DislikedMattdede, please use it template and follow the instructions of Fullpip (Post # 410).Ignored
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DislikedAmen to that Lawgirl. I use a slightly different system but am following yours with interest and will try it soon but this market is something else. Great thread
RogerIgnored
DislikedThanks for adding this additional tidbit. I was wondering about the confirmation myself. Now it makes sense!
Now when you see a cross on the H1 and switch to M15 and the cross there already happened, do you still get in? Or do you wait for a better setup?Ignored
DislikedHey, JPassion
I might be missing something here, but I find the check against 2 completely different timeframes gives a clearer picture of over all trend/pattern and makes it easier to understand what the PA is doing. Having a load of MAs on a small TF can be pretty confusing (the idea is to keep this simple visually).
2 timeframes aren't necc. is what I"m getting at if all is being looked at is the moving averages and there is no fixed determinant for angles. 18 period MA on the 5 minute chart is the same line as 3 period MA on the 30 minute chart. Another requirement for the 2 TFs though would be that the higher T BAR has to CLOSE to confirm that the Ma has actually crossed and stayed crossed. Seeing a MA cross halfway through a bar with no view of bars themselves is deceptive.
After spotting a cross on the higher TF the reason for checking for confirmation on the lower TF was to ensure that the PA hadn't decided to move off in the wrong direction. Obviously, unless you are sitting on top of your charts waiting for the H1 bar to close and actually see the 3/8 cross, then you might be a little bit after the cross and need to check things are still set up for a good entry.
Right - so how I read that then is that you are trading the higher TF chart, with associated larger stop (i.e. your entry and exit basis is the higher TF chart). Timing the entry on the smaller TF chart is how I trade, yes you may miss the very odd trade that just takes off but fear of missing moves is something that can get traders killed. Most of the time if what you expect to happen doesn't (i.e. retrace to stops etc then takes off in direction again), it actually prevents a loss or gives a tiny loss, you are always getting in at a better price. You then have two choices - ride the move on the larger chart or trade in and out on the smaller chart as long as the larger TF chart cross remains intact (I trade in and out). Even if there is a big move that takes off, 9/10 there is a later pullback. Fear of missing a move is nothing to worry about. Doing it the other way: see cross on 30 min, look to 5, 5 is pointing up (Of course it is unless 30 minute bar has had a big retrace already) and enter straight away is asking for draw-down because the short term chart WILL pull back. Maybe not so bad if you intend on riding it out for a good while but gives much poorer r:r, disastrous if you're scalping.
Therefore I drop down to M15 and check that the 3/8 EMAs are pointing in the right direction, or there has been a recent cross....or if they are flat or heading the other way, I'll wait for the recross before entering, otherwise the set up becomes invalid and then I'll just move on to something else.
This is my own opinion, based on how I have been trading this strategy, so it might not be correct or indeed make any sense at all!Ignored
DislikedIdeally, M15 should had crossed with the direction still going strong when a cross appear in H1 as a confirmation.
I could be wrong but I think of it as this way, lower tf have a earlier cross, where as high tf have a later cross but with higher accuracy, think of higher tf cross as a confirmationIgnored
DislikedThis illustrates how I would trade it. Just made money on this trade and have made money all week but I'm not after big swings.Ignored
DislikedThis illustrates how I would trade it. Just made money on this trade and have made money all week but I'm not after big swings.
http://i1202.photobucket.com/albums/.../eurolgm30.gif
http://i1202.photobucket.com/albums/...r/eurolgm5.gif
I've just seen I've put the word 'move' in the graphic. The word should be 'miss'Ignored
DislikedThis illustrates how I would trade it. Just made money on this trade and have made money all week but I'm not after big swings.Ignored