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"Rejected Door Knock" Technique by Roman

LetsTradeLetsTrade Posts: 6
edited August 2015 in Binary Options Strategy
I do hope that new traders will benefit from this friendly way of showing this rejections as many times the way it explained by more advanced traders might not be very clear to those who just start on learning the charts. Remember, trading is not a short cut to quick money, its long time of study and takes well good time until you can start talking the price language to catch the small market moves.

I used to try 2000 indicators and services paid and free... in the past 2 years, many times hoping for an "signal/arrow" that I can follow and it will make my account grow. Eventually, I understood, no signal service or indicator or arrow will make your account grow. None that I know at least. Some arrow indicators gives you better indication (only wake up indication, but not a trade) some less good indication but overall nothing would work if you approach it blindly. What will make your account grow is your time spent on learning how the price moves and understanding of the psychology behind it, the more time you spent watching the charts the more you understand the psychological levels behind the way it acts and re-acts to different market situations. Slowly you will find out that you dont want trade 24x5 but only certain hours works for YOU best and thats FINE that your friend assuming he is a trader hates those hours and he works best during ANOTHER hours, means he has different psychology and he understand better the other type of the market. Nothing wrong, dont force your self trade in market conditions you dont understand just because your friend does and opposite is true. You are new to trading and losing? That's fine as long as you losing on demo or practice on small trades (as 1USD trades), regardless whatever you lose during practice must be funds your life do not depending on, some good learning on DEMO others dont feel it...but if you really want to learn, you will learn also on DEMO without trashing your money for no reason.

Remember, Losing in the beginning doesnt makes you bad trades as long as you make your fortune later, means you learnt something and you know you aren't lucky, you simply smart enough to do it right as you've learnt and spent enough time on it.


So let's start from a simple and little example that I utilize now days and it does helps me to confirm my trades on the psychological and logical levels:

I've made for new traders a friendly way to trade S/R rejections called it "Rejected Door Knock" Technique. If you knock some one's door 3-4 times and no one open you go back on your steps, so hopefully visualizing it this way, would help many understand the price action behind it.
In the "CALL" arrow we had rejected door knocks from the EMA 8 Smoothed and then one bearish candle broken the EMA 8 Smoothed but price stopped at the end of the 1M time frame right on the last low and new candle opened aboved the EMA 8 Smoothed = rejection from the level breakout and we take the call for 60-120 seconds.

That's only one of many PA theories which your eyes getting used to if you spending and dedicate time reading the charts and understand how the price moves, its OK if you need to use some OB/OS indicators or S/R levels as time goes you will slowly start seeing more and more of those levels even before the indicator shows you that, however NEVER trade an arrow alone unless you can give your self at least one good reason why you want enter that trade based on the price conditions on the chart, otherwise you aren't better then any casino player. Indicator/Arrow must stay nothing but your wake up call not decide for you to trade or not this particular trade and sooner you stop relay on arrows, better for you, means you have much better abilities of reading the market.



Patience, Tolerance, Success.

Comments

  • OkaneOkane Posts: 1,282 admin
    Sounds good, newbies should listen. Only thing I would change is that you need to have at least 3 reasons for why you enter a trade
    not just one. But S/R lines are great, if only most people weren't busy looking for magic indicators lol.
  • LetsTradeLetsTrade Posts: 6
    I would say, for entry you need to give your self:
    1. Reason, accurately explained in your head based on the charts for normal probability
    2. Two reasons, accurately explained for medium probability
    3. If you can find 3 reasons, you have high probability trade.

    Also optional money management approach, use lowest possible trade sums on 1 and 2 and "normal" sums on 3.
    Patience, Tolerance, Success.
  • LetsTradeLetsTrade Posts: 6
    Okane said:

    if only most people weren't busy looking for magic indicators lol.

    Took me about two years. I guess thats average time that majority take to realize that. However, some might give up before they realize that and call trading "scam". Sad but...true.
    Patience, Tolerance, Success.
  • OkaneOkane Posts: 1,282 admin
    Yeah took me a while to drop the search for the holy grail too, lol.

  • OkaneOkane Posts: 1,282 admin
    LetsTrade said:

    I would say, for entry you need to give your self:
    1. Reason, accurately explained in your head based on the charts for normal probability
    2. Two reasons, accurately explained for medium probability
    3. If you can find 3 reasons, you have high probability trade.

    Also optional money management approach, use lowest possible trade sums on 1 and 2 and "normal" sums on 3.

    Sure, everyone has different rules I still suggest 3 is good.
    For example mine can be:
    1. Verified strong S or R line.
    2. Trend
    3. Overbought/Oversold?
    4. Time (Clock)
    5. What candlesticks say about price etc. Not always you have all of them at once but at least 3 for me is a GO.
  • LetsTradeLetsTrade Posts: 6
    Okane said:

    Yeah took me a while to drop the search for the holy grail too, lol.

    No shame in this indeed, the brokers and the enviroment around us (lots of marketers) making us believe in magic arrow, so we have to go throe certain lesson to realize that no such thing as magic here but only price action = reading the chart and understand what you see.
    Patience, Tolerance, Success.
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    At least there are little to no indicators on the chart Roman. Still it will not matter as long as you wish to view the market in a linear thought process, but yes understanding price action is key.
  • LetsTradeLetsTrade Posts: 6

    At least there are little to no indicators on the chart Roman. Still it will not matter as long as you wish to view the market in a linear thought process, but yes understanding price action is key.

    It takes about two years but finally at one point you realize.... arrows not equal trade, logic and right psychology does, arrow is nothing but attention / alert.
    Patience, Tolerance, Success.
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