thank you MO!

I know its after the fact, but here is how I look at my trades, but using your pattern (the red line). After I have a trade idea I start just drawing lines where price may react (opens, closes, candle color changes, zlines, S/R, extremes, momo bars, mzone) a lot of those are pretty much the samething but I just listed it all to make sure.
Then I watch price. Does it close beyond a line, does it fail, does it get rejected, supported/resisted. Does it BO then BI. Switch to lower and higher timeframes, what is it doing there.

And yes I just bought EJ at 121.75. Looking to exit at 122.50-123. But will exit sooner if I don't like something, since its Friday and has already ran up pretty good

I was thinking about taking profit, but since I have a 4hr bar closing over a line with a B/I gonna see what forms and see if I can get some more pips.

eurjpy-h4-fx-choice-limited.png (48.66 KiB) Viewed 3519 times

EU daily chart trade

eurusd-d1-fx-choice-limited.png (31.53 KiB) Viewed 3519 times

[Mr. Hyde]

My GU long based off Mira's pattern/one hell of a support level.

[Mr. Hyde]

So lets say one of those chicks survived and in his eyes had a basic understanding of M.O. Trading for Dummies idea's. He is profitable in the long run but is not as consistent as he would like. I have tried many of your different MM style but cant seem to find one that I feel is best for me. What seems to hurt me the most are trades Im sure of and put OPM towards take a large chunk of my profit and then the "no way this trade should work" so I enter with min size are always my best.

For example in my eyes I thought I had a perfect 123 setup. It broke the trendline, had DIV, and was at an angle (median line of a pitchfork so I did know it could shoot through the opposite way). So I entered on the TTE, break of the 2 point and a BZ trade. I could have gotten out at the 2 point as Ross recommends on a TTE, but I let greed and my need to "catch this trade" get me. Then trades like a HTF extreme or a weekly/monthly horz line with no good reason to enter except were price is at, turns on a dime and shoots hundreds of pips in my trade direction.

Thanks

It is the idea of space as a rectangle that robs the chicks of their strength; it is so much easier to track and manage space when you think of it as x number of lines.

You may find it to your liking to start with trades on the H4 and then drop back to the H1 (doubling your current position size) to catch the continuation or reversal. Once you have gained both size and space then you can return to H4/D1, for longer moves, and then think about catching the weekly/monthly chart in a pattern and riding that large chart breakout with SIZE.

There is no law that says that you have to continue on the same chart in which you initiated a trade; one pair might be making better V's on the small charts, another might have a beautiful H4 or daily chart, and price might be returning to a pattern in any number of weekly or monthly charts.

I recommend that you increase your size by a 3rd and only double if price is running away from your stop on the larger charts.
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There are also a number of old school strategies (catching/cutting) that you are probably well aware of:
1) first exit is after 3 legs down, it has a strong finish as if price were going to fall into a bottomless pit.
2) we catch price (re-enter as price rises into a risk-box) at the pattern breakin and double up simply because we can.
3) exit as price enters the pattern of the first rise, align the middle of our risk box with the prev. stop, and then double as price re-enters the pattern and also our risk box.
4) you don't always have to double, you can simply re-enter and place your stop at the prev. high.

Combined with scaling in, you can reach max size scary fast.

Unless you were born with abnormally large balls, you should probably only do this on the H4+ charts.

for_hyde.png

Thank you for the post. Im going to have to digest everything and then start putting it into play. Hope you don't mind a million charts and questions coming at ya.

Never actually heard of catching/cutting.

[Mr. Hyde]

So lets say one of those chicks survived and in his eyes had a basic understanding of M.O. Trading for Dummies idea's. He is profitable in the long run but is not as consistent as he would like. I have tried many of your different MM style but cant seem to find one that I feel is best for me. What seems to hurt me the most are trades Im sure of and put OPM towards take a large chunk of my profit and then the "no way this trade should work" so I enter with min size are always my best.

For example in my eyes I thought I had a perfect 123 setup. It broke the trendline, had DIV, and was at an angle (median line of a pitchfork so I did know it could shoot through the opposite way). So I entered on the TTE, break of the 2 point and a BZ trade. I could have gotten out at the 2 point as Ross recommends on a TTE, but I let greed and my need to "catch this trade" get me. Then trades like a HTF extreme or a weekly/monthly horz line with no good reason to enter except were price is at, turns on a dime and shoots hundreds of pips in my trade direction.

Thanks

It is the idea of space as a rectangle that robs the chicks of their strength; it is so much easier to track and manage space when you think of it as x number of lines.

You may find it to your liking to start with trades on the H4 and then drop back to the H1 (doubling your current position size) to catch the continuation or reversal. Once you have gained both size and space then you can return to H4/D1, for longer moves, and then think about catching the weekly/monthly chart in a pattern and riding that large chart breakout with SIZE.

There is no law that says that you have to continue on the same chart in which you initiated a trade; one pair might be making better V's on the small charts, another might have a beautiful H4 or daily chart, and price might be returning to a pattern in any number of weekly or monthly charts.

I recommend that you increase your size by a 3rd and only double if price is running away from your stop on the larger charts.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
There are also a number of old school strategies (catching/cutting) that you are probably well aware of:
1) first exit is after 3 legs down, it has a strong finish as if price were going to fall into a bottomless pit.
2) we catch price (re-enter as price rises into a risk-box) at the pattern breakin and double up simply because we can.
3) exit as price enters the pattern of the first rise, align the middle of our risk box with the prev. stop, and then double as price re-enters the pattern and also our risk box.
4) you don't always have to double, you can simply re-enter and place your stop at the prev. high.

Combined with scaling in, you can reach max size scary fast.

Unless you were born with abnormally large balls, you should probably only do this on the H4+ charts.

for_hyde.png

So when I trade Im still using a hard SL and don't really ever use space. So I marked up a 4hr and 15m chart to show how I approached these past 2 trading days on EJ. Grabbed about 225 pips just from the trades shown, didn't show any reversals or scalp trades. 5 trades, 1 loss, 1 missed trade. SL ranged from 10-20 pips, except for last trade.

I normally let how price forms and number of reasons to enter dictate the size of the trade. So for example the 3rd trade was the largest since it was a 4hr momo bar that closed over a line with a B/O B/I right at the 50 level and on the 15 min chart for entry it was a classic body in direction of profit/wick to loss 3 bar setup.

Exits are almost always at a horz/angle line, CZ, price moved to far to fast or went back to the prev. high/low.

eurjpy-h4-oanda-division1.png (38.85 KiB) Viewed 3506 times

eurjpy-m15-oanda-division1.png (38.55 KiB) Viewed 3506 times

[Mira]

Mira I have been loving your posts and charts. I did a quick mark up (not H lines) but just what I see and think might help. You have given me new idea's and things to look at and have reinforced old idea's, so keeping posting. The h1 chart is just horz lines, extremes, closes, S/R, 123's (price finds a new high/low, gets rejected, returns, then off the other way again HUGELY IMPORTANT). Then look where that last 15 angle drawn at the bottom would have supported price (this weeks low).

eurusd-h1-fx-choice-limited.png

Then the daily show how you roll your small chart trade into a large chart idea

eurusd-d1-fx-choice-limited.png

Hi Mr. Hyde

Thank you much for your help and for your charts, I'm studying them and trying to see what I'm missing.
I made a more precise pic to better understand the concept, please correct me if I'm wrong.


In this picture i'm treating a momo as a 123 entry: 1 is the open, 2 the close and 3 the WD.
If i focus on this situation i can see that the line that matters here is the close (entry at BO/pullback of the 2, based on 123 pattern 'rules'), is this right?

MOMO1.png (4.66 KiB) Viewed 3469 times

And if i look to a lower tf i could see how this is the same close over / MO's oval

MOMO2.png (5.07 KiB) Viewed 3469 times

It's the same thing i was looking at before today but now i'd have a reason to go long/short (because of the zline, not simply trading a pattern).
So, if i put all this on a bigger chart:

gold MN.png (8.08 KiB) Viewed 3469 times

gold daily.png (11.91 KiB) Viewed 3469 times

Hoping that i'm catching your hints, thank you much for your patience

[Mira]

[...]
3) exit as price enters the pattern of the first rise, align the middle of our risk box with the prev. stop, and then double as price re-enters the pattern and also our risk box.
[...]

Hi MO!
Thank you for this post, every time i find myself to double/cut and nothing more..

Please, could you explain this point i didn't get?

[MightyOne]

[...]
3) exit as price enters the pattern of the first rise, align the middle of our risk box with the prev. stop, and then double as price re-enters the pattern and also our risk box.
[...]

Hi MO!
Thank you for this post, every time i find myself to double/cut and nothing more..

Please, could you explain this point i didn't get?

There is a very real danger that price could blow through your stop and wreck your account if you use this strategy so you want to be very careful with how you proceed to larger lot sizes.
If you break the rectangles into lines then you might understand how the first two rectangles could mark the hourly and the last the weekly chart.

If one does not understand EIGHTS then it is impossible for me to explain the more complicated strategies.

wk-1.png (1.52 KiB) Viewed 3463 times

NT4U.png (12.68 KiB) Viewed 3463 times

[Mira]

[...]
3) exit as price enters the pattern of the first rise, align the middle of our risk box with the prev. stop, and then double as price re-enters the pattern and also our risk box.
[...]

Hi MO!
Thank you for this post, every time i find myself to double/cut and nothing more..

Please, could you explain this point i didn't get?

There is a very real danger that price could blow through your stop and wreck your account if you use this strategy so you want to be very careful with how you proceed to larger lot sizes.
If you break the rectangles into lines then you might understand how the first two rectangles could mark the hourly and the last the weekly chart.

If one does not understand EIGHTS then it is impossible for me to explain the more complicated strategies.

wk-1.png
NT4U.png

Ahhhh you are accumulating without damaging position

- in the first rectangle you have normalized risk until the seventh unit, exit.
- in the second rectangle you are cutting your lines and doubling size on the pullback (you need to have gained enough space to keep your stop where it was and to not miss the move) without changing timeframe.
- in the third rectangle: assuming that the first two rectangles could mark the hourly, and you need to keep the stop at the same level, how do you double size again? Shouldn't you cut?

Thanks MO!

[MightyOne]

Ahhhh you are accumulating without damaging position

- in the first rectangle you have normalized risk until the seventh unit, exit.
- in the second rectangle you are cutting your lines and doubling size on the pullback (you need to have gained enough space to keep your stop where it was and to not miss the move) without changing timeframe.
- in the third rectangle: assuming that the first two rectangles could mark the hourly, and you need to keep the stop at the same level, how do you double size again? Shouldn't you cut?

Thanks MO!

The distance between the stop and the exit price is the size of the risk-box (I didn't show the TP of the 2nd box).

To reposition your stop for a double, you simply place the midpoint of your space at the prev. stop and hope that price re-enters your risk-box.

If you move the trade to the weekly chart then you are going to halve your position size 3 times (H1 --> H4 ---> D1 ---> W1), place the middle of your risk-box at a stop level, and then enter a trade for double whatever size that is to cut your space to the stop.

'Advanced' does not mean 'better', it means 'less likely to succeed until one gains a proper understanding'.

NT4U_2.png (22.77 KiB) Viewed 3750 times

[tom7ak]

MO, why does the market do what it does? If i remember right - its purpose is to zero the profit in all TFs. Why? Has it always been like this? Is stock market different in this respect? I dont mean technicals or price action here.

It is the same in stocks, futures, forex, and even cryptocurrency.

If you leaf through the charts in Ted Warren's book then you will see the same patterns, breakouts, & zeroing of profit.

The reason is simple, price is going up and you're not invited

I am not sure if i was invited or not, got in anyway and quite enjoyed it till i booted myself out with a loss
You don`t trade any more, do you? If so why did you stop?
I added Ted`s book to my list, thank you