Page 7 of 10 FirstFirst ... 56789 ... LastLast
Results 61 to 70 of 95
  1. #61
    Senior Member Ingmar's Avatar
    Thanks for clarifying Mick. Regarding Anno's chart. I would have drawn a line starting from the bottom of the (black) high volume candle way left on the chart and use it as a support for the retracements you see lateron (50% line?). this is easy to say when all the 'future' candles have already been drawn of course (i also keep adjusting my lines with higher highs or lower lows, unless a MA is messing around in the same area).

    Maybe Anno drew this line to use as resistance? Although i would have drawn a downwards R trendline myself touching those highs and use it as a breakout signal in case it decided to go up. My target is usually the closest price action area (R or S line) i can find. But this is because i trade small TF mostly at the moment, but i consider this more a handicap. I can imagine using an hourly chart PA line/area as target for longer TF trades.

    I believe the bottom line is, no one draws TL exactly the same and yet they can still all work for the users. I'm still a fresh nublet to trading naked, so i could be completely off course here. (in Dutch we say 'nog nat achter de oren' - 'still wet behind the ears' as thats where babies were dried last right after birth :-D )

    I find these conversations and different opinions in the diaries most interesting though. For me it's easier to remember a good conversation then just a pointer :-)And i'll gladly add my 2 cents if nobody minds. I just hope the pro's step in to correct me when i'm not on track.

    fair trades to you!
    ciao :-)

  2. #62
    Moderator Kolyo's Avatar
    Hey Ingmar there's a lot of truth in your words. Trend lines and Support/Resistance levels are not a math science, it is more a kind of art and experience. There are of course clear rules how to draw trend lines - higher high or lower low, but there are many small differences depending on whether you put the lines on top of some noisy spikes or on open/close of the given bars. S/R is also a personal choice which is important and which is not. The goal here in trading naked or trading just the price action is not to remove all the lines from your chart. That's absolutely not the case, but to use them following your own analysis and your own understanding of what is important and what's not. I know many great chartists that are not that good in trading and many great traders that are terrible chartists but in general you have to be very good in drawing the lines if you want to start profiting from the markets
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  3. #63
    Senior Member Ingmar's Avatar
    Quote Originally Posted by Kolyo View Post
    Hey Ingmar there's a lot of truth in your words. Trend lines and Support/Resistance levels are not a math science, it is more a kind of art and experience. There are of course clear rules how to draw trend lines - higher high or lower low, but there are many small differences depending on whether you put the lines on top of some noisy spikes or on open/close of the given bars. S/R is also a personal choice which is important and which is not. The goal here in trading naked or trading just the price action is not to remove all the lines from your chart. That's absolutely not the case, but to use them following your own analysis and your own understanding of what is important and what's not. I know many great chartists that are not that good in trading and many great traders that are terrible chartists but in general you have to be very good in drawing the lines if you want to start profiting from the markets
    :-) practice, practice, rinse and repeat.

    I just watched a video about candlesticks where a candle was referred as a universe within a universe. A trending upward market that pulls back, goes up high and pulls back again towards opening level looks like a doji if represented by one candle. it opened my eyes regarding my learning journey. First i accumulated so much info (candles) that i felt overwhelmed and confused. One needs to remember so much! Then it starts to integrate and all that info turns into one candle without losing it's information. (and the next 'candles' (info) present themselves LOL)

    Instead of learning things and forgetting the latter when learning new things, i feel like i have to transcend what i've learned and INCLUDE it in the bigger whole. Transcend and include, transcend and include :-) (trend within trend, a universe within a universe)

  4. #64
    Senior Member Annovdbos's Avatar
    Quote Originally Posted by Mick View Post
    Hi Anno. Thankyou again for taking time out to look at my trade.
    I took the call option because I had a look at the daily, 4 hourly, 1 hour, 15 mins and 5 min charts. They all had bullish trends. I drew a trend line on the longer timeframe and drew one on the 5 min. I didn't set any targets because I'm not really 100% on that yet. I'm not too sure on retrace means???? Does it mean that price retraced back the opposite way prior???
    I had a look at your revision of my trade. I'm pretty sure if most things and I just need more practise. The only thing I'm unsure is your purple target line. I understand that it is a target line but why is it place there??? Why did you not place it at the tops of those highs where you drew in orange. Maybe I'm getting mixed up between S/R lines as opposed to target lines. But yeah I think I have a bit of an understanding with all that.
    On my next trade I might use this scenario as an example if the condition of the charts permits.
    Once again thanks for your lecture!!!! Lol.
    It's the only way to learn right!!!
    Yo Mick! I'm sorry for the late reaction. Had to go to a football match of my favourite football club. It turned out to be a 1-0 win. But the game was very boring haha..

    Anyway, back to your questions. A retracement is indeed basically price starting to move into the opposite direction. I actually took a retracement trade there at the end of the same uptrend you drew. I reached the longterm support at 1.07753 and there I was pretty sure it would reverse for a moment. Did only take 5 minute expiry though, because the target line (the uptrend line) was very close and you don't know if it will break the trendline or if it will touch it and continue back up. You see how it works? It's quite hard to trade retracements, but I think that when you find the right strong S/R levels you can pull them off. Even I am often still struggling with retracement trades and I've been practicing on it for months.. I like trendfollowing trades more because they are easier. Hope you understand a little more what retracements are.

    EURUSD M5 Chart
    Click image for larger version. 

Name:	EURUSD Mick M5.jpg 
Views:	18 
Size:	51.9 KB 
ID:	7041

    Here's the broker picture so you can actually see I took it there:
    http://prntscr.com/ezhnmu

    Now, let's move on to the target line. I think target lines are very similar to S/R lines. I once read somehwere S/R lines are like magnets and the price is the metal that's being attracted towards the magnet. So, S/R lines also function as target lines. So, on higher timeframes I like to put my S/R lines at very strong support and resistance areas and use them as longterm targets as well. But on lower timeframes I don't really pay attention to the strength of the S/R line, I just look where previous support or resistance was. So, when you're trendfollowing I often use the previous high or low as a target. But with breakouts and retracements it's a bit different because there is no previous high or low. Then I do it like I already explained before; I go back and look at places where a lot of S/R was and try to place my target as close as possible (like between 5-30 minutes expiry, but of course that's personal).

    About your question of placing the purple line higher on those tops. You could also do that, but as I said I like to have my targets on the lower timeframes as close as possible. Where I placed it there was also some slight S/R for 8 times there:

    Click image for larger version. 

Name:	Mick EURUSD Target 2.jpg 
Views:	17 
Size:	91.5 KB 
ID:	7042

    You see those red circles? There were like 8 small retracements there, where on those tops there were only 5. Now, again this is a target line, so I DON'T use this line to trade retracements, because most retracements here aren't very strong. So this line wouldn't be a very strong line to trade on, but it is a pretty good line to trade towards. Placing the line on those tops would be good as well, you would've had one candle more expiry than which would have turned out great as well. So, like I said that's personal.

    In conclusion: S/R lines can always function as targets, meaning you can trade towards S/R lines. But target lines CAN'T always be used as S/R lines, meaning you can't always take a retracement trade on a target line.

    I hope you understand the difference now. Hope you have a good weekend and drink a few beers! You don't have to be busy with trading all the time, you have to relax too. That's why I think it's a good thing markets are closed during the weekends. Do you have Heineken, or even better, Amstel over there in Australia?
    Last edited by Annovdbos; 04-22-2017 at 01:24 PM.
    "You think I ain't worth a dollar, but I feel like a millionaire!" - Queens of the stone Age

  5. #65
    Senior Member Mick's Avatar
    Quote Originally Posted by Annovdbos View Post
    Yo Mick! I'm sorry for the late reaction. Had to go to a football match of my favourite football club. It turned out to be a 1-0 win. But the game was very boring haha..

    Anyway, back to your questions. A retracement is indeed basically price starting to move into the opposite direction. I actually took a retracement trade there at the end of the same uptrend you drew. I reached the longterm support at 1.07753 and there I was pretty sure it would reverse for a moment. Did only take 5 minute expiry though, because the target line (the uptrend line) was very close and you don't know if it will break the trendline or if it will touch it and continue back up. You see how it works? It's quite hard to trade retracements, but I think that when you find the right strong S/R levels you can pull them off. Even I am often still struggling with retracement trades and I've been practicing on it for months.. I like trendfollowing trades more because they are easier. Hope you understand a little more what retracements are.

    EURUSD M5 Chart
    Click image for larger version. 

Name:	EURUSD Mick M5.jpg 
Views:	18 
Size:	51.9 KB 
ID:	7041

    Here's the broker picture so you can actually see I took it there:
    http://prntscr.com/ezhnmu

    Now, let's move on to the target line. I think target lines are very similar to S/R lines. I once read somehwere S/R lines are like magnets and the price is the metal that's being attracted towards the magnet. So, S/R lines also function as target lines. So, on higher timeframes I like to put my S/R lines at very strong support and resistance areas and use them as longterm targets as well. But on lower timeframes I don't really pay attention to the strength of the S/R line, I just look where previous support or resistance was. So, when you're trendfollowing I often use the previous high or low as a target. But with breakouts and retracements it's a bit different because there is no previous high or low. Then I do it like I already explained before; I go back and look at places where a lot of S/R was and try to place my target as close as possible (like between 5-30 minutes expiry, but of course that's personal).

    About your question of placing the purple line higher on those tops. You could also do that, but as I said I like to have my targets on the lower timeframes as close as possible. Where I placed it there was also some slight S/R for 8 times there:

    Click image for larger version. 

Name:	Mick EURUSD Target 2.jpg 
Views:	17 
Size:	91.5 KB 
ID:	7042

    You see those red circles? There were like 8 small retracements there, where on those tops there were only 5. Now, again this is a target line, so I DON'T use this line to trade retracements, because most retracements here aren't very strong. So this line wouldn't be a very strong line to trade on, but it is a pretty good line to trade towards. Placing the line on those tops would be good as well, you would've had one candle more expiry than which would have turned out great as well. So, like I said that's personal.

    In conclusion: S/R lines can always function as targets, meaning you can trade towards S/R lines. But target lines CAN'T always be used as S/R lines, meaning you can't always take a retracement trade on a target line.

    I hope you understand the difference now. Hope you have a good weekend and drink a few beers! You don't have to be busy with trading all the time, you have to relax too. That's why I think it's a good thing markets are closed during the weekends. Do you have Heineken, or even better, Amstel over there in Australia?
    Yeah it makes sense I think. I get the jist of it all. Just need to put it to practice.
    Yes we have Heineken which is a good drop but I'm not sure on Amstel. I'm pretty sure I have heard of it.

  6. #66
    Senior Member Annovdbos's Avatar
    Yep, it won't be learned just overnight.. You have to practice indeed.
    You should try Amstel, it's the best beer in the world if you ask me. Although, German beer is very good as well
    "You think I ain't worth a dollar, but I feel like a millionaire!" - Queens of the stone Age

  7. #67
    Senior Member Mick's Avatar
    Quote Originally Posted by Annovdbos View Post
    Yep, it won't be learned just overnight.. You have to practice indeed.
    You should try Amstel, it's the best beer in the world if you ask me. Although, German beer is very good as well
    Next time I'm at the bottlo, I'll ask if they sell it and have a drink for your next winning trade!!!

  8. #68
    Legendry Member milos's Avatar
    Quote Originally Posted by Annovdbos View Post
    Yep, it won't be learned just overnight.. You have to practice indeed.
    You should try Amstel, it's the best beer in the world if you ask me. Although, German beer is very good as well

    While you were trading binary options you were drinking a beer. Nice combination.

  9. #69
    Senior Member Annovdbos's Avatar
    Quote Originally Posted by Mick View Post
    Next time I'm at the bottlo, I'll ask if they sell it and have a drink for your next winning trade!!!
    Haha, that's good! Cheers mate! Did you take any trades so far today?

    Quote Originally Posted by milos View Post
    While you were trading binary options you were drinking a beer. Nice combination.
    Haha, not while I was trading, that doesn't seem like a good idea to me. I however like to drink a beer when I'm done trading for the day and it's time to relax. And preferably Amstel.
    "You think I ain't worth a dollar, but I feel like a millionaire!" - Queens of the stone Age

  10. #70
    Senior Member Mick's Avatar
    Quote Originally Posted by Annovdbos View Post
    Haha, that's good! Cheers mate! Did you take any trades so far today?



    Haha, not while I was trading, that doesn't seem like a good idea to me. I however like to drink a beer when I'm done trading for the day and it's time to relax. And preferably Amstel.
    I haven't taken any trades today. I have been staring at the charts to look for obvious signals. Also been on very early starts (5am) with work so by the time I get home I'm buggered. Tomorrow I will give it another go and see what I come up with.

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