Trading with range bars ichimoku cloud & awesome oscillator | Page 162 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Trading System using Awesome Oscillator 48 replies

Question on Awesome Oscillator 4 replies

Platforms w/ 'Chaos Awesome Oscillator'? 7 replies

Awesome Oscillator 1 reply

Trade Awesome Oscillator Divergences! 7 replies

Attachments: Trading with range bars ichimoku cloud & awesome oscillator
Exit Attachments

Trading with range bars ichimoku cloud & awesome oscillator

  • #3,221
  • Jul 2, 2018 4:14am Jul 2, 2018 4:14am
Another bite E/J............ ( UK time)
Attached Image (click to enlarge)
Click to Enlarge Name: EJmon2.jpg Size: 645 KB
every Saint has a past. Every Sinner has a Future
  • #3,222
  • Edited 11:31am Jul 2, 2018 9:29am | Edited 11:31am
Everything is a guess because we don't know the future, but a tendency I see in strong trends is that if you get 3 opposing bars in a row against the trend (for example, 3 consecutive red bars in an uptrend), may even be 4, but with much smaller candle bodies, without closing to the other side of the 20 ema, that's a warning to me to look at a bounce from that to be the first phase of either an opposite trend or sideways. I'm more hopeful this is less likely to occur (that is, the new trend will continue) if this is a pullback from first price surge of a new trend. Main point is this: strong trends should have very minor retraces.

RP, I checked your broker and couldn't find that it has access to the Hong Kong Futures Exchange. I have Interactive Brokers but AMP Futures is another alternative which trades that market. OMG, the HSI (Hang Seng Index) and HHI (Hang Seng China Enterprise Index) futures are awesome trenders. If you didn't feel like trading some mornings, you could trade either of these the night before. You can trade their morning session at 6:15 PM to 9:00 PM your time and/or 10:00 PM to 12 AM for part of their afternoon session. Hong Kong Dollars are pegged to the USD so no currency risk when the base trading currency is USD.

[Another one I found trending well on the Singapore Exchange is the NIFTY futures contract (futures off of India's NIFTY index). It trades in USD. 9:45 PM to 12 AM would catch their opening morning trading hours your time. Two other futures contracts on the SGX that trend well are the Xinhua China A50 (symbol CN) and the MSCI Taiwan Index (symbol TW), both trade in USD.]
  • #3,223
  • Jul 2, 2018 9:40am Jul 2, 2018 9:40am
Quoting CLTrader
Everything is a guess because we don't know the future, but a tendency I see in strong trends is that if you get 3 opposing bars in a row against the trend (for example, 3 consecutive red bars in an uptrend), may even be 4, but with much smaller candle bodies, without closing to the other side of the 20 ema, that's a warning to me to look at a bounce from that to be the first phase of either an opposite trend or sideways. I'm more hopeful this is less likely to occur (that is, the new trend will continue) if this is a pullback from first price surge...
Great information and much appreciated CLT
every Saint has a past. Every Sinner has a Future
  • #3,224
  • Jul 2, 2018 12:15pm Jul 2, 2018 12:15pm
Made 61 pips on a gold short.I opened the trade while at work and closed it anout 30 mins ago when i got home.I could have left it running(xauusd falling as i type) but its past my trading time and my wife doesnt want to compete with the market
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_4.png Size: 89 KB
  • #3,225
  • Edited 2:47pm Jul 2, 2018 2:14pm | Edited 2:47pm
I like the entry method.

The problem is getting the best exit, especially if you are trying to maximize the return with a trailing stop.

Here I have used a 10 period smoothed MA of the median price plus one pip. Using a trade manager allows you to go off and do other things.

Attached Image (click to enlarge)
Click to Enlarge Name: 10 smoothed median plus 1 pip sl.jpg Size: 298 KB


I have also used this Awesome Oscillator that has alerts for when it crosses a signal line or the zero line.
Even if you are not monitoring multiple pairs it is quite useful. Note : It doesn't draw the vertical lines. Maybe we can get it programmed to do so.

Attached File(s)
File Type: ex4 Awesome_Signal_Alert.ex4   5 KB | 352 downloads
  • #3,226
  • Jul 2, 2018 9:43pm Jul 2, 2018 9:43pm
Quoting ichikuse
Made 61 pips on a gold short.I opened the trade while at work and closed it anout 30 mins ago when i got home.I could have left it running(xauusd falling as i type) but its past my trading time and my wife doesnt want to compete with the market {image}
simple chart it is looking clean.. only ichimoku cloud and no other lines of its.. only one line and some candles that are normal one ......what are all used .. may you share
Success is a Journey Not a Destination....... kind regards ramzam
  • #3,227
  • Jul 3, 2018 8:18am Jul 3, 2018 8:18am
E/J again ( I am aware that I can look at other pairs but for the moment this is an experiment regarding Range bar trading.)

Two trades and more aware of support etc and allowing the trade to breath - but not too deeply :-)
That's it for now. Is anyone else trading Rocky style - I seem to be talking to myself :-)
Attached Image (click to enlarge)
Click to Enlarge Name: EJtues.jpg Size: 689 KB
every Saint has a past. Every Sinner has a Future
  • #3,228
  • Jul 3, 2018 8:20am Jul 3, 2018 8:20am
Quoting ramzam
{quote} simple chart it is looking clean.. only ichimoku cloud and no other lines of its.. only one line and some candles that are normal one ......what are all used .. may you share
Read from Post one - all is explained quite simply. Then post up some of your trades for discussion.
every Saint has a past. Every Sinner has a Future
  • #3,229
  • Jul 3, 2018 8:29am Jul 3, 2018 8:29am
Quoting Wab
I like the entry method. The problem is getting the best exit, especially if you are trying to maximize the return with a trailing stop. Here I have used a 10 period smoothed MA of the median price plus one pip. Using a trade manager allows you to go off and do other things. {image} I have also used this Awesome Oscillator that has alerts for when it crosses a signal line or the zero line. Even if you are not monitoring multiple pairs it is quite useful. Note : It doesn't draw the vertical lines. Maybe we can get it programmed to do so. {file}
Looks like you went long BELOW the cloud and whilst the AO was in negative territory ?
every Saint has a past. Every Sinner has a Future
  • #3,230
  • Jul 3, 2018 8:30am Jul 3, 2018 8:30am
Quoting ramzam
{quote} simple chart it is looking clean.. only ichimoku cloud and no other lines of its.. only one line and some candles that are normal one ......what are all used .. may you share
As Turnip says its all explained from post one.In my chart i actually deleted the Awesome oscillator by mistake(i reposted the chatrt now).
The one line is a kijun sen line.You can modify the default ichimoku settings of 9 26 52 to suit yourself.I played with them and changed them a lot but now use the default 9 26 52
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_1.png Size: 89 KB
  • #3,231
  • Jul 3, 2018 8:38am Jul 3, 2018 8:38am
Quoting Wab
I like the entry method. The problem is getting the best exit, especially if you are trying to maximize the return with a trailing stop. Here I have used a 10 period smoothed MA of the median price plus one pip. Using a trade manager allows you to go off and do other things. {image} I have also used this Awesome Oscillator that has alerts for when it crosses a signal line or the zero line. Even if you are not monitoring multiple pairs it is quite useful. Note : It doesn't draw the vertical lines. Maybe we can get it programmed to do so. {file}
Yes trailing is rather tricky but the entry is the best that i have seen in the forex world.The timing is just clean.Trailing is hard i think mainly because the trailing ea cannot identify resistance/support/swing lows/highs....unless if there is such an ea that does that.
  • #3,232
  • Jul 3, 2018 9:16am Jul 3, 2018 9:16am
Rather than trailing stop (initially), consider looking at each trade from the real-time risk / reward you're taking. Keep track of the max distance a live trade has gone against you. That's your real-time 1x risk. You can expect to get 1.5x to 2.0x reward for that real-time risk when you find that your avg winning pct is close to 50% long-term. Sure, there's times when you had a few pips against your position and then your reward to risk ratio on that trade is ridiculously high. But these will get balanced out by the 1x risk trades which hit your full stop (i.e., that's your non real-time 1x risk you're willing to take on each trade ahead of time) and so there was no reward to capture on those trades (duh, right?).

For example, if your usual stop-out is 20 pips and 15 pips was your realized real-time risk on the current trade, then look to get 23-30 pips at a minimum from the move. If the trend is strong and your experience tells you this particular trade probably has more room to run then make sure you get at least that reward amount area.

You'll have to tell me your experiences in Forex because there's more chop in trends, relatively speaking , but I can tell you that in the volatile futures contracts around the world that in a very strong trend, a support bounce off of the cloud itself (in an uptrend, a resistance bounce in a downtrend) is quite common for the next big leg up (or down). In fact, I consider it a bad sign when price breaks back into the "trending cloud" on a first pullback basis.

The deeper a trade goes against me in real-time, seeking out my stop, the less enthusiastic I am about holding onto that trade for a longer period of time, should it turn and show me the 1.5x - 2.0x reward region. This isn't an emotional, fear of losing thing. It's based on seeing 1000's and 1000's of trades which went my way rather quickly with little heat and those tended to show me better momentum overall.
  • #3,233
  • Jul 3, 2018 12:07pm Jul 3, 2018 12:07pm
Quoting turnip15
E/J again ( I am aware that I can look at other pairs but for the moment this is an experiment regarding Range bar trading.) Two trades and more aware of support etc and allowing the trade to breath - but not too deeply :-) That's it for now. Is anyone else trading Rocky style - I seem to be talking to myself :-) {image}
Hey Turnip.

I have been working with M1 charts and getting good results, but the 4 point Range bars are the real topic here so I am going to ask for input , ideas suggestions on the following observation.

Most trades seem to be taken with a quick profit in mind, but why not use the cloud to trail a stop as it reveals a bigger structure?

Have a look at this EURJPY 4 pip range bar chart.

The idea of the kijun cross signalling a Ready State, the price into the cloud as a Set State then the the break out of the cloud as the Go State seems to apply in one way or another at each of the trade opportunities.

However if you consider the fractal that forms above the cloud as an Early Warning Alert alert, then you can do two things:

First of all you can then look for a RSG (Ready Set Go) sequence to get an entry. Secondly you can trail stops along each Early Warning Fractal and stay in a prolonged run instead of jumping in and out on each RSG trade.

Attached Image (click to enlarge)
Click to Enlarge Name: RSG1.jpg Size: 266 KB


There is also the potential to add on trades at each Early Waring signal. (Five of them added on in the EURJPY chart at t his point.)

In the second chart I have shown the fractals, a red check mark to show the entry levels and also the value of each trade taken if it had been held for the duration.

Attached Image (click to enlarge)
Click to Enlarge Name: RSG 2.jpg Size: 280 KB


So, some food for thought.
  • #3,234
  • Jul 3, 2018 6:00pm Jul 3, 2018 6:00pm
Quoting turnip15
{quote} Looks like you went long BELOW the cloud and whilst the AO was in negative territory ?
Earlier, I did enter before the AO gave permission. Certainly that is a more risky entry. When the AO crosses its signal line I fall into temptation and I must learn not to do so.

I think I got it correct on the chart above though. The Ready, Set, Go, checklist is a good one.
  • #3,235
  • Jul 4, 2018 8:07am Jul 4, 2018 8:07am
E/J UK Time.
Done for the day - would rather finish at 11 am UK time. Maybe I should look closer at what CLTrader writes and look at Dax/Dow etc ?

Anyway trades were okay, perhaps I am timid with my stops and had three trades whereas someone more experienced would have taken one trade ?
Attached Image (click to enlarge)
Click to Enlarge Name: EJWeds.jpg Size: 617 KB
every Saint has a past. Every Sinner has a Future
  • #3,236
  • Jul 4, 2018 9:20am Jul 4, 2018 9:20am
Quoting Wab
{quote} Hey Turnip. I have been working with M1 charts and getting good results, but the 4 point Range bars are the real topic here so I am going to ask for input , ideas suggestions on the following observation. Most trades seem to be taken with a quick profit in mind, but why not use the cloud to trail a stop as it reveals a bigger structure? Have a look at this EURJPY 4 pip range bar chart. The idea of the kijun cross signalling a Ready State, the price into the cloud as a Set State then the the break out of the cloud as the Go State seems to...
Hi Wab.Its actually the 5 point range bar (not the 4 point) which is the "default" setting for the thread although of course people are free to choose what they want.
I do agree that most trades posted here show quick profits and many times, the exited trades go on to be 50 pip, 100 pip etc trades.

However, there can be many reasons for this such as personal preference, or the trader is a scalper etc.RP for example trades either direction and can hold trades if they go on in his favour.He usually does not stay in a trade when it goes to what you labelled as '' EARLY WARNING" areas on your chart.

Personally, i take my signals off one hour charts which involves a lot of waiting(As i speak i entered some GBP long trades hours ago and nothing was happening really until now...price seems to want to inch higher.

Since i take 1h signals basing the entry on RP's method, i am learning to wait for the trade to make at least a higher high(after buying a dip) or a lower low(
after buying a rally) then i can start to think of exiting.In my case, a trailing stop does not really help me because the "EARLY WARNING" small retracements have a huge potential to stop me out.

I feel that this suits the style of trade i want.Instead of me trading all the signals and retracements, i just wait for one signal and hopefully take it and trade it because i like to trade with the daily or 4h trend which gives me the confidence to hold a trade and not panic and exit in a hurry.However im learning
this and im nowhere near where i want to be.I do counter trend when i see "significant" divergence.

I believe despite all the retracements, spikes etc, on any given day, bulls want to go as high as possible and bears want to go as low as possible which usually means that whatever the imbalance in the order book, ideally the market will choose one direction for that whole day.It is my intention to wait for this one signal per day say in the London session and hold it and exit say 2 hours into the NY session or even wait until it comes in the NY session.

Of course there is an exception when some unexpected/expected news comes or if bulls/bears hit a wall and turn around.

I apologize for probably explaining other things you didnt ask lol.I also use heiken ashi bars to gauge momentum and exit trades or h1/h4/daily swings as tp areas.

I want to check charts as little as possible when i trade and monitor less and get a signal that can potentially yield approx 40 pips minimum which is not to say i wont get into trades and get a 20 pip tp when i see a chance but i prefer the former to the latter.
  • #3,237
  • Jul 4, 2018 9:28am Jul 4, 2018 9:28am
Quoting turnip15
E/J UK Time. Done for the day - would rather finish at 11 am UK time. Maybe I should look closer at what CLTrader writes and look at Dax/Dow etc ? Anyway trades were okay, perhaps I am timid with my stops and had three trades whereas someone more experienced would have taken one trade ? {image}
Hi Turnip,well done.This is exactly what i was saying in the post before this.Ideally it would be better to have made it one trade instead of 3 but trading isnt easy.I do that a lot too.When money is on the line usually its much easier to exit with something than to wait and also risk a stop out.The difficult trick is how to ignore the retracements and hold the trade and i wish there was a pill that transforms a trader into someone who lets winners run BUT with DETERMINATION it can be done....some are doing it and i desire to do likewise..........
  • #3,238
  • Jul 4, 2018 9:31am Jul 4, 2018 9:31am
RP returns tomorrow!
  • #3,239
  • Jul 4, 2018 10:27am Jul 4, 2018 10:27am
Turnip,

It is easier on the nerves to get your profit goals achieved on just one leg of a trend move. That's why, even in the futures market, I won't trade the ES when the volatility index (VIX) is below 17. The Nikkei futures is another one, not worth the risk.

For your piece of mind in knowing how far you can take your trading skills, at least get a futures demo account so you can see in real-time the vast number of great price moves out there in the world. I have no association with AMP Futures but they'll set you up with a demo (they have MT5 for futures trading and a couple other free charting platforms). Maybe even TDAmeritrade does as well. If I found 2 starting out, I would go with one, prior to demo expiration, ask for an extension, go with the second, do the same thing.

On the NQ or DAX openings, you can be done in 15-30 mins if hitting a daily goal and stopping is your thing. A 1 min chart with RP's method is highly tradeable at their levels of volatility / 1st hour ranges.

You see what RP does on Forex pairs. It's BETTER / FASTER on the NQ, YM, RTY, DAX, HSI and HHI. You don't ever "scan" for volatility. You show up every day on those 6 and it's there, like surfing in Hawaii I guess would be the closest analogy.
  • #3,240
  • Jul 4, 2018 1:13pm Jul 4, 2018 1:13pm
Quoting CLTrader
Turnip, It is easier on the nerves to get your profit goals achieved on just one leg of a trend move. That's why, even in the futures market, I won't trade the ES when the volatility index (VIX) is below 17. The Nikkei futures is another one, not worth the risk. For your piece of mind in knowing how far you can take your trading skills, at least get a futures demo account so you can see in real-time the vast number of great price moves out there in the world. I have no association with AMP Futures but they'll set you up with a demo (they have MT5...
Hi CLT, My aim is usually something like 10 pips for the day. Might not seem much but as a retired person those pips add up in a month ( spread betting UK). I do agree with you regarding Dax etc because I have tried them after reading one of your earlier posts. If one watches the price one can usually dip into the fray for a quick ten pips. Therefore I am testing these instruments with a view to dropping forex and going some way to limiting my trading day to a couple of hours or so. Work in progress and thanks for sparing your time to impart your knowledge -much appreciated.
every Saint has a past. Every Sinner has a Future
2 traders viewing now