Comment by Peter jcp on January 17, 2012 at 3:41pm

Another nice chart again - I hope you have been selling at every circle Keith ?

Comment by Keith Shaw on January 17, 2012 at 4:17pm

I wish .... !!

Comment by Vinny Kahlon on January 17, 2012 at 4:39pm

Again very informative chart for me...saved again ...

Comment by Peter jcp on January 17, 2012 at 7:12pm

You can have a laugh at one of my charts I have been working of ftoday - As you can see its nearly naked - very uncluttered and easy on the eye. I need to add more because of I have missed some pips in between my trades ( only joking )

Comment by Keith Shaw on January 17, 2012 at 7:51pm

Thanks for posting Peter, reviewing the chart I can read and understand the areas where you have labelled your scalp buys and scalp sells, the black trend lines you have drawn to me mark out market structure , which includes S&R levels. Now there are 9 other lines, some of which must be MA's and some Regression Lines, I guess each one must mean some thing to you ? , some I guess help you visualise market direction i.e. the thick red line which is hugging price action closely. I have seen strategies where people use three or 4 MA's as a basis for taking an entry and placing stops, based around a specific sets of rules. I'm just a little over whelmed my the number of lines, but I guess each on is helping you make a decision ? have you ever tried removing any of those lines to see if the results you get are the same hence some of the lines may be superflous ? .

Comment by Keith Shaw on January 17, 2012 at 8:22pm

Having said the above Peter the below is a standard template Andrei Pehar uses as part of his normal trading set up, this is minus the Monthly, Weekly and Daily Pivots he also actively has on his charts. BUT he has rule based system and each one of those indicators and 'lines' tells him a story which helps him frame a trade AND IT WORKS FOR HIM. NB Andrei was a Key Speaker at one of the FXStreet ITC Conferences. So regardless of what anyone says about indicators, they can be used very effectively if you follow the rules to frame your trades, people are using them with great success.

Comment by Peter jcp on January 17, 2012 at 9:07pm

Hi Keith - Yes well I said my near naked charts ( lol). Four years ago I use to have between 15 and 17 Lrs representing ever time frame from 1min to 1 day ( 1,2,3,5,10,15,20,30,45,1hr.2hr.3hr,4hr,6hr, 8hr, 1day and then week and month) but decided i could cut down. So really its a multi frame chart- so every line as a purpose and gives me picture of what should happen next and i am always after the "sweet spot" areas which might be very safe to add to my existing stake. Notice i have no oscillators or other OS and OB indicators on that chart and prefer those on seperate cleaner charts - just for additonal confirmations.

I notice Andrei chart is on a One hour which is OK with larger stops and if you are not scalping in between. Today my best trade was off a 10min scalp with an RR of 7 based on a tick chart - which corresponded with frame changes off the 3 mins - just after 12midday UK time. I gave myself a notional 5 pip stop - but only needed the spread on first entry and then added again and came out all under 15 minutes. That one trade was a better return than the fall this afternoon as my stop was larger and it went on past 30 mins - so reluctant to add more on with supports under 20 pips away. Its just more difficult to catch RR trades of over 4 in 30 minutes without these lines - and i suppose you get use to them being there after a time - giving you additional confirmation etc -

 

Comment by talisman on January 18, 2012 at 1:41am

hi keith/peter-how much of your trading decision is mechanical and how much is discretionary.  thanks for the informative blog today.

Comment by Keith Shaw on January 18, 2012 at 9:50am

@talisman : Thanks for stopping by:

Interesting question, never really thought about it in that way. I like to start of with a blank chart and just take a look at it visually. Next I have a couple of templates (very easy to set up in MT4) one in particular just has a set of moving averages, I'll over lay that on top of my charts, if I feel that price action is resonating with a particular template, I will keep the template on my charts and try and frame a set up and then WAIT.  If the templates are not telling me anything, I'll remove them and just use other simple tools, i.e. firstly just marking out HH, HL's, which helps me define market structure, then I will try and spot areas which I think are key S&R and  I will draw lines on my charts as above which people refer to as trend lines, I like to call them 'decision lines' , essentially I am building up a picture, then I look at how price behaves around these lines which helps me decide if I have a possible trade set up & how best I can frame a trade. Other tools I actively use are Fibs and Median Lines aka Andrews Pitchfork, CandleSticks and Price Patterns. You wont find much info on Pitchforks at FXStreet and what is there is actually incorrect. There's a few other neat ideas and 'tricks' that I use which I have pinched from the likes of Chris Capre he has some real neat ways of looking at and reading price action. My first two mentors if you can call them that are guys that you will probably have never heard of, they are not on FXstreet or other such websites. If you want more info or are curious send me an internal email, happy to share.

Cheers

Keith.

Comment by talisman on January 18, 2012 at 4:36pm

thanks. very informative! i like the way you actually mark the HH HL .  this may seem dumb but it never occurred to me that you cant mark a new LH until the previous LL is broken. you don t actually know if its a LH or the first leg of a new trend.  that is why the last circle on your chart has no label i think. simple things escape me at times. 

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