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This is the quote of all quotes...
Trading is for life!... 
baseerahmed ( Date: 16-Jun-2009 19:03) Posted:
"A good signal jumps at you from the chart and grabs you by the face - you can't miss it! It pays to wait for such signals instead of forcing trades when the market offers you none. Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds."
- Dr. Alexander Elder
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"A good signal jumps at you from the chart and grabs you by the face - you can't miss it! It pays to wait for such signals instead of forcing trades when the market offers you none. Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds."
- Dr. Alexander Elder
Thanks for sharing Baseerahmed ! - Am not targetting EJ to observe ~
Cheers,
Trendline combined with Price Action strategies simply work big time !
No doubt about it.
It is much better than the conventional technical indicators because they are more accurate and NOT lagging!
Simple but works like wonder.
Feel free to visit my forex trading blog for more trading strategies and other tips here :
=>
My Forex Trading Empire Blog Cheers to all and happy trading.
Those who miss Elfinchilde's meaty dish-outs may wish to catch up with her on her nice blog: at:-
Elfin's Blog (click)
Support And Resistance Trend-lines
The most reliable forex chart patterns are found on a 4 hour chart, and include linear trend-lines and channels that reveal straight forward support and resistance areas. An issue arises in how most traders look to draw their trend-lines, and more importantly what the trend-line is trying to achieve. Some have charts that look like a bowl of spaghetti, there are so many lines and cross-over and indicators that all they need is Alfredo Sauce to make a great looking meal.
All that we should be trying to achieve from linear lines is to reveal the support and resistance areas that, for whatever reason, are important to the market in that particular time-frame. Look for the candles with long wicks, and switch to bar charts for a clear view. Do not start at the current time-frame and work back; always start from a previous support or resistance areas as far back as the standard time-frame allows, and then work forward. Working from the current time-frame and going backwards tends to slant the data, and creates patterns that a trader wants to see, rather than patterns that are actually there.
We are not looking for complex patterns when trading forex, the reason being that currency trade creates a market of need, and as such will not always draw in the momentum for complex patterns to complete. Compared to the equity market, a market of greed that allows trends to hold longer and therefore patterns to run their course, the Forex charts really should be very clean and free of clutter.
We see it every week that currency pairs move as much each day; the Average Trading Range is 0.5% on most pairs, as they do in a whole week most of the time. That confirms that complex chart patterns really may not have the percentage chance of following through in forex, as much as they would in Equity trading. A forex Swing Trade is a 2-3 day affair, compared to a 2-3 week affair in stocks.
Properly drawn linear trend-lines on a 4 Hour chart will pick up the wicks of the farthest candles, and find two price points that they have touched; a perfect trend-line offers the opportunity of revealing the third point, and that is what we are looking to trade to, bounce from, or break.
Once the trend-line is in place run a Fibonacci study from the first point of the trend-line, and link the high or low of the chart value. If the third point is also a Fib retracement area we then have a very good idea that it will hold when hit; the market will have also picked it up. Trend-lines make forex trading a lot simpler than most other markets, and certainly a lot simpler than some try to make it.
Trend-line Example: The analysis is looking for the third price point point that will confirm the line already in place, either as support or resistance, to work an Entry or Stop from. We then look for Fibonacci confirmation of the line.
yes, I am sure everyone in SJ misses Elfinchilde's in-depth analysis of the market and counters ...and her jovial postings .... : )
we can still 'see' her in her very own elfinchilde.blogspot.com .....
Techsys told us before that he had already made his fortune in forex...
So he may not be wasting time here anymore...
I miss
Elfinchilde more.... hehehe...
..sigh ...
I sure miss Master techsys ... wonder where he is .. and how he is doing now ...
Master ... my respects to u !
If one masters "The Art of Gentle Losing", one is already half-way there... hehehe...
Successful traders have two key advantages.
First, they have the
best information. This consists of 5 key items -
- extensive TA knowledge that works in the forex market
- lengthy market experience
- independent/sound research capacity
- self-motivated attention to detail
- thorough and professional preparation.
Second, they make the
least number of mistakes. It isn't a question of making no mistakes (even the best get it wrong sometimes) but of keeping the error rate as low as possible.
Very useful analysis you shared here..
Just curious any fellow traders here use Forex Price Action to trade the market as well ?
I find that it is more powerful and more accurate....not lagging like most indicators do.
What do you guys think ?
Cheers..
- Aaron
http://www.forextradingempire.com
This morning, D/Y Cheong-Arrhhh!!...
There's pure wisdom in those words.
But with the free 100k capital that comes with the demo accounts, it will indeed be an uphill climb to adjust
practically to tiny trading lots.
When one has wielded a huge double edged sabre, would one easily adapt to a fruit knife? ...
The Holy Cow of Trading.
Another trader within my acquaintance recently related the story of his transition from demo to live.
He made a classic mistake, demo trading on a $100k account (because he liked the hit of seeing the zero’s spinning around), having a great time. Suggestions that demo trading the amount of his anticipated live capital was essential, went unheeded. He then went live on a $10k account, and promptly blew it up. He refunded a second time with another $10k, blew that one up too. Now he is trading a micro-account, and finally the lesson has sunk in – trade small to start with – give yourself room to get through the apprenticeship without the damage.
The big difference between demo and live is just one word - pressure. Some traders can handle the pressure, others can’t. Small position sizes accomplish several important things –
+ Small position sizes are the optimum way to contain the pressure. Small position size, small pressure. Big position size, big pressure. This is a critically important tool for managing the emotions of trading.
+ Small position sizes make allowance for the knowledge vacuum, the “what don’t I presently know about this, that I need to know” factor.
+ Small position sizes link in to the “Less is More” approach. A little trade at the right moment, goes a long way. In Forex, it doesn’t take a big position size to make a big return on investment. A small trade, well placed, can deliver big returns.
+ Small position sizes guarantee preservation of your account capital, and as such are the primary tool for insuring yourself against losses.
+ Small position sizes ensure market longevity. No money, no trading.
Many experienced traders recommend small position sizes relative to the size of the account (not more than 2%) and regardless of market experience, for good reason.
Position size is however contingent upon two things. First, the level of risk the trader is comfortable with and second, the level of proficiency the trader has. Some traders are comfortable with high levels of risk, but under-estimate the second part of the equation, their proficiency.
If the trader is good at what they do, has a strong track record of success, an increased level of risk-reward can be a legitimate strategy. Some experienced/professional traders risk up to 20% of their account seed capital per total open positions (usually trading a basket of currencies simultaneously). The premise is that Forex is a speculative high risk instrument, it’s not the place for the bread and butter money of other investments, risk is the business du jour - as a successful professional trader they have literally “earned” the privilege to trade higher levels of risk.
The end purpose of longevity in the Forex market is to gain mastery of the instrument, to trade it with a high degree of accuracy and proficiency, accumulating consistently successful trades. Making it through the apprenticeship to reach the success objective is made possible by one thing, managing position size well.
Position size matters. Regardless of account size, trading style or market experience, it’s the key to unlocking and maintaining long-term success. In the early stages especially, it’s the key to survival.
Small position sizes also give the trader room to grow gradually into a place of comfort in coping with the pressure that comes with trading larger numbers as the success rate improves.
Safe and happy trading.
http://forexdistrict.com/jadegate_blog/position-size-%E2%80%93-holy-cow-trading
caveat emptor -- chart by novice -- for educational and entertainment purposes -- not an inducement
Looks like the parachuting has just begun...
This H&S is such a beauty!...
Any shorting done yet? It's about time for the big chunky meaty 'collapse'...
Anytime ... anytime now... ready...
Very nice chart,
Baseer...
:)Started live trades yet?...
