Quote:
Originally Posted by onwukarisa
Hello Mystikal,
Thanks for your replies. Another question for you and I hope it will be answered :
1) Please how do you determine your entry points.
2) How do you calculate those your targets ( 1 target, 2nd target and so on).
3) How do you know the number of target a trade or move will have ( whether 1 ,2 or 3
targets).
4) Also,what are the conditions for a 1-2-3 bottom? that is whats the 1 stand for, the 2
and the 3 , what do they all stand for?
5) in your last reply to me, you said "so in this context,2 was a minor low, while the
low of the bearish hammer before the doji, at the last support ,could stand as an
intermediate low." so please whats the difference between a minor low and an intermediate
low
6) What do you mean by a bearish hammer and a "doji"
Expecting A Reply
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1)
Most traders tend to concentrate on pinpointing the perfect entry for a trade. However, in
reality the entry price is just one part of the equation. The common entry techniques are:
Channel Breakouts
A trend trader will tend to use channel breakouts to enter trades in order to catch a trend
when it is beginning. The general rule is to pick a period length, which could be 20 days
for a long term trader or 15 minutes for a daytrader and buy if the high in that period is
broken or sell if the low is broken.
Visual Entry based on patterns
The art of technical analysis focuses on the many types of chart patterns that markets tend
to form. Such as gaps, spikes, inside days, outside days, triangles, flags and double tops
to name a few. These entries are rather more subjective than channel breakouts.
Pure prediction
Prediction techniques include Elliott Wave, Gann and Dow Theory. Again the actual entry
price based on such theories is very subjective. Predictive techniques usually try to pin
point major turning points in markets and are therefore attempting to go against the current
trend rather than with it.
Volatility Breakouts
The theory behind a volatility breakout is that if the market makes a sudden move in a
particular direction then it is likely to continue in that direction. The general rule is to
add/subtract a pre-determined percentage of the recent average true range to the opening
price thus giving buy and sell points.
Moving Averages
Take the average price of the last x periods (minutes, hours or days) and buy if the price
crosses above and sell if it crosses below. This technique works well in purely trending
markets but will be badly whipsawed in a range bound market. Variations include using 2 or
more moving averages and using the cross of those as a signal. The moving averages
themselves could be simple or weighted (more emphasise on the latest prices).
Oscillators and Stochastics
I.e. RSI, stochastics, Williams %R etc. Generally these tools are used to determine whether
the market is 'overbought' and ready to drop or 'oversold' and ready to rise. They work best
in range bound markets by picking tops and bottoms but fail in a trending market.
(2) &(3)
Since trading is more of an art than a science, its more of the interpretation of the chart
information that just calculations,Onwukarisa..Besides,like I reiterated before,it wont be
to the best interests of my clients and partners if the 'edge' is disclosed in an open forum
due to the risk of fading out by the banks, institutional traders,etc..
Contact me if you are interested in a private one on one coaching on these winning
strategies...stalion@forexgreenland.com
4) A 123 bottom is a reversal pattern that is usually seen at the end of a downtrend, in
which the breach of the 2 denotes a bullish movement of price..
1 stands for the lowest low(LL)...2 stands for the intermediate high before price retraces,
and 3 stands for the intermediate low...remember 3, the intermediate low, should not be
lower than 1, which is the major or lowest low..
5)''A hammer have small real bodies(either black or white), and these real bodies have to be
at or near the highs of the session..Another criterion is that they need very long lower
shadows ( at least two to three times the height of the real body).Because of their
identical shape, you can identify them depending on where they appear in an uptrend or
downtrend...A hammer will appear at or near the bottom of a decline, either briefly or
extended; thus the name ''hammer''...which suggests that the market is hammering out a
base.. A bearish hammer simply means the clour of the hammer is dark, denoting the opening
price is higher than the closing price of the hammer..
A doji is a session in which the opening and closing prices are the same..theregfore it
resembles a cross.It indicates a market in complete balance between supply and demand..Since
a doji session represents a market at a juncture of indecision, it can often be an early
warning that a preceeding rally(rise) could be losing steam..
The ideal doji forms with the same opening and closing price, but this rule is
flexible..When the opening and closing prices are only a few ticks from each other, you can
still consider the candleline as a doji..''
The Candlestick Course...Steve Nison
[09:02:44 17/10/08] Stalion : helloo everyone
[09:05:07 17/10/08] fxjedi : hi stal
[09:06:28 17/10/08] Stalion : Sell Stop on the gbpusd @ 1.7250..1st target @ 1.7220...2nd
target @ 1.7195
[09:09:47 17/10/08] Stalion : hi fxjedi
[09:15:03 17/10/08] Stalion : twas okay, cap....our trade call yesterday didnt go our
way..so we scratch dat and say NEXT
[09:24:32 17/10/08] caprica1 : last day for me for a week. Lets see if I can finish the week
off on a nice note.
[09:31:29 17/10/08] Stalion : lol, cap....we'll finish the week on a positive note...we are
still on 3 winning days, 1 losing day...and today, friday, is up for grabs,,,//
[09:33:59 17/10/08] caprica1 : it's always always nice to finish the week off with a winner though
Wild swings too hot for traders who chase volatility | Special Coverage | Reuters
[09:35:03 17/10/08] masif1 : stal s/l?
[09:37:04 17/10/08] masif1 : anyone?
[09:37:24 17/10/08] Stalion : sl @ 1.7315...remember our pending stop order is still waiting
to be triggered...
[09:40:31 17/10/08] caprica1 : masif dont forget to add your spreads to the stop figure
[09:41:00 17/10/08] masif1 : 1.7320?
[09:45:04 17/10/08] caprica1 : Stal have you used the buy/sell windows on the cable?
[09:48:31 17/10/08] Stalion : Have you or Did you,cap?
[09:51:19 17/10/08] kokowater : is that retracement on cable or a reverse, stal?
[09:53:39 17/10/08] Stalion : price retraced at the 60% buy window, and now, its moving up...
[09:56:04 17/10/08] Stalion : any high impact news coming out from the gbp or usd?
[09:56:42 17/10/08] Stalion : right now, even price is looking for a good end to the week...lol..
[09:56:48 17/10/08] caprica1 : I was just wondering as I was reading your post on the forum
here about how you calculate the buy/sell windows
[09:59:26 17/10/08] Stalion : ohh,okay..
[10:01:01 17/10/08] kokowater : nope.. it is a low impact news for EUR
[10:01:08 17/10/08] kokowater : there are 2 impacts news at 1:30pm and 2:55pm respectively
[10:02:17 17/10/08] Stalion : right now, if you look at the GBPUSD 15 min chart, you'll see
MACD negative divergence to price, which foretells a bearish move down south...
[10:04:19 17/10/08] Stalion : gu needs to break above its previous high in order to really
qualify its bullish move....so we might be slapping a pending buy order above that
high...cap...
[10:07:58 17/10/08] caprica1 : rite.
[10:09:06 17/10/08] kokowater : ok
[10:11:52 17/10/08] kokowater : i still believe in the short of cable..
[10:12:45 17/10/08] fxjedi : why, kokowater?
[10:14:07 17/10/08] kokowater : we have a good 123 formation on gu looking at 4hrs
[10:17:21 17/10/08] kokowater : i am still holding my short on eu too, i enter so late
becasue i never chekc my 15mins chart for a good entry...
[10:19:36 17/10/08] Stalion : soo?
[10:20:34 17/10/08] Stalion : what does a 123 formation on the 4hr chart got to do with shorting the cable?
[10:20:37 17/10/08] kokowater : soo? how do you mean, stal?
[10:25:16 17/10/08] Stalion : can you please explain more,koko?
[10:27:10 17/10/08] Stalion : how do you mean the directional bias is still long on the 4hr
chart, cap? what are your reasons?
[10:27:28 17/10/08] kokowater : 123 formation on cable.. i am saying to support or buttress our point.
[10:33:20 17/10/08] Stalion : you see, koko, good training in trading is very important if
you want to take this thing to the next level..a 1-2-3 formation on the gu does not support
shorting the cable...just because a 123 is a reversal pattern that foretells a long
position, not a short position...that was why am asking...they are kind of mutually
exclusive in a way...
[10:37:43 17/10/08] Stalion : can you be more specific,cap?
[10:42:54 17/10/08] fxjedi : hey,caprica, i jus woke up this morning with a hangover.,please
dont add more to it,the headache,i mean,lol,.
[10:46:14 17/10/08] caprica1 : lol. Hangover? Self inflicted. No sympathy. lol
[10:50:04 17/10/08] fxjedi : Mercy!
[10:50:32 17/10/08] caprica1 : lol
[11:52:41 17/10/08] enolase : just taken tme to read all the posts
[13:54:31 17/10/08] enolase : today's trading is mostly range bound
[15:41:56 17/10/08] masif1 : first target hit on the short :clap:
[15:42:35 17/10/08] masif1 : cheers
[15:43:27 17/10/08] masif1 : 30pips today Wink