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-   -   Hanging out the daily on the close line (https://www.forexfactory.com/showthread.php?t=871898)

cfudge Jan 18, 2019 10:16pm | Post# 1

Hanging out the daily on the close line
 
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Hi all.

I had an idea early this morning while awake in bed, (probably not the best time lol) I thought of placing a series of 1SMAs on a chart, settings as follows, high, low and close. Then put on a line chart with no colour.

We then watch for the close line to touch one of the other lines, at which time we switch from line to bars and trade the opposite of the colour of the candle that touched the outer SMA. (See charts)

One exception is if the touch occurs when the outer SMA is moving towards the close SMA (see charts, orange dotted lines}

I am using Gold daily chart for the example but any chart or TF should work. I am going to study this further, live when the markets open...anything can look good in hindsight. The nice thing is, it looks like a setup has occurred on friday close so we will see on Sunday.

Essentially what can be observed here is, if a candle closes very close to it's high or low the next candle is going to retrace. I will be happy if you are able to test this too...I appreciate your interest.


Chris
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ficibald Jan 19, 2019 11:59am | Post# 2

Wow very interesting.subscribed

domba Jan 19, 2019 12:03pm | Post# 3

here is a little secret, and it will be very usefull if you know what to do with it...

"Don't take a breakout unless it follows a false breakout".

Merlin 'Magic Man'
Founder Forex Factory

https://www.forexfactory.com/showthr...8294#post18294

ficibald Jan 19, 2019 12:32pm | Post# 4

I observe that if midle line touches upper or lower chanel its means that candle had small wick,however with quick look seems thad winrate is good,need to wait when market opens to see in realtime

dicojoxaftr Jan 19, 2019 1:53pm | Post# 5

here is a little secret, and it will be very usefull if you know what to do with it... "Don't take a breakout unless it follows a false breakout". Merlin 'Magic Man' Founder Forex Factory https://www.forexfactory.com/showthr...8294#post18294
well, at least that’s how he picture it

here is another secret, dont follow the public information and rules to win a public game

dicojoxaftr Jan 19, 2019 1:57pm | Post# 6

{quote} Yes, essentially what can be observed here is, if a candle closes very close to it's high or low the next candle is going to retrace. I will be happy if you are able to test this too...I appreciate your interest. Chris
make a simple ea for it and test it on history candles,
for technical strategies there's no chance to win in real if you fail on the backtesting

salimc Jan 19, 2019 3:36pm | Post# 7

subscribed

cfudge Jan 20, 2019 5:14pm | Post# 8

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So here are the trades taken at step one of this process...wish luck.

You can see the pairs I am testing on too.

Chris
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ficibald Jan 20, 2019 5:19pm | Post# 9

So here are the trades taken at step one of this process...wish luck. You can see the pairs I am testing on too. Chris {image}
I take eurusd and chfjpy,but problem is that now spread is very big

cfudge Jan 20, 2019 5:26pm | Post# 10

{quote} I take eurusd and chfjpy,but problem is that now spread is very big
EURUSD is not good for me too far away from low, CHFJPY is closer so good luck...I decided to leave it.

AUDUSD NZDUSD and GBPCAD were good entries but the high/low lines were pointing inwards so no trades.

I will be trading on gold and xtiusd when they open

Chris

cfudge Jan 21, 2019 2:18pm | Post# 11

I think that to avoid the spread a days start it would be better to set trades a few minutes before EOD

cfudge Jan 21, 2019 6:02pm | Post# 12

I don't see any trades today in the pairs I am watching, I will go to watch all 29 pairs...

Ficibald looks like you had small wins today.

I had a small win on USDJPY, but losses on both gold and oil.

Chris

ficibald Jan 22, 2019 5:18am | Post# 13

I don't see any trades today in the pairs I am watching, I will go to watch all 29 pairs... Ficibald looks like you had small wins today. I had a small win on USDJPY, but losses on both gold and oil. Chris
yes got TP,yesterday dont hawe any trades because I get to sleep early and I am mad on myself about that good that there was no good trade opurtinity,gold was look good setup bad that they was a loss

cfudge Jan 22, 2019 4:58pm | Post# 14

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I am pissed I missed this 90 pip gold trade yesterday, was too concerned with closing it at a loss from previous day.
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Here are my trades from today, there are some that are close but I did not take as close too far away from high/low.

Chris

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ficibald Jan 22, 2019 5:18pm | Post# 15

I am pissed I missed this 90 pip gold trade yesterday, was too concerned with closing it at a loss from previous day. {image} Here are my trades from today, there are some that are close but I did not take as close too far away from high/low. Chris {image}
yes today was many opurtunitys.I take some trades lets see....

cfudge Jan 23, 2019 4:58pm | Post# 16

Only EURCHF and AUDUSD today

I feel like a good criteria for a valid signal is if close is within 5 pips of high/low

I am going to give this method 100 or so trades to hopefully figure out if it is worth proceeding.

Chris

cfudge Jan 25, 2019 6:38pm | Post# 17

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Here are the trades I am watching for Sunday, barring any gaps. I missed the EOD as I have been trying to place the trades before the daily close to avoid spread widening.

All of these are within 5 pips of the low/high.

Chris

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cfudge Jan 28, 2019 3:51pm | Post# 18

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All of the above trades closed with a profit Hopefully we are on the assent.

I do not see any trades today, still an hour to go but I have to go out.

This is a graph of progress so far since Jan 17 to Jan 29.

Chris

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billbob99 Jan 28, 2019 4:25pm | Post# 19

Hi Chris,

Just wanted to say that I like the look of the this strategy and plan test it on a demo account.

I do have a couple of questions if I may.

What determines your TP? (apologies if I missed this, but can't find a reference to it anywhere). Initially I thought it was to wait for the close of the daily bar but looking at your post above this doesn't seem to be the case.

The close line of the AUS/CHF pair (from the screen shot of the trades taken last night) sat below the high SMA rather than closed on it. Is there another reason you took this trade or was it just because you considered it to be close enough?

cfudge Jan 28, 2019 5:45pm | Post# 20

Hi Chris, Just wanted to say that I like the look of the this strategy and plan test it on a demo account. I do have a couple of questions if I may. What determines your TP? (apologies if I missed this, but can't find a reference to it anywhere). Initially I thought it was to wait for the close of the daily bar but looking at your post above this doesn't seem to be the case. The close line of the AUS/CHF pair (from the screen shot of the trades taken last night) sat below the high SMA rather than closed on it. Is there another reason you took this...
Hi billbob99
Thanks for your interest and I hope you can test this too, the more the merrier.

I do not have a SL at the moment, I was thinking that 30-50 pips might suffice.

TP is the close of the next daily candle, (or the mext candle of the TF you are using). I do try to close trades a few minutes before EOD (I was going to be out today so I closed early). I also try to enter the new trades before EOD also to miss the widening of spreads.

As far as the AUDCHF trade...I suggested it would be OK to open trades within 5 pips between close and high/low.

Chris


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