New short setup in making on D1
- #182
- Apr 23, 2018 11:03am Apr 23, 2018 11:03am
Hi, Just food for thought, maybe it's inspiring for someone...We can build a horizontal line like this: - after having that oblique line, consider the candle not touching 6EMA before the candle that touches it; - go backward until a candle that does touch 6EMA; - go forward one candle ( it'll be the first one that didn't touched 6EMA in the current measurement cycle ); - put a vertical line through it; - where this vertical line intersects the original oblique one, put a horizontal line. You will obtain some good S/R lines. {image} If...
with monitoring bigger timeframe, this combination is a blast.
thanks for inspiring, mate! cheers
"If you run, you'll only die tired." - Sniper's philosophy
- #183
- Apr 23, 2018 11:27am Apr 23, 2018 11:27am
{quote} If you have this picture in H1, you can choose M15 or M5. I myself trade in smaller timefram and do not use H1. The market is fractal. So look for pattern in the smaller TFs that confirm the pattern in H1. You will find an entry. I will not take this here in other direction, only to show the look behind the moving average and the drawings.
it seems that even the price against our position on small timeframe, it's still safe to hold if we follow bigger timeframe. there's always a safe way out.
hope this gonna be the best strategy. fingercrossed
"If you run, you'll only die tired." - Sniper's philosophy
... with monitoring bigger timeframe, this combination is a blast. ...
I think you got it. Indeed it's pure blast!
It has two essential qualities:
- it's very simple;
- it's leading, not lagging.
Again many thanks to abhirag !
I will add only one more element: Fibo expansion. I find it very useful in the cases when price just take off from the triangle, without ever (re)touching the triangle ( like in the original set-up ).
How can we build some very solid S/R lines using Fibo expansion:
- build the triangle using original algorithm;
- build S/R region using the algorithm that I proposed;
- take the fibo expansion tool - it needs 3 points to be defined;
- place first point at the origin of triangle - the open of non-touching candle;
- place second point at the top of triangle - the last pivot ( or the most prominent one );
- place third point at the level of S/R line detected at step 2;
- set as visible levels in Fibo tool 0.618, 1, 1.618, 2.618, 4.236.
Here it is an example :
Here it is the power of the lines provided by this tool:
Here it is a detail of the previous snapshot ( remember that the colored lines were built two days ago - they are leading ):
Of course, some common sense is needed, in order to draw only the important lines and triangles, or otherwise you will have a mess of lines everywhere ...
For me, the combo formed by the triangle, the main S/R line ( or area ) given by the non-touching candles and the fibo expansion tool is like a ( good ) translator of the price action.
Hope this helps.
Cheers
