DislikedTo Sunshine: One more thing. USD/CAD is W=down but 4hrs=up bcz candle closed higher than LSH. Will you buy it? {image}Ignored
- Joined Mar 2007 | Status: Trader | 1,190 Posts
Hi Sunshine,last week candle was marked,cant see any direction from it
after reading and reviewing the above information to trader Woolfpol, do u understand now what indicates the weekly close and how to trade it ?
- Joined Mar 2007 | Status: Trader | 1,190 Posts
my Strategies are very simple and the method is even simpler, but it can be very difficult to convince your mind to trade it. i can not help with that... u are on your own there.
but a review and study of the different strategies contained in this method will definitely make understanding it much easier, especially the last few charts of today,
2 charts on page 50 and the first 3 charts on this page, page 51.
but a review and study of the different strategies contained in this method will definitely make understanding it much easier, especially the last few charts of today,
2 charts on page 50 and the first 3 charts on this page, page 51.
- Joined Mar 2007 | Status: Trader | 1,190 Posts
the same principles can be applied to the Monthly and Daily combination... which is designated as: M+Dly
below is the Daily Chart.
the arrows shows the ideal entries.
my 2 Strategies are clearly illustrated here.
Strategy 1 as well as Strategy 2 are shown. please refer to the chart. 
below is the Daily Chart.
the arrows shows the ideal entries.
my 2 Strategies are clearly illustrated here.
Strategy 1 as well as Strategy 2 are shown. please refer to the chart.
- Strategy 1 follows the higher timeframe close which in this instance is Monthly [closed down]
- Strategy 2 is basically a counter-trend style which gives an entry when the lower tf closes above its LSH, checkout the buy entry signal in August. [white horizontal line in August]
- Joined Mar 2007 | Status: Trader | 1,190 Posts
hi Sunshine,appreciate your patience and untiring effort in making sure i grasp this set-up.let us look at usdcad in the week highlighted,that week closed up,assuming we are to trade the next week,you can see usdcad 4hr sold through,what would have been your assessment,because we are to buy according to d set-up.what would have been your entry? {image} {image}
i appreciate that, so your questions are most welcome.i have taken your posted chart and filled-in the buys that were according to the Weekly+4hr combo, those are all in green, i.e. the green arrows & stars.
1] Strategy 1: W+4hrs=uP ...this strategy follows the higher tf close which in this instance is the weekly close.
- so buys rule in 4hrs.
- the buy signals are pointed out by the green arrows & stars on the chart.
- there are 4 buy entries in total, of which 2 [or 3 or all 4] resulted in losses, depending on where u placed your SL's. [2nd buy could have been a breakeven if u moved your Stop up.
- as you know, our buy entries will be just after the close of the Signal bar {where the arrows & stars are} and/or at the Start of the Next 4hr bar.
- the blue arrow buy signal may be taken because, price made a new low and then proceeded to close up. i have mentioned this "fm signal" several times before... one can call this; strategy 1a. don't worry about this now, focus on that which is essential in understanding the W+4hrs strategy.
2] Strategy 2: 4hrs, closes below the LSL ...this strategy is basically counter-trend to strategy 1. which means short sell trades are taken.
- shorts rule here when price in 4hrs closes at or below its LSL
- the LSL are represented with purple lines on the chart.
- there are only 2 short entries in total for the whole week. the 1st short would have ended up in a loss as there was no downward follow thru because price reversed, but the 2nd short is a clear winner.
- the red arrow is an additional short entry, just like the blue arrow in strategy 1. i recommend to take profit on this specific signal when the same 4hr bar closes... i.e. do not let it run more then 4hrs... the Open & Close for this 'fm signal' trade is on the same 4hr bar. it does not matter whether this "fm signal" is 2 pips in profit or 20 pips, exit the trade. in the vast majority of cases this signal will give profits which are very good for the psyche and the pocket. you know, that "feel-good" feeling. as you can see from the chart, the red fm short would have given considerably more gains then the blue buy fm trade.
i have erased your horizontal red line in an effort to provide better clarity.
i hope everything is clear now.
- Joined Mar 2007 | Status: Trader | 1,190 Posts
let's take a look at EURUSD
1] M+d=uP
2] W+4hrs=uP
since both trade directions are up, i will focus on 4hrs.
so our Trading Bias for this Week is long and the 4hrs are the chart which will produce the buy signals.
... at the moment, 4hrs are in Short Mode which is counter-trend... this we call Strategy 2. so if u have a short on then keep it until a +brb forms or lower your SL as each 4hr bar close to just above the high of the last bar.
... when a +brb formed we should then enter buy immediately... didn't i say that the strategy is simple but when it comes to execution, the mind interferes and it becomes very difficult to enter a buy when the signal arrives. the tendency of the mind is to not enter immediately but to wait and see... this often results in a worse buy entry.
the few times that price does not follow thru on the buy signal but reverse will re-inforce the bad habit of "wait and see"
anyway here is the 4hr chart... as mentioned, shorts currently rule because price close below its LSL. [purple line]
the orange "X" is just a reminder that we are looking to buy should a bullish reversal bar [+brb] forms.
1] M+d=uP
2] W+4hrs=uP
since both trade directions are up, i will focus on 4hrs.
so our Trading Bias for this Week is long and the 4hrs are the chart which will produce the buy signals.
... at the moment, 4hrs are in Short Mode which is counter-trend... this we call Strategy 2. so if u have a short on then keep it until a +brb forms or lower your SL as each 4hr bar close to just above the high of the last bar.
... when a +brb formed we should then enter buy immediately... didn't i say that the strategy is simple but when it comes to execution, the mind interferes and it becomes very difficult to enter a buy when the signal arrives. the tendency of the mind is to not enter immediately but to wait and see... this often results in a worse buy entry.
the few times that price does not follow thru on the buy signal but reverse will re-inforce the bad habit of "wait and see"
anyway here is the 4hr chart... as mentioned, shorts currently rule because price close below its LSL. [purple line]
the orange "X" is just a reminder that we are looking to buy should a bullish reversal bar [+brb] forms.
- Joined Mar 2007 | Status: Trader | 1,190 Posts
hi Sunshine, can you please analyse euraud and usdcad as at this morning both for monthly/day and weekly/4hr.thanks
for Swing Traders, the USDCAD gave a buy signal on friday close = M+d=uP
M+D swing traders should be about plus 50 pips in profit now.
W+4hrs= Down, because Weekly closed down last week.
BUT, price is still in BUY MODE in 4hrs because ... see 4hr chart below...with specific reference to the purple line.
...a W+4hr short signal will be a-brb...see orange arrow on chart. it could be this bar or the next or not at all ...who knows. until then, buys rule here, and the 4hr counter-trend traders should be more than 60 pips in profit by now.
- Joined Mar 2007 | Status: Trader | 1,190 Posts
hi SUNSHINE, Thank you for explanation your's strategy. Now i know more and i would like to ask you about +brb and -brb. Probably you wrote about it but could you repeat definition of +brb and -brb?
as for the definition of +brb and -brb just look at the last posted chart above, which the 4hrs USDCAD.
... there are 4 -brb bar signals and 1 +brb signal.
- all the orange arrows and "X" are bearish reversal bars [-brb] except the last arrow of today, because no reversal bar formed yet.
- the purple "x" is a bullish reversal bar.
- a +brb and -brb just means that the last bar infront of it is off a different colour. study that chart and u will come to know.
{quote} u welcome
Is it correct?
