Start Winning - Trade the Current Trend

UPDATE 27 NOV 16
In the short time that this thread has been active there has been a lot of ideas for improvement and subsequent changes to the template. I will not completely re-write this post as the information contained below stiill forms the foundation of what the system was built on. The rules and templates that were posted on day 1 are still viable for profitable trading. Page 12 is the point that the new template started to take shape but to fully understand what is going on here anyone new to the thread must read everything that has been posted to date. I do not want to have to waste time by explaining again what can easily be answered by reading the first few pages.

Here is the new template as I have it. I have included RSI candles (period 8) but whether you use them or not is personal preference - I don't use them. If you do use them then you can drop the RSI Custom Indicator if you want.
V1 = 3 RSI and RSI custom in seperate windows.
V2 = 3 RSI overlaying RSI custom. These are in the zip folder. There is one for each TF.
TF Templates = Templates with correct indicatorsetting forvarious Time Frames.





Note: MA and RSI Dashboard Indicators do not change to match the chart they are attached to automatically. They need to adjusted manually in the settings.

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Thread rules and some general thoughts are below so please read and respect.

1. No Trolls - I don't know how to ban anyone but if I need to and I can, I will.
2. I am not an expert, but I have learned a thing or two. Give the thread a chance and if it is not for you please move on.
3. I believe that even the most experienced can still learn (even from those less exerienced).
4. My goal here is to develop this trading method for my own use and also to help some struggling traders if I can.
5.This thread is not intended to teach brand new traders the basics of trading so do your homework first.
6. I do not stick to traditionally accepted rules of money management and I will not discuss this aspect of trading. We are all responsible for our own profits and losses. I will however discuss ideas about SL and TP placement.
7. I will add to, delete or amend these points as required.

TEMPLATE (If other timeframes are used then the MAs below will need to be adjusted).

M5 Chart
10 EMA (blue solid)
10EMA applied to previous 10EMA (Pink solid)
120 EMA (Green Dotted) -this shows you the 10 EMA on H1
120 EMA applied to previous 120EMA (Orange Dotted) - this shows 10 EMA applied to previous 10 EMA on H1
3 Period RSI - Levels 10-30-50-70-90. Below 30 = Oversold. Below 10= Very Oversold. Above 70 = Overbought. Above 90 = Very Overbought. Above 50= Bullish. Below 50 =Bearish.

H1 Chart

10 EMA (blue solid)
10 EMA applied to previous 10 EMA (Pink solid)
40 EMA (Green Dotted) - this shows you the 10 EMA on H4
40 EMA applied to previous 40 EMA (Orange Dotted) - this shows 10 EMA applied to previous 10 EMA on H4
RSI as above

Here is the basic M5 template. If you want to use Volume Candles then you need to get them from the relevant threads as mentioned above.



Here is the M5 template with the RSI Dash added tothe bottom left corner. Just remember to adjust the RSI Dash settings to much the chart you apply it to.



Edited M5 and H1 Template - not using 30 lwma. using my preferred 10ema applied to previous 10 ema instead.



CONDITIONS FOR SHORT ENTRIES
The HTF 10EMA (Green dotted) should be below the HTF 10 of 10 EMA (orange dotted) line.
The 10 EMA (blue solid) should be below the 10 of 10EMA (pink solid) (M5 TF).
Let 3 RSI cross above 50 line and enter short when it crosses back below 50.

CONDITIONS FOR LONG ENTRIES
The HTF 10EMA (Green dotted) should be above the HTF 10 of 10 EMA (orange dotted) line.
The 10 EMA (blue solid) should be above the 10 of 10 EMA (pink solid) (M5 TF)
Let 3 RSI cross below 50 line and enter long when it crosses back above 50.

SHORT TRADE OPPORTUNITIES - EXAMPLE

The chart below shows you AUDUSD M5 for today and yesterday.
From the time when the H1 10EMA first crossed below the 30LWMA at the yellow square you will see that to this date it has not yet crossed above. THIS MEANS DO NOT BUY - WE WANT TO BE SELLERS.

Attached Image (click to enlarge)

Here is GBPJPY M5 - these are buying conditions - HTF 10 EMA is above HTF 30 LWMA. These conditions mean we want to be buyers.



STOP LOSS AND TAKE PROFIT

Where to put your SL and TP is a decision for yourself based on your risk appetite and how much drawdown you are willing to accept in order to end up with a profitable trade. I went through a period of unwillingness to accept a loss and of course that resulted in losing in the end. All this achieved was to induce undue stress and loss of money. Now I always use a SL. If I am scalping the M5 TF I place my SL below the 30 LWMA and move it up or down accordingly as price moves in the right direction. I don't care too much if I take a loss because there will be plenty winners.

I don't normally use a TP.

INDICATORS

1. Moving Averages - freely available to all in MT4 or other platform.
2. RSI - Again freely available. All I have done is add a couple of coloured boxes to highlight the OS and OB levels.
3. Volume Candles. Taken from PVSRA thread. To understand volume, which I recommend, please go to one of those threads. You can find a pdf called "PVSRA". I highly recommend it.
4. I use a MA cross indicator to alert me of possible opportunities when I am out and about and working. I DONT TRADE THE CROSS. I TRADE THE PULLBACK.

Attached File(s)

ma_cross_alert_once_b.mq4   9 KB | 1,586 downloads

subscribed. Id like to see how it works on ranging market,

F@ck Ranging markets. We don't aim to trade ranging markets. If we get caught up in them, we make the best of it (win or lose) and crack on. Even H1 ranging markets can be very profitable on M5. Tomorrow I will continue.

Hi wizlon,

Good thread.
Keep it simple - few rules, simple rules to follow and make trading decisions.
There is a trend in every timeframe we look at.
We must all learn to trade that trend of that moment.

Good Trading.

Last night I may have had a glass of wine too many (tough week at work) so I am glad to see that the thread actually makes sense so far.

I do want to make something clear though - I am not looking to enter trades when the current TF 10 EMA crosses the 30 MWMA. I want to wait for a pullback and enter when the 3 RSI confirms things. Now the 3 RSI is a fickle beast and it will turn on a dime but I think it helps me to enter at the right time and not jump the gun.

Now of course you can use this method without the 3 RSI if you want. All it is really telling you is that there is a little pullback and that you now have a candle going in the right direction for your trade. You can see that by looking at the candles alone. I just find that it is easier to use the 3 RSI as confirmation.

The chart below is USDCAD M5. This shows you some entries that you could have taken yesterday using this system. Personally I use the M5 TF for scalping. I can make just as much, if not more money by intraday scalping than by trying to hold my position. Once your pips are banked the robbers can't steal it back (unless you let them)!

Point to note here is that I am only looking for long entries because the HTF MAs are telling me that the H1 trend is up!

This post is to explain why I am using the 10EMA with the 30 LWMA.

I was playing around with some Moving Averages to try to find a good combination that would help me to trade the short term swings and I ended up settling with the 10 EMA with a 10 EMA applied to it. This gave gave me a nice smooth combination that I liked (in my opinion it is even better than the 10EMA with 30 LWMA).

Because I work full time I trade and monitor trades on my phone through the day. Because of that I miss loads of brilliant trading / money making opportunities. So I use an indicator that alerts me when my 2 MAs cross and it will not acccept my prefered combination. There for I looked for an MA that was as close to my 10 EMA of a 10 EMA as possible and I came up with the 30 LWMA (I will add some indicators to post 1 shortly).

Here is a chart showing my prefered combination and also with the 30 LWMA applied.

you can share your template?

H1 Trading and H4 Direction

This method will work equally as well on higher TF. If you prefer to hold trades longer the H1 and H4 combination could be good.

This chart is EURUSD H1. The dotted lines show the position of the H4 10 EMA and 30 LWMA. We can see that we want to be sellers. Using the same principles as above we can enter on pullbacks. This time you can see that it wouls be better to enter when the 3 RSI leaves Over-Bought levels.

Here's the maths - H4 = 4 x H1. 4 x 10 EMA = 40 EMA (green dotted). 4 x 30 LWMA = 120 LWMA. Simples!

gold m5



gold h1

Added to post 1.

Here is an idea I have for an RSI Dashboard. It is just something that I am trialling but I think it could be good - we will see.

When RSI 14 is below the 50 level price is bearish / going down. When 14 RSI is above the 50 level price is Bullish / going up.

When the 14 RSI is above 50 (Bullish) and the 3 RSI crosses above 50 from below, these could be ideal conditions to look to be a buyer.
When the 14 RSI is below 50 (Bearish) and the 3 RSI crosses below 50 from above, these could be ideal conditions to look to be a seller.



Here is how the Dashboard would look like for 1 currrency pair.
The bottom row shows whether the 14 RSI is above (green) or below (red) the 50 level.
The row above that shows whether the 3 RSI is above (green) or below 50 (red) the 50 level.
The arrows on top show the current direction of the 3 RSI.

When 14 RSI is bearish and 3 rsi has retraced to bullish levels it may be wise to assume that price is still bearish overall. When the arrow turns red and we get a red top and bottom we need to get ready for a short entry as the 3 RSI crosses below 50. Opposite for long entries.

Here we have a H4 Bull Sandwich (possible long opportunity on H4).



The ideal signal to look to be a buyer would be -Green Bottom Light. Red Top Light. Blue Arrow. I call this a Bull Sandwich for ease.
The ideal signal to look to be a seller would be -Red Bottom Light. Green Top Light. Red Arrow. I call this this a Bear Sandwich for ease.

The bottom row of lights shows the main trend on each TF. The top row of lights shows the short term pullback on each TF. The arrow is the current 3 RSI direction.

Each TF on the dashboard can be used individually.

I will say again that this is just something that I am trialling.

Here is a possible full dashboard.



Here are the indicators and the template I use. Initially the setting may look a little strange but they work so that when I shrink the window down they all line up nicely.





EDIT: I have added the M5 TF to my Dashboard. Because the arrows will only display a maximum of 5 arrows I have removed the W1 TF.

sir . can you send All template . RSI ' Dash .tpl ' only EURAUD . not other currency
Thanks

Just go in to the indicator inputs tab and type the relevant pair.

I have the Dashboard for each currency pair in its own chart. Mainly because I did not have the time to put all of the indicators on 1 chart and fiddle with the settings to make sure they were all where I wanted them to be. Also you will notice than I did not include the Majors on the screenshot above. That is because I monitor them seperatly -they are my primary pairs to trade because the spreads are low. If I can't find anything to trade on the Majors then I look at some other pairs.

If anyone has time to arrange a decent dashboard that can be used on 1 chart that would be good.

Busy day at work today but still managed a couple of trades on my phone.

The main trade worth reporting was EURUSD Short. I was initially alerted to the trade possibility by the MA cross alert indicator.

I looked at my phone and took the trade based on the H1 TF. I took 5 entries in all and closed them all way too soon. Average 20 pips approx.

Explanation is on the chart. Hope it all makes sense.

Regarding what I said about having to use the 30 LWMA just so Ican use the MA Cross Alerts Indicator - I realised that I can still use the 10EMA of a 10 EMA on my charts but still use the 30 LWMA for the alerts.

Which also means that the HTF MAs can also be what I would prefer them to be, which is;

M5 chart - 120 EMA (green dotted) = 10EMA on H1 - This is no change.
120 EMA (orange dotted) applied to previous 120 EMA = 10 EMA of 10EMA on H1.

H1 chart - 40 EMA (green dotted) = 10 EMA on H4.
40 EMA (orange dotted) applied to previous 40 EMA = 10EMA of 10 EMA on H4.

I will amend post 1

GBPUSD Short for 20 pips

H1 trend down. M5 trend down. 14 RSI below 50, 3 RSI above 50 and truned down from OB levels.

Here is USDCAD H1. I want to use this chart to further explain my thinking concerning the 14 and how I apply it to my chart and trading.

I did briefly describe this above but I said that I do not include the 14 RSI because the MAs on the chart show me pretty much the same info.

14 RSI above 50is Bullish.14 RSI Below 50is Bearish.

I am going to include the 14 RSI for the time being just to help to get my point accross and hopefully to assist any learning. But the thing is I don't actually have the 14 RSI visible as such - I use a 5 Smothed MA of it. The reason is because I don't actually care too much about the actual current direction that it is heading. I care about whether it is above or below 50 and I don't want to put off if it looks like it might head to the other side. I will know that the trend has reversed when the MAs and PA tell me.

This chart shows what I am talking about and basically I set the 14 RSI colour to "none".

NZDJPY H1 Trade 25 pips approx.

Reason for trade -I initially looked at the pair after seeing my NJ RSI Dash. I could see that all lights and arrows on H4 and D1 were green, telling me that the HTF trend was up. M5 and M15 were all red indicating a LTF pullback. H1 was displaying what I called a Bull sandwich above in a previous post. (needs a better name) so I entered the trade when H1 3 RSI crossed above the 50 line.

Here is another example of the Dashboard. It is USDCHF. The chart TF is H1.

Ignore the arrows for now - as I said above somewhere the 3 RSI can turn on a dime so I think it may be best to only consider the arrow once you identify an opportunity i.e a bull /bear sandwich on a specific TF.

Basically though this shows you that you probably want to be trading long. You can see thaat there is a LTF pullback starting because the LTF lights are turning red.

I am not saying that this will turn in to a good trading opportunity, but it could. I am not monitoring this, I just wanted to post it as an example.

USDCAD M5 - 5 opportunities to scalp short in the past 3 hours.