Shandy is right about the push-pull pattern but lets look at the context of the trade. The first chart is a monthly and daily side by side, you will see that the low of the move coincides with a Monthly…
Category: Trade Comments
Shandy’s posts
Here are some comments on Shandy’s posts on Forex Factory He is right about this trade, the only issue I have is that the move is getting a little old. I found two earlier entries, see charts below . The…
Kibles’ question on Forex Factory
“I do like the idea of this trading method, “but” entering on the hourly chart has a couple of glitches as; when looking at the daily chart we wait for momentum for a couple of bars and then when bar…
Trade Update
A trade that I identified and unfortunately missed was posted on the Forex Factory thread. (see below). I though I would post an update to that trade, I have marked the entry levels with solid purple lines, notice that price…
Taking Losses and Loving It!
Well no I’m not serious, I don’t expect you to love taking losses, but at the very least in trading you need to truly accept losses because if you can’t accept losses then you always have an inner conflict about taking the trade and it can lead to self-sabotage. The higher the ROI of your trading system, the easier it should be to accept a loss while at the same time doing everything you can to make sure your trade has the best chance of succeeding. With the 10xroi Trading system, you could lose 80% of trades while only trading 1% on a trade and still make more than you could earn in most other financial investments. If you can make money while losing 80% of trades then that should make you feel a whole lot more relaxed about taking a loss.
Here is a sequence of 10 trades just trading 1% and having 2 random wins of 10XROI using $1000
L,L,L,L,W,L,L,L,W,L
990,980,970,960,1056,1046,1035,1139,1127
Profit = $127 or 12.7 %
How many trading systems do you know where you could lose 80% of the time and still make a comfortable profit?
1101s trade 12th Feb 2013
Here is 1101s chart from the Forex Factory thread of the Eur/Aud Chart. He has taken a reversal trade however his charts are different from mine and I can’t see a push-pull setup as we don’t use the Sunday candle. However he is correct about the context of this trade.
Here are my reasons for getting in the trade, unfortunately I missed it this morning !! Just didn’t see it!
The daily chart on the right shows the brown dashed line as monthly resistance, it formed a strong level of resistance. There was also a parabolic rise to this level on the daily chart, indicating a strong downwards move if price reversed. I have marked the green push-pull level however price never pulled back to that level but there was an entry using the TAYJ system of a four hour break of a trend line and a horizontal break at the top of the parabolic move. The stop loss would sit behind the four hour breakout candle. The take profit would be the 1.44 area which lines up with the bottom of the parabolic move. This would give about a 1-8 ROI on the trade NICE!
This trade has now pulled back and created a pin at the support area which now adds confirmation to the short trade spotted by 1101, I entered the trade at the close of the four hour candle on my trading platform which has much smaller spreads but I have recreated it here on the charts. The stop loss is above the pin and is only 40 pips away from the entry. I have placed the take profit at the low of the parabolic at the 1.4530 level to give a 1-8.5 ROI the reason for not giving it a 1-10 ROI and letting it run to 1.4460 is that there is a strong trend line in the way, see the lowest chart. Whatever happens win or lose this is a good trade!
Analysing DeepFXs Chart
Deepfx at Forex Factory posted this chart yesterday, he puts a lot of emphasis on the support area hit by the PushPull candle see below.
I agree with this setup but I have some other reasons besides the support level. Price made a huge outside candle at the trend line of a wedge pattern see below.The outside candle acted as the ‘push’ candle in this scenario.
Protecting Against Weekend Gapping
The 10XRoi Trading System and the Trade Around Your Job System provide trades that can last anything up to ten days, which means they can stay open over the weekend. Most of the time there is no particular gap after a weekend but sometimes you get something like this which could potentially wipe out your account.
Now based in the UK as I am this problem can be solved by using a guaranteed stop loss which many spread betting companies provide. The stop loss is not guaranteed after you move it to break even but it makes little difference because you usually don’t move your stop loss until you are well into the trade.
However there are other ways to protect yourself even if you can’t use a guaranteed stop loss. Most of the time you will find that the Sunday night open is at around the same level as Fridays close or it moves to it pretty quickly. You could simply close out your trade either on Friday afternoon ideally after a pull back. You could well find that it has gapped in your favor and pulled back by Sunday when your reenter the trade and replace your stop loss, giving you extra pips. The downside to this is that the trade could have moved so far in your favor that you miss out on the trade.
The other way to protect yourself is to have a brokerage account which allows very high leverage, and offers account protection in that you can never lose more than is in your account.
You then make sure that you have the minimum in the account needed to cover the trade so if you get margined out by a large weekend gap you only lose the size of the trade or as near as possible.
If you are based in the US then you need a broker outside the US in order to get the high leverage which is also governed by the financial authorities in their country. I have a list of some of these brokers in my Kindle book Learn to trade Forex Without Losing your Shirt.
Shandy Question
Here is a question and chart posted by Shandy on the Forex factory 10XROI thread I have posted my chart and answer to his question underneath.
“Ok so attempt number 2 here in identifying a push-pull formation – CADJPY Daily, candles marked as 1,2,3 with 3 being the red candle. Or would this be a 1,2,3,4 formation, with the candle 1 being the large bull candle to the left of where I have number 1 now?
And if this is a valid formation, where would the “trigger” line be placed?”
Here is my chart with the moving averages and trend line break which helps to determine momentum, you will notice there was a trade prior to the one Shandy is pointing out which because it was closer to the source of momentum was a better trade. However back to the candle pattern recognition. Candle 1 is the pin after the pullback,candle 2 is always the Push candle and in this instance the pull back to the close of Candle 1 was at the low of candle three. I have marked the push-pull level in green. Upcoming resistance is the red dashed line.
Shandy 2
Shandy was referring to this pattern in his post but he numbered the candles incorrectly,also, although I am unable to show it because I don’t know the pair or the date, if you look closely you will see that an upwards wedge has formed and the candles that Shandy is referring to are being rejected, hence the large wicks. This context is not suitable for an entry. In any case I have numbered the candles as they should be, see below.
Deanoracers question
Deanoracer is correct about the candle pattern but the context is not correct, the moving averages are threading and there is no indication of momentum. Context first then push-pull pattern.
Shandys question
This post is to answer Shandys question on the 10XROI thread on Forex Factory, he numbered the candles incorrectly so I have posted the corrected image below. We would look for daily entries at the low of candle 3.
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