pips400 wrote:Bit of a mixed week for me. I was unable to trade until Wednesday, and missed some of the early movers, I was also finishing some programming for next week. The good news is I did trade and made a profit
Thanks to Bob once again.
One thing I'm noticing for my own trading is to remember to still apply the principles of price action and technicals. I think confluence is a really good point to include in my trading. i.e. the more reasons to enter the better, although not wanting to unnecessarily overcomplicate things here, just saying that I need to take a look at the picture as a whole, then zero in to a 104 trade.
A couple of examples. The first is the GBPNZD, last week it fell around 800 pips, I missed that one
: But this week there was no good 104 setup because it is ranging. I know Bob is hoping to include trading in a range as part of the whole 104 package, and so that's why I'm adding this example. In the chart below
gbpnzdtrades.jpg
1. Price hits support first time
2. Price retests this level and bounces off
3. Price finds resistance level
4. Price retests this level and bounces off
So at this point we have established S/R
5. Price hits support - go long, TP at Resistance - 240 pips
6. Prices hits resistance - go short TP at Support - 240 pips
7. Price hits support - go long, TP at resitance - price doesn't make it, so depends on when you close the trade.
So if trading in a range is part of 104 to be added, I think this would make a great example as it would have been at least 480 pips
The second example is the GBPAUD, and what I'm looking for next week as a classic 104 trade
gbpaudtrades.jpg
In addition to the 104 conditions,
1. Previous support becomes resistance
2. AO divergence, so I'm expect price to go up
3. Stochastic is oversold, so this supports my expectancy for price to go up
4. The blue area is where I'm looking to re-enter into the downtrend. Previous support becomes resitance, and for those that like fibs, its a 50% retrace from previous SH/SL
Please, please forgive me I'm not trying to complicate or confuse anyone, all I'm saying is that I believe 104 is a great system, and if we remember apply basic price action techniques etc, then I think we can increase our winning rates even higher, and avoid getting into some losers. So my approach will be 1. Take a step back at look at the whole picture, 2. If I like what I see and there is 104 setups, then make the trade
I've closed all my trades now, and will get ready for Monday
Have a great weekend everyone.
Mike
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