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Quad Candle System

  • #1,401
  • Sep 21, 2017 6:03am Sep 21, 2017 6:03am
Quoting OAPDave
{quote} Think Masterrmind is trying to generate a little more interest and feedback to the thread and his Trading Methods, seems what ever he posts he still does not having much luck though, taking a guess think the days are numbered now
Ooohh Yeah!

Just like to get hold of a good intraday trade but they are being elusive.

Masterrmind............
Master your Mind then Master your Trades
  • #1,402
  • Sep 24, 2017 11:32pm Sep 24, 2017 11:32pm
D1 Quads

AUDJPY [QUAD SHORT]
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NZDJPY [QUAD SHORT]
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XAGEUR [QUAD SHORT]
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XAUAUD [QUAD LONG]
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Masterrmind.............
Master your Mind then Master your Trades
  • #1,403
  • Sep 25, 2017 1:20am Sep 25, 2017 1:20am
Quoting Eldero
GBP-JPY It seems that price cannot break the +1/8 MML I am now short with 155 pips stop. My target is at approx 147/146 Let's see {image}
GBP-JPY
Unfortunately I was stopped out with -155 pips
Seeing the chart now, maybe I should have put the stop above the +2/8 MML...
I gave only 1 octive space to the stop because in a strong up movement I wanted to limit the risk
Anyway, not happy but it's ok for me
Let's hope this week things will go better
Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYDaily.png Size: 52 KB
  • #1,404
  • Sep 25, 2017 3:45am Sep 25, 2017 3:45am
Very interesting system. I have done some visual backtesting on daily candles of the dow and it shows pretty good potential for trend following swing trades. Have anyone been testing this on the indices?
  • #1,405
  • Sep 25, 2017 4:48am Sep 25, 2017 4:48am
Quoting NeptunisFX
Very interesting system. I have done some visual backtesting on daily candles of the dow and it shows pretty good potential for trend following swing trades. Have anyone been testing this on the indices?
I have looked at multiple instruments applying the Quad Candle System (D1 mode) and it works rather nicely.

Although the QCS may get you into the trade from a raw entry approach there is plenty more to the entry than a simple pattern.

Post 1 outlines the finer and highly important additional considerations especially confluence and the trade and risk management side.

In my opinion far better results will come to those who work hard at applying the concepts in Post 1.

Nevertheless, so many traders look to take the easy path so they should only expect to see average results at best.

I am not implying that this is the approach you seek however, if it is I would encourage you to at least consider risk and trade management.

Masterrmind............
Master your Mind then Master your Trades
  • #1,406
  • Sep 25, 2017 4:59am Sep 25, 2017 4:59am
Quoting Eldero
{quote} GBP-JPY Unfortunately I was stopped out with -155 pips Seeing the chart now, maybe I should have put the stop above the +2/8 MML... I gave only 1 octive space to the stop because in a strong up movement I wanted to limit the risk Anyway, not happy but it's ok for me Let's hope this week things will go better {image}
Yes just clipped your stop.

GJ is a rather aggressive volatile pair most of the time.

A deeper stop is always an easy suggestion to make after the fact.

However, I would have placed the stop at least 50% above the +2/8 MML and if necessary reduced the lot size to accommodate for the extra pips.

If the reduction in lot size was not possible due to account size or other valid reason then your approach to reducing the SL is ok.

The alternative would have been not to take the trade or consider the risk involved in applying a less than ideal SL placement.

A 155 pip loss is actually not that bad on these D1 setups but still uncomfortable.

Perhaps the market will be kinder to you on the next setup.

Thank you for sharing your trade result, not many here are willing!

Note: I see that no Quad was valid so I can only assume that you were trading a D1 MML reversal just under the +1/8 MML extreme zone.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,407
  • Sep 25, 2017 5:25am Sep 25, 2017 5:25am
AJ

What is the risk?
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 62 KB

Masterrmind.........
Master your Mind then Master your Trades
  • #1,408
  • Sep 25, 2017 5:46am Sep 25, 2017 5:46am
Quoting Masterrmind
AJ What is the risk? {image} Masterrmind.........
you have written everything on the chart...the risk is that the price will complete the ABCD
But, my chart is different from yours... see the MML
Attached Image (click to enlarge)
Click to Enlarge Name: AUDJPYDaily.png Size: 58 KB
  • #1,409
  • Sep 25, 2017 5:53am Sep 25, 2017 5:53am
Quoting Masterrmind
{quote} Yes just clipped your stop. GJ is a rather aggressive volatile pair most of the time. A deeper stop is always an easy suggestion to make after the fact. However, I would have placed the stop at least 50% above the +2/8 MML and if necessary reduced the lot size to accommodate for the extra pips. If the reduction in lot size was not possible due to account size or other valid reason then your approach to reducing the SL is ok. The alternative would have been not to take the trade or consider the risk involved in applying a less than ideal...
wise words...I should have reduced the size and placed the stop at the proper level...yes I took the trade because of the rejection ( 3 times of the +1 MML ) after a 1 to 1 completion. There was no quad
  • #1,410
  • Sep 25, 2017 6:28am Sep 25, 2017 6:28am
Quoting Eldero
{quote} you have written everything on the chart...the risk is that the price will complete the ABCD But, my chart is different from yours... see the MML {image}
Indeed.

My charts have all the clues but still many do not see them.

You see it clearly.

Greatest risk is that the harmonic completes which would have the stop taken out.

Lets look deeper....

Why then would I be considering a short on AJ ?

There are 2 key reasons:

1. ?? and
2. ??

Masterrmind...........
Master your Mind then Master your Trades
  • #1,411
  • Sep 25, 2017 6:35am Sep 25, 2017 6:35am
Quoting Masterrmind
{quote} Indeed. My charts have all the clues but still many do not see them. You see it clearly. Greatest risk is that the harmonic completes which would have the stop taken out. Lets look deeper.... Why then would I be considering a short on AJ ? There are 2 key reasons: 1. ?? and 2. ?? Masterrmind...........
the first because there is a quad candle
the secodn because it is formed at the right MML
the third ( just my thought ) that the big bear candle is a good engulfing
  • #1,412
  • Sep 25, 2017 6:39am Sep 25, 2017 6:39am
Quoting Eldero
{quote} the first because there is a quad candle the secodn because it is formed at the right MML the third ( just my thought ) that the big bear candle is a good engulfing
What about this zone ... does it hold anything of value in forming an opinion to short this pair?
Attached Image

Compare the AB and the CD leg projections ...
The red ellipse is showing that the CD leg is separating away from the AB angle of projection, a falling away from strength to the upside and a possible rolling over of price to the downside.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,413
  • Sep 25, 2017 6:52am Sep 25, 2017 6:52am
Quoting Masterrmind
{quote} What about this zone ... does it hold anything of value in forming an opinion to short this pair? {image} Compare the AB and the CD leg projections ... The red ellipse is showing that the CD leg is separating away from the AB angle of projection, a falling away from strength to the upside and a possible rolling over of price to the downside. Masterrmind...........
yes, it is a good consideration, although I think it is casued mostly from the first part of the leg CD...if you see the second part of the leg is approx the same inclination of the leg AB...Then a very bearish candle happens and it retraced the price deeply. I agree, the projection and also the size of the candle are indications of a possible change of trend...
  • #1,414
  • Sep 25, 2017 6:58am Sep 25, 2017 6:58am
Quoting Masterrmind
{quote} What about this zone ... does it hold anything of value in forming an opinion to short this pair? {image} Compare the AB and the CD leg projections ... The red ellipse is showing that the CD leg is separating away from the AB angle of projection, a falling away from strength to the upside and a possible rolling over of price to the downside. Masterrmind...........
Ofcourse the market could find multiple buyers negating the short entry or stopping us out of the position if we are already in it.

However, this is nothing new in trading so all we can do is form the best opinion possible and take on some risk seeking to hit our target.

The 2 key points were:

1. CD leg projection showing signs of weakening compared to AB leg including the "obvious" namely Quad, MML zone; and
2. Risk On/Off as far as the market in general is concerned.

Point 1 should now be clear enough.

Point 2 is concerned with market events so a more sentimental/fundamental approach.

Further to Point 2 which currency is the risk ON and which currency is the risk OFF ?

What opinion do you have ?

Now what is your bias on AJ ?

Is it UP or DOWN or neutral ?

Masterrmind.............
Master your Mind then Master your Trades
  • #1,415
  • Sep 25, 2017 7:05am Sep 25, 2017 7:05am
Quoting Eldero
{quote} yes, it is a good consideration, although I think it is casued mostly from the first part of the leg CD...if you see the second part of the leg is approx the same inclination of the leg AB...Then a very bearish candle happens and it retraced the price deeply. I agree, the projection and also the size of the candle are indications of a possible change of trend...
You are on the right track.

The CD leg showed signs of weakness earlier on and then it corrected itself showing renewed strength and a similar angle of projection to AB.

However, notice how weakness has once again crept into the CD leg with the candle formations you have kindly mentioned.

This suggests that now the long movement is possibly starting to exhaust, only renewed enthusiasm from either market data, world events or the market in general can likely accelerate the drive to the upside.

So my bias is DOWN.

Masterrmind............
Master your Mind then Master your Trades
  • #1,416
  • Sep 25, 2017 7:13am Sep 25, 2017 7:13am
good question...I always tend to consider JPY as risk off...AUD is strictly correlated with Gold that is risk off as well, so not easy to say
In the last days, jpy seems weaker than aud, but if the general sentiment turn to risk off, AUD-JPY would probably go down
At the moment I am neutral, although a sligh preference is for down side
  • #1,417
  • Sep 25, 2017 7:26am Sep 25, 2017 7:26am
Quoting Eldero
good question...I always tend to consider JPY as risk off...AUD is strictly correlated with Gold that is risk off as well, so not easy to say In the last days, jpy seems weaker than aud, but if the general sentiment turn to risk off, AUD-JPY would probably go down At the moment I am neutral, although a sligh preference is for down side
Nothing wrong with being neutral.

Probably a good position to have meaning it would be no trade for you at this time.

Although my bias is down it should not be a reason to force an entry into the market.

I would clearly like to see price push up closer to the +2/8 MML before shorting it but that may not unfold within the confines of a valid Quad entry today.

In that case I simply monitor PA until closer to my rest time and make a final "unrushed" decision.

Masterrmind............
Master your Mind then Master your Trades
  • #1,418
  • Sep 25, 2017 7:28am Sep 25, 2017 7:28am
Quoting Masterrmind
{quote} You are on the right track. The CD leg showed signs of weakness earlier on and then it corrected itself showing renewed strength and a similar angle of projection to AB. However, notice how weakness has once again crept into the CD leg with the candle formations you have kindly mentioned. This suggests that now the long movement is possibly starting to exhaust, only renewed enthusiasm from either market data, world events or the market in general can likely accelerate the drive to the upside. So my bias is DOWN. Masterrmind............ ...
Always good and very interesting to read your consideration
Thank you, Mastermmind
  • #1,419
  • Sep 25, 2017 7:33am Sep 25, 2017 7:33am
Quoting Eldero
{quote} Always good and very interesting to read your consideration Thank you, Mastermmind
I will leave the short alone today.

An entry tomorrow could be taken as a D1 MML so all may not be lost.

Enjoy your day.

Masterrmind............
Master your Mind then Master your Trades
  • #1,420
  • Sep 25, 2017 8:51am Sep 25, 2017 8:51am
Its very interesting to read the last few posts and to relate them to the charts, I am managing to understand and to follow the reasoning quite well now, so again thank you both for the time and effort.
Just trying to put a kiss on the cheek of success
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