Hello, Attached is the link for the picture taken by my friend while he trades a lot of cars = BUT, he refuses to say WHY he entered at the specified price nor he teaches me. As you can see, this is a tick based chart and there's SMA and MACD BBs but I still cannot figure out where and why he enters at those specific prices. To veterans, I am asking for help if you can decode this. Thanks! P.S. I tried this in market replay multiple times and also trying everyday but still do not know what he did. Any help will be greatly appreciated.
Seems like no straight logic whatsoever in his entries.He first shorts for one point target, then he goes long which is the opposite to his first entry logic for two points.3-rd entry for the quater target....??? He refuses to explain since all he does is some arbitrary stuff based on guts.My opinon.
^ Thanks for your reply. My exact thoughts as well because BBs are going opposite while he's trading the opposite way. The goal is one point for every trade, but AFAIK, that second trade he did is the only one for goal with two points.
Lets see...you're sitting side by side (in person) with your friend while he's trading live in front of you and he does not want to explain his trades even though you're sitting there watching him trade ??? Nice friend Seriously, maybe you meant your friend sent you the image of his trades of one of the charts with entries/exits on his monitor and you're having difficulty in trying to figure out what his analysis or trade signal is for those trades ??? I recommend you keep visiting him during those live trading sessions in front of your two eyes...you'll eventually catch on to some key concepts or maybe you just need more time to ask the right questions to your friend without seeming like a "needy person". Heck, invite him over for barbecue...make a big thank you feast out of it so that he'll think its worthwhile spilling the beans to you. You can even have the wine(s) or cognac ready to get him in the talking mood...loosen him up sort'uv speak. Yet, if its just an image your friend sent you...you are not going to determine how he's doing it from "one image" and most likely there are variables involved in his trading beyond those indicators that you see that can not be explained because its "experience" related or he/she doesn't want to explain it because he wants you to figure out those other things that's important in successful trading on your own...as in he does not want you to view him as your mentor. A sent image by this person without any explanation...you're being baited. wrbtrader
he didn't teach you perhaps because he can't. if he is profitable, he probably made decisions based on the price action alone.. even down to how each candle was formed. think logically - if there is any profit at all, in the bullshit like MACD and BB... it would have been discovered by a million computers all over the world long before you got to it.
its pretty simple, he enters on VWAP low hit, hes using a trend filter, line crossover, enters on the retrace short in line with the trend implications. Then reverses at reaffirmation attempt at the lower VWAP. grey(vwap median) and yellow are moving average of sorts blue is upper and lower VWAP the bottom box, shows when the price crosses over median (grey) line, so only shorts attempted. notices he goes long when price crossover grey line. take profit is 2 points.
darkmoon47, The most important question you should be asking your friend is: What is the performance metrics of your trading since you started trading this method? Just sit and watch him while he trades. Offer him lunch or dinner or money to teach you his trading plan.
Study how to read candlesticks. Enough material on the internet for that including, trading videos on reading candlestick patterns. From what I can see, it seems your friend is just buying on pullbacks and keeps buying as the index (I am assuming it is although, not that important.) keeps pulling back. Then, he keeps buying more on the next pullback as prices advance. Looks like he is pyramiding on his position as it becomes more profitable and moves his way. Looks like his target is the moving average for his exit.
Am pretty sure if he knew you posted it here, be the last time you get to watch him. I believe he uses indicators as secondary confirmation, but the entries are all charting related IMHO. Think in terms of price getting to highest lows to short and ("1,2,3's) breakout after confirming secondary low, which buying a quarter above #2 does. The highs of 9:55 short coincides with the lows of before 9:44, it against the trend so he targeting less. He knows price structure well and most likely knows the probabilities extremely well. Or he has a monkey out back who is throwing darts.... You would do well as others have posted, invite him over for couple bar-b-ques a month. Read up on charting.