EJ_4H method

I will stop posting here from 23 June 2006 but never stop helping and answering questions. You have my email address at the bottom of all the EJ_4H Method parts .

Ibo

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This is a forex trading system on H4 chart with attached indicators and templates.

Instructions:

1- You should use MT4.

2- You should Update Monthly, Weekly, Daily, H4, H1 charts when using.

3- You should copy the indicators in .../Meta Trader/experts/indicators folder.

4- You should copy the indicators in .../Meta Trader/templates folder.

5- As this is an easy-to-use method you just use templates to do every thing with this method.(e.g. ususally setup ej_4h for monitoring and when you are predicting market by pivots you setup ej_4h_wp or/and ej_4h_mp and after your calculation back to ej_4h to see the chart with less difficulty.

6- Templates with the extention of "wb" are ones with White Background to facilitate preparing a picture for printing or other use.

Abbreviations:

ej_4h ------------------------ Basic template (setup)
ej_4h_wp -------------------- Basic setup+weekly pivots
ej_4h_mp -------------------- Basic setup+monthly pivots
ej_4h_dual stoch ------------- Basic setup+dual stochastic oscillator
ej_4h dual stoch_Lindsay ----- Basic setup+overlaid dual stochastic oscillator

Important Notes:


1- All Updates of indicators, templates and documents will be done in this post (the first #1), just a notification will be sent as a new reply (post).


2-The texts/posts in blue color are the ones that members discuss daily/current price action, forecasts and commentaries; so for shortening the duration of following the thread if you are new to thread you can neglect them for awhile. (We do this not to distract or diversify the efforts of members by starting a new thread, so please be aware that no new thread related to this method should be started)

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Private Mentoring is available, for more info email to [b][email protected][/b]

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You can find the part IV at the address below:
http://www.forexfactory.com/forexfor...1513#post61513

Hi trader,

I uploaded your indicators, they look good. I would like to test an EA of this and back test it for results. Have you try to get it made yet?

thanks

Thank you for sharing your system. I have no doubt it works because of it's similarity to the Vegas 4 hour model, and Dial's Knife system, both of which are very successful. The reason I appreciate your sharing is that it caused me to view the two abovementioned systems in a slightly different light.

Your repeated mention of distance between the SMA's reminded me of the way Dial describes how every marble in a bag of a marbles is a potential winner and a potential loser and the probability of which it will be is a function of both selected trade direction and distance between the SMA's.

I do have one question though. Are your two SMA's based on the close? I ask because in the Vegas and Knife systems the 55 is based on the median, while the 8 is based on the close.

Thanks!


Michele UU

Trader,

Have you watched the signal indicator when it posts its signals what are the lag times on the bars the arrows show up? Due to fact 4 hour bar charts sometimes can be slower, while the market moves fast at times.

Thanks for the interest, I have to tell you that this is a basic and I did not elaborate it so much because I wanted let poeple develop and implement it as they like, this let them be congenial with the method.

I will let you know if you have any specific question or need personal help to implement or filter, little by little I will add some additional indicators or templates or discuss examples that explain master entries and money managements.

Just keep in mind that:1-We neglect most of the time the bar that bears arrow (signal indicator) 2-when the bar have a very high range (regarding currency pair) be aware because there would be an abnormal reason that it happned, normally there will be a retrace, in such cases enter in/after retracement 3-About the performance in fact we never trust so much to back tests, because the markets always change the behavior and for such shorter time periods any fund can be lost in a medium run, for example try thid method for recent GOLD chart, you see, it is very great, but the behavior of GOLD is complicated and different from forex 4-SMAs are on close, any other setting may differ slightly but the tenets are the same

More in near future,
Thanks all
Ibo

Ibo,

For the benefit of those of us who don't use MT4, can you please explain your trend definitions? How do you define a blue, red or green candle?

Please also tell us how you define an arrow point up?

Thanks

Simon

I will complete this method in future, I have the plan to add trading tricks with this method almost one time per 2 weeks.
Dr Rock! defining a trend in a specific time scale is one the most difficult works in trending markets, if somebody can do this easily he can be a millionaire just in some years. On the other hand reversal trading is better and more profitable, there are differences between trend following method and reversal method. This method is reversal type; in this method you are surier about the entry rather than trend following and the risk-reward ratio is higher too. So you don't need to define the trend you just pinpoint where trend reverse and then enter. Look at open/close prices and the 8SMA and then you can find out how the colors apear.

Have a good day
Ibo

Ibo,

I can't look at where the colours change because I don't have MT4. I wish to program it into Wealth-Lab developer so I need the definitions that you have used to code it into MT4.

Thanks

Simon

MT4 is free, you shoud download from one of broker's site and install it, then copy the indivcators in experts/indicators where you have installed the MT4, then right click on the indicator that you want to know what it do, and choose modify, then you can see the definitions, calculations and functions and whatever you want to encode.

Regards,
Ibo

eurusdtrader,
thanks for your post. still playing with it. it looks like vegas kinda provoked some other people to share their secrets. thanks to all of you, guys. what goes around comes around, right?

ATTENTION:

I will post complementry stuff and tricks that you see will work, this is just a starting and you should take time to discover the aspects, this is why I did not post whole in a time, I appreciate questions and research on method with photos, so dont keep them for yourself and let poeple enjoy your attempts, you will get more feed backs rather than your own works.

I added one candle time indicator, you can get it and use for live monitoring and be aware when a 4hr candle will be closed (and you can enter that in your analysis)

Happy trading
Ibo

Why are there 2 different templates in your file? To me, they look the same. Why two?

The difference is that one is with PP, you in some cases will need to use pivot points to see where is the resistances, supports and totally the important levels to put your stops and targets

2. What do you think if I use fibo lines from vegas 4-hour as exit points? Why you almost used the first part of vegas system but removed his idea of taking profits at fibo lines? I think one of the huge benefits of vegas system is that it is much easier to exit without second guessing. What is your concept of exit?

Many systems are similar in basics but different in details, Vegas 4hr system is good, but its taking direction from weekly chart is not really so profitable, you will lose many of good opportunities.

I mentioned the yellow line is the first target that you may use, targeting/risk management is the most important role in trading, I found this after many defeats in trading even with good methods, as I told this is a starting and I will expand it and will tell you many things with real examples, some of them are about money management during holding positions and where you should put stops/TPs. Please be patient but for the time being use whatever you like (I have told this too)

3. When you are saying (page 1): until candles are above or below the white line… you mean the whole candle or just the close?

I will publish about this too in detail, but keep in mind when they are regularly are above white line, this is a good and less violate trend (like recent eurgbp moves) but when they are get far form white line they will retrace and touch that frequently until in one case cross it and reverse, in some cases when we don't have a decent trend you see that they cross the white line in some cases and are not decent, many green candles are so but shortly among prices, CLOSE PRICE is the most important, you should include that in most of your considerations or analysis

4. My always bottleneck is a proper entry and stop/loss. You are saying in PDF file: always trail the price with a good range. Could you please help me to understand what the good range is? I am really having problems with it. If you could give me some numbers for different currencies, I would be completely happy. I understand this is beyond the scope of just the questions about your method. For now, I am thinking 100 pips for GBP/USD, for example, is a good range. Or this is too much? I am getting tired of being stopped out but I do not want to overshoot either.

It is not about pips or pairs, it is about corrections and the important major/minor levels that the price during its way come across or build, don't worry I will explain it in advance in future, just easily try to put your stop beyond the highest high/lowest low and trail it not by trailing stop 100 like this: When a correction done update your stop loss, go H1 and you will see it easily, use PP if they are close to these levels

5. What currencies you think are better to use with EJ?

It does not matter, back to the history and see which you are relax with this method, when I were a newbie I used to minor trading because they are less violate, majors are more complicated but more profitable too, use pairs that have decent trends, you can think about markets except forex too, just check them out

Well,

I entered a long in the EUR thurs on my own system, and friday the EJ_4H gave a Long arrow, I took profits after 50 PIPS on 3 lots.....

Thanks for the indicator, I think it will be a good one.

Again, can someone modify the EA-Indicator to send out an EMAIL alert when an ARROR appears?

This way when you get the alert YOU can decide to get onto the trade....

thanks

Ok, eurusdtrader, here is my next set of questions:



1. I applied both templates to several currencies and only EUR/USD shows PPs, support and resistance lines. Is it me again, or I have to turn it somehow on?

2. I can see the time, I guess, to the close of the candle. You did not explain what to do with the time. I think you are planning to do it later, right? The time is not moving, it is stuck on 110 min 38 sec, and again, it is only on EUR/USD.

3. You said that the primary target is the cross with the yellow line (55 SMA). What is a secondary target if I don’t have PP, support and resistance on other charts? The opposite signal or the close of the candle on the opposite side of the white line? Your sell signal is a signal to enter a sell trade or exit the previous buy as well?

4. Please, correct me if I am wrong here: you are saying we will often miss the first candle, which is often a big one. This means we will be entering on the retracement. And this is best done by switching to the lower time frame (1H) and entering on the breakout. I would really appreciate if you could publish a chart to show me how you do it with your comments. Would you use just fibo or something trickier to define that entry point? If you were to use an Entry Stop where would you place it?



To be continued and thank you again.

I will tell how to use traditional methods and chart patterns to minimize the risk and enter sooner than getting arrow signals

About the alarm: it is already done, I will post the template in 24 hrs.


1.I applied both templates to several currencies and only EUR/USD shows PPs, support and resistance lines. Is it me again, or I have to turn it somehow on?
Please update your weekly charts too, as you see I give example of many diverse pairs to show that this is not for a specific currency pair

2.I can see the time, I guess, to the close of the candle. You did not explain what to do with the time. I think you are planning to do it later, right? The time is not moving, it is stuck on 110 min 38 sec, and again, it is only on EUR/USD.



It will be changed when changing the quotes (refresh), you are right about what it shows, just I intensively recommend WAIT FOR CLOSONG THE CANDLE, so in many cases that price move in your direction you will be rash to enter especially when you see the arrow signal and high momentum (fast moving price), but this is killer because before closing the current candle entering a position may harm your deposit as is so volatile and can change its direction just in some minutes. Please regard that we have many specific prices in a candle like opening, high, low, close and so on, but the close price is the most important and professionals always bring it into all their consideration

3.You said that the primary target is the cross with the yellow line (55 SMA). What is a secondary target if I don’t have PP, support and resistance on other charts? The opposite signal or the close of the candle on the opposite side of the white line? Your sell signal is a signal to enter a sell trade or exit the previous buy as well?

I will publish more in detail about the targets, stops and risk management with this method in future, I see that all you are a bit rash to discover everything but market trading needs a GREAT PATIENCE; I appreciate your interests to explore the whole method.

In reversal trading a buy position closes with a sell signal and vice versa, but all these signals are not eligible to enter, so shortly in most of the time a contrary signal is an exit signal but about entering short (sell) you should have enough reasons.



(e.g. you are long and see a sell signal the it is better to exit but if you have knowledgeable about trading and money management you can hold the position but minimize the risk)



4.Please, correct me if I am wrong here: you are saying we will often miss the first candle, which is often a big one. This means we will be entering on the retracement. And this is best done by switching to the lower time frame (1H) and entering on the breakout. I would really appreciate if you could publish a chart to show me how you do it with your comments. Would you use just fibo or something trickier to define that entry point? If you were to use an Entry Stop where would you place it?



All you want to know is the substantial part of trading knowledge that is enough to have a decent living with trading, but don’t worry friend, I will publish enough in future, just try to discover in your own because there is a possibility that you find out some tricks that I never could see. I try to send a bit more about them at this weekend.





To be continued and thank you again.

ok eurusdtrader. i apply your last changes. what i have now is: you beautiful blue and red candles are gone and all candles are just green. I do have the pivot point and other lines, though. the time is not moving again. i also cannot attach ejsignal and ejtrend indicators. they are sitting there but nothing happens when i click on them, so i have no signals as well. is that what you wanted?
thanks.

it looks like the time is moving but kind of sporadically. i was also wondering: when i was replacing your finst ejsignal and ejtrend indicators, i removed both files: the file with a diamond and ex4 file. or i had to live ex4 files there?

thanks

Very nice strategy. It looks like Ibo has updated a few indicators and added one or two. This morning I reloaded the files from the first post, and everything seems to be working fine, including the bar colors, the pivots, and the clock. Good job Ibo.

Hello,

Thanks for sharing your system! So far it looks great. It combines most of the concepts I've seen in other MA systems. Your charts are very easy to read too.

One thing about the charts. You say that the close price is very important but your red and green bars cover up the close price. Is this because the close price is part of the red/blue calculation? It's possible to show the bars through the histogram, as with the Heiken Ashi MT4 indicator. I can see the problem others mentioned about the timer but I'd call it pretty minor.

I noticed in your document and in your posts you sometimes say "violate" instead of "volatile". I understand why, but it could get confusing The only other problem I had with the document is the blue-on-while text on some pages. I had a hard time reading it.

Thanks again, I'll seriously check this out.

Thank you eurusdtrader for providing this method.

I am playing around it for the past few days and it seems to be very effective not only in the majors but also in crosses such as EUR/CAD,EUR/JPY,GBP/CHF, etc.

The timing thing works well and the pivot point is very clear with your newly updated indicators.

Still a lot of things to learn and discover about this method, and I look forward to your future updates and discussions.