thread: The Touch Trader Method

Hello Guys,
My name is Taz and just use simple Support/Resistance and PA for trading.
two weeks ago I began trading based on S/R and discovered it the very simplest and most rewarding technique.
What's in my own trading style is S/R and prices story around them.
My favourite currency pair is Usd/Jpy.
And trade majors most of the time.
Now the question is what is distinct in my method as isn't with other people.
You may know,as I proceed on.
There are lots of individuals here who utilize S/R in their systems core.
Among those moguls of PA here is J 16,I never saw that the PF but think what I discovered and accumulated out there and united with my fundamental knowledge and know how from different resources I constructed a system.
That I call trading the Zones and Trading Pivots.
Yes,I just open up the chart to get a few minutes and I know where the next short or long should be taken.
I place my order and depart comeback to accumulate my profits.
I am still progressing it,and hope to do it here as I talk my methodology .
I trade a small live account but'm growing it considerable at 3% or 5% a day.
But just a week ago I decided to incorporated this system in my Arsenal entirely, so am going to continue demo for another two weeks testing its consequences if it is consistent I will have the ability to generate an increasing number of profits.
My fundamental methods revolve around Buy and Sell Zones.
I will start posting my charts like I set the transactions in demo when possible this is merely an Intro.

You will find Specifics I will cover in this method.
Loion of PA
Story of PA
S/R and naked Chart.
Breakouts.
And Trade plan formula.
These just look few things but the entire J 16 and lots of great threads revolve around them,I am just going to elaborate my perspectives and methodology as I established.
Regards
Taz

If you draw each week H/L, you drawing on curent weekend or las weekend???

please place charts with where you got out and in and , together with some description of this daily, weekly sr fibs etc..

Charts are self explanatory.
S/R or PPZ or Pivots intro.
Http://img251.imageshack.us/img251/4208/eurodollar.gif
Entry basis and confluence:

http://img502.imageshack.us/img502/8697/intro11.gif
Drawing Fib confluences ie Fibonacci Clusters:
Measure 1:
http://img684.imageshack.us/img684/8296/fib1.gif
Measure two:
http://img338.imageshack.us/img338/4918/fib2.gif
Support Resistance illuions:
http://img220.imageshack.us/img220/1545/24528946.gif

Regards
Taz

if you draw each week H/L, you drawing on curent weekend or las weekend???

What's Support/Resistance?

Any prior High low on Chart on a bigger TF will act as support and resistance for price,and that is for sure.
Visualize high/lows then draw a line or a box through them.

What are fibs?
I think I do not have to inform that.

What are Trendlines?

Any line drawn on 2 high/lows in a trend is a trendline.
They act as support or resistance.

What are Moving averages?

You understand SMA and EMA etc

What are momentum indiors?

ADX and RSI can be utilized.

Combine them together you get a strongest arsenel.
If it is unclear I will illue each and every measure with charts.

In them will compose and illue with charts every ingredient on it.
Regards
Taz

Hey Doom,

its nice to find another touch trader. I am also following this trading approach, but I am still a beginner, thats. Its not very easy to select only the very best ones, but perhaps I can learn from you

continue posting

sentinel

Hey Doom,

its nice to see another signature trader. I am also after this trading approach, but I am a beginner, thats. Its not very easy to pick only the best ones, but perhaps I can find out from you

continue posting

sentinel

Good to know yet another touch trader Sentinel.
And call me Taz it's fine.

Biggest issue in contact trading is what is the distinction between a touch exchange along with a normal PA trade.

A Touch trade:
In a touch trade the underlying mechanics is one point confluence and
S/R or PPZ play,what I mean to say is as soon as the price is moving up and down at a fast market it's leaving trails behind itself to follow along.
The paths are order flows narrative and the future orderflows forecast.
A touch exchange is a trade where price reverses to a dime,ie a touch and go on your direction,while at a PA trade the price has a few reactions along an area and the afterwards price validates the happening in that region.

My ideas will be best explained by how a trap pub as used by J16 people, including myself too, and external bars and other PA trades like DBHLC and DBLHC,etc etc,can be used to describe the diffesrence between a touch trade along with a PA trade.

A: a little bar is never a touch trade unless you buy at the tip of the exhaustion.And I call it fatigue hunt(I will elaborate that later),a trap bar is actually a rejection of a certain degree when buying or selling is happening an a rather vast 30-60 pip zone,ie why we see that a long wick on top of it.

A DBLHC or DBHLC: Not many people would have noticed this that DBLHc and DBHLC actally are go and touch,touch trades, price hits a degree and then bounces straight out there and doesn't go by a pip under one PPZ line.

A Hanging man Candle and Inverted Hammer are signature trades.
Day Star and Morning Stars are signature trades.

Why I say signature trades,I don't think I should clarify this.

What is the advantage of being touch trader and having this mindset?
I will surely answer this,as you're in the boat before anyone else could believe the pattern was about to form.

People are surprised if I say that where a trap pub can form.
It is easy for me to tell this because,I first had the feeling to classify the trades as signature and PA trades.

Which will be the observations obtained in the aforementioned facts?
A touch trade just occurs at only point confluence area with defined loion and great orderflow and nicely recognized story behind its presence.
Single purpose means Cluttering of Major degrees in 4-8 pip range.

A PA trade like fatigue occurs in zonal Confluence area,ie why along with other traders at J 16 always state a trap bar forming off 61.8 and XXX MA and robust PPZ.

I've tried to specify touch trade in easiest of shape,a deep understanding is only going to develop after moving through charts as market activity grows and I lay down my perspectives and you lay down yours and we develop a fantastic understanding.

As per specific reply to your varying equity sentinel let me ask you something,did you specify your drawdown in advance,if not you cannot blame your beginner level as a reason behind fluctuation.

If I risk uneven quantities on not so good trades I will result in big bites in my account.

Exactly like a PA exchange is thought to be a trade a touch exchange also is a trade,has its type,and I believe is that the most deepest subjects in PA trading,because wthout touch traders understanding that a PA trader can not win.
But signature trader can perform Pa trade just like a kid.
Do you know what I mean.
Regards
Taz
I'm elaborate as time presents itself,any questions and criticism is welcome.

Great to know another touch trader Sentinel.
And call me Taz it is fine.

Biggest subject in touch trading is what is the distinction between a touch exchange along with a normal PA trade.
...

yes Taz, thats also my understanding of the gap betweem PA and touch trading.

The main reason for me personally trading from the pip reversals is that the large risk-reward ration of course. Being successful at the setups are depended on by that I require. After a set of some winners, I (possibly pushed by overconfidence) took not the very best commerce situations and lost a major portion of my profits.

I fully understand the significance of moneymanagement and since I am learning, I never risk more than 0,5percent on every touch-trade. Capital preservation is rule number one.

For detailed information of my trading just visit my trading website. Any comments alwayss appreciated.

sentinel

yes Taz, thats also my understanding of the difference betweem PA and signature trading.

The main reason for me personally trading by the pip reversals is the big risk-reward ration of course. Becoming successful at that is dependent upon the setups I take. After a series of some winners, I (maybe driven by overconfidence) took maybe not the very best trade situations and dropped a big part of my gains.

I fully comprehend the importance of moneymanagement and because I am learning, I never risk more than 0,5% on every touch-trade. Capital preservation is principle number one.

For...

Hey Sentinel,
You've Got a very nice blog there.
As I see your chart I see pure S/R and trendlines.
Another thing I see heroism and lack of patience.

Why can you violate even a trade simply because you feel a hero,I mean,each trade is not a runner,I understand market gurus state that allow yous profits run and cut your losses short,but it does not mean that your let each profit turn into a net break .

Another thing like I see you said that your thinking of Touch transactions is just like mine,but on your charts I see you violating a few of those points only like.
In certain transactions you simply used your instinct and pure S/R and not using different facets which are utilized and protect against negative recoil.

From the aforementioned I mean they weren't only touch transactions.
Trading has been picky,and being discerning,a touch trader will get a lot of chances and not only one or two,he just need to be patient.

Now 1 thing that I wish to ask before proceeding on to commenting in your chart,I want you to plot your PPZ or even S/R for me personally on any single naked chart it ought to be daily,I wish to find somethings you use and your S/R as they are shown,use arrows.

Guys I took a Euro Swissy trade short now at 1.3590 and ripped 40 pips from it, now I don't understand it ran or simply turned but one thing I know I hate losses,so I took rapid profit,because for me I understand some transactions are really quick profits.
I will elaborate later.
Regards
Taz

Hello Doom
http://img696.imageshack.us/img696/2304/audusde.gif
Which are your thoughts on this. Please tell me if I am missing something.

Incidentally excellent thread. Maintain your thread helpful for both newbies and oldies.
Regards
Dan

These programs work great but require a lot of patience. . I use resistance factors and will exchange them but that the price is usually far from these points or near them Im not watching since its 24 hour market. . So I like to get a system and then use these in mix as possible or warning side trades. .

Would you intend on trading this alone with not other systems?