When Price is UP, buy; when Price is Down, sell short...

Sunshine, any reason for change in Bias method from Last High/Low break to last Postive/Negative bar in High TF to determine trend ?

Is the new way able to catch trend change faster or old way put too much pips on the table ?

Usd/Jpy trade:-

Weekly bias was up & H4 bias was up.

I tried multiple entries on this one.
One at the close of the signal bar plus two pending orders:
One above &
One below.
All were activated

4 hours later I got nervous so reduced position by closing one trade at a few pips profit. I let the other two run for a while:
1 for 100 pips
1 for 160 pips

hello compro99,

i'm not really understanding your question but i let me try and explain from that which i do understand...

(i) TREND TRADING:: all trades are in direction of HT bar close.

 

1. trend-trading refers to the price signal that is given in the HT and then followed in LT.
2. in trend-trading our trading bias is long (buy) if M+D=uP.
3. the close of the last bar in the Higher Timeframe (HT) determines our trading bias in the corresponding Lower Timeframe (LT). example: if we say M+D=uP, that means that the HT closed uP, in other words, last month November closed up.
4. so therefore in December we will look for Bullish Reversal Bar (+brb) to enter long... in which timeframe will the entry signal appear ???... in the LT which in this instance is the Daily timeframe.
5. again, {a}last Month closed uP. {b}go to Daily and if the previous day or days are down closes then wait for an uP bar to complete, once an upday completed then this is the entry buy signal... this we call, Trading with the Trend.

(ii) Counter-Trend Trading:: all trades are opposite to HT bias.

1. counter-trend trading refers to the price signals that is confined to the LT, which in this example is the Daily tf.
2. in ct trading our trading bias is short if M+D=uP
3. so when price keeps on going up but then price closes at or below its Last Swing Low (LSL), this is the entry signal for a short trade which now becomes our counter-trend trade.

excellent trading

i do recommend that in the event of multiple entries that you should consider the following;

1. one trade to be: profit target to equal stop loss PT=SL,
2. another trade: SL=PT (2xSL), that is... the PT is twice the SL,
3. another trade: to move SL manually up to below the low of the last bar and keep on doing that until stopped-out or a reversal signal completes,
4. Edit: another trade: PT= ADR, meaning, enter this PT equal to the Average Daily Range of say, the last 6 months.
5. lastly, whenever you enter a trade, then consider that trade a loss... this will relieve the mental stress and anguish and also force u to trade with comfortable trade size and most importantly, your mind shall remain clear and uncluttered to focus on the next signal.

Thanks for your input & advice Sunshine.
I find I lack the confidence to let a trade run so take profit when it is there, but I can see how that might be helped by your last piece of advice:-

You said "lastly, whenever you enter a trade, then consider that trade a loss... this will relieve the mental stress and anguish and also force you to trade with comfortable trade size and most importantly, your mind shall remain clear and uncluttered to focus on the next signal."

I shall have a good re-think about post 384 where you mentioned this before.

Hi Sunshine,

Thank you for your trading system.

Do you trade on live account? If so, since how long do you trade with this system?

What is your trade statistics?

If anyone is still reading this thread, I suggest you have a good careful look at posts 756 & 757 plus the examples in 761 & 762.

This is a trend following system which by definition assumes price will continue in the direction of the trend.
This is how I interpret the posts mentioned above:-

On the monthly line chart,
- Mark the last swing low & last swing high.
- When price closes above the last swing high we have a long term uptrend in place.
- When price closes below the last swing low we have a long term down trend in place.

On the monthly bar/candle chart,
- If the last bar closed up, the more recent monthly bias is up.
- If the last bar closed down, the more recent monthly bias is down.

What does this tell us about the future direction of price? Nothing for certain, but if the major (monthly) trend is up & the (monthly) bias is up, the probability is that price will continue to go up. If the main trend is up & the bias is down, the probability is that price will continue down for a while then resume the uptrend. This helps to decide how long to hold a trade for (just how much weight you put on the trend verses the bias is a personal decision based on your own understanding of the chart/pair & fundamentals but Sunshine seems to place extra weight on the last bar bias).

On the daily line chart, mark the last swing low & last swing high.
- When price closes above the last swing high, the short term (daily) trend is up.
- When price closes below the last swing low, the short term (daily) trend is down.

Entry on daily bar/candle charts:
1/- Place a buy entry when price closes above the last swing high.
2/- Place a sell entry when price closes below the last swing low.
3/- When your entry is to be in the direction of the larger (monthly) timeframe, enter after a reversal bar in the direction of the monthly trend/bias (regardless of where price is in relation to the last swing high/low on the daily chart).
i.e.-
- When the monthly direction/bias is up, enter after a bullish reversal bar on the daily chart.
- When the monthly direction/bias is down, enter after a bearish reversal bar on the daily chart.
- (A reversal bar is simply a bar that goes (closes) in the opposite direction of the previous bar/s.)

If your trade is counter to the monthly trend and/or bias, it's best to get out when price moves 1-3 bars in your favour.
If your trade is with the monthly trend and/or bias, it's best to hold the trade & add to it when you get what Sunshine calls a "free money signal". (Again, just how much weight you put on the trend verses the bias is a personal decision based on your own understanding of the chart/pair).

Definition of free money signals (on a daily bar/candle chart),
- In a down trend, the high of the current bar is higher than the preceding bars high & closes down (a bearish bar). Enter after the close of the current bar.
- In an uptrend, the low of the current bar is lower than the preceding bars low & closes up (a bullish bar). Enter after the close of the current bar.

Sunshine, if this is incorrect please let me know.

The monthly line and candle cleared my understanding

Line for trend and candle for bias.

sunshine
Start reading your thread. There are valuable information here. I have few question. I will not ask it now. I will read all post then I will ask question.
Thanks for your contribution brother.
God bless you

UsdJpy is up trend in Monthly chart now moving downside. I have add 2 chart and question in it. can you help me with that sunshine.

Thanks