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Daily chart trading - simple entry and exit criteria

  • Post #1
  • Quote
  • First Post: Edited Feb 2, 2022 3:10pm Dec 16, 2021 3:45pm | Edited Feb 2, 2022 3:10pm
I like to keep it simple.

 

  1. Trades based on daily chart only.
  2. Risk only 1% of capital on any trade, look for return of 1.5%.
  3. Move SL to BE when return reaches 1%.
  4. we need three candles to form the pattern for entry.
  5. Buy - Third candle closes above close of previous two candles ( Ideally Third should be bullish and previous two bearish)
  6. Sell - Third candle closes below close of previous two candles. (Ideally Third should be bearish and previous two bullish)
  7. SL - 5 pip above/below the three candle pattern high/low.
  8. Close the trade (before it hits the SL) if the opposite pattern is formed.

Goal for 2022 is to grow capital by 15%.
i will post my trades as i go along.

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Given that you are putting major emphasis on the CLOSE price, you might be interested in this simple technique of Dr. David Paul

Dr. David Paul
David Paul has a background in mathematics and mineralogy, which he used to develop a revolutionary drill for the mining world. He started day-trading in the 1980s and has been an active day-trader and share investor for 35 years. Hearing David Paul speak is nothing short of a revelation. His knowledge of patterns is drawn from an intensive and dedicated study of price action and human behavior for over 4 decades.
He is, to our knowledge, the only person in the world who has isolated himself for an entire summer at the British Library, with the purpose of studying all of W.D.Gann's trades. Such is his dedication to speculation.

Trade Entry Technique
The 4-bar fractal is a simple measure of a turning point. It is mechanical, so it is easy to explain and easy to implement. It is reliable, but don’t expect miracles. It will catch some sustained trend moves, but you will also have your fair share of small losses and small wins because you get stopped out. As the name implies, it is composed of 4 candles (or bars). It works in any time frame. The longer the time frame you are viewing it on, the more of an impact the signal is likely to have. The 4-bar fractal is one of the most solid trend change indicators I know of. I owe it to Dr. David Paul for introducing this to me. Tom Hougaard

Tom Hougaard
Tom Hougaard worked on a broker trading floor for the better part of a decade, trading while observing thousands of clients executing millions of trades.
For the last 12 years, he has traded his own funds. Today he runs a free Telegram channel, where he trades live every single day. Tom has written extensively on price action and is in the process of completing his book Confessions of a High-Stake Trader, which will be published in February 2022.
Tom Hougaard is a 4-time winner of an annual trading competition in Denmark, with the incredible achievement of one year turning 250,000 Danish Kroner into 10m Danish Kroner.

As Tom stated, it will catch trend moves, which is great because it gives multiple signals, and is also great for alerting you when the market is turning; looks like this:

Attached Image (click to enlarge)
Click to Enlarge Name: 2021-12-17_17-14-50.jpg Size: 373 KB
Attached File(s)
File Type: zip 4_Bar_Indi.zip   12 KB | 1,937 downloads
Maximize wins, minimize loss, stay in the game as long as you can
WHAT YOU ARE REFERING IS 3 BAR REVERSAL STRATEGY,there may be several indicators for this strategy and many you tube clips as well,did u try them?

Trader Tom - Trading Psychology Talk - Kiev - YouTube
Hi Erebus.
This indicator doesn't update on the close of the candle. Any idea how to rectify this?
Cheers for any help
Hi
look good as arrow mention on chart as well alert better if you can set buffer index only at 4th candle or mark arrow with different color it will easy to identify.
thanks
Thanks Erebus. I will read and understand his philosophy and pattern diagnosis for trade entry and exit.


Quoting Erebus
Given that you are putting major emphasis on the CLOSE price, you might be interested in this simple technique of Dr. David Paul Dr. David Paul David Paul has a background in mathematics and mineralogy, which he used to develop a revolutionary drill for the mining world. He started day-trading in the 1980s and has been an active day-trader and share investor for 35 years. Hearing David Paul speak is nothing short of a revelation. His knowledge of patterns is drawn from an intensive and dedicated study of price action and human behavior for over...
Thank you T4Trade for sharing. for some reason i've concluded (after years of ups and downs in trading), that money management is only solution trade sensibly in forex market. I needed one simple rule for entry and exit, but core of system is money management of R:R 1:2, and plan is to trade every time i see the edge.
Daily chart works for me given i have no time for intra day. However, grateful you shared the 3 bar reversal strategy. I will go through it. thank you.


Quoting T4Trade
WHAT YOU ARE REFERING IS 3 BAR REVERSAL STRATEGY,there may be several indicators for this strategy and many you tube clips as well,did u try them? Trader Tom - Trading Psychology Talk - Kiev - YouTube
Quoting disciplined
I like to keep it simple. Trades based on daily chart only. Risk only 1% of capital on any trade, look for return of 2%. Move SL to BE when return reaches 1%. we need three candles to form the pattern for entry. Buy - Third candle closes above close of previous two candles ( Ideally Third should be bullish and previous two bearish) Sell - Third candle closes below close of previous two candles. (Ideally Third should be bearish and previous two bullish) SL - 5 pip above/below the three candle pattern high/low. Close the trade (before it hits the...
Thanks for sharing your strategy and good luck in your journey.

Here you have an EA that relies on your strategy as it is defined right now.
Attached File(s)
File Type: ex4 disciplined at ff.ex4   19 KB | 604 downloads
Always ready to help
Daily chart 2019-2020

Quoting PaulMF
{quote} Thanks for sharing your strategy and good luck in your journey. Here you have an EA that relies on your strategy as it is defined right now. {file}
It doesn't take into consideration trading hour (spread) at the beginning of day.
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Quoting Myrtilian
Hi Erebus. This indicator doesn't update on the close of the candle. Any idea how to rectify this? Cheers for any help
I'm not a mind reader, which one?

MT4, MT5, or Tradingview?

Simple solution is to change time frame from my experience

Say you want a 4-Hour close refresh, go to Daily and back to 4-Hour

I do that all the time anyway, so not a big problem, always helps to have the latest information

Good Luck
Maximize wins, minimize loss, stay in the game as long as you can
oh you are so kind to do an EA for this system. God bless.

Quoting PaulMF
{quote} Thanks for sharing your strategy and good luck in your journey. Here you have an EA that relies on your strategy as it is defined right now. {file}
Thank you disciplined for sharing the strategy, I have seen some similar ones and in daily they could offer some advantage for being a good reference point for the price movement.

Thanks PaulMF for the EA, if you allow me a suggestion to try and test the strategy.

If you can include the closing in BE with a small profit (1 or 2 pips) to offset the spread and commissions it would be perfect.

And a second suggestion, due to the high spread that exists when a new candle starts, it would take the entry away from the opening of the candle, so being able to delay or set the time would bring us closer to an entry more adjusted to the opening.

Thank you.
hey disciplined

thanks for sharing the system, I like daily charts and this looks promising. Can I ask how long you've been trading it

thanks, blam
For nearly 6 months, wins more than losses, so i think it works.
However, very few trades each month, like 4 or 5.. thats all and most of them i've to leave it for atleast 2 weeks.
Though i mentioned the rules ( 3 bars with close price as criteria), the win probability is much more when the two previous bar is bear (if you are going for buy after the third (newest) being bull).. I will only stick to those trades for now. the images i have uploaded is not conservative in nature.

Quoting blamshakk
hey disciplined thanks for sharing the system, I like daily charts and this looks promising. Can I ask how long you've been trading it thanks, blam
I'm trying something similar on EURUSD H1 chart.

Entry signals based on the break of the highest (lowest) last 2 bars.

No indicators, only price action. I'm developing an expert.
  • Post #17
  • Quote
  • Edited Dec 21, 2021 1:55am Dec 20, 2021 3:27pm | Edited Dec 21, 2021 1:55am
Quoting disciplined
For nearly 6 months, wins more than losses, so i think it works. However, very few trades each month, like 4 or 5.. thats all and most of them i've to leave it for atleast 2 weeks. Though i mentioned the rules ( 3 bars with close price as criteria), the win probability is much more when the two previous bar is bear (if you are going for buy after the third (newest) being bull).. I will only stick to those trades for now. the images i have uploaded is not conservative in nature.
Your trading technique is sure to work. I use daily chart only (W1 for trend direction) since year 2000 and get "pay check" every 2 weeks. I mention you the wave also: in forex, if the wave's already moved about 5 cents (500 pips), considered to the wave will pull back at least 200 pips or side-way then.. whatever after that.
hell yeah,,
Quoting gerval
Thank you disciplined for sharing the strategy, I have seen some similar ones and in daily they could offer some advantage for being a good reference point for the price movement. Thanks PaulMF for the EA, if you allow me a suggestion to try and test the strategy. If you can include the closing in BE with a small profit (1 or 2 pips) to offset the spread and commissions it would be perfect. And a second suggestion, due to the high spread that exists when a new candle starts, it would take the entry away from the opening of the candle, so being able...
Added small profit to BE in the version attached.

Not sure about what you are after in the second suggestion. Can you develop it further?
Attached File(s)
File Type: ex4 disciplined at ff.ex4   20 KB | 401 downloads
Always ready to help
Quoting Erebus
{quote} I'm not a mind reader, which one? MT4, MT5, or Tradingview? Simple solution is to change time frame from my experience Say you want a 4-Hour close refresh, go to Daily and back to 4-Hour I do that all the time anyway, so not a big problem, always helps to have the latest information Good Luck
He's probably referring to the zip file you kindly provided. Indi only works on the t/f you install it on.
Good Trading
Quoting aud
{quote} He's probably referring to the zip file you kindly provided. Indi only works on the t/f you install it on.
He's probably referring to the zip file you kindly provided.

Objection - Calls for Speculation. Judge - Sustained, next question



Indi only works on the t/f you install it on.

This is the most cryptic comment that I have ever seen

First of all, I believe there are 3 indicators in the zip file, MT4, MT5, and Tradingview.

Which platform are you referring to?

And I have never heard of any indicator being installed to a Time Frame; can you please elaborate on that?

I won't be able to sleep thinking about this...

Maximize wins, minimize loss, stay in the game as long as you can
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