1. The original (over 1000 posts) is too long - discouraging for new participants.
2. The ALF method is herein improved and simplified. It will be more effective over different timeframes without the need to modify indicator settings.
Currency Pair And Timeframe:
Any pair, any timeframe.
What is ALF?
Adaptive Laguerre Filter - an indicator created by John Ehlers (www.mesasoftware.com). It is a superior overbought/oversold tool. There is a free technical paper at Ehlers' website entitled "Time Warp Without Space Travel" which you may download if you really want to know the gory details.
A few thread requests:
Let us refrain from discussing repainting - nothing I post here repaints any candle other than the current one. Period.
Some who followed the original thread will want to try comparing the TVI candles from that thread to the Fractal Candles introduced here. Go ahead, but please don't post screenshots of comparisons in this thread.
Entries, Exits, and Stops:
Entry Guidelines:
Best to trade with the prevailing trend (if there is one). Look at ALF - if it is significantly higher now than it was at the left side of the chart, trend is up, vice-versa for down. If it is about the same, market is ranging.
Do not trade when ALF is flat and PA is cycling back and forth through ALF in a narrow range (20-30 pips or less).
Enter on an open above/below ALF. PA should be appearing to pull away (or peel away) from ALF with candle range increasing over prior bars. The only exception to this is a large one-candle move through ALF - best to ambush this and not wait for the candle to close.
Stop Guidelines:
A few pips on the opposite side of ALF is generally a good place to set stops.
Exit Guidelines:
There are 3 possibilities.
1. PA re-connects with ALF. This is a good exit for trades in which ALF bends in the direction of the trade.
2. A candle of another color. An optional exit for shorter trades when ALF does not begin to follow PA.
3. Because you have a "feeling" about the trade, or the market is jumpy, you have gained 10-15 pips and would like to keep it.
What is Fractal_Candles_SR_v3 and what is it measuring?
Go here http://ta.mql4.com/indicators/bills/fractal or read Chapter 8 of "Trading Chaos" by Bill Williams - support and resistance as delineated by Williams Fractals is what Fractal_Candles is measuring. There are no moving averages involved - only Price Action.
Bars are colored based on the direction expected by the indicator. When bars are not colored they may be thought of as "wait and see" bars. Use common sense with these, however, and don't turn a win into a loss.
Indicators and template posted below:
Download and copy ALF.ex4 and Fractal_Candles_SR_v3.ex4 to the yourmt4/ experts/indicators folder and ALF_SR.tpl to the yourmt4/templates folder.
Will there be alerts?
Yes - there will be visual, audible and email alerts as soon as I determine the best way to implement them. Be patient.
If you find this thread to be interesting and helpful, don't forget to vote for it - not to gratify my ego but to attract more participants.
__________________
Old Benjamin was right
Last edited by Lou G, Jun 9, 2010 4:41pm (42 hr ago)
Reason: new indicator
Can I post this version? I've added a shift para so it can be shifted right....
.....helps to keep in the trade that little bit longer
Does it really make that much difference? I assume it must work for you. I have no real objection but I always like to see the method tried as is before introducing modifications...
We have to wait for the candle to close for entry on color.
That's right?
Maybe - depends on the range of the candle and how active the market is. This is a judgment call - I would not wait for a 20-30+ pip candle to close before jumping on board. You can always exit with a small loss if PA turns against you...
very hard not to make money trading Euro. However,witness the GBP results to understand the importance of diversity. I am convinced that ALF needs but very little filtering to be traded profitably...There are limits to the extent to which we can refine our entries/exits. We are working with a discontinuous function. I believe these limits are approachable by the simplest of techniques...As we do...We buy when price is going up. We sell when price is going down. The rest is up to the idiosyncrasies of PA, and trade mgt. Pippo ps. The,"Month of Trades,"...
True enough - Euro in May was like the fish in the proverbial barrel. Still, we shall see what happens if no more EU member nations go belly up...
I took rofit at +10 pips. Where can i 'learn' a bit more about PA or will that only come with screentime?
Basically, with screen time but there are many books and articles on the subject. Google "Japanese candle interpretation" - you'll get a ton of results.
Looks like your trade was eventually good for 20+ but I am certainly not second-guessing you - 10 pips is always good...
I do not see any ALF candles on my chart which has black background, only the ALF line, any body knows why?
See post #1 - download and copy the indicators and template as directed. Then put the template on your chart from the icon on the right end of the MT4 toolbar.
Everyone always wants to know what's up the magician's sleeve
Basically, by analyzing Bill Williams fractals as they develop, the indicator can infer price action. Best to read chapter 8 of the book suggested in post #1 but you can find a good explanation by googling "williams fractals".
In post #21 one of the red ALF candles referred to as a good entry closed above ALF. I thought a red close below ALF was needed for a qualified short entry.
It's actually possible to anticipate the ALF cross with the new indicator and get away with it, believe it or not.
Still, your point is well-taken. I should stay with a more conservative approach until everyone gets on track
See the chart. Entry at down arrow, exit at the X (or when next bar shows green), re-enter at the down arrow as shown. A similar pattern occurs twice more in subsequent bars.
Excellent upgrade...way to stay with the project...Look forward to your continued posts as well as those of others as this thread progresses...
Took a little trade during off hours after I got home from work...played out further than 6 pips but I was scalping after all...
Great addition to the candles...
Thanks much...
Cliff
Was with your prior thread from the beginning and really liked the way you managed that, just so straight forward. I am looking forward following this revisited thread and will reread a bit from "Trading Chaos" by Bill Williams (that's been a while). I have not been so great at posting charts myself, see if with the start of this new thread can change that!
Thanks. You did have an outstanding trade! However, my problem is that I probably would have taken the short. I guess the thing that the long had going for it was that it broke previous highs while the short didn't break previous lows.
Why is it a problem if you did take the short? Looks like a small loss, which is then more than offset by a 177 pip win.
I also would have taken this trade. I just can't seem to recognize good trade signals with this system. I keep seeing a lot of signals turning into losers. Or maybe I'm missing something here... Too bad for me!
Great pips to everyone!
To you I say the same as I just did to tbone - your wins will exceed your losses. I know you must also have seen the signal Pippo refers to - 177 pips is HUGE.
Be patient, people! Put in that screen time that I continually rant about and all will become clear.
Much whipsaw around the blue line. If all you do is go short on a red candlestick below the blue, and long on a green candlestick above, you get whipsawed badly.
At times that's true. In the original thread I made a point of cautioning members to avoid trading when ALF is horizontal and PA is in a small trading range. I have not mentioned that here yet only because most of the folks posting here were also a part of the earlier thread but I will get around to it in fairly short order.
Thanks Lou for this simple system.
My question what is the initial SL you use for say 15m, 30m TF or you be in front of your screen and use your discretion?
I've used a 20 pip stop on M15 for quite a while with good results - I can't suggest what to use for other TFs.
Ideally, stops should be placed just above/below the last PA turning point but should not exceed 1-2% of account balance. Hope this helps.
Just took a 22 pips trade, new order open at trendline break. What do you guy's think about the entries? I'm looking for 20 pips + spread for now. Not the bets time to trade, but it felt good.
Looks good to me - terrible time of day to trade most of the time but very lively today for some reason.
In addition, the desirability of trading with the larger trend has not been mentioned here (yet), although it was mentioned often in the original thread. We'll get there soon, I'm sure.
Hi, Lou,
I would like to be able to change your default color and width settings on the ALF Candles Indicator and would be grateful if you could make that adjustment. I like the flexibility that would allow. Since I usually use lime green up candles and red down candles, your medium sea green and red with 5 width shows little or no contrast.
Thanks,
Raymond
You can change the colors and width to whatever you like:
press ctrl+i, highlight indicator in the box, click edit, click the inputs tab and change the settings...
My primary trading hours are from 12:00gmt-16:00gmt (the overlap of London/New York) so I will always be here to answer questions and comment on your posts during that time.
During the next day or two I plan to address entry, stop and exit guidelines. I will write an individual post for each topic and also create a new section in Post #1 reiterating the same info so that Post #1 will always contain all pertinent information.
I'll also post "textbook" trade setups as they appear, primarily for winning trades because I don't think showing losing trades is helpful (though I may also post a loser or two).
I trade the EU exclusively but, as was demonstrated by many in the original thread, ALF works equally well with any pair - there were even a few good trades posted by a member who was trading oil futures.
I try to respond to all questions/problems so, if I do not respond immediately to a post, have patience - I'll get to it.
Consider this post a blanket "you're welcome" to all who have thanked me for my efforts - if you are following this thread, I do appreciate your participation.
Do not trade when ALF is flat and PA is cycling back and forth through ALF in a narrow range (20-30 pips or less).
Enter on an open above/below ALF with corresponding candle color. PA should be appearing to pull away (or peel away) from ALF with candle range increasing over prior bars. The only exception to this is a large one-candle move through ALF - best to ambush this and not wait for the candle to close.
I've marked 5 good entries on the chart below, 3 wins, 2 losses. This method is not 100% mechanical - pattern recognition is essential, thus my continual references to "screen time". Wait for good setups.
Essential to stay alert in jumpy markets - take a reasonable profit when it appears. This trade was good for minimum 10-15 pips, more if you were paying attention...
Normally, I trade right up to the London close (90 minutes from now) but I'm officially hanging it up for today.
I will do a daily postmortem at 16:00 gmt...
Speaking of which, all references to the time of bars will be GMT - if your broker's server differs from this, be sure to calculate the offset so we can all be on the same page with bar references...
I have now removed the 2 x EX4 files - and metatrader works fine
Are there any incompatibilty issues with these EX4 files?
None reported. If you are absolutely positive that the ex4s were in the correct folder, you might want to google "mt4 windows 7 problems" and see if anyone has mentioned trouble.
Could you please tell me why you entered on the first down trade? I see that it's a red candle (close to ALF), but it looks like it initially may have started out green and then turned red. Could you please clarify this entry for me? TIA!
It would have been non-red for a few pips until it surpassed the preceding low when it would have become red. That would have been the entry point.
One of the things in my job jar is to implement split candles (bi-colored) to show actual entry points but it's lower in priority than a few other things.
Actually that example wasn't a part of a live trade - I just happened to pick that part of the chart to illustrate pullbacks/re-entries.
I spent the last 15 minutes trying different TF's to see what looks the most tradeworthy. Guess I'll stick with M15 for now.
As everyone knows, tomorrow is NFP day (my least favorite trading day). I probably won't place many trades today or tomorrow but will be hanging around to answer questions...
The two indicators posted below are the ones I used to develop the ALF_Candles indicator. They will help you understand why the indicator colors the candles the way it does.
The diamond shapes are Williams Fractals - the lines connecting them are therefore assumed to be S/R levels.
Note that when the indicator sees the first half of a fractal, it assumes that an actual fractal will occur (until proven otherwise). This is why the S/R lines track trends closely when they occur and remain the same when PA reverses.
At a fractal point one of two things will happen - PA will reverse or continue in the previous direction. ALF_Candles attempts to anticipate PA based on this behavior. It's not always right (what is?) but it's right a lot of the time, which is all we need to make pips.
Try not to post trades using these indicators - I'd like to keep the presentation of the method as simple as possible - but use them as much as you want to understand how ALF_Candles works.
... curving up/down, it is busy deciding where parity is between overbought/oversold. eventually it will find that point, PA will cross and we'll start over again.
On your last trade, did you enter when the first candle turned red below the ALF? Or, did you enter on the third candle, after price went back up to the line and came back down?
Just trying to get a better sense of how you're seeing things.
Been profitable thus far, thanks for your efforts!
Thanks!
See post #192 - entry when the candle turned red (below support). Had you entered two bars earlier (on M15) a 20 pip stop just above ALF would have been enough to save the trade.
Hey lou, +85 today using the old indies on m30. I have a question: can the settings on alf candles be changed? I am using 5/12/12 on the old indie, I don't see the settings on the new one. thanks.
fw
Nope - that's the advantage. I have freed myself from the tyranny of fixed periods. The new indicator responds only to PA, which is why your chart can now be shifted between TF's without tinkering with settings.
If I missed this forgive me. I know there is no repainting issues with candles. You say when candle turns red enter short. If in same candle price moves back up won't current candle change back to different color? I guess what I'm saying is that you don't wait for candle close
Yes, that can happen - it's the nature of Forex. PA can always turn against you. That's where vigilance and trade management enter the equation.
If you are in profit and get that "bad feeling", take some pips and run.
I don't have the same colors, I don't know why. And as colors are important to decide whether or not to enter...
Here is my chart on EUR/USD 15m using Alpari UK.
Thanks for your help.
They look the same to me (in the area we're analyzing). Expand your chart one click so the charts are on the same scale...
Entry short at the open of bar A was legit and would have required a stop >= 18 pips to keep the trade alive (stop just north of ALF).
Entry at bar B when it turned red at 1.2230 was also good.
First possible exit at bar C (exit rule #2) when bar turned green (which it did as soon as it opened) was good for +30 or so.
If you stayed in the trade, the final exit (if PA ever gets there) will be at bar D somewhere in the future when PA and ALF meet (exit rule #1). Note that ALF is currently at 1.2205 so profit cannot be less than +25 if you hang on for the duration.
Is everybody good? If not, speak up - that's why I'm here.
And let's not forget, it could still go lower...
__________________
Old Benjamin was right
Last edited by Lou G, Jun 3, 2010 12:08pm
Reason: more info
Looks good. I re-entered around 2188. Did you see that also?? Great system. Thanks for the system and your time.
Mombone
Yeah, the retracement was good as well - nice trading. I'm trying to deal with one thing at a time here since we have members who have varying skill/knowledge levels.
The whole reason for simplifying this method is to make it accessible to the less-experienced while keeping it sophisticated enough for everyone.
Thanks for making this example, which makes me understand the system better.
Just curious, what if "C" is a black/white bar, does that make it an exit? what's difference between black and white bars?
Well, it could be an exit if you are uncertain and want to play it safe. Generally speaking, the non-colored bars are meant to be "wait and see" bars. They are not perfect though, so use common sense and don't "wait and see" yourself into hitting a stop or turning a win into a loss.
That does not completely answer your question, however. The non-colored bars are bars that are moving counter to the direction ALF_Candles thinks they should be.
__________________
Old Benjamin was right
Last edited by Lou G, Jun 3, 2010 12:40pm
Reason: more data
If you are demo-addicted but really want to learn to trade, open a mini account and trade real money. Use 10 cent pips if you have to. Trading only on demo is like playing Monopoly when you aspire to be a real estate investor.
Trading real money changes the game, even if a 20 pip stop represents a risk of $10 or less. You will absolutely do things differently when cash is involved.
Use buy, sell and close scripts that you can hot-key to place and close trades.
If you can't find such scripts by searching (but you can) I will post the ones I use (once I modify them - right now they only work on 4 decimal brokers).
Use buy, sell and close scripts that you can hot-key to place and close trades.
If you can't find such scripts by searching (but you can) I will post the ones I use (once I modify them - right now they only work on 4 decimal brokers).
EDIT: Or, since using scripts will force you to learn how to compile code, use F9 to get into the standard ordering screen, place your order instantly by clicking BUY or SELL and set stop/take profit later by using the MT4 order-modify process. Lots will use the default you have set in Tools/Options/Trade on your MT4 platform.
Either way, the point is to place your order promptly once a decision to trade is reached. Practice doing this on demo (the only thing demo is really good for).
All looks good to me. You might want to post your charts as thumbnails in the future to avoid having them re-appear when quoted - try File/Save As Picture/Active Chart (as is)/OK and then save your chart and post from there...
I did exhaustive demo trading, which was somewhat beneficial, but when I started live trading -- that was a completely different experience. The adrenalin and emotions have to be felt in order to understand how to deal with them and make the correct decisions without letting them influence your rules.
Thank you!
I put "Trading In The Zone" by Mark Douglas on the required reading list for the original ALF thread. That still holds good...
Think of this method as a toolbox containing the best power tools money can buy. They will make your job of building a house much easier - but you will still have to learn how to build a house.
For a short trade, are you waiting for the color of the candle to change red in color before entering below the ALF (if candle is peeling/pulling away)? B/c the candle could start out as black/white and change colors...Right? TIA!
ALF_Candles also looks at S/R - better if PA breaks through prior S/R before taking the trade. The color change takes place when S/R is broken.
This weekend I'm continuing work on ALF_Candles. There are a few small things about it that I'm not totally pleased with.
I'm also thinking about how to handle the alerts - I know this is important to many of you and I am working on it. Not as easy as it seems to find a useful way to do it and not throw an alert when it isn't useful. Be patient...
My current Aud/Usd trade using these tools. Only this and Aud/Jpy trade remain open. Rest closed at b/e + a few pips for a bottle of wine. I know this is not the standard method as outlined by Lou and will not post any additional such trades if he prefers. I entered on break of Fractal support rather than waiting for candle close.
I only provide the tools. I don't push my way of using them unless I see someone who obviously is not getting it on their own.
You're an experienced trader - do as you see fit and share with the rest when what you do is successful.
Aud trades working out nicely. Breaks of Fractal S/R viv a vis Alf produce stellar entries, IMHO. The Aud/Jpy trade. Will close up shop at 16:00 GMT.
I'm almost ready to call it quits now (15:30 GMT). The good short move on EU took place before I was awake and then died out. There was a short signal on M15 a few minutes ago but I did not take it because it's Friday and PA will most likely bounce off 1.2000...
I mentioned in an earlier post that a few things in the indicator were annoying me - here's the main one. A bar can be both an up and a down fractal at the same time. The indicator needs to deal with that and it isn't - the two black bars following the double fractal should be red, not black.
and again well layout system. i tried your system today. and i at the moment 100+ pips on eu / usa.
just a matter of time now till it goes under 1.20.
maybe a good idea setting for an alarm is this.
when ALF goes flat dont trade. when ALF goes up or down like 10 degrees or more, give alarm for trade. when ALF reaches again the 10 degrees point. stop trade.
just an idea. dont know it is possible to program, but i think would cover some of the problems?
I have some minor problems in ALF_Candles that need to be corrected before I get to alerts (what I do to solve Problem A will affect Problem B sort of thing) but thanks for suggesting. I will get to it...
I thought a candle turns red as it passes below a current Fractal support level, and vice versa for green.
They do, but they also change color when direction change is possible but has not yet been confirmed by an actual TL break. In the case you mention, an up move has been rejected (temporarily) but there is no nearby support (yet). This is what I'm trying to fix...
Thanks to the posters of winning trades, especially those trading pairs other than EU - keep 'em coming, it helps the newer people.
Those who are struggling - study the above-mentioned winning trades and don't be hesitant to ask questions if you don't get it. It IS gettable (there are enough wins to substantiate that) but we each progress at different rates.
Post losses that you don't understand to the forum (rather than PM me) - many here are better traders than I and will be glad to help...
at the risk of being tedious. Isn't the L of large green candle a Fractal? Edit: Have closed my Aud trades for +116, and +89, even though the move looks to still have legs..
Large green candle is both H and L - that's one of the problems I'm going to work on this weekend.
Nice trades on your part...
EDIT: the fractal support line is working fine - candle goes red as it passes through BUT - the previous three bars should be red also (because the fractal high occurred most recently and was rejected.
I posted an improved version of ALF_Candles. See Post #1 - download ALF_Candles_v2.ex4 and install as before.
Improvements:
1. Corrected handling of fractal candles and double fractals (candles which are both an up and a down fractal). If you have no clear idea of what fractals are, I've added a link to a concise explanation - see Post #1 under the heading "what are ALF candles".
2. Split candles (2 colors) that show the exact point at which the candle passed through support or resistance.
Normally I would delay posting a revision of this magnitude until I had spent some time testing in a live environment (did the work while the market was closed), but I'm pretty confident with the changes so anyone who wants to beta test this, go right ahead.
I did not update the template, so you may do that on your own if the indicator works properly for you.
... and would like to trade once a day, check the posted chart with the revised ALF_Candles:
Candles that are completely black/white are stopped out (or a total loss if you are daring enough to trade naked). Candles that show any trace of red/green are wins and the difference between open and high/low is the value of the stop needed to cash in...
Please could you clarify the colours for the ALF_Candles v2?
The original ALF_Candles had 5 line indices, which were set with the template as:
0 Black
1 Black
2 Medium Sea Green (width 5)
3 Red (width 5)
4 Black
However, ALF_Candles version 2 has 6 lines
Many thanks for coding some excellent indicators!
I needed an extra index buffer to effect the changes. The ones you have identified as Black are actually not black - the arrays are set to DRAW_NONE so they will never appear unless the source code is changed.
I was reading thru the original thread over the weekend and just wanted to respond to this. If you can't get over the fact that you are gonna leave pips on the table, walk away now before you lose everything. Greed and fear has no place in trading.
It gets me how people will constantly try to pick the top or bottom to the pip. Quit trying, YOU WILL LOSE.
Yes, absolutely. My job is to make pips, not call market turns.
Exited 1/2 at 74.933 for +37 at hesitation and moved my stop to 75.10 for a lock of +20 for the rest, but decided to close the last half @ 74.77 when it pulled back for +53 more for a total of 90 pips tonight. Think I'm done til tomorrow. No need to be greedy.
... either of the replies you've received could be right. The entry is indeed counter-trend but also a bit late - entry at the arrow with a 20 pip stop and you are still in this trade.
Considering the trend to be up and not taking a short would have saved the loss.
So, which is right? Market appears to be shifting from trending to ranging so perhaps getting in earlier would have been best. Ah, hindsight...
A word about stops - IMHO, stops are not meant to be hit - if the trade turns against you in a meaningful way, exit and live to fight another day,
I've been following the old thread as well as the new updated one and I would like to thank Lou G for his fantastic work.
I've tried to see if there was any way to filter out some of the bad or range bound trades and while understanding that there is nothing that will ever be able to completely keep you out of these trades, I think I've found something that may help most of the times though.
It's an indicator called NVO (Normal Volume Oscillator). I found it over at the Sonic R thread (so credits go to Sonic and his thread).
Basically how...
Thanks for your input. NVO appears to be a good indicator but not something I'd like to add to the method at this time.
Do we have to put both versions of the Alf Candles indicator on the chart at the same time? Because if we dont some candles are only half coloured.
Thank you...
They are supposed to be partially colored - check the explanation of what ALF_Candles_v2 is doing - it's in Post #1.
The new ALF_Candles_v2 appears to be functioning as it should but I will put in my own "screen time" over the next few days and correct any bugs that show up.
EDIT: I take it back, there IS a small coloring bug on the current bar that appears only occasionally.
It does not appear to be serious enough to pull the plug on the indicator, though. I'll work on it...
can you please upload the scripts for putting order.
Thanks
These are the scripts I use for buy, sell and close. Keep in mind that you need to know how to compile them in MT4 if you want to change any parameters - they are scripts, which means they execute on the fly and do not pause to ask for input from you.
Best to set them up as MT4 hotkeys - see MT4 help for how to do this.
Also, they are set up to work with 4 decimal brokers - if your broker is 5 decimal, multiply stop/take profit amount by 10.
Amazing that this thread has already grown to more than 300 posts.
If you are new to ALF and have joined the thread at the current post (as all of us have done at some point), please take a few minutes to read Post #1 before asking questions. I'm making a major attempt to update that post with all info necessary to understand and trade th ALF method.
thanks for you wonderfull work. i tested the new indicator as well on the AUSUSD on 15 min. chart and made a + 40 pips.
i know your asking why AUSUSd ??? aint that the fun of it
eur/usd is already tested to death here. so i thought lets try it on different one, to see how good ALF really is. fortunate AUS was fighting a losing battle against the USa dollar as shown in picture below. could have jumped earlier. but i had not started AUSUD earlier.
so far it really is good. i really like the new setup of half candles filled. combine that...
As of a minute ago I replaced ALF_Candles_v2 with a new version:
1. Small bug in coloring current candle fixed.
2. Split (2 color) candles removed. This "feature" was causing more confusion than it was worth. I thought it was a good idea when I did it but I ended up not liking it either.
... so far. Today turned out to be the wrong day to roll out a new version of ALF_Candles.
In replacing the TVI as a supplementary indicator for ALF i had hoped to provide something more flexible for different TF's that would work as well without tinkering. Seems to be working okay in that area.
I learn as much from your posts as you do from mine, often more, so keep 'em coming.
Lou G
__________________
Old Benjamin was right
Last edited by Lou G, Jun 8, 2010 4:00pm
Reason: typo
This will not work the way you think - it was covered in the original thread. Multiple indicators in the data window do not show accurate values (although the colors may be correct). Try adding a zero level to each indicator and you'll see what I mean...
Also, TVI has been superseded by ALF_Candles (or Fractal_Candles). Using them together is sort of pointless, IMHO.
__________________
Old Benjamin was right
Last edited by Lou G, Jun 9, 2010 10:35am
Reason: more data
I agree wholeheartedly, was just answering their question.
When I posted that chart I was reading thru the other thread and came upon the whole discussion of it. Kinda why I dropped them from my charts...... it's amazing how little "work" people want to do to succeed.
Gimme this gimme that.....
EA this, EA that....just truely amazing
As you have stated many times, screen time will help develop pattern recognition.
As Aristotle said "We are what we repeatedly do. Excellence ,therefore, is not an act but a habit."
MM
Interestingly, my oldest grandson attends a private school for gifted children where that quote is the school motto. He won the Spelling Bee Championship this year for his grade level - the winning word was "metamorphosis"...
Here's my understanding of what they are after watching price action a bit.
White candles are the bullish candles (provided that white is the setting you have in your chart properties) with the green portion being the part that broke resistance within so many candles back.
And the black candles are the bearish (again provided thats the color you have selected in properties) with the red being that part that broke support within the last # of candles.
Risky to trade against the prevailing trend. If you do it anyway, be prepared to take small gains and exit as soon as you see the slightest sign of trouble.
As for finding the trend if you are in doubt - try switching to H1 from M15 and see what it looks like there. Than you can go back to M5 or M15 with an understanding of the bigger picture.
A few here are having difficulty understanding retracements and how to trade them. This is an important chunk of knowledge you need to grasp.
Trends rarely move uninterrupted from inception to conclusion, There are usually points along the way when PA seems to have a "second thought" about the trend. PA stops and actually backs up a bit before continuing.
Examine the swing move (or trend) in the chart. The move begins at "High" and continues to "Low" with two points of hesitation marked A and B.
The move starts at 05:45 GMT and ends at 08:00 - the retracements occur at 07:00 and 07:30.
Using these times as a reference, shift your chart to M5 and see what's happening inside the M15 candles. I'll post that M5 chart later and continue this discussion.
Here's the same swing move on M5 with the same places marked.
Notice that the retracement highs (A and B) are descending from the point marked "High". Also notice the potential re-entry points when the candles turned red again. If you chose to take profits when PA reversed these would be the places to enter short again.
First, reread post 1. Reread until something clicks. (hint: it may be an aha moment)
I highly suggest reading Lou's first ALF/TVI thread.
If you've done your homework, you're waiting for the green and red colors.
Any candle open above or below ALF is a potential entry - you need to look at the overall trend to decide if it's a good entry or not:
If PA is chopping back and forth through a flat ALF, wait.
If PA is moving up or down through ALF (preferably from a bar or two prior to crossing) your odds of a good trade go up.
It really is all about pattern recognition and takes some screen time to see clearly. Have a look at Post #407...
Not Kosher, but thematic(reformed??). TP is calculated vs ALF value at time of entry. Aud/Usd has already reached TP for 245 pips. 4 additional trades open, 3 are pos., 1 neg.
Good to see you here, Pippo. You have an interesting way of using the indicators.
Caught the last nice move, I bailed at the last surge over 1.2100.
Lou G, after I enter a trade I tend to switch back and forth between ALF view and 1m w/Bollinger Bands. I've been doing this awhile but am definitely still learning. It seems by my observation, that the rallies seem to end with a last surge on the 1m chart. Does that sound accurate to you?
What a very effective system you have...I bagged some good pips today (Live) and wanted to thank you.
I have added a filter of my own that I think really helps pinpoint actual entries vs quick dips. If you allow, I would like to post it...if not I understand.
Thanks
Darren
I'm glad you're making pips.
Plenty of members have posted their take on additional indicators - why not you? I will most likely not make it an official part of the ALF method (since I have spent many months developing ALF as it is) but, if you think it might help someone...
Yes Sir, I will...I just know what it's like when people hi-jack a thread with every indicator under the sun...
Ok, it's a simple Stochastic Histogram that I have tooled up.
It overlays to Stochastic histo's when the Green one (faster) breaks zero line on or around the same time ALF is penetrated...thats a valid signal (could be a quick trip, could be along one)
When the Black one (slower) breaks zero line after the Green one (depending on how long it takes) you now have confirmation to hold the trade longer.
When the Black and Green go through...
Colud you possibly rename your indicator to something not using "ALF" I would like to keep the distinction between the ALF method and other approaches clear.
Hi Pilotui,
Thanks for posting the indicator, I've been trading lou's approach (original TVI aswell) with CCI 34 confirmation which is very similar to your stoch indy - It's kept me out of many a sticky moment . e-mail alert is a bonus until Lou manages to find time to program the feature into fractal candles.
Thanks again
Doc.
Actually, it's less a case of finding time than it is finding the most useful place to put the alert.
I downloaded the indicators and tpl from post #1 put I don't know how to get the split candles? The only options in the input tab are candle width and up/down bar?
Thanks
Look in MT4 navigator - do you have Fractal_Candles_SR_v3?
That's the one you need - both the ex4 and source code are in Post #1.
Shortly before NY open, I pull up EU H1 to get a feel for market action. Today ALF on H1 was basically flat so no trend of any consequence therefore (for me) market may be ranging.
Switch to M15 - didn't like the look. It is ranging but ALF still pretty flat.
This is how I ended up at M5 which looks very tradable.
I did download the newer version and still didn't get the split candles; but as soon as I deleted the old version (fractral candles v2) the split candles showed up.
If I had to do it again I would close that chart, open a new one and start downloading the new template and indicators from the beginning. Otherwise, make sure you delete the older version.
Bcarbon
The key here is to shut down MT4 and restart - I have many versions of the indicators on my system and they all play nice in the sandbox
Nothing needs to be deleted, IMHO. MT4 WILL NOT pick up on new stuff unless it is shut down/restarted...
ALF revisited - simple, effective daytrading
ALF revisited - simple, effective daytrading
. I have a question: can the settings on alf candles be changed? I am using 5/12/12 on the old indie, I don't see the settings on the new one. thanks.
