Page 1 of 5 123 ... LastLast
Results 1 to 10 of 48
  1. #1
    Specialist Member Million Dollar Baby's Avatar

    MDB - PA - Strategy !!!

    12-Mar-2015
    Coming Soon:

    Based on my experience and trading strategy, I am starting a new thread. I will post complete details by the end of this week or on Monday. Strategy will be based purely on Price Action using Custom S/R lines and Naked chart analysis.

    17-Mar-2015

    Purpose to this thread
    Sharing my strategy and improve it by discussing it with other members.

    Why Share my strategy with other forum members
    It is not a holy grail otherwise I would never share it with you.

    How will it be different from my Trading Diary
    In trading diary, I am posting trades with brief analysis. Here I will post trades with in depth analysis and then, with your contribution, we will refine this PA strategy. This strategy is based on naked chart analysis accompanied by custom S/R lines which makes it very clean and easy to understand yet very difficult to master. As most of you have already seen my diary and the way I analyse charts, this strategy will be pretty much same except that it will have much more detail to develop an in depth understanding of charts.

    How forum members will benefit
    I will benefit from your views and you will benefit from my views plus everyone else's views.

    Rules
    1- Any addition to strategy will only be made if it does not involve any technical indicator. I believe on custom R/S lines and analysing naked chart.
    2- If you are posting your chart, make sure that it doesn't look messy (otherwise there is no point of implementing rule 1).
    3- If you suggest some addition to strategy, write detailed logic behind your point so that everyone understands it.
    4- I have used this strategy on currency pairs only. Even though it is highly probable that a strategy works on some assets better than other assets but I will not "specify" any asset.
    5- Strategy will start from V1.0 and each addition will be tested thoroughly before being included. Each addition will be listed separately under the main strategy so that we keep track of where we started and where we are and what steps did we take to modify this strategy.

    What you need to know


    Trading Strategy MDB - PA V 1.0
    At the moment I do the following to enter into a trade.

    1- Analyse past wave pattern --- This is the most important factor in my trading strategy. I spend most of my time on this.
    2- Draw S/R lines and trendlines
    3- Enter a trade based on the result of above two steps

    As I said earlier, it is very easy to understand but hard to master.

    Most difficult point to master is analysing past wave pattern in order to predict future movements. It depends on your understanding of charts. You must know behvaiour of particular asset and how it has moved in past. Based on those movements, you will get an idea of future movements. More you visualize a chart, more you understand it. Step two is just to aid step one in order to confirm that your understanding is correct.

    Even though indicators make our life easier by doing the same function but they limit our thinking by retstricting our anlaysis. By using your own capabilities and custom S/R lines, you have limitless ways to analyse a chart. I like Candlestick chart the most but sometimes bar chart provides better signal than candlestick chart.

    Even after first two steps, I am sometimes unsure about if it would be a good trade or not. For example Pair is moving upwards (Call signal) and wave pattern suggests that further upward movement is possible. But S/R lines provide more than one scenario which is confusing most of the times. In such cases, I hold but sometimes enter in a trade when my opinion is that opposite signals are weaker.

    Strategy Update:-

    23-Mar-2015 - Longterm trend dominates short term. I have posted two examples (one where I followed longterm trend and won. Second where I didnt follow longterm trend and lost)

    27-Mar-2015 - From my recent experience and focus on breakouts, I have seen that breakouts yield high success rate (I have achieved 80% with recent 10 trades). See example Here
    Last edited by Million Dollar Baby; 03-27-2015 at 10:11 PM.

  2. Thanks Martin Kay thanked this post
  3. #2
    Legendry Member Okane's Avatar
    Interesting! Looking forward to see what you have been cookin'.
    Live Webinar: Hidden Content
    Join My Skype Group: Hidden Content

  4. #3
    Master Member Bogdan G's Avatar
    Cool man, looking forward for more details. Is it newbie friendly or advanced TA?
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  5. #4
    Administrator Martin Kay's Avatar
    looking forward!
    “Don't believe anything you read on the net. Except this. Well, including this, I suppose.” ― Douglas Adams

  6. #5
    Specialist Member Million Dollar Baby's Avatar
    Read the strategy in my first post

    Chart 1 -





    Detailed Analysis:
    I have drawn too many lines but the purpose is to make detailed analysis explanation easier.

    Now lets follow steps of strategy
    1- Analyse Past Wave Pattern.
    Pair is making a very nice bearish wave pattern. Candle size is variable and by taking a visual average of Candle size, I can be sure that trade will not keep moving around my entry point. Pair has made very clear resistance and support points which makes entry easier.

    2- Draw S/R lines and Trendlines
    First draw Major support and resistance lines/trendlines. Then look for minor support and resistance lines. It is a short term trade (i.e. maximum 10 minutes) so do not ignore even minor points. Short term resistance or Support points are always unreliable and it is not advisable to prepare for a trade based on those points but do not "ignore" these points. Even though they should be kept in mind (or drawn on chart), your trade should be based on longer term lines.

    3- Trade based on above two steps
    Pair is well above Support trend line, which means PUT, and one of the support line is breached which means another signal of PUT. There is a short term support, at 0.75000 in the way but by looking at candle size and resistance line, bounce back wouldn't take it higher than resistance line near 0.75135. So PUT entry somewhere near 0.75135 will have very good probability of expiring in the Money.

  7. #6
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Million Dollar Baby View Post
    It is not a holy grail otherwise I would never share it with you.
    I love the honesty
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  8. #7
    Master Member SeasaltMcFish's Avatar
    Nice explanation! I'll surely follow this one.

    Would be interesting how you define a certain wave pattern. Maybe it's possible to create a sample sheet of patterns?

  9. #8
    Legendry Member Michael Hodges's Avatar
    Analysis looks good. Of course, cuz its BOTS, I have to be a smartass for just a sec...please forgive me. If this is naked chart analysis, and based purely on price action, should you be using support/resistance lines?

    and could you circle or highlight the "bearish wave pattern" and explain what that is?

  10. #9
    Specialist Member Million Dollar Baby's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    Nice explanation! I'll surely follow this one.

    Would be interesting how you define a certain wave pattern. Maybe it's possible to create a sample sheet of patterns?
    Price Movement, of an asset, is always in wave Pattern.
    One wave = High-Low-High. (it can also be Low-High-Low)
    If, in above wave, next High is lower than previous high and price continues to make this formation, it will be bearish wave pattern. What matters the most, to me, is size of these waves. Bigger wave mean bigger movements and higher probability of winning a trade (if traded in the right direction and entry is close to opening of the wave).

  11. #10
    Specialist Member Million Dollar Baby's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Analysis looks good. Of course, cuz its BOTS, I have to be a smartass for just a sec...please forgive me. If this is naked chart analysis, and based purely on price action, should you be using support/resistance lines?

    and could you circle or highlight the "bearish wave pattern" and explain what that is?
    Wave Pattern already defined above.

    As I have described in first post, I love to analyse chart visually without anything on it. BUT S/R lines are just to support visual analysis. For example anyone of us can see that direction is downwards and can visually point out highs and lows on a chart. So most of this strategy is dependent on visual analysis.
    S/R lines are handy when we are identifying minor S/R zones which may be ignored when we are visually analysing a chart. These minor points matter when entering for short term (5-10 min) trades. That is why I prefer to draw S/R just to confirm if my entry is good.

  12. Thanks Ronnel thanked this post

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3