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Trading Made Simple for Day Charts

Hi Britpip7,

Thanks for sharing the pipmaking system. Could you please post the same version of the 'TM Watchdog' Indicator that you are using.

Thanks in advance.

Roy
Quoting fxjourney
Thank you Britpip7 for starting this thread.

As we are concentrating on the daily charts only here there is a good opportunity to announce potential setups quite far in advance of the entry signal, with lots of time to prepare for the trade, in most situations.

There are plenty of currency pairs to trade - especially if one considers all the smaller currencies - so please announce any attractive looking possible entry set ups and we can then discuss and take action from there. I'm sure collectively we will cover all potential new setups across...
Thanks for the well thought out approach for contributions. I will add this in to Post #1.

With regards to the Day charts and set ups, any time there is a change in candle color - whether you are using candlesticks / HA / APB - go look at it and run your MTFA and if it is during your trading time, judge your entries on PA. If a candle closes above / below the 5EMA, run the analysis.

I will also add a list of TLAs and FLAs on Post 1.
"To live with Passion, it takes Courage and Grace to survive"
Quoting gamekeeper
Thanks for setting up this thread its going to be a good resource I feel.

Do you use a trailing SL for this on daily charts trading? if so what level would be appropriate do you reckon? i'm thinking 25-50
If your daily ATR is 150pips, then setting a TS to 25-50 will get you stopped out.

Currently I am using a TS of 100pips. I have experimented with this and using a TS of the ATR(7) puts more pips at risk, but does allow the necessary breathing room, so this will be according to your risk tolerance. Big E would close out as soon as a reversal was occurring and hence save the pips. He would then re-enter on the next move. Personal choices / risk management plan.

Back Test and build your statistical data set and then make your determination.
"To live with Passion, it takes Courage and Grace to survive"
Quoting sharemaster2
Hi Britpip7,

I have been a follower of the main thread and like this idea of your daily trades.

As it still enables one to work and also play the markets too. Smaller TF is just a challenge to play if you do a 9 - 5 job which a few people here do.

From what I make out from this, you are purely a Technical Trader with this method.

As we all know, the markets are moved by global fundementals, ie news and announcements.

So just to ask, what part does news and announcement play in your trading strategy or you do not consider this at all....
I have been faked out and confused by so many news releases / experts / talking heads.

At the end of the day, Price Action is King. No matter what the news release and how it should be interpreted, the market will dictate where it will go.

The only news item that will stop me placing a trade is Non Farm Payroll - 1st Friday every month. If I have a trade open, I will have SL set as opposed to TS, or if no real profit in place, the SL to BE.

FOMC will also cause me to move into pip protection mode.

As I place trades between 8pm and 10pm PST, news releases don't really come into play for me, unless BOJ is playing around!
"To live with Passion, it takes Courage and Grace to survive"
I have spent several hours trawling through the multitudes of currency pairs offered via Oanda's MT4 platform and have selected those that have a reasonable spread and show good historical movement. I have selected 18 pairs to watch. This is quite a big jump for me as I am used to trading cable only.

Britpip7 I appreciate that our focus here is the daily chart and I hope you don't mind if from time to time I publish a weekly view of the same currency pair - just to give a 'bigger picture' perspective. All trading activities will take place on the daily chart.

I find a muti time frame view of a currency pair really helps to put possible trades in better context. I learnt this from Alexander Elder's book - Trading For A Living - and would recommend it to all newbie traders who are looking to improve their 'edge' in the market.

Anyway in light of the above, here is another possible setup (CADCHF) that may occur next week. First the weekly chart - just to show what is developing at the higher time frame level (divergence between price and stochastics). On the second chart (the daily) we see further evidence of divergence (this time between price and TDI).

The TDI indicator has yet to cross and I will not consider a trade until it does. I will watch this one with interest next week.
Attached Images (click to enlarge)
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Hey, I was wonderin' where you were spending yer time. Why didn't you let us know you were making a new thread? Anyways, perhaps I could add a bit to your discussion if I may. I have tried to trade the TMS on daily timeframes and found that it was producing very well. In fact I spoke with a fellow who was new to TMS and doing wonderfully for himself as well. Unfortunately, have had to take money from my account and could not afford the daily stops until I pick it back up from the dumps. So I will be a frequent lurker until I can afford to trade this timeframe again. I might also add that anyone looking at this timeframe should pay particular attention to Aud/Usd. This is and was usually the "prettiest chart" I saw. Very predictable, many good pips. Good luck to you britpip and let me know if I can help in any way my friend!
"IN CASH WE TRUST"
Quoting fxjourney
I have spent several hours trawling through the multitudes of currency pairs offered via Oanda's MT4 platform and have selected those that have a reasonable spread and show good historical movement. I have selected 18 pairs to watch. This is quite a big jump for me as I am used to trading cable only.

Britpip7 I appreciate that our focus here is the daily chart and I hope you don't mind if from time to time I publish a weekly view of the same currency pair - just to give a 'bigger picture' perspective. All trading activities will take place on...
Thanks for the approach with the Weekly charts - this adds to trading the daily charts - I do use Divergence as a major heads up for adding pairs to my watch list and all traders need to be aware of what the higher time frames are doing. If the TDI and Price are not in agreement, a change is very likely to occur.

I currently have several moving averages on the charts - 200ema / 55ema and experimenting with a 30ema but these are only for tracking trends. With the day charts, I do not use Stochastics - never seemed to add anything for my trading style.
"To live with Passion, it takes Courage and Grace to survive"
Quoting LazyLobster
Hey, I was wonderin' where you were spending yer time. Why didn't you let us know you were making a new thread? Anyways, perhaps I could add a bit to your discussion if I may. I have tried to trade the TMS on daily timeframes and found that it was producing very well. In fact I spoke with a fellow who was new to TMS and doing wonderfully for himself as well. Unfortunately, have had to take money from my account and could not afford the daily stops until I pick it back up from the dumps. So I will be a frequent lurker until I can afford to trade...
Greetings - I watch X-Man's thread as well as the original TMS thread and after numerous requests ans no-one else picking it up, thought I would give it a shot.

Been really busy leading up to the holidays, so been lurking also in the background and running lots of testing as well as the trading.

Nice to see you on here - looking forward to your contributions.
"To live with Passion, it takes Courage and Grace to survive"
Here is the link to the TMS indicator thread with my post from some time ago with Watchdog / ATR Pips UL / TMS-Osc.

All of the TMS indicators can be found in FF - use the search function for others.

http://www.forexfactory.com/showthre...18#post5111018
"To live with Passion, it takes Courage and Grace to survive"
Here's one to watch - candle closed above 5ema followed by an additional bear candle and a Fractal Up break.

May be too late to hit this, and I do not enter mid way through the candle (something for review as this thread progresses) so worth watching over Sunday/Monday for continuation to see if breaks the recent trading range.
Attached Image (click to enlarge)
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"To live with Passion, it takes Courage and Grace to survive"
Quoting digf
Is anyone having trouble getting this indicator @TMSTDI_WatchDog.ex4 loaded? I put it in the Indicator file with all the other indicators, I open Metatrader, it is then showing in the Custom Indicator panel but when I drag it onto the chart it just isn't there.
I would appreciate any advice.
No advice other than closing MT4 and re-opening or deleting the indicator, re-installing, etc.

MT4 experts feel free to jump in here.

If nothing else helps, try a pm to Xaphod
"To live with Passion, it takes Courage and Grace to survive"
Back Testing

Traditional back testing is nothing more than using the F12 key.

Switch off the "Chart Shift" and "Auto Scroll" buttons.

Delete the Fractals

Add in Volume - just shows the Friday/Sunday transition points - any set ups that occur at Friday Close, I normally let Sunday close and then enter as the Monday candle starts to form.

Hold your left arrow key down for a few seconds and then move to testing with the F12.

The TDI indicator will show you the historical day end position - I have only ever used F12, although there are backtesting simulators in play - check out X-Man's thread.

As you hit F12, take time to look at the chart and understand the patterns.

If you are in the middle of a trend run, look for pauses for possible new entry positions / TDI bounce.

If a reversal starts to develop, look at the candle strengths / relative positions to 5EMA and the TDI set up.

If you see the candles have aleady pushed through the 200EMA and the 55EMA, a reversal signal may just be a minor re-trace / pause.

If you see the 5EMA, 55EMA, 200EMA all heading in the same direction, look for entry positions in that direction.
"To live with Passion, it takes Courage and Grace to survive"
Quoting Britpip7
Back Testing

Traditional back testing is nothing more than using the F12 key.

Switch off the "Chart Shift" and "Auto Scroll" buttons.

Delete the Fractals

Add in Volume - just shows the Friday/Sunday transition points - any set ups that occur at Friday Close, I normally let Sunday close and then enter as the Monday candle starts to form.

Hold your left arrow key down for a few seconds and then move to testing with the F12.

The TDI indicator will show you the historical day end position - I have only ever used F12, although...
Britpips 7,

You are really taking your time in addressing questions but will like to advice that you don't spend too much time trying to answer every question as this in the long run, will tire you out and can get you fraustrated as the same questions will be asked over and over again. It is just how forum thread die off, go back to other good threads and you will see this same patern.

I think it is better you spend you nice time in posting screen shorts and explaining the entries and exit points and trade set up on the charts.

Just like eelfranze used to do on his thread, that is more productive and says a thousand words than to keep answering the same questions over and over again.

Hope you see my point. Screen shorts and analysis on it does it most for most people as it horns your view and points in to ones memory.

Thanks again and keep the charts and coming through.

Thanks, just my two cents.
Born to rule my Economic World and Make a Difference!
This chart covers 100 candles / days.

Using the hindsight forex trading methodology, I have selected 16 entries.

Placing two trades per entry position, each rectangle entry would have generated over 100pips - the ellipse entries were closer to break even.

Each vertical line is a possible entry point. Each entry point was picked using candlesticks on the main chart - without using the TDI - I added the TDI back in afterwards and the correlation is pretty strong - couple of marginals, but the lessons learned here, is that Price Action gives you the entry point - all the other indicators are basically confirmation (lagging) of what the PA did. You could also take from this is that using the TDI will give valid entries on the Day Chart!

As a rough estimate, there were approx 4,000 pips here, so on average 1,000pips per month from a single currency.

Another point of note, is that I am currently using a 100pip TS. The drawdowns on the initial trend would stop out each of the entry positions, so each entry position was a new trade, with no open positions. The drawdowns varied from 140pips to 260pips nearing the end of the run.

A hindsight lessons learned here is that the ATR(7) was running between 100pips and 150pips. If you calculate your TS as a multiplier of the ATR(7), maybe you would have run these trades with a TS of more than 100pips and kept more trades open for longer. As you go to higher timeframes, your SL / TP / TS settings become higher to allow for the required breathing room - these should all be based off of ATR(7) and should never be lower than this value.

Another option is to run your SL and TP1 @ 2XATR(7) with TP2 @ 4XATR(7) (per dcginc for reversals where the market is trending, not range bound). When TP1 is hit, move the SL on TP2 to BE and let it run / manually manage it.

Look for the patterns in the candlesticks - these can become a leading indicator when they are understood.
Attached Image (click to enlarge)
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"To live with Passion, it takes Courage and Grace to survive"
Quoting sharemaster2
Britpips 7,

You are really taking your time in addressing questions but will like to advice that you don't spend too much time trying to answer every question as this in the long run, will tire you out and can get you fraustrated as the same questions will be asked over and over again. It is just how forum thread die off, go back to other good threads and you will see this same patern.

I think it is better you spend you nice time in posting screen shorts and explaining the entries and exit points and trade set up on the charts.

Just like...
I agree completely.

Initially I will be very active on questions and the usual repeat questions will get rolled into Post #1, so expect to see the response "Go read Post #1" start to appear.

Post #1 will also include links to other posts / threads, so all of the answers to the "newbie" and "muppet" questions should be in there.

I really am striving for this to be a trade discussion forum for day charts and not an MT4 Q&A.

I was on Big E's thread for a long while and it always amazed me at the lack of effort some members exhibited - very frustrating for those of us who put in the hours. X-Man has had similar issues on his thread.

Thanks for the 2 cents.
"To live with Passion, it takes Courage and Grace to survive"
Quoting RoyPK
Hi Britpip7,

Thanks for sharing the pipmaking system. Could you please post the same version of the 'TM Watchdog' Indicator that you are using.

Thanks in advance.

Roy
Post #1
"To live with Passion, it takes Courage and Grace to survive"
Quoting Britpip7
This chart covers 100 candles / days.

Using the hindsight forex trading methodology, I have selected 16 entries.

Placing two trades per entry position, each rectangle entry would have generated over 100pips - the ellipse entries were closer to break even.

Each vertical line is a possible entry point. Each entry point was picked using candlesticks on the main chart - without using the TDI - I added the TDI back in afterwards and the correlation is pretty strong - couple of marginals, but the lessons learned here, is that Price Action gives...

This is the point I was making Britpips, just keep up with that and leave all the questions. Only address questions that you think are important, let other contributors answer some of the questions. This will free you up to look for set up and analyse them for your screen shorts which is more important.

Sorry folks, this may seem harsh and rude but this is the only way Britpips can focuss on his objective here, which is to teach us all how to trade this strategy.

Newbies are welcomed but try to read up first before asking questions and other contributors should feel free to answer some of the questions which sooner or later will start coming through as this thread will get known more from the new year.

Thanks all.

Just my two cents again
Born to rule my Economic World and Make a Difference!
Hi Britpip7

Good to see you have setup your own thread. Bigger TFs are easy to manage but simply needs extra patience.

Many pips to you in 2012.
Forex is boring but profitable with patience and discipline :waiting:
Quoting prftablefool
Hi Britpip7

Good to see you have setup your own thread. Bigger TFs are easy to manage but simply needs extra patience.

Many pips to you in 2012.
Thanks for joining in the fun - there should be a ton of pips up for grabs with us focusing on one timeframe.
"To live with Passion, it takes Courage and Grace to survive"
  • Post #60
  • Quote
  • Edited at 7:02pm Dec 30, 2011 6:50pm | Edited at 7:02pm
added in the TMS Watchdog and my current template as well as updated the screenshot - still reviewing whether to keep the TMS OSC Histo - I need to use it more in watching the higher TF activity!
"To live with Passion, it takes Courage and Grace to survive"
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