Potential Master Candle Set Ups

[samarkand]

Leo,

Suppose you are waiting for a pivot to form, and you get a move like on the chart below. This is 30 - 40 pips out side of the box, then returns to basically touch the box.

2 questions.

1. Is this invalid as a pivot because it never touched back into the box?
2. If it is valid, does it matter that it already traveled 30 + pips outside of the box already?
Ok, 3 questions.
3. If it is a pivot, then would you plan to enter after a buffer sized break of the bottom of the big red candle (approx 87.90)?

I will get to the bottom of the specifics of a good pivot!!

As always, thanks for sharing!!
Mike

Hi Mike

Its back in the box again now. The red tick is more risky because of distance , and if the PA gets back there again it is testing a zone of resistance. So you are better to wait for a new box to form so that the PA resolves into something tradable.

After such a fall there is always the possibility of a retrace towards the prior consolidation area 8865-8900

I think thats answered all the questions in one.

I'm looking for set-ups now so if I find anything juicy I will post.

Leo

[samarkand]

When I saw those enormous moves on GBP/JPY and USD/JPY I just kind of assumed that you and probably Darcus would be rolling in more pips than an explosion in a passionfruit cannary. But, because of trendlines and SR, I couldn't see HOW it could be traded.

So, are those sorts of moves just something that will happen sometimes and you just have to let it go unless you want to take big risks?

Yes, the problem is if you dont follow the system, you dont have a system. So I try not to deviate from the rules.

I believe the EY move was just tradable with caution. or even off the next mini pivot which looked weak because it couldn't even reach the box bottom.

Here's a crazy thing, - I had a short order pending and I was going to scalp until the direction was set. However, I went to bed before it triggered and I cancelled the order. These things happen - its all part of trading.

A little compensation - EY gave a little beauty 30-40 pip scalp this morning.

I'm looking for new set ups now

Leo

[michl]

Hi everyone!

Let me start by thanking Leo for sharing his decades of trading experience and for keeping this thread alive.

Keeping it simple is definitely the way to go. I used to have so many indicators but I think that only gives an illusion of "trading like a pro"..

Having said that, I have read over 120 pages of this thread and am certainly a believer in trading MCs. I have already traded demo for over a month now and have already opened a live account with GFT but using MT charts.

Here's my first 'live' find. I hope it's legit?

Cheers,
michelle

P.S. today is a US holiday. Hence I think we should be trading with caution or not at all?

[SanMiguel]

At what stage do we redraw trendlines?
Within the MC, ATM I am redrawing the trendline every hour if the price happens to move a certain way. However, once the pivot has broken, why don't we redraw the trendline to the pivot if price goes back? Example attached or EURJPY. I wouldn't take this trade due to the resistance line above. So, we would have to redraw here wouldn't we and wait for a pivot to form above the resistance line if it did?

[samarkand]

MC Boxes were in short supply last night, and although I put a tentative order on Gold XAU, nothing triggered in a 3 hour period and I eventually cancelled the order. With the US on holiday things can be a little slow, and care should be taken.

Scalping is something that can be used to releive the boredom, so I just traded EY for a couple of hours of intense concentration. Not a bad take. 6 trades, 6 wins, zero losses. Scores 8, 28, 1, 5, 10, 3 = 55 pips.

Trust everyone had a reasonable week, and ended up in positive territory

Leo

[samarkand]

Hi everyone!

Let me start by thanking Leo for sharing his decades of trading experience and for keeping this thread alive.

Keeping it simple is definitely the way to go. I used to have so many indicators but I think that only gives an illusion of "trading like a pro"..

Having said that, I have read over 120 pages of this thread and am certainly a believer in trading MCs. I have already traded demo for over a month now and have already opened a live account with GFT but using MT charts.

Here's my first 'live' find. I hope it's legit?

Cheers,
michelle

P.S. today is a US holiday. Hence I think we should be trading with caution or not at all?

Welcome Michl

Box looks OK, UT line looks slightly out.

Here's how everyone's main UT major lines should look.

Second chart shows a close up, and you will see the UT line position changes the perspective from Bull to whoa there, and with all those areas of S/R its not a trade I would want to risk.

_ _





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The red triangles denote the TL changes position to the pivot high before the new low. Slatted line is the original DT line


Leo

[samarkand]

At what stage do we redraw trendlines?
Within the MC, ATM I am redrawing the trendline every hour if the price happens to move a certain way. However, once the pivot has broken, why don't we redraw the trendline to the pivot if price goes back? Example attached or EURJPY. I wouldn't take this trade due to the resistance line above. So, we would have to redraw here wouldn't we and wait for a pivot to form above the resistance line if it did?

I dont see an example in your post, however my previous post shows how I draw my TL's

Leo

[SanMiguel]

I dont see an example in your post, however my previous post shows how I draw my TL's

Leo

So basically if price breaks out of the trend line but then continues and has a strong bounce from another region, you draw a new trendline? With your GBPUSD example would you take a long there or not because of the resistance zone?

[samarkand]

So basically if price breaks out of the trend line but then continues and has a strong bounce from another region, you draw a new trendline? With your GBPUSD example would you take a long there or not because of the resistance zone?

There are a number of ways you can draw trend-lines, but this the the trend-line rule I use.

The uptrend line is defined as a line with positive slope which connects a series of higher lows followed by higher highs.

The downtrend line is defined as a line with negative slope which connects a series of lower highs that are followed by lower lows.

If you now compare this statement with my 2 charts I think you will understand.

This applies to all time frames.

With your GBPUSD example would you take a long there or not because of the resistance zone?

as I mentioned in the post #2026 (with the TL charts) - quote

"and with all those areas of S/R its not a trade I would want to risk."

Leo

[SanMiguel]

It's not the drawing of the tendline so much as the REdrawing of it. Eg in your chart you have 2 DTs. Price breaks out of the first one but the DT is redrawn a few hours later. so by redrawing you're saying it's not a proper breakout. Ie at what point do you determine it's no longer a breakout