ElectroFX Pure Price Action Trading - page 11

New comment
 

and the last one I made from last week:

 

The next few videos are from this week and after this I will do my best to remember to post them here as they are made and put on YouTube. I hope you are able to gain some insight from them.

 

here is the next one:

 

and finally one from this morning:

 

I hope these video posts are OK with the Forum owners and moderators here at Forex-TSD. If there is any problem with this then please just let me know. I have grown to love video as an easier way to demonstrate things but I will try and also add pictures and text to mix things up a bit.

 

I will post a couple more videos from today in case they help anyone,

but I don't see any activity here so I will just wait for interaction before posting anymore.

Here is an example of reading the Market when you fist sit down:

 

and here is an example of acting upon your read:

 

Hi Theo,

Thanks a lot for all the infos. I think they are very helpful.

When and if you have some time, please give your opinion about these three points:

1. when you gave your comments on the trades in M15 TF ( post #79 ), you said that "you can also shoot for the lower low based on a simple momentum trick that I haven't got to yet" - it was about a breakout trade. Do you mind to explain the trick ?

2. in post #81, you gave a very good point of view about the psychological attachment on a certain future of the market flow, and I think this is the weakness responsible for many looses. Do you mind to elaborate a little more about ? I mean - are there any steps to follow in order to minimize it, or it's just about the experience, so go wrong, go wrong, go wrong...until you got it right ?

3. in the first movie, I observed a situation where market showed signs of demand in a resistance zone. Do you mind to elaborate a little about the difference between supply-demand and support-resistance ? ( I have my own explanations, but I'm sure yours will be better ... )

Cheers.

 

Hi, you're welcome, I'm glad it helps

1.

Whenever you enter a trade based on price action leaning in your favor (highs and lows sloped in the direction of your trade) there is a channel of projected momentum that can be plotted. I use the equidistant channel in MT4 to map this out and I just use it to help me understand which horizontal area opposing me is the likely and most probable target. If you are trading a lower high for example that followed a lower low then you can assume this sequence to continue (proving it has not already been going on for too many wave of course). Doesn't mean that it will but you can only work with whatever evidence you have and go with the most probable. I have recently finished an article on Take Profit Projection here that does a great job of explaining that further with images.

2.

The only way to effectively combat this is to have a method that allows you to define every potential trade including when it has failed. Stop loss is one failure point but the trade may fail before you even enter it and then the dynamics change to a perfectly good trade in the other direction. So really the first step is to have a complete trading plan that allows you to 'react' to how the market presents itself and define every stage of every trade both before and after you have entered. The next step is to build your confidence in the fact that your plan works more than it does not (including a good risk:reward strategy) and that can be done slowly in a demo account, or at high speed with tick data back-testing software. Beyond that experience is needed and can't be taught, overcoming the psychological effects that trading real money can have ends up being a slightly different personal journey for everyone. Understanding that no plan has a 100% win rate, and that losing some is part of winning the others, is surprisingly hard for most people to accept at first.

3.

In all reality supply-demand and support-resistance are the same thing, it depends on the trader as to who will use which. Personally I have just found a way to use both definitions in order to separate 2 types of different location setups on the charts. It helps when teaching basically and I use support-resistance when talking about areas created by significant swing highs and lows, and I use supply-demand when talking about areas created by mini pullbacks within a significant swing. Those mini pullbacks are basically significant swings occurring on a lower time-frame than you are watching so I this helps me separate what I call the market layers.

Best,

Theo

 

Hi Theo,

Thanks very much. It helps a lot!

I will not post here for a while, as I'm practicing this on demo, while reviewing the videos. But I'm interested in the information that you shared here. It's a good one!

Cheers.

1...45678910111213
New comment
Reason: