TD Line Qualifiers and potential filters

quote from article


There is one problem with using these four qualifiers
with cash forex data: Because of the 24-hour nature of forex
he opening price of a bar is often the same as the preceding
lose (or one tick above or below it).

If: buying pressure = bar close - bar low

is it ture:

selling pressure = bar high - bar close

That is correct. You then take the difference and add/subtract it from the close.

On second thought, the qualifier #2 may mean the current bar high should be at least one tick higher than bar open -- "trade higher" may be referring the current bar.

Very nice post man. This is some great info!! I would like to ask a question though. I know that there is some confusion about qualifier #2 however but I need to know something about opening and closing prices. On the demo account that I am using, where one bar closes, the next opens exactly at the same price. I see on your charts that the bars open and close at different prices sometimes. How is that? I thought it was automatic. can someone please explain?

Also, if we are entering a buy breakout and the trend is up, will the breakout bar always be 1 tick above the closing of the previous bullish bar?

thanks

Drop your chart down to one minute. You'll see that price can more more than one pip in one tick. Hope this makes sense. I imagine if you study your chart you'll be able to find instances where one bar opens a little higher or lower than the close before it.

Hi, I dropped my chart down to 1min candles and bars and I didn't see any changes between the opening and closing price of one compared to the next one. I guess I need to get a better charting package soon. I downloaded meta trader which seems to show these. Meta trader seems good for mouteki just looking at all the charts that ppl post not to mention the tick difference.

Thanks.

Didn't see this post or I would of put this here. I to had problem trying to DL the Sept. 06 Currency Trader.. So I have pulled out and only attached the DeMark for those you want to give that a read.

Great job Daerus on breaking down the DeMark filters so so much great stuff on the ff it easy to look it over


turbo

Hello,
I am new to this tread and I, like many of you, am learning about TD trend lines/filters. In addition, I am also new to MetaTrader and I am totally ignorant to developing indicator programs. However, it seems to me that a program could be written that would calculate buying/selling pressure and identify the pressure accordingly. Further, I believe the other TD filters could potentially be incorporated in this program. Possibly, it could include a ranking of filters met (1 of 4 - 4 of 4). <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

<o></o>

Any thoughts on the feasibility of writing such a program?<o></o>

Kirl


[quote=daerus]That is correct. You then take the difference and add/subtract it from the close.[/QUOTE

i dont know to program language, i wish i were, but if anyone would put the pressure points and add it to demark_trend indicator it will be great indicator

[quote=kirl]Hello,
I am new to this tread and I, like many of you, am learning about TD trend lines/filters. In addition, I am also new to MetaTrader and I am totally ignorant to developing indicator programs. However, it seems to me that a program could be written that would calculate buying/selling pressure and identify the pressure accordingly. Further, I believe the other TD filters could potentially be incorporated in this program. Possibly, it could include a ranking of filters met (1 of 4 - 4 of 4). <o></o>

<o></o>

Any thoughts on the feasibility of writing such a program?<o></o>

Kirl

hello all.

i did a search of all the posts by mouteki in all threads.

He mentioned in the "naked charting" thread, that he uses trendlines and fibs for trading.

has anyone heard\read\know of some way that fibs can be used as a filter with mouteki's system? or in conjunction with the system?

phoenix
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Hi phoenix,

Of all the material mouteki has posted, all I can ever remember him saying about fibs is in this post alone:

http://www.forexfactory.com/forexfor...&postcount=401

regards,
HK

This message will also post in other threads of relevance (Please read through).<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

<o> </o>

Notes from Mouteki statements found throughout his threads on FF:<o></o>

<o> </o>

· “I love this currency…” “This pair has a lot of potential. It responds rather well to the mouteki method. I have become a full time trader of it.” (GBP/CHF thread post #8)<o></o>

· Regarding Mouteki & Fibo’s I have found the following:<o></o>

o In the thread Mouteki Trading post #405, as Horace has pointed out, Mouteki posts his chart with Fib on it and uses it as a SL on that particular trade.<o></o>

o In the thread Mouteki Trading post #125 his chart of AUD/NZD has Fibo on it.<o></o>

o In the thread Naked Trading post #8 he states, “I use strictly trend lines and fibs on my charts. No indicators for me, they all lag, whats the use, for them to tell you what already happened in price. Anyway, that’s what I do…”<o></o>

· Looks for setups during the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:City><st1lace>London</st1lace></st1:City> session and NY time. I am sorry I didn’t note the thread because I forgot to write it down, but he did state this and I would assume these are prime setups and not exclusive by the looks of his charts.<o></o>

· “Let me take a stab at your?” “I think of it this way...If you spend sleepless days creating a system that you have strictly traded demo day in and day out and notice that it creates profit on a regular, are you in return going to release it to the general public who has not suffered the way you have to create your system. It's simple human nature not to share something for free, is it not? If someone had a strategy of trading that they have proof of its accuracy they arent going to turn around and give it away for free, would you? No, you would create a charting system and sell it to subscribers, why not hard work desirves a pay off in the end, does it not? Lets say you were to give it away for free, what is your payoff going to be, pesimistic traders who only target the flaws not benefits of your system. Just some food for thought on the subject!!!” (Thread was How Come Nobody Likes to Share? His post is #38)<o></o>

<o> </o>

Note: When looking at Mouteki’s chart time, it is GMT -4<o></o>

<o> </o>

Regarding his PowerPoint presentation for ALL of his trades for GBP/USD in the month of July (Located in Mouteki Trading thread post #885). Some points that I have noted:<o></o>

<o> </o>

· 5 trades taken in the entire month by Mouteki (I think this is much less than trades that could have been taken strictly on non-discretionary setups).<o></o>

· Trade Entry Times<o></o>

o Trade #1 entered at 0000 GMT (Asian Session) and resulted in +34 Pips, but TP was initiated on a reversal signal on Trade #2.<o></o>

o Trade #2 entered at 0800 GMT (London Session) and resulted in TP hit +142 pips.<o></o>

o Trade #3 entered at 1600 GMT (London Close, end of prime NY trading) resulted in SL being hit -46 pips.<o></o>

o Trade #4 entered at 0800 GMT (London Session) and resulted in TP hit +144 pips.<o></o>

o Trade #5 entered at 1200 GMT (London Session) and resulted in TP hit +213 pips. <o></o>

<o> </o>

Notes from threads he posted on the other forum:<o></o>

<o> </o>

· QUESTION
Hello Mouteki,
Do you have any preference as to how steep a demand/supply line should be when broken? To elaborate, if you must decide to enter on only one trade, would you choose one whose demand line is so gentle that it is almost horizontal, or one whose demand line is so steep that it is almost vertical?

ANSWER
I love it when the supply/demand line broken is close to a 45 degree angle. A supply/demand line that is at a 45 degree angle signifies it was a sustainable trend to me, and the break of such a line would indicate that sustainable trend has broke the opposite way, possibly creating a new sustainable trend. If I had to choose between a demand line so gentle its almost horizontal as to a demand line so steep its almost vertical, I would have to say the one that is almost horizontal. My reasoning, simply the problem with extremely steep lines is the breakout is most likely picking up the retracement of the fast moving trend in force. So you may get in and see it just open the direction your looking to enter and quickly stop you out. Now, in a almost horizontal trend line, that signifies a strong point of support/resistance in the market that if broken will almost always give you pips, the problem is that the price projections are some times to big due to the length of the trend line.<o></o>

· QUESTION
Dear Mouteki
Thanks for sharing your system. I know you are extremely busy, but would appreciate if you can answer the question briefly:
There are many trend line breaks that we come across every day on 4 hour charts and most of them are very successful Trades. In your experince "What do you define as A-1 Trend Break ". Meaning, what is the setup you will be looking into, you think will be a perfect trend break that you dont want to miss!!
I would like get into a trade which is A-1 trend break (it could be one trade in all of the week among all the pairs).
You dont have to reveal right away,I can wait, but would like to know if there is such a thing in your system.
Thanks again.
Rishi

ANSWER
Yes, I believe I have something like this up my sleeve. <?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" /><v:shapetype id=_x0000_t75 stroked="f" filled="f" path="m@4@5l@4@11@9@11@9@5xe" oreferrelative="t" o:spt="75" coordsize="21600,21600"><v:stroke joinstyle="miter"></v:stroke><v:formulas><v:f eqn="if lineDrawn pixelLineWidth 0"></v:f><v:f eqn="sum @0 1 0"></v:f><v:f eqn="sum 0 0 @1"></v:f><v:f eqn="prod @2 1 2"></v:f><v:f eqn="prod @3 21600 pixelWidth"></v:f><v:f eqn="prod @3 21600 pixelHeight"></v:f><v:f eqn="sum @0 0 1"></v:f><v:f eqn="prod @6 1 2"></v:f><v:f eqn="prod @7 21600 pixelWidth"></v:f><v:f eqn="sum @8 21600 0"></v:f><v:f eqn="prod @7 21600 pixelHeight"></v:f><v:f eqn="sum @10 21600 0"></v:f></v:formulas><vath o:connecttype="rect" gradientshapeok="t" o:extrusionok="f"></vath><o:lock aspectratio="t" v:ext="edit"></o:lock></v:shapetype><v:shape id=_x0000_i1025 style="WIDTH: 11.25pt; HEIGHT: 11.25pt" alt=";D" type="#_x0000_t75"><v:imagedata o:href="http://s3.images.proboards.com/grin.gif" src="file:///C:\DOCUME~1\JOSHKO~1\LOCALS~1\Temp\msohtml1\01\clip_image001.gif"></v:imagedata></v:shape><o></o>

· QUESTION:
hello mouteki,
seems this method is only consistent on cable only, can you confirm this?
rgds

ANSWER
No I can not confirm this statement. I have found it profitable on the four majors as well as the jpy crosses. It depends on if you define consistancy by more winners that lossers. Than I would have to get back to you on that one, but as far as profitability, I have found it mostly in the majors and eur/jpy since they are my main focus.<o></o>

· QUESTION:
Greetings Mouteki,
I recall somewhere you said you don't trade Mondays, rather you let the markets settle in. Could you recommend some arbitrary time based on GMT that you usually feel comfortable to commence trades for the week?
Secondly, you also say you close any open trades on a Friday - do you look to open trades on Fridays? regards
Xerof

Answer
Greetings Xerof,
This is a great question so I want to answer to it accordingly. As my recommendation I would take any trades given to me from the open of the Sunday asian session and trade all the way up to <st1:State><st1lace>New York</st1lace></st1:State> 8 am Friday. I don't look to necessarily exit all trades on Friday, but I manage them accordingly. It all depends on the situation, I remember a few weeks ago I was in a trade for over a week on the gbp/jpy with about a 350 pip price projection. It was Friday and after over a week being in the trade I closed it out with 320 pips just to lock in the trade. But, honestly if I were a beginner to this method I would recommend trading the parameters I stated above. Hope this helps...<o></o>

· Everyone should have recieved a PM from me stating the move back to Forex Factory. Please check your PM folder. (Posted Sept 25)<o></o>

<o> </o>

My general thoughts on what I have presented:<o></o>

<o> </o>

· We know only the basics of the way he trades.<o></o>

· He uses Fibonacci amongst other things in his trading<o></o>

· Time of day may play a role in his trading, how important I am not sure, but in my other trading styles it is huge. With that said my other systems are based on 1HR and less timeframes and not 4HR charts.<o></o>

· Higher timeframes are possibly used as filters or confirmations of trade direction.<o></o>

· He may at this point not disclose anymore information on his system. This is based upon the statement he made to question in the forum where someone asks why nobody shares. I personally agree with aspects of this statement, but may not fully agree with the details or necessarily the end use of it. <o></o>

· My general opinion of what has been presented by Mouteki is this: He has brought to my attention the importance of price action. It is my belief that you must create your own trading style based on your trading personality and trying to use a system exactly as someone with the same results may cause you the trader to focus too much on how to follow a system and achieve those same results. He has also made me rethink my patience with the market and allowing the market to work for you rather than trying to make the market do what I want, if that makes any sense.<o></o>

<o> </o>

I just sat down and wrote this afternoon here at my office, so I didn’t put a tremendous amount of time into it, but these are my thoughts as I was sitting here and I thought it would good to look at what Mouteki has stated in the past and picked out what I thought were important points.<o></o>

<o> </o>

Any thoughts on this material would be greatly appreciated…<o></o>

Hi MNFX,

This is an excellent summary of what Mouteki said, I agree.

-TPO.

Thanks for sharing, MNFX! That was great effort!

aha

Thank you sharing your resume of mouteki stuff MNFX greatly appreciated.

Nice entry MNFX. Moteki gave, Mouteki left. We're on our own from here.

Very good post

Having been looking for the best strategy for months, I have finally found the one that suits me most. I'll share it with you but you need to remember I don't trade often (Max 7 or 8 trades a month - I hate rangebound markets). I don't look for maximum profit but rather minimum risk...

My plan is a mix of Vega 4hr Momentum and Mouteki and I have several filters:

1) I like to see a confirmation candle on 4hr (hammer, Inverted hammer, dojis) but not necessarily.

2) When the T/L breaks I have noticed that it is often followed by a P/B - I wait for the PB and enter the market. I enter when I get a 1hr confirmation candle...

3) I like to see a pattern unfolding.
For ex: With a 123 pattern, I tend to enter above the 2. With a 2B pattern, below the candle that broke the pattern

4) I have stochastics (14,3,3) on my 4hr charts, I watch out for divergence and look for an exit when it happens. I don't reverse as I notice divergence oten means price action will consolidate.

5) Stochastics must be <25 to enter short and >25 to enter long. Stops me entering too early...

6) Finally, I have tweaked the Vegas 4hr momentum strategy (I only follow the 4hr SMA's, not the weekly ones - See notes on the Vegas section) and it has helped me from entering too early on a number of occasions...

So in summary, filters I need to enter a deal: #2 #5 #6 and I will trade with the minimum number of lots. Then increase the stakes if I get extra confirmation.

Because I use the 1hr charts for entries, Stop losses are 50/60 pip's max away from entry price. Watching price action is important at time of entry...

Where I have problems is the exits... I have no fixed plans (I use 38,2%, 50% and 61,8% Fibs lines for future S/R levels) and often exit too early...

I trade Cable and Swissie on the London and NY sessions GMT+1

MNFX thank you so much for going through mouteki's material and compiling this.

a lot of people have been throwing out conjectures and ideas on what more there is to mouteki's techniques based on what he's said so far. i felt that perhaps in reviewing all his posts (particularly in threads unrelated to his mouteki trading thread), we might be able to extract some more info about his technique. i was just too time deprived and lazy to reread all 152 of posts. (once thank you for scanning through them)

personally I think there are small gems and hints that one can pick out from your compilation to help further understand and refine mouteki's trading technique.

and i completely agree with you, about developing\finding a trading system that suits your personality and time. my desire at this point is to learn and understand as much as I can about trading and in particular the "theory" or fundamentals behind successful trading systems.

mouteki's has more than piqued my interest, and it's my desire to understand not only the how, but also the why (at least as much as one can given the nature of technical analysis and the markets).


MNFX--thanks for going through this. great job!

i'll have to study his charts that contain fibs more. the use of fibs, as a discretionary means to place his stops sheds some light on how he uses his discretion.

if i figure anything out, or if i come up with some out there theory, i'll definitely post something later.


phoenix

anybody here know a thing or two about TD Sequential. I got a question...