Hi @Okane - firstly, great videos and summaries of your trades, showing that you walk the walk in terms of the (basic) strategies you talk about. Could you elaborate on what your bare minimum requirements are before making a trade? For example:
With the stochastic indicator, how many time periods do you look to be +80/-20 as a minimum to make you comfortable to take a trade? Do you always combine the stochastics with your support/resist lines, or are there instances that occur 'between' s&r levels that you trade if there are other indicators that it is likely to succeed? EG the MA200 is touched or broken. In your experience, how frequently do exceptionally good circumstances occur for a trade? EG 4 out of 5 stochastics align with a candle touching a s/r line? I know that there is always what is going on with the news that can affect how the price moves, and nothing is guaranteed, but in an average day/week/month or whatever time period you see as most useful, how many of these opportunities are you seeing? Based on some of your posts in this thread, this looks to be happening more than once a day, but I might be mistaken.
I won't lie - I'm pretty new to this, and personally I will see situations where maybe the 5, 15 and 30 minute stochastics are all overbough/sold, but this doesnt always seem to happen at a time when a support/resistance line will be touched (I have tried to place my lines in areas of support/resistance as you mention in your videos). And in the opposite way, a candle will hit my line, but maybe only 2 of the stochastics will be in agreement with the way I think I should trade. It hasn't been a disaster, but I would like to try and be more selective witht the trades I take if possible!
Appologies for the length of the post, and thanks in advance for any advice and pointers!
Hey. The basic strategies I have written/recorded are (in my opinion) only good for practicing purposes. I do not trade like that. What I focus on is price action and it's not a 1.2.3 action kind of "strategy". I would not even call it a strategy because it involved analyzing the charts carefully.
You will see how I set up targets by watching price action history, drawing trend lines and observing convergence or divergence.
Here is an example from just 30 mins ago or so. For more examples, again watch the playlist I linked above, I have explained how I trade using price action in those videos!
This was based on the price action on this recent bullish movement. You could see a rather large bullish (blue) candlestick on the left. The market had lost momentum as you can see because it was kind of late (around 20 GMT+2) and I usually stop trading around 18-19 for the day.
Practice on setting up targets before trading! It will help you interpret the market sentiment.. Look at the following picture, I shared this with my students a week ago, now go look at your charts. That line was crossed later on .
Took two trades simultaneously last night during Asian session. Using currency correlation and standard price action I could tell that USDJPY was going towards a resistance from which the price opened at the gap earlier and also that EUR/USD would drop further below the support towards another support (also moving average 200 below)
My PC crashed that's why I only managed to save the results (printscreen) for one of the trades but both finished ITM as you see on the charts.
Took two trades simultaneously last night during Asian session. Using currency correlation and standard price action I could tell that USDJPY was going towards a resistance from which the price opened at the gap earlier and also that EUR/USD would drop further below the support towards another support (also moving average 200 below)
My PC crashed that's why I only managed to save the results (printscreen) for one of the trades but both finished ITM as you see on the charts.
Hi Okane. As I'm a relative noob, would you mind explaining what you mean by "opened at the gap"? Thanks
Took two trades simultaneously last night during Asian session. Using currency correlation and standard price action I could tell that USDJPY was going towards a resistance from which the price opened at the gap earlier and also that EUR/USD would drop further below the support towards another support (also moving average 200 below)
My PC crashed that's why I only managed to save the results (printscreen) for one of the trades but both finished ITM as you see on the charts.
Hi Okane. As I'm a relative noob, would you mind explaining what you mean by "opened at the gap"? Thanks
Sure, if you look at that USDJPY chart, you see the "gap" there is a distance between where price was last week and where it opened on Monday! This is called a gap, usually happens after a holiday but not always. Because sellers/buyers open the market at a whole new price than what it used to be when it closed before weekend. So again, look at that picture above, you see it's black to the left, other candles are far away- That's a gap.
Took two trades simultaneously last night during Asian session. Using currency correlation and standard price action I could tell that USDJPY was going towards a resistance from which the price opened at the gap earlier and also that EUR/USD would drop further below the support towards another support (also moving average 200 below)
My PC crashed that's why I only managed to save the results (printscreen) for one of the trades but both finished ITM as you see on the charts.
Hi Okane. As I'm a relative noob, would you mind explaining what you mean by "opened at the gap"? Thanks
Sure, if you look at that USDJPY chart, you see the "gap" there is a distance between where price was last week and where it opened on Monday! This is called a gap, usually happens after a holiday but not always. Because sellers/buyers open the market at a whole new price than what it used to be when it closed before weekend. So again, look at that picture above, you see it's black to the left, other candles are far away- That's a gap.
Just held a live webinar explaining how I set up targets and trade thereafter. During the webinar a live trade happened to expire that I took 15minutes prior to starting the webinar and I explained why and how I took it.
Some of my analysis, copy my lines as they might come in handy! EUR/USD H4 is seen in the picture below. More lines can be drawn of course but I am only showing some of the major trending ones (some which I have used earlier to take trades based on).
Here are two trades. First one is a put option at the touch on a trendline and the second one is a bullish continuation trade targeting once again, the same trendline.
Put Option: Price reached my trendline (retracement up after a fall) Call Option: Price came down to up-going trendline making a higher low and getting support from earlier resistance.
Hi Okane, Your trading skills is so good. Are you still trading with this strategy?
Hey, well. It's not really a "strategy" it's a variety of price action analysis and techniques. If you check the video and the YT channel you will see I keep updating so there is your answer
Long time since I shared last time. Here is a demonstration of a put option where I use price action together with Bollinger Bands. Bollinger Bands - 2H Expiry
Comments
With the stochastic indicator, how many time periods do you look to be +80/-20 as a minimum to make you comfortable to take a trade?
Do you always combine the stochastics with your support/resist lines, or are there instances that occur 'between' s&r levels that you trade if there are other indicators that it is likely to succeed? EG the MA200 is touched or broken.
In your experience, how frequently do exceptionally good circumstances occur for a trade? EG 4 out of 5 stochastics align with a candle touching a s/r line? I know that there is always what is going on with the news that can affect how the price moves, and nothing is guaranteed, but in an average day/week/month or whatever time period you see as most useful, how many of these opportunities are you seeing? Based on some of your posts in this thread, this looks to be happening more than once a day, but I might be mistaken.
I won't lie - I'm pretty new to this, and personally I will see situations where maybe the 5, 15 and 30 minute stochastics are all overbough/sold, but this doesnt always seem to happen at a time when a support/resistance line will be touched (I have tried to place my lines in areas of support/resistance as you mention in your videos). And in the opposite way, a candle will hit my line, but maybe only 2 of the stochastics will be in agreement with the way I think I should trade. It hasn't been a disaster, but I would like to try and be more selective witht the trades I take if possible!
Appologies for the length of the post, and thanks in advance for any advice and pointers!
I do not trade like that. What I focus on is price action and it's not a 1.2.3 action kind of "strategy".
I would not even call it a strategy because it involved analyzing the charts carefully.
The best way I can explain all of these advanced techniques is to watch my price action playlist on my YouTube channel.
You will see how I set up targets by watching price action history, drawing trend lines and observing convergence
or divergence.
Here is an example from just 30 mins ago or so.
For more examples, again watch the playlist I linked above, I have explained how I trade using
price action in those videos!
This was based on the price action on this recent bullish movement.
You could see a rather large bullish (blue) candlestick on the left.
The market had lost momentum as you can see because it was kind of late (around 20 GMT+2)
and I usually stop trading around 18-19 for the day.
You can see the big bearish candlestick to the left (H1 timeframe) so this one was pretty obvious (to me)
Expiry about 30 minutes.
Look at the following picture, I shared this with my students a week ago, now go look at your charts.
That line was crossed later on
Using currency correlation and standard price action I could tell
that USDJPY was going towards a resistance from which the price opened at the gap earlier
and also that EUR/USD would drop further below the support towards another support (also moving average 200 below)
My PC crashed that's why I only managed to save the results (printscreen) for one of the trades but both finished ITM
as you see on the charts.
on Monday! This is called a gap, usually happens after a holiday but not always. Because sellers/buyers open the market at a whole new
price than what it used to be when it closed before weekend. So again, look at that picture above, you see it's black to the left, other candles are far away- That's a gap.
During the webinar a live trade happened to expire that I took 15minutes prior to starting the webinar
and I explained why and how I took it.
https://youtu.be/yDiPDv3Wgdw
My charts, here is the M15 TF because the trendline looks good here
and the results are here 5.6pips ITM
EUR/USD H4 is seen in the picture below. More lines can be drawn of course but I am only showing
some of the major trending ones (some which I have used earlier to take trades based on).
EUR/USD H4 - Trend Analysis and Targets
prntscr.com/ceumcn
prnt.sc/ceufif
25min expiry (15mins after full hour)
Put Option: Price reached my trendline (retracement up after a fall)
Call Option: Price came down to up-going trendline making a higher low and getting support from earlier resistance.
My Price Action Playlist
Price Action: Trading AUDUSD Using Naked Charts
Check out this price action breakout trade!
I talk about how I use correlation, different types and my favorite method.
Your trading skills is so good. Are you still trading with this strategy?
Bollinger Bands.
Bollinger Bands - 2H Expiry