Quad Candle System

I'll be monitoring the UJ pair throughout the coming week looking for a D1 Quad long setup.
Based on a D1 bullish candle close today its fairly easy to see that a minimum of 2 trading days is needed before a Quad pattern can even complete.

This would imply 2 bullish followed by 2 bearish candles for a short setup!

The pair has been a bit of a mixed bag of late with some nice up and down D1 candle moves.
An ideal setup would be close to an MML level in confluence with chart structure and harmonics.

I'm still biased to the long side on the UJ pair so I would not be keen on taking such a trade.
Therefore, several trading days may need to pass prior to a suitable Quad long entry setup.

Hence, other suitable pairs will need to be analyzed and the one which appears to provide the 'better' setup will be the one that I trade.

I may provide some example setups over the weekend.

Masterrmind...........

how to use this quad candle mtf?please explain,it seems interesting?

omg, yap.. i'm sorry.. big thank's

Its a simple indicator that shows the color changes of completed candles on other pre-defined TFs so you can quickly check if a Quad pattern is about to form on other TFs without the need to change charts.

It has pop-up alerts notifying of potential Quad Candle setups, which must be checked by the trader before any entries can be decided.

It does NOT offer trade setup decisions, only the trader can make these types of decisions.

It is a tool that assists only.

Understanding the material in Post 1 is a pre-requisite.

Masterrmind...........

Perhaps never won a trade either since you trade on Saturday ...

Your posted Charts:

1. UJ M15 Curvy lines show a heavy downward trend so I'm guessing you would be looking to go short.

2. AJ M15 same again go short.

3. AU M15 same again go short.

4. GU M15 same again go short.

5. UC M15 Curvy lines show a heavy upward trend so I'm guessing you would be looking to go long.

Ofcourse you might be seeking exhaustion and looking to counter trend trade.

I'm quite sure that should the market decide to change direction then the 'curvy' lines will simply change their mind all of a sudden and reverse direction quickly in an attempt to chase up to price taking your stop with it.

Price is the leading indicator not the curvy lines.

Getting the entry right was never meant to be easy and that's why we apply stops for the many times we will be wrong.

D1 Quad Candle (with MML confluence) trading offers plenty more room for error as the trade unfolds within a generous stop loss provided the applied lot size is reasonable and realistic and fits within the risk profile of the trading account.

Masterrmind............

You might like to visit my other thread OAPDave as its more focussed on the M15 TF.

MTTTM trading strategy can be found here:

https://www.forexfactory.com/showthread.php?t=722353

Its heavily geared towards the MML Grid trading several triangulated combinations with a fixed 4 to 1 reward to risk ratio.

Commentary regarding how best to minimize the losses and ultimately improve the strike rate is the motivation.

Post 1 does a reasonable job at outlining what the MTTTM strategy is about and the plan moving forward.

Masterrmind...........

Take your time and I hope it works out well for you.

Masterrmind............

Looking over a few D1 Quad setups.

Here is the first one on my radar!

Observation only at this stage.

Perhaps a more suitable pair will cross my path.

Masterrmind.........

Hi Masterrmind,

Like the thread. Trying to master it on demo for now.

I've got a question - using only D1 TF and P=64 some currencies octave gap seems to me too small, feel myself uncomfortable like...

Would it be SFAER to widen some octaves by using P=128 or 256?




Thanks for the work you've done here!!!

update:
just reread Post #1 - you do allow to change settings "as best fit" but I never see you did it on D1 tf.
Just wanna know your oppinion about

Thanks

Yes you are free to consider and apply different MML settings if you wish.

The main trading chart must be a D1 TF.

Consideration of PA in both lower and higher Tfs than D1 is good form and I encourage it.

Build a case for entry via CONFLUENCE.

Confluence is the accumulation of key trading information and factors that seek to produce a higher probability setup into the market.

At a minimum the following should be considered:

1. Quad Candle Pattern and PA and chart structure (S & R) in the D1 MML extreme zones;

2. Fibonacci key ratios using lower and HTF's;

3. Harmonic patterns (especially ABCD and exhaustion levels);

4. Sentiment and fundamental case that supports intended direction (market bias); and

5. Any other relevant additions as per Post 1 to support a case for entry into the market.

I have an actively traded MT5 live account that trades only this D1 Quad Candle System and its current performance (FXBlue) is as follows:


Nothing but the real deal in my threads, open and transparent.

This MT5 live account must meet DD% and Peak to Trough criteria (<29% DD) so it is being traded appropriately.

DD% (as per myfxbook) has remained under 20%.

Very simple trading method, easy to apply provided the trader has the patience to allow trades to play out over several weeks at times.

And I'm not even trying to push the account hard ... rather its slow and steady at the moment.

Masterrmind.............

The next D1 Quad Candle setup most likely will occur early next week (in the new month).

Ofcourse if I assess an entry as very worthwhile then a trade could be placed today even though its the last trading day of the week and this is because I apply rather large appropriate stops so weekend gapping events do not play such a major role in my setups.

Nevertheless, I do not recommend entering the market very late in the week unless it can be justified.

In any case I plan to post a series of charts outlining possible entries into the market.

Masterrmind............

GBPNZD

On my radar for a possible Quad entry.

Lets see!

Masterrmind............

GBPJPY

Price currently in the MML Pipe Zone.

Only interested in entering on the back of the completion of a Quad pattern in alignment with market sentiment at the time.

Preference from either of the 2 extreme MML zones but I certainly will consider entries from within the Pipe under the right conditions.

Octive Gap just shy of 160 pips so attention is warranted on this big mover.

Observation time only at this stage but I am moitoring all the big movers as well as the majors.

Lets see if I can find an ideal entry in one of the pairs.

Masterrmind...............

GBPJPY

A few technicals added in to the mix.

Slowly building a case for entry however, a preference towards a Quad pattern suggests that it could be several days before an entry becomes possible.

If today closes bullish followed by a bullish Friday then an opportunity may present itself next Monday.

Time will tell.

Masterrmind............

GBPJPY

Alternative view to the short side ??

Gaining a bias is 1 thing but missing the alternatives is playing with fire !!

ps. Look where the 1 to 1 harmonic move to the downside could complete ..... smack bang in the middle of my lower MML extreme zone !

pps. A beautiful pullback from my favorite of all fibonacci ratios... the 78.6 followed by a continuation down the chart !

Masterrmind............

Nice clean charts.

Masterrmind ..........

Yes it does help to know why Murrey has 4 8 16 32 64 128 256 on HIS SOFTWARE even shows the use of angles,, daring to mention moving averages in his manuals too, all this for a one off life time fee NO yearly licence fee if bought outright. If as Parisboy as mentioned he had not gone so eccentric may have become more acceptable in the trading world plus the total disarray of his back office is of no help either

Yes agreed !

I elliminate the MA's because they offer new traders a high degree of confusion with trade entries.
The newer trader is expecting to make a decsion based on the cross of 2 or more MA's or close of a candle with respect to a MA or MA's or any number of other combinations with or without the use of other indicators.

Then when that fails they look at adding in MACD's and other lagging 'garbage' hoping to find the 'holy grail'.
The trading accounts in the majority of cases suffer greatly when applying this type of trading coupled to revengeful trading as the losses stack up against the trader they are tempted heavily to 'bet' hard in an attelpt to recover the piling losses.

Far better to learn how to read PA and follow price across the chart with no MA's and a sound trade and risk management approach.
Couple this with the forming of a bias for direction based on solid market sentiment and fundamental analysis (keep it focussed though !).

I have been known to place a 200 MA on HTF charts (minimum H4, D1 and higher TF's) not because I use it for a trade entry trigger but only so that I can see what 'other traders' might be viewing and where price is, in relation to it. Never as an entry trigger !

Multiple Confluence is the way to trade but that should NOT include a host of 'lagging' indicators.

As for Murrey Software, I have never purchased his software so I cannot speak about it with any authority.

I do not have an opinion on Murrey Math Trading software because I have never used it, never purchased it and never seen it in action.

The only glimse I have had is third party sources such as yourself and the few Murrey software charts that you have posted and the internet.

As for the Murrey yearly reset date, it's the biggest joke going around in my view (could be set to multiple dates varying each year depending on the 'first Frost' , ... come on ...please ... the first Frost...oh my !).

Perhaps more relevant in the trading of soft commodities particularly the agricultural type that are most affected by the influence of mother nature.
Supply and demand issues and situations where an unexpected or heavier than expected frost sets back supply or drought affect on livestock.

If you follow the process as outlined by Gann in terms of angles on a daily chart then its fairly straightforward to get the angles correct for price in time.
The main problem stems from traders trying to get these angles on an inferior trading platform and forgetting all about fixing both the price and time axes and the zooming in and out issues that create enormous errors in price angles.

The software must be able to fix both axis AND re-adjust for any modified zooming (+/-).

If the trading platform cannot do this then being absolutely certain that a given chart has the 'right' angles is far far more difficult.

It can be done ofcourse but this is no way to teach a new trader since the workload is likely to be overwhelming for them considering all the other things going on with regards to learning how to trade.

I've looked at this issue on MT4 and there is no surprise as to why I do not apply angles on it, at least not ones I care to share here since it will open up a can of worms and liely require a separare thread to debate it, something I do not plan on doing at this stage.

Anyone interested is advised to start with daily bars, get hold of some of Gann's charts and hopefully understand how to draw the angles.

Understanding how the angles are drawn is only a very tiny part of the Gann trading puzzle, it gets harder the deeper one goes !

Although Murrey applies a few different angles than Gann (perhaps to avoid direct plagiarism) there is enough information on the net to understand the approach to forming angles.

Angles only require the correct bar count mated to the corect time (price in time) and keep the scale ratio fixed no matter the zoom.
Angles only form a small part of the approach, add into positions or take all or some of the position off and a few other factors.

Try this on MT4 and it fails miserably, so be careful !

Masterrmind............

Top chart MM 64 but Murrey runs with a default of 16 which is the middle chart
My fav for scalping MM4 which is the bottom chart