Here is my Gbpyen short trade from earlier today. I'm showing 15 minute chart cause it's easier to see the bounces off resistance line. Price is bouncing off the resistance @ 246.88 goes down touches the support line @ 246.35 and when it bounces up to the resistance line I enter short @ 246.66 (purple line). I exited at 246.20 (lower purple line). Of course, looking at this in hindsight the price went down another 120 pips so I should have stayed in the short position and just trailed my stop. The gbpyen moves quickly so how do you determine where you place your trailing stop?
Made 20 pips on AUD/USD yesterday. Risky trade, but was ok for a quick profit... :=)
Thank you for the reply. Definitely learning never ends, that's why I check your thread atleast three times a day.
Quiet here today.
I guess everyone's too busy making pips using Bubbles great advice.
There have been some amazing opportunities for trades today.
I don't want to hog the thread so won't post them unless you think they would be of benefit Bubble.
Thanks again Bubble et al. I hope you're all having a profitable day.
Buy or Sell?
How does one know whether to take a long position or a short position on a currency pair? Let's say I want to trade 15/60/4 hr. So I would look at 4 hr and see if it broke support or resistance. If it just broke resistance = BUY, now I look at the 60, if it just broke resistance = BUY, now I look at 15 min, if it just broke resistance = BUY.
So does it have to all match on 3 timeframes for one to BUY when it retraces back to the now support line?
Your input would be much appreciated.
...just continue please
fantastic thread ,finnaly I found what i have been looking for a lot months,I hope this thread will be never ending story ...please continue...THANK A LOT
A question about stop losses.
the charts speak for themselves, two trades with a potential profit of roughly 130 pips each.
I am wondering about setting Stop Losses though Bubble. I re-read this entire thread and found your response to Malcik,
"When you have identified an area of support look at how many minor swings there has been to this support ,enter on the second or third swing back to support , so the price would have to bounce of your area of support at least once and move higher then return to support place the stop loss under the low of the lowest swing."
If you have the time Bubble, could you please let us know where you would have placed the stop losses on one or both of those trades, that's assuming the trades were identified correctly of course.
With the eur/jpy trade I would have set the sl at around 163.94 the top that the price made before retracing.
With the gbp/chf the chart suggests a sl of about 2.4685.
I seem to remeber you mentioning that this system historically had a 7 - 1 risk reward ratio. ( I can't find the post right now )
Do you ever use the profit target for example in those to charts roughly 130 pips, to calculate a stop loss? I'm sure you will tell me to just use the charts s/r levels, but just wondering. Using say a 5 - 1 ratio on those two trades would suggest a sl of 26 pips.
Sorry for the long post and thanks for all the help Bubbles, have a great weekend.
Bubble - Great thread. Read through it twice. A couple of places more than than twice. Can you check my understanding, which might be a useful recap for all reading:
1. Identyfing the support area for longs:
The top of the support area is defined as the previous peak (which becomes support).
The bottom of the support area is the swing down from that previous peak from which it swings back up and breaks it and forms the new current high. (The point 2 of a 123)
So if 50 is the previous peak. Price swings down to 25, then makes a new high at 75. Therefore 50 becomes top of support range and 25 the bottom.
2. How are you getting your exact entry point for your trade, once price is back in the new support range ?
3. I assume your stop is a few pips under the bottom of the range ?
4. What is the max pip stop you would use ? During a session like yesterday, there was often an extended range of swings. How tight can you get your stops ?
5. We should only take entries which agree with S/R turns on the higher time frame. So if I am trading the 1 hour chart, I would ignore entries unless it agreed with say the 4 hour turning points and was of course in the same direction of that higher chart ?
Sorry I have not worked out how to post a chart, hense the numerical example above.
"2820". post 276, 277
I am a little embarrassed but my first question is; I really don't understand your use of the number "2820".
Believe me when I say I have been trying!!!!
Please explain it, you know, for a dummie! ;-)
Sorry to drag up old posts.
Also I wasn't aware that a previous post could be edited. Now I know.
Thanks again, more questions comming.
I understand now...many thanks bubbles