Hello bubble
Welcome back to the forum and i hope in one day to be able to pay for your trading course.

Regards

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Mapping The Markets

Thank you justcatalin,


Our USDCAD 240 trade was stopped out for +81 pips on half the position with the other half at b/e.

NZDUSD 240 still running with half the positon closed with +85 pips and the rest at b/e.

EURJPY trade long from the 5 minute timeframe gave us a nice 34 pips at our partial take profit point with the rest stopped out at break even.

Because we always enter on retracements during a trend should the price reach in an uptrend the current peak or in a downtrend the current low we usually close half the position at this point and move our stops to b/e ,this is a safe way of trading as we are usually in the trade at the early stages of the trend continuation ,trends usually go on to make a new high or low of course this depends on how much room there is to support or resistance so its logical to assume that the point the trend may fail is when it attempts to break the current high or low.


bubble

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Here i will explain in more detail the trading method that i use.

First of all let me explain that the whole key to this method is being able to identify the correct peaks and troughs.

Take a look at the chart and the first thing you will notice is the trend line joining the 2 peaks or higher highs , the reason for joining these 2 peaks is to see if there is any divergence using an oscillator which there is (price peaks rising ,corresponding oscillator peaks falling), there is no point in jumping in straight away as this could simply be a short term retracement so we wait for a new trend downwards to develop and break the last higher low from the prior uptrend.

As you can see from the chart a new downtrend develops and breaks the last higher low from the prior uptrend confirmation of the break is needed with a close below the last higher low on the higher timeframe which there was and we must ensure that the current trend is in alignment with the higher timeframe which it is.

The next step is to use a technique that i call isolation , the isolation technique involves moving up the timeframes until we can isolate the current downswing against a prior upswing which as you can see from the second chart the low i have marked is the low of the isolation swing in the opposite direction and that will act as support and our exit.
You will probably notice from the two charts that the exit is higher than the swing low from the 240 chart , this is because each swing has another support level which is actually higher than the low which i use as a safer exit incase the price gaps away from the actual low.

Now we move back to our trading timeframe and watch the peaks and troughs form in this new trend waiting for a retracement back into the last higher low the one that the price needed to break with a new trend.

Notice on the trading timeframe that there are minor supports or troughs from the prior uptrend , these will only temporarily halt the current downtrend.

Once we are in the trade we need to consider 2 more things where to place our stop and where to take partial profit.

The stop has to be placed in a logical position ,its not good enough just to pluck a figure off the top of your head, so we use the peaks in this case and place our stop above the last high of the current downtrend which gives us a stop of 50 pips versus a reward of 230 pips or a risk/reward of 4.5/1 at this point we can decide if a 50 pip stop is too great a risk for our account or not.

Once in the trade we wait for the price to move down towards the last trough or swing low created by the current trend , at that point close half of the position that held and move the stop to the price that we entered on making this a no lose situation.

As you can see the price came down hit the partial take profit point and then moved to the next temporary support from the prior uptrend retraced a little before moving down to the target for a profit of 230 pips.

This trade is a trend reversal trade ,i use the same techniques for continuation trades , as you can see this method is all about using the peaks and troughs ,being able to identify peaks and troughs gives a serious advantage in combination with the techniques that i have described above.

This is a trading method ,not a system as you can see it follows the natural flow of the markets.

bubble

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Hmm
i do not understand where did you get that Support on second image.
why you not pick up that recent lower low.


and also can you explain deeper about entry : )

thanks

Attached Images

hn1.gif (13.4 KB, 399 views)

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K.Capek

Hi Adriann,

As i said at the beginning of the last post , the key is being able to place the price into the correct swings or peaks and troughs, at the time of the trade the 60 was showing alignment with only the 240 and that low was the current swing low according to how i look at peaks and troughs and as you can see it has acted as support and the price has bounced right off it.
The daily has now come into alignment so a break below the current level of support and close confirmation may well see cable down to the level you have highlighted and the one beyond at 9404.

bubble

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Thanks
i think i got it

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When i have nothing to do, I`am working.
K.Capek

The latest trade on eurjpy 5 minute timeframe made 57 pips, as you can see from the chart the set up is exactly the same as i have described in my earlier post.


We also have a trade today on oil 5 minute from 137.04 that now has 51 pips locked in on a partial profit take with the rest having come within 30 pips of our target of 139.18 ,if this trade hits the target that will be well over 200 pips.


bubble

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hi bubble,
i love everybit of you contribution to this thread,please keep it coming.

Thanks for your support remmy007,

bubble

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http://trendtradingwithsupportandres...ome/4529605734

Hi all,


Oil trade from yesterday close with partial profit plus second half of position close at trend reversal point , and a GBPUSD short trade closed for 86 pips profit.

Trades taken live in the trading room as per the method i described in my earlier post, i will post the charts a bit later today as i have a possible long trade on USDCAD at the moment.


bubble

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