Sive, thanks for your weekly analysis. We all appreciate your efforts.
I just have a few questions that are not really technical analysis based. I just want to know more of your style and how you trade if you do not mind.
I recall that you once said that you are not a "breakout trader." What do you mean by this? What kind of trader are you?
What timeframe do you usually trade with? I am sure if you saw a sell or buy pattern on daily, you would take it. But what about the 1H? Do you usually hold your trades for longer term or short term? Or both?
Thanks!!!!!
Hi Beekay,
In fact, if you will read my profile - you'll see that currently I'm risk manager. I can say even more. Soon I will be moved to investment valuation and mostly will deal with stocks and bonds investing. I also will be shifted to another software - it will be Thompson Reuters instead of CQG, so, I probably will have to do researches in MT 4, since Reuters Datastream is not suitable for technical analysis.
So, with such kind of job I do not have many time to trade... Still I will try to answer:
The point that I'm not a breakout trader means that I rare trade (if at all) breakouts as they are. I can take part in move after breakout but by some other reason. Other worlds I relatively rare enter by stop OCO orders that breakout traders like to do. Also it comes from DiNapoli technique, it does not suggest breakout patterns.
My prefferable TF combination is daily-hourly. Daily I use as context and hourly as entry point estimation. I guess that there is some confusion you have about trading trend and patterns. They are a bit different. The point is that pattern, once it has formed already self-sufficient stuff - it tells you where profit is, where you the failure point is. So, pattern could be traded separately at any time frame, but better if it will be in a row with trend, of cause. So, if I will see nice pattern on houry chart - I will trade it.
But if I trade trend purely - I will take trades on hourly only in direction of daily trend. Probably you can read chapter from our school, dedicated to multiple time frame analysis - there is a nice example of trend compounding and how to understand and combine opposite trend direction on different time frames.
an excellent question i should have asked a long time ago. thanks venelin.
Guys, personally I'm not a follower of pattern's forcing. There is a lot of room to 1.2860. Do we really need to anticipate and force DRPO? We will have pretty much time to enter at retracement, if this move will start, even if we will not enter right at confirmation bar of DRPO. But this is just my HO.
Sive, please correct me if I am wrong but if market CLOSES below 1.3040, will Butterfly on 4HR TF be cancelled?
Well, on my chart this is 1.3027 low - but probably on the spot this is 1.3040. Yes, if market will move outside of initial swing of butterfly - it will be cancelled. Read chapter dedicated to harmonic patterns in our school... There are some nice examples exist...