Forex Chart Pattern Recognition technique on the Breakout System

[mystikal]

Buy Window Ii

Hello again Stallion,

I continue to learn from this all your teachings on this thread. Thanks again.

I have a question about profit targets - what do you do if your trade is in profit but does not hit your target by the end of the day? Do you also use a time stop for closing out a trade?

We have lots of techniques to take care of that situation in live trading, but I'll give out just 2 for now;
1.. You could decide beforehand, to execute just 70 -80% of your target for prudent reasons or 2. You could use a trailing stop of 15 to 25 pips when your trade is in profit

hi stallion,am still trying 2 chew on wat you did up there but i think it might go up to 1.9595

Well, fxlillian,price on the GBPUSD actually went up to 1.9595 before going down to our buy window.Since you got the answer in a way, you are now entitled to a 3 day intensive one-on-one coaching class on the CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY.Please contact me through email when you are ready.Since its going to be through online means, have a headphone mic with a cam ready when coming to the trading room,ok.

Stallion, i saw before chat room on your site.
I tried to log in few times but there was no one online

Is that the chat room on top of the forum page?

Thanx

Hi, cako, the chatroom is on top of the forum page when you log in after registering. Its just some few technical issues that are being worked on the site(mainly the chatroom) recently. I'll let you know when everything is settled.Thanx.

Well, from what was written above, who could help project where price on GBPUSD is going to be by market open on Monday?

First 2 traders that gets the price right BEFORE MONDAY OPEN would have FREE coaching sessions on the CHART PATTERN RECOGNITION AND PRICE PROJECTION STRATEGY.
Please feel free to ask any questions or make any comments.

Hi fellow currency traders,

so lets see what happened this morning.

1.9596-1.9440=0.0156

0.0156*0.6=0.00936

1.9596-0.00936=1.9502(BUY WINDOW)

so, at this point, we should be looking to buy on the retracement once price hits our BUY WINDOW to the upside.

 

[mystikal]

1.9539-1.9463=0.0076
1.9528+0.0076=1.9604

The BUY WINDOW was used to garner approximately 76 pips,$76 minilot,$760 standard lot. That was just a practical demonstration of using BUY WINDOWS.

 

[mystikal]

[06:20:29] Stalion : so, we could put a SELL STOP at 1.9685, FIRST TARGET POINT at 1.9655,with a 35 pip stop loss

[06:22:16] Stalion : on GBPUSD

 

[mystikal]

30% Buy Windows

Helloo fellow traders,
Yesterday was a classic example of the battle between the fundamentalists and technical analysts.The UK retail sales and Business Investment report came out negative, so it was expected that the GBPUSD would go down.

But that was not the case, for we had a quick reversal at the 30% buy window which shot up during newstime, fueled by dollar weakness due to high oil price.

You see, using the 60 percent retracement for buy and sell windows is an excellent technique for most markets. However, when the trend in the market is extremely strong, the market will usually not retrace even close to the 60 percent level.

Instead, the market will begin to make small and quick corrections that usually last for a short period of time.

The stronger the market, the shorter the correction time period. These strongly trending markets will normally see the market retrace to around 30 percent of the original move. This level still offers some very good reversal signals.
So, lets do some illustrations, shall we;
The total price range of the original move of GBPUSD from this current A to B is 1.9758-1.9612=0.0146
Now multiply the range by 30% BUY WINDOW
0.0146*0.3 (30% buy window)=0.00438
1.9758-0.00438=1.9723( 30% buy window)

So, at 1.9723, we should have been looking for a reversal to the upward side, due to an extremely prior upward trend, then calculate our price projection from there. So, by applying the 30% buy window concept, most traders would have made money on yesterday's move.

Remember, nothing is 100% perfect in the markets,so we all learn continously to near perfection. That, my friends, is one of the secrets of top trading.

 

[mystikal]

Market Flow

Helloo Fellow Traders,
Hope you'all enjoying the weekend. Someone asked me whether the CHART PATTERN RECOGNITION and PRICE PROJECTION SYSTEM can be reduced to a robot or expert advisor where trades can be taken mechanically with little or no input from the trader. Well, I replied that this system is not MECHANICAL based, but DISCRETIONARY based. A discretionary based system is much more flexible in the dynamic markets.
Some seasoned traders might look at the markets as a battle between bulls and bears, some might liken it to plucking money apples from a tree,some might see it as a wild beast out of their control, while some see it as fishing in the river with good nets. The latter is more of my personal mental picture of the markets,where you check the tides and d waves(trends and retracements) before throwing your nets.

Dr Van Tharp,top market pyschology aptly describes it in his article- Flow of the Markets;


Imagine yourself flowing down a river, only you don't know that you are. You do, however, notice that when you move in one direction, with the flow of the river, you move rapidly. When you move in another direction, against the river, you move slowly or not at all. In fact, when you go in that direction, you seem to put out a lot more effort just to stay in place. Your life becomes a struggle. It just seems to push you in another direction. Feeling miserable, you fight against it. But it doesn't help. You still seem to move only in one direction—with the flow of the river.

Most people prefer to struggle against the river. They try everything they can think of to go upstream. All solutions like this—going against the flow—have the same result: frustration. If you were in the river, what could you do to make your life easier? One solution would be to get out of the river. But that would be giving up. There is only one easy solution—to acknowledge or accept that the problem has nothing to do with the river. The river just is. And it moves downstream and nothing you do can change that. When you realize that the problem stems from you, then the solution becomes obvious - just relax and flow with the river.

Buy High, Sell Low?
One of the oldest adages in market psychology is "Don't be afraid to buy high and sell low." Let's analyze what that means. If the market price is high, then the market is moving up. Those who are afraid to buy because the market is too high are fighting the flow of the river. It is possible the river may change direction, but you cannot predict if it will by determining how long it has been flowing in a particular direction. It may continue in the same direction for an unspecified length of time. Then again, if the market price is down, it also indicates the direction of the flow of the river. Those who are afraid to sell, once again, are fighting the flow.

Whether you go with the flow of the market or struggle against it, the market will continue to flow, taking you with it one way or another.

Why do traders resist the flow of the markets? They do so because they play psychological games with the market. The most common game involves not being willing to give up what you perceive to be control, the need to be right, although you have no control over the market flow.

When you are struggling with the market, the struggle becomes all consuming. You don't realize that you are struggling with the market. Instead, you find yourself always looking for some solution to overcome the struggle. The struggle obscures the obvious solution: Letting go.

For example, suppose you have a tendency to be in a perpetual market bear, always expecting the market to go down. For you, every little turn in the market is evidence that the market is turning. As a result, you always go short and consequently, take a beating. You repeat the process, over and over, until the market actually turns down. With each transaction the struggle against the flow of the market intensifies for you.

Even worse is the trader who refuses to accept the inevitability of eventual loss. The market moves against each position the trader takes, but he refuses to go with the flow and refuses to accept the loss, no matter how small. It is an affront to the trader's ego. As a result, he refuses to accept it and the loss becomes larger. The bigger loss is even harder to take and the trader again refuses to accept it. The struggle continues until the loss becomes so overwhelmingly large that the trader has no choice but to take the loss.

The solution to the problem of resisting market flow is to realize that the problem has nothing to do with the market. The problem stems from you, the trader. The market is not going against you personally. The market is simply moving. Whether you go with the flow of the market or struggle against it, the market will continue to flow, taking you with it one way or another. Market flow is bigger than any individual trader. The question is whether you realize how you are creating your struggle against the market. When you push against the market, the market seems to push back. But the market is not the problem.

The trader's struggle with the market is the problem.

 

[mystikal]

[12:34:20] Stalion : BUY STOP ON GBPUSD @ 1.9556,STOP LOSS @ 1.9520,TARGET POINT @1.9645

 

[mystikal]

89 pips,$89 minilot,$890 standard lot on GBPUSD

[11:34:20] Stalion : BUY STOP ON GBPUSD @ 1.9556,STOP LOSS @ 1.9520,TARGET POINT @1.9645

Hi folks, been a while since I've been on and its all good. Today, we had a buy signal on the GBPUSD which netted us approximately 89 pips,thats $89 on a minilot and $890 on a standard lot in less than 3 hours on a Wednesday morning. Hope you'all grabbed those pips,fellas.

Foxgreenland, I take it this hasn't been hit yet?

Hi,Stuart,in intraday trading, timing is of the utmost importance.It has already been hit in the chatroom as it was posted onto other forums, including this one. Sorry though, but due to time constraints in writing it out,it might not be on-the-spot.But if perchance you see it early enough, you can use it as long as your risk to reward ratio is favourable to the trade.
In this instance, the risk to reward ratio is approximately 2:1...that is, you are risking 36 pips to make 89 pips.
Feel free to ask any questions or make comments.

 

[mystikal]

[09:30:58] Stalion : BUY GBPUSD @1.9478, STOP LOSS @ 1.9443, IST TARGET POINT @ 1.9520...2ND TARGET POINT @ 1.9548

 

[onwukarisa]

Hello,

I will like to know how you do choose your points in your diagrams. that is your point A and B. can i just choose it randomly

 

[onwukarisa]

how do u choose points in the 123 pattern

I will like to know how you do choose your points in your diagrams. that is your point A and B. can i just choose it randomly