My price-action strategy

[fxfxfx]

Hi crips,

 

Cool :)

 

Well done...

I see lots of potential setups in your chart *g*

 

Cheers

 

fxfxfx

 

Here is my homework to find Candlesticks Patterns.

 

http://img96.imageshack.us/img96/6907/eu4hpachartwithfibsandc.gif

 

Uploaded with ImageShack.us

 

Regards

 

Crips

[whakamaru]

Here is a secret share just for my indo friends in this thread!

 

I have just had professionally coded my own Custom Indicator that may be a help to those who already understand how to plot swings and breaks of them. I have never shared this before but wanted to save it for a special moment...

 

Below is an image of recent EURUSD. In the picture, the indicator is programed to follow fairly large swings however that can be customized whatever way you like. You can also customize how many pips it must break the swing by.

 

http://i177.photobucket.com/albums/w201/jtimpsonstamps/jt.gif

 

and here it is. Enjoy!

 

http://www.mediafire.com/?xh6quaxcxs91xmt

 

this is for your personal use and not to be resold. Thanks for respecting my wishes on this.

 

Thanks all this info. I downloaded the indicator, but when I add it to mu MT4 chart if freezes MT4. Does anybody else have the same issue.

[save2009]

Thanks all this info. I downloaded the indicator, but when I add it to mu MT4 chart if freezes MT4. Does anybody else have the same issue.

 

You need to have zigzag indicator on your indicator folder.This indicator call zigzag indicator if you don't have you can't run.

[whakamaru]

You need to have zigzag indicator on your indicator folder.This indicator call zigzag indicator if you don't have you can't run.

 

Thanks. Just downloaded the zigzag indicator and all is running now. Thanks

[⭐ izogrey]

Hi fxfxfx,

 

Just another trade on UC.

 

Reason for the trade: candle pattern developed gradually at the confluence between 23.6 fibo, trend change line on main chart ( H4 ) and a SR line put by me on chart about a week ago.

 

First was the inside bar. I don't know why, but I don't like the ideea to trade the inside bars alone, on a breakout basis - maybe I don't have much experience with them, I have a little fear that, after breakout, the price will explode back into my nose ! :-), I mean it will retrace back rapidly.

 

After that, it was a false downward breakout, which is a long hint, but the trend on the main chart was down, so no action.

 

After, it was the very beautiful pinbar, which also made a double top with the inside bar, just at the trend change line and at 23.6 fibo, and at 7 pips from my own SR dotted line ( which was there for a little over a week ). This means down rejection. Trend on main chart down, but on D1 chart it's up yet. So ... I was shy and didn't start the trade. This hesitation had a cost of 18 pips ( from the close of the pin bar to the actual entry ).

 

http://img713.imageshack.us/img713/4919/ucpatternh4.jpg

 

But when on H1 I saw another very beautiful pinbar at another SR level put by me at the same time as the first one ( the greyed ellipse ), it seemed to me that the classical scenario breakout-pullback-continuation is on its way. I thought it is a surefire 100% successful entry ( as it can be in Forex ), so no more hesitations.

 

I locked 20 pips on 50% after the first H4 bar has finished, and the rest of 50% is on a free ride ...

 

http://img806.imageshack.us/img806/3509/ucentryh1.jpg

 

I think I understood something: that in your system, the filter for the bad situations isn't an indicator, but the correlation between the SR lines and the "quality" of patterns ( by quality I mean their location, their orientation and their relation with the already detected confluence SR regions - the blue rectangles ). This correlation is done by the human brain very fast, so no need for indies. This filter has as a result that the number of trades isn't high ( and this is a problem for an active person without selfcontrol ) but when it's a GO, the system gives you an edge.

 

So thank you for showing your equilibrated system and, if you have some comments, they are very welcomed.

 

Cheers.

[fxfxfx]

Hi izogrey,

 

I am always impressed about you :-)

You give so much energy and systematic in this that I must say that I am amazed ! Why: Because this is the ESSENCE of trading !

 

The success is not the system ! I think I stated this in a very early post: 2 people can decide to make a new business -> Both are doing the same - But one fails and the other succeed -> This is also true in trading - Treat it like a business - and you are on the right path !

 

Let me say one thing about these confluence-lines...

In fact I personally do not mark them... Why ? Because I do not need it anymore ! I quickly see that pattern of the waves and I just put on shortly the fibo for confirmation ;)

 

And: Maybe it was a little bit irritating: My focus are NOT these power-lines... I basically trade EVERY candlestick-formation at a S/R-Line in the direction of the trend - BUT: These confluence-lines give the trade more power and this does not change my entry but the TRADE-MANAGEMENT.

 

You must see the chart as a roadmap and maybe there is also a little bit of but of gut feeling -> But you will get this gut feeling when you know all the components and trade them very often (This is the trader in you )...

 

Why do I want to have the daily and 4-hourly aligned -> Not because the system does not work anymore, but we put the chances to our favour. The only exeptions where I focus on the trand of the 4-hourly and that it is not needed to be aligned with the daily is: Change of trend (except when it happens in the channel of a sideways-market) and a pin-bar which forms on a double-top

 

In a BULL-Market you can not do much wrong by buying stocks, indices,... except if you have a too small stop-loss ;)

 

I know also traders who trade counter-trend trades successfully -> But they know the market really very good!

 

I also must say that I also leave much on the table -> But a zero loss trade is always better than a loss.

And also if the inside-bar was not triggered because the momentum was too strong to the downside or the S/R was too weak: It does not matter ! You made no loss ! I usually immediately cancel the trade and look for the next trading opportunity ;)

 

As a trader you must learn to see that the bottle is half full and not half empty ;)

You must always NOT trade primary to make big money - but to save your money - and every trade which is NO-LOSS (which is also a breakeven-trade) is GOOD !

 

I must say that I do NOT focus of the frequency of trades but the quality.

When you have 3 good setups per month which are all winners and you can achieve a Risk/Reward-Ratio of 1:4 or more you have a gain of 32% per month while risking 2% per trade.

On the other side when I have 30 trades which has a Risk/Reward-Ratio smaller than 1:1 and more than 50% of them went wrong -> You account be busted sooner or later.

 

I am really happy to see this progress on you.

The only thing you must learn (and this comes only with time) is to trust your system (I say YOUR system, because I am sure will probably change this or that when you are more experienced) and move the trade to breakeven when the trade reached a R:R of 1 or in this particular case: Do NOT move it to breakeven but trail the SL at Inside-Bars, Pin-Bars, S/R-Lines (Especially when a change of trend happened)...

 

All in all I must say that I think you got the system now and as I can see you also trade it :) This is the correct mindset ... And: Don't worry... You will also have loosing trades *g* ;)

 

Regarding the Inside-Bar breakout -> They ARE realiable at S/R Lines ... Trust me... The secret is only: You MUST trade them WITH THE TREND -> This means: Do not make order at both boundaries of the outside-bar -> Only in the direction of the TREND!

 

Hope you will be consistently successful with this method/tools I showed you all here -> Izogrey is on the correct path -> As I said: Not the system is the success -> You must execute it -> btw.: I am still waiting for lots of homeworks ;)

 

Cheers

 

fxfxfx

 

Hi fxfxfx,

 

Just another trade on UC.

 

Reason for the trade: candle pattern developed gradually at the confluence between 23.6 fibo, trend change line on main chart ( H4 ) and a SR line put by me on chart about a week ago.

 

First was the inside bar. I don't know why, but I don't like the ideea to trade the inside bars alone, on a breakout basis - maybe I don't have much experience with them, I have a little fear that, after breakout, the price will explode back into my nose ! :-), I mean it will retrace back rapidly.

 

After that, it was a false downward breakout, which is a long hint, but the trend on the main chart was down, so no action.

 

After, it was the very beautiful pinbar, which also made a double top with the inside bar, just at the trend change line and at 23.6 fibo, and at 7 pips from my own SR dotted line ( which was there for a little over a week ). This means down rejection. Trend on main chart down, but on D1 chart it's up yet. So ... I was shy and didn't start the trade. This hesitation had a cost of 18 pips ( from the close of the pin bar to the actual entry ).

 

http://img713.imageshack.us/img713/4919/ucpatternh4.jpg

 

But when on H1 I saw another very beautiful pinbar at another SR level put by me at the same time as the first one ( the greyed ellipse ), it seemed to me that the classical scenario breakout-pullback-continuation is on its way. I thought it is a surefire 100% successful entry ( as it can be in Forex ), so no more hesitations.

 

I locked 20 pips on 50% after the first H4 bar has finished, and the rest of 50% is on a free ride ...

 

http://img806.imageshack.us/img806/3509/ucentryh1.jpg

 

I think I understood something: that in your system, the filter for the bad situations isn't an indicator, but the correlation between the SR lines and the "quality" of patterns ( by quality I mean their location, their orientation and their relation with the already detected confluence SR regions - the blue rectangles ). This correlation is done by the human brain very fast, so no need for indies. This filter has as a result that the number of trades isn't high ( and this is a problem for an active person without selfcontrol ) but when it's a GO, the system gives you an edge.

 

So thank you for showing your equilibrated system and, if you have some comments, they are very welcomed.

 

Cheers.

[fxfxfx]

PriceActionAlerter

 

Hi crips, izogrey, rvoiz

 

I PMed you the PriceActionAlerter.

 

You only need to configure you e-mail settings in Metatrader and attach the indicator the every pair/timeframe where you want to get alerted about PIN-BARs, Inside-BARs and FAKE-BREAKOUT.

 

The indicator is in no way in the FINAL-STAGE - But it does what it should: e-mail you when one of these pattern occur - This way you do not need to stare all the time at the screen.

 

Thx for contributing !

 

Cheers

fxfxfx

[nnn123]

Hi,

 

Sorry, Been away.

 

Here is my homework.

 

http://clip2net.com/s/10Mrp

 

and

 

http://clip2net.com/s/10Msk

[fxfxfx]

Hi nnn123,

 

PMed you the PriceActionAlerter.

 

Will look at your charts later as it is 1 am here in Austria and I am going now to bed...

 

Cheers

 

fxfxfx

 

Hi,

 

Sorry, Been away.

 

Here is my homework.

 

http://clip2net.com/s/10Mrp

 

and

 

http://clip2net.com/s/10Msk

[nnn123]

Hi 3fx,

 

I got the PA Alerter.

 

Thanks.

 

Look forward to your further advise and thank you for this.

[nnn123]

Izogrey,

 

How do you manage to post the chart into the forum. Looking back at my posts, the links expire and then others cannot see the charts at a later date, which impairs the comments.

 

Thanks.

[fxfxfx]

Hi nnn123,

 

you can use http://www.imageshack.us -> This is also what I use and obvioulsy also izogrey uses imageshack.us

 

Cheers

 

fxfxfx

 

Izogrey,

 

How do you manage to post the chart into the forum. Looking back at my posts, the links expire and then others cannot see the charts at a later date, which impairs the comments.

 

Thanks.

[⭐ izogrey]

Hi nnn123,

 

you can use http://www.imageshack.us -> This is also what I use and obvioulsy also izogrey uses imageshack.us

 

Cheers

 

fxfxfx

 

Yep, that's right. I just go to imageshack, upload the image and set the option to "Do not resize" ( this is because I have a weird resolution on my laptop ).

 

Cheers

[fxfxfx]

PA-Alerter

 

Hi folks,

 

Lets make a deal:

 

I surely want to have TWO ADDITIONAL homeworks ... Then I will post the link to the Price-Action alerter...

 

Do not get me wrong - People were asking how to make consistent money with forex and I want to tell the people how to do this - but the most important thing is not the system - It is the thinking that trading is a business -> And you have to WORK and prepare for your BUSINESS (although the regular work is very less on a daily basis - only the initial drawing takes it time...).

 

How do you think you will earn money when you are not able to do these kind of stuff on a regular basis ?

 

This is EXACTLY why 95% of the trader fails: They follow the wrong system AND they do NOT treat it like a business -> They want to have something which is doing everything automatically for them and pull out money consitently -> If this exists NOBODYneeds to work...

 

Cheers

fxfxfx

Edited June 23, 2011 by fxfxfx

[nnn123]

Thank you 3fx and Izogrey.

 

3fx,

 

I totally agree with you on what you said in the post # 189. I am really lazy and I really have to work at this big time.

 

I am working on it and it is working.

 

Can you elaborate into which timezone is better or do you take a trade, once the PA alerter has informed you and you start watching that cross?

 

Thanks.

[fxfxfx]

Hi nnn123,

 

Thx for you reply...

 

Let me tell you that I personally know 2 ways to trade this strategy.

 

1) Find a currency where the trend is aligned with the higher time-frame

Check if the currency is already in the stage of a retrace

Make your analysis (What is the current market situation: Trending, Sideways,...)

Look at your chart where the next possible turning-point would be -> Make an alarm a few pips above/below this level and once the level is reached, look for the candlestick-formations and confluences.

 

2) Scan the market for these candlestick-formations. Once you have one of this formations make your analysis: Is the trend of the higher time-frame trend aligned, Are the any confluences of PA, What is the current market situation -> If the setup occured not while a re-trace or not at a S/R-Line, I skip this trade.

 

I personally use the 2nd one - But it is just because it suits my lifestyle and I am also a lazy guy -> Choose whatever fits to you...

 

Once I get a pre-notification (Usually 45 minutes before a full cycle ends - This gives me plenty much of time to analyze the potential trade...), I make my analysis ... . If the setup is invalid (Occurs not at a S/R Line, Trend above is not aligned, PIN-Candle shows the "wrong direction", Formation occurs at the wrong place), I skip the trade. Then I wait until a few minutes before a full cycle of the time-frame ends and open the trade(s) on my demo-account -> I have a computer which is running 24/7 where also the PA-Alerter is attached. At the same computer I have 3 instances of Metatrader running -> 1 master-account and 2 slave accounts.

The master account is a demo-account and I have the account-number and password always with me as it is useless for other people as it is a demo-account ;)

In my work I have also a computer. Once I got an alert I open the Metatrader at my work and make my analysis and open the trade on my demo-account.

The trades from the master-account (demo-account) will then be copied with a trade-copier (which is running at my 24x7 computer) to the 2 slave-accounts which are both LIVE-Accounts.

1st Account I trade with 2% Risk per trade

2nd Account I trade with 4% Risk per trade

 

So maybe people are asking why I use this kind of configuration...

 

I did this way:

When the first account is doubled take out your initial investment -> You are now RISK-FREE ! All the money comes now from the market !

Once the account is again doubled, open a second account and transfer 50% from the 1st account to the 2nd account.

 

Now you have this configuration:

You are RISK-FREE (You already got your investment back).

You have a SAVINGS-account which you trade with 2%Risk where you can withdraw 30% of the profits once or twice a year to your bank account or so...

You have a BOOST-Account which is traded with 4% Risk where you can withdraw money on a regular basis once your account reached a certain amount of money.

 

This way you have a pipeline which contains your retirement-fund and your "bread and butter" account where you can withdraw on a regular basis. And: You are risk free (did I mention this *g*)

 

This way you may sleep better because You know -> I already got my investment back and I also make consistent money and even when the second account will be blown -> You still have your first account and you can re-analyze your situation...

 

Hope this was useful

 

To come back to your topic:

You surely will get best results in the EUR/US-Session - But you can also trade only the daily-charts ... then it makes no difference...

May I ask you which time (and timezone) would be best for you nnn123 ? I personally prefer a broker where the daily candle starts/ends with NY-Close (I use 2 different broker -> 1 broker for the NY-close price-feed but for the live-account I use a different broker).

 

And:

nnn123: I am also VERY LAZY :) Draw these initial lines at weekend or at night (whenever you have a littel bit more time) - To update these lines only takes a few minutes per DAY ;)

Or: Focus only at 1-3 pairs ;)

 

Cheers

fxfxfx

 

 

Thank you 3fx and Izogrey.

 

3fx,

 

I totally agree with you on what you said in the post # 189. I am really lazy and I really have to work at this big time.

 

I am working on it and it is working.

 

Can you elaborate into which timezone is better or do you take a trade, once the PA alerter has informed you and you start watching that cross?

 

Thanks.

Edited June 23, 2011 by fxfxfx

[peterpiak]

Thanks so much 3fx for your lessons, great job. I'm confuse something about inside bar, someone said just body of current candle inside the body of the previous one not about the tails but some said both body and tail must totally in the previous one. From your experience which one is the real definition.

[fxfxfx]

Hi peterpiak,

 

An inside-bar is a 2-bar formation:

The outside-bar, followed by the inside-bar

The high of the outside-bar is higher than the high of the inside-bar

The low-of the outside-bar is lower than the low of the inside-bar

 

Hope this helps ;)

 

Cheers

 

fxfxfx

Thanks so much 3fx for your lessons, great job. I'm confuse something about inside bar, someone said just body of current candle inside the body of the previous one not about the tails but some said both body and tail must totally in the previous one. From your experience which one is the real definition.

[armando91]

fxfxfx, Thank you very much for all your lessons.I have been following you thread since you strted it and it has a lot of great nuggets of trading wisdom.

Although i did not post anything before, i was practicing some of your suggestions but am not fully comfortable with the whole proccess yet.When reading the analysis of yourself and others i still feel that i do not have the whole structure down to a good understanding.

I still will keep on practicing but if there is a way you can show how you do your analysis step by step or as they say putting it together it would be appreciated.

Once again thanks for taking the time to help others.

[alright]

Hello again, fxfxfx. I'm sorry but I've been taken by other commitments for a while and haven't carried on with my homework, last but not least a total reformat of the PC. I hope I can catch up soon. Meanwhile thank you for the other lessons you've been providing. To help myself and hopefully someone else to keep up to date with your thread, I took the liberty to prepare a pdf with your posts and a few from other people, especially izogrey, which have been helpful to clarify your comments. I will update it regularly if any use

http://www.mediafire.com/file/vqt0tbmbofb1470/Fxfxfx%27s%20Forex%20strategy.pdf

[fxfxfx]

Hi alright,

 

Thx for the work ! What can I say, except: Wow !

 

Thx for your time and contribution !

 

As a kind of "Thank you" I will publish here the Link for the PA-Alerter (Although I stated that I will wait for 2 additional homeworks - but I am in a good mood now).

 

http://www.4shared.com/get/WP3mbNTM/PriceActionAlerter-0005.html

 

This will hopefully save you lot of time and you must not stare all the time to the screen ;)

 

I will prepare also a summary from my side - it should act like a check-list for all the users.

 

Cheers

 

fxfxfx

 

Hello again, fxfxfx. I'm sorry but I've been taken by other commitments for a while and haven't carried on with my homework, last but not least a total reformat of the PC. I hope I can catch up soon. Meanwhile thank you for the other lessons you've been providing. To help myself and hopefully someone else to keep up to date with your thread, I took the liberty to prepare a pdf with your posts and a few from other people, especially izogrey, which have been helpful to clarify your comments. I will update it regularly if any use

http://www.mediafire.com/file/vqt0tbmbofb1470/Fxfxfx%27s%20Forex%20strategy.pdf

[alright]

Hi alright,

 

Thx for the work ! What can I say, except: Wow !

 

Thx for your time and contribution !

 

As a kind of "Thank you" I will publish here the Link for the PA-Alerter (Although I stated that I will wait for 2 additional homeworks - but I am in a good mood now).

 

http://www.4shared.com/get/WP3mbNTM/PriceActionAlerter-0005.html

 

This will hopefully save you lot of time and you must not stare all the time to the screen ;)

 

I will prepare also a summary from my side - it should act like a check-list for all the users.

 

Cheers

 

fxfxfx

Thanks very much for the indi. I didn't dare to ask as I wanted to follow the proper steps and do my homework first, but since you decided otherwise, I won't look a gift horse in the mouth... LOL

Also a compendium of your strategy will be very much welcome. Thanks in advance. ;)

 

P.S. - In case you mean to add charts to your summary, can I suggest to use a white background, so it will be easier to print it out? Thanks

Edited June 27, 2011 by alright

[peterpiak]

Thanks for your answer, i totally understand for IB. Your PriceActionalert is very powerful.

 

May pips always be with you.

[alright]

I just noticed this setup on EG. Would that be a failed trade? To be honest, according to the LH-LL criterium it wasn't a down trend on the daily TF, only on H4 and lower. That pinbar looked juicy though... The upper 38.2 level seems narrower and stronger and it's right on a round number. Do you think it would be legitimate to take a trade on it (assuming we get a reversal) or still a mistake as the upper TF is not agreeing?

http://img198.imageshack.us/img198/7880/201106271600.png

[fxfxfx]

Hi alright,

 

No - this is NOT a failed trade (although they exists *g*)

 

H4-Trend and DAILY-Trend MUST be aligned EXCEPT after the first pullback after a change of trend (except when market is sideways and did not shoot out of the sideways boundaries) OR PIN-BAR at a double-top.

 

When you have the trend of the higher time-frame aligned with the trading-timeframe, you nearly can not make anything wrong - then it should also be possible to trade every of the candlestick-formation - regardless if they are at a S/R - line.

 

You can improve your trading dramatically if you do this (I also did this when I started trading Price-Action):

Make a spreadsheet with these fields:

Market Condition (Sideways, trendy): SIDEWAYS/TRENDY

Trend Daily: LONG/SHORT

Trend 4-hourly: LONG/SHORT

Trade-setup: PIN-BAR/INSIDE-BAR/FAKE-BREAKOUT/2-BAR-PIN

Trade-setup-direction: LONG/SHORT

TRADE-VALID: TRUE/FALSE -> This should be a calculated field: Make a calculation with these field that every field must be fullfilled and mayba also a conditional formatting (TRUE:BLUE, FALSE:RED)

 

When you see a setup you MUST force yourself to fill in the spreadsheet.

This way you have a mechanical way to determine the validity of the trade and also prevents that you forgot an aspect or that you got greedy ;)

For the beginning maybe only trade if trend of both time-frames are aligned -> When you master this you probably extend your spreadsheet to the EXCEPTIONS ;)

 

Do you know now why I always say: Treat it like a business *g*

Provide yourself the tools that you are able to analyze the market and you do not have to spend hours for the analysis.

Provide yourself the tools that alerts you once a potential setup occurs.

 

Hope this helps

 

Cheers

 

fxfxfx

 

I just noticed this setup on EG. Would that be a failed trade? To be honest, according to the LH-LL criterium it wasn't a down trend on the daily TF, only on H4 and lower. That pinbar looked juicy though... The upper 38.2 level seems narrower and stronger and it's right on a round number. Do you think it would be legitimate to take a trade on it (assuming we get a reversal) or still a mistake as the upper TF is not agreeing?

http://img198.imageshack.us/img198/7880/201106271600.png