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Post by traderAllen on Oct 12, 2014 21:54:32 GMT -5
This is an example of a RANGE BREAK using Forex price action scalping. I purposely did not add any sound or talking to this video. I wanted you to get a real feel for how the trade plays out. As you watch how I managed to trade think about how you would do it. Do you have the patience to set and just watch? Would you be moving your stop loss like I did?
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Post by fxoutlier on Oct 13, 2014 1:53:42 GMT -5
I know it's not easy to do, as these trades can appear out of nowhere, but it would have been nice to see the lead up to the trade with the time and sales window.
At my present level of Volman study, all I see is a false break that turns into a nice ARB pullback trade 8 bars after your entry and the stop would have been where you moved it too at entry and would not have needed to be moved.
Of course I'm only the college boy and your doing it in the real world. I've got a lot to learn I know, but interesting none the less.
More of this sort of stuff please, it gets the old brain thinking.
Cheers
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Post by fxoutlier on Oct 13, 2014 11:22:23 GMT -5
I made my earlier comments on this yen trade without referring to the underlining conditions in the chart.One of the reasons I find the Volman book so fascinating is the descriptions he gives of the battles between the bulls and the bears. The tipping point that makes price cascade in one direction after fear and euphoria, lead to desperation and panic. Which side is winning the battle of wills.
Coming into the chart above there is an unmistakable down trend with the bears in full control taking price below the 40 level which holds up well as support ceating a powerful triple top, almost quadruple top. The countertrend bulls made efforts at the 25 mark with a much smaller double bottom, almost triple bottom, then managed to take control of the 30 zone with a higher low. I can only imagine the despair of the bulls when the bearish triple top was formed, initially with a nice bearish doji, then with a nice bit of bearish build up to break the higher low clustering support in the middle of the chart. That must have hurt the bulls and was almost a bearish IRB itself. Price flew down to the range barrier and without much effort broke through. Of course the break wasn't false, but on my inexperienced reading of the chart and without the benefit of the T & S, I still can't see how this could be traded as a range break. The pullback ARB looks like the entry is 2 pips better in than the range break entry after the break of the two tiny dojis, or would the entry be better below the cluster to the left, putting it 1 pip worse in? Don't know if the magnetic effect of the 00 level below would have much effect some 18-20 pips below.
Still this is all easy for me in hindsight, I'm sure it will be blind panic for me doing all this stuff in the live charts when I get going.
Still there is no doubt about the bearish credentials of the actual range break made by traderAllen. He does keep knocking them out, time and time again.
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