Sure. The day before yesterday I posted my trading screen. I trade by using 2 charts only; 30sec & 5sec.
As I begin my trading session I start on the 3 hour chart and begin zooming in to the 30 sec chart. I draw "obvious" trend lines on each level as I drill down to the 30 sec chart. Some days there are trend lines.. some days there aren't. I also mark the highs & lows that I think are "obvious" and most important. Once I've made it down to the 30 sec chart the Support & Resistance lines from the higher levels are still there so there's no need for me to look at different time frames other than the 30sec & 5sec while I'm actively trading.
I put Bollinger Bands on my charts to help me identify the recent and relative flow of price. The best analogy for the use of an indicator I've read was from Richard at MoveTheMarkets.com - To paraphrase he said that use of an indicator is like reading a book with all the important parts already highlighted. The Bollinger Bands highlight the rhythm of the market.
When I'm placing a trade I'm simply looking for price to pause or consolidate on the 5 sec chart. Then I look at the 30 sec chart and do my best to gauge how much space price could move from my entry point that is above or below the consolidation that is taking place on the 5 second chart.
From a trader named Phil McGrew I picked up the idea of The Market "tipping its hand" before I enter a trade. All of my trades are limit orders on Oanda's platform. When I place a long order current price is always below my entry. When I place a short order current price is always above my entry. This helps ensure upon my order being executed that the market has already "tipped its hand" and begun to go in my direction. It also helps me identify good levels to place my stop because price has turned so I can place my stop below or above the most recent turn in price.
My stops are automatically set at 5.5 pips on Oanda's platform. I'll adjust it up or down a little bit after the trade has been executed.
Taking profit is a work in progress but generally I'm not placing a trade unless I can at least see 8ish pips of space for price to move in my direction. Of course that doesn't mean I'll be able to hold for the full 8 pips or longer. Once my trade is active I'm looking for signs of trouble while trying not to been too quick to bailout.
Thanks for sharing Harvey. Question about tipped its hand part, does that mean you will be a breakout trader most of the time? Aren't we suppose to buy the low and sell the high? I like the stop part, that make sense. but if your stop is 5.5 away, doesn't it help if you can get your entry 2 or 3 pips better than "tipping its hand"?
From a micro perspective I'm taking essentially the same set up every time. It could be described as a micro break out from a 5 second chart perspective. 5 second chart pause -or- consolidation in price and my entry is going above or below current price if I'm going long or short.
However these 5 sec chart entries are all over the place in terms of market context. The 5 sec chart entries could be on a dip or a pull back in a short-term trend. The entry could be at the bottom or top of a range or it could be on an extension out of a range aka "breakout". Sometimes its in the middle of the swing after price has made its turn. Other times its as price is breaking to a new high in a trend.
At the moment I'm not looking to optimize my entries any further in terms of being able to get it closer to my stop. My stops are really close to my entries because I've started to become proficient with my timing. But also you'll see many times when I place an order and cancel it moments later because price didn't continue reverse. These canceled orders represent 5 pips or more that I could have lost but didn't since I didn't enter the market with a market order. My main room for improvement, for now, is letting my trades run in my favor further.
Could you please explain a little about your strategy? Helps me to better understand your charts.
ReplyDeleteSure. The day before yesterday I posted my trading screen. I trade by using 2 charts only; 30sec & 5sec.
ReplyDeleteAs I begin my trading session I start on the 3 hour chart and begin zooming in to the 30 sec chart. I draw "obvious" trend lines on each level as I drill down to the 30 sec chart. Some days there are trend lines.. some days there aren't. I also mark the highs & lows that I think are "obvious" and most important. Once I've made it down to the 30 sec chart the Support & Resistance lines from the higher levels are still there so there's no need for me to look at different time frames other than the 30sec & 5sec while I'm actively trading.
I put Bollinger Bands on my charts to help me identify the recent and relative flow of price. The best analogy for the use of an indicator I've read was from Richard at MoveTheMarkets.com - To paraphrase he said that use of an indicator is like reading a book with all the important parts already highlighted. The Bollinger Bands highlight the rhythm of the market.
When I'm placing a trade I'm simply looking for price to pause or consolidate on the 5 sec chart. Then I look at the 30 sec chart and do my best to gauge how much space price could move from my entry point that is above or below the consolidation that is taking place on the 5 second chart.
From a trader named Phil McGrew I picked up the idea of The Market "tipping its hand" before I enter a trade. All of my trades are limit orders on Oanda's platform. When I place a long order current price is always below my entry. When I place a short order current price is always above my entry. This helps ensure upon my order being executed that the market has already "tipped its hand" and begun to go in my direction. It also helps me identify good levels to place my stop because price has turned so I can place my stop below or above the most recent turn in price.
My stops are automatically set at 5.5 pips on Oanda's platform. I'll adjust it up or down a little bit after the trade has been executed.
Taking profit is a work in progress but generally I'm not placing a trade unless I can at least see 8ish pips of space for price to move in my direction. Of course that doesn't mean I'll be able to hold for the full 8 pips or longer. Once my trade is active I'm looking for signs of trouble while trying not to been too quick to bailout.
thats a long & detail one. thanks for sharing Harvey.
ReplyDeleteThanks for sharing Harvey. Question about tipped its hand part, does that mean you will be a breakout trader most of the time? Aren't we suppose to buy the low and sell the high?
ReplyDeleteI like the stop part, that make sense. but if your stop is 5.5 away, doesn't it help if you can get your entry 2 or 3 pips better than "tipping its hand"?
From a micro perspective I'm taking essentially the same set up every time. It could be described as a micro break out from a 5 second chart perspective. 5 second chart pause -or- consolidation in price and my entry is going above or below current price if I'm going long or short.
ReplyDeleteHowever these 5 sec chart entries are all over the place in terms of market context. The 5 sec chart entries could be on a dip or a pull back in a short-term trend. The entry could be at the bottom or top of a range or it could be on an extension out of a range aka "breakout". Sometimes its in the middle of the swing after price has made its turn. Other times its as price is breaking to a new high in a trend.
At the moment I'm not looking to optimize my entries any further in terms of being able to get it closer to my stop. My stops are really close to my entries because I've started to become proficient with my timing. But also you'll see many times when I place an order and cancel it moments later because price didn't continue reverse. These canceled orders represent 5 pips or more that I could have lost but didn't since I didn't enter the market with a market order. My main room for improvement, for now, is letting my trades run in my favor further.
Thanks for the detail Harvey.
ReplyDelete