ElectroFX Pure Price Action Trading - page 4

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Theo Patsios
317
Theo Patsios  
newdigital:
You are not right:

You are having 2,201 views for only 28 posts and it is very good.

I mean: 2,201 members considered this thread as interesting ...

So, it is up to you - keep them inside/around yourself, or ....

?

If I delete this thread so no one will go to homepage anymore from tsd forum

So, I am suggesting to you to keep your thread to be alive. As to your home page so you can place it as the signature to your posts (in case - you will continue with the thread here on tsd).

Fair enough... I guess there is good interest but just not too many posts (maybe I am just REALLY thorough with my explanations )

I will work on it some more this weekend

cesande
210
cesande  

Thanks

Most thorough I have seen in a long time!

Appreciate it!

Theo Patsios
317
Theo Patsios  

Apologies for not getting back to this thread on the weekend but it was my birthday weekend so I was in no condition to type much of anything

I will get back to this tomorrow morning

FxReferee
135
FxReferee  
Theo Patsios
317
Theo Patsios  

Swing Trading cont..

Fx Referee - Thank you for the kind wishes

OK, so lets rewind back to the first trade I showed in this thread and take a look at a not so perfect set-up that required patience in order to take the safe entry. As you may remember I call this the core trade.

In the image below I have tried to mark as much as I will need to explain this trade rather than having several pictures.

Points A - E show how the market is swinging about.

You can see that the TL was broken but point A did not make a Higher High than the previous swing High so this is only a half core trade. The PA is not yet correct. If you wanted to try and trade Point B you will notice that the RR was no good anyway and so this becomes a trade where you need to risk more than you can intelligently expect to aim for. So there is too much against this trade even though as you can see it was worth pips. The point is that the % of chance that this trade would have worked out is significantly less than the % of chance a full core will work out and so if you are trading big money you may aswell stick to the higher % trades.

Points C and D then show you the market opening up, a Higher High followed by a Lower Low. At this point you can however see that the Gray Support box is still holding and as an experienced trader you will see this is a contained Low whereas the previous High was pushing into some more open ground. An experienced trader will trade Point D because there is great RR on the trade and a small SL with not much against the trade. However I want to really emphasize the basics with this thread at this point so let this serve as an intro to some more concepts that I will get back to later.

Points E and F then set up some proper PA after the TL break and finally we have a Higher High followed by a Higher Low back at that Support box. Now everything I outlined at the start of this thread is in check and the trade is looking much cleaner. SL goes in its obvious place and entry is the break of that IB. Point E is a conservative TP and place to make sure RR is 1:1 or above. You are however anticipating a HH due to the PA but don't worry if you take profit at point E. It was still an intelligent trade if handled that way.

TP options 1 and 2 are an intelligent way to judge the Higher High that you are anticipating. TP option 1 would have been my original choice when plotting things out as a set and forget trade and it wouldn't have bothered me that I could have reached TP option 2. Point E is a clear cut place to move your SL to BE if you do decide to shoot for the Higher High and not use it as a TP

Please feel free to ask questions so I can make sure my explanation here makes sense to everyone

Files:
gu1.jpg 117 kb
FxReferee
135
FxReferee  

Nice !

Nice post, i will join you very soon in posting charts and comments to improve this thread.

“IF YOU GIVE A MAN A FISH, HE WILL HAVE A SINGLE MEAL BUT IF YOU TEACH HIM HOW TO FISH HE WILL EAT THROUGHOUT OF HIS LIFE”

Theo Patsios
317
Theo Patsios  

It seems I take too many holidays and have never really got back to this thread If there is still anyone following this one then post away and I will do my best to continue it some more.

markcoronado
33
markcoronado  

Very interesting thread & excellent descriptions.

Please continue, I need all the help I can get.

Theo Patsios
317
Theo Patsios  

Hey Mark..

well let's start with a little chatter about the concept I have outlined so far and try and pick up where I left off. The best way to describe this style of using price action to trade would be "Evidence Based Trading". NO guessing, just reacting to the the evidence available to you. By this I mean proof of an area of Support/Resistance existing and then proof that the area is once again holding with good market structure behind it. This evidence based approach is then also used to judge the risk/reward potential before you enter the trade, which therefore also then gives you your Stop Loss and Take Profit if all systems are go. This does not mean you will win all your trades but it doesn't mean you will win more than you will lose and it also means that you will usually have larger profits than the losses. Tipping the scales well in your favor.

So, thus far you have used the non-repainting naked price action evidence that you can see on your chart for the following:

  1. To understand the current swing flow/market structure
  2. To decide on the next potential areas of SR that the current swing flow could turn
  3. To get a trigger at one of those SR areas so that you can confirm the area is holding
  4. To then get your entry point and judge your risk:reward to make sure it is even worth it
  5. To naturally then have a pre-planned unquestionable stop loss, take profit and break even point.

Certainly it is never easy to explain things in words but I will continue on next with some more pictures that explain each of these points even more than the ones I posted in this thread previously.

markcoronado
33
markcoronado  

thanks for continuing our education on this strategy.

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