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Attachments: Attacking the problem of different timezones and the delay to enter trades
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Attacking the problem of different timezones and the delay to enter trades

  • #1
  • First Post: Oct 4, 2006 5:12pm Oct 4, 2006 5:12pm
I know, quite a subject.

DISCLAIMER: The following suggestion is not according to Mouteki. You will follow a "sect" within this thread. It might be worth to have a look at it, but be warned.

Ok, here is the idea. We all are quite annoyed that we have problems finding the same entries with other disciples due to different timezones aka different candle-setups. I am on top of that personally quite often annoyed, that I sometimes see the breakout taking part, while I still have to wait 1-2 hours till the end of the actual candle.

How to avoid it?

Lets go back to the roots with the analysis: Mouteki teaches that we need H4 to avoid noise/whipsaws. I think we all agree about this.

But what do we actually do? We draw fractals according to H4 candles, that is a fractal is a extreme (high/low) in the middle of 2 candles, which are less extrem. That means we want this candle to be the the extrem within 8 hours before and after that candle.

So assuming we change the rule for the fractal from 2 to for example 8 candles, we could go to a lower timeframe for example H1 and still have our trendlines with very similar slopes. The entry nevertheless could be now already after one H1 candle. We would avoid timezone problems, we would have more immediate entries.

Theory, dry theory, or is it?

I tried it. What did I do? I took our beloved mouteki2.mq4 and changed it so that the fractals are now drawn accordingly. Then I made a few comparisons. Between the classic mouteki2.mq4 H4 and the new mouteki2X.mq4 on H1 and voila. Judge it yourself:
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  • #2
  • Oct 4, 2006 5:14pm Oct 4, 2006 5:14pm
Or have a look at EURUSD
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  • #3
  • Oct 4, 2006 5:15pm Oct 4, 2006 5:15pm
Here you go ... try it out, maybe in combination with the "old school" ruleset. I am curious about your observations.
Attached File(s)
File Type: mq4 Moutek2X.mq4   23 KB | 1,052 downloads
  • #4
  • Oct 4, 2006 8:50pm Oct 4, 2006 8:50pm
I presume that I must attach this indicator to both the 1 hr and 4 hr chart, and the trend line should be on the correct candle to account for the difference. Must I change any input parameters?

I have compared your trend lines from your indicator vs the TD Level2 TL, your 1st and 2nd points are off not unless I am misunderstanding the idea behind drawing the trendlines..... Sorry, I do not know how to post charts, its telling me its too large....
  • #5
  • Oct 5, 2006 12:50am Oct 5, 2006 12:50am
Quoting et_phonehome_2
I presume that I must attach this indicator to both the 1 hr and 4 hr chart, and the trend line should be on the correct candle to account for the difference. Must I change any input parameters?
The H4 chart you treat like you did in the past. Either with manuallly drawing the classic fractals, or using for example the mouteki2.mq4 indicator.

Only on H1 you need my indicator mainly because it is difficult to find and draw the Level 8 fractals. In this case the parameters do not need to be modified.

Quoting et_phonehome_2
I have compared your trend lines from your indicator vs the TD Level2 TL, your 1st and 2nd points are off not unless I am misunderstanding the idea behind drawing the trendlines..... Sorry, I do not know how to post charts, its telling me its too large....
Shame, I would have loved to see what you refer to. I have made quite some more analysis since I posted and I have since then, on my main H4 and H1 as to above running. My feeling is: Overall it shows me the right trendlines, with slightly different slopes. Much better: It shows me even trendlines, which would be otherwise in my timezone CET invisible.

Unfortunatly due to job & family I cannot offer a full followup to all my signals, but I will report to the currencies I watch (4 majors + AUD/USD + EUR/JPY).
  • #6
  • Oct 5, 2006 1:23am Oct 5, 2006 1:23am
I think you have a good idea there. Let's forward test this.
I am JuMPeR.
  • #7
  • Oct 5, 2006 2:35am Oct 5, 2006 2:35am
Here'a a test for the aussi.

I will post the 1h first, then the 4h.
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I am JuMPeR.
  • #8
  • Oct 5, 2006 2:37am Oct 5, 2006 2:37am
And this is the 4h.
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I am JuMPeR.
  • #9
  • Oct 5, 2006 8:16am Oct 5, 2006 8:16am
Once I get my brain cranking, the idea occurred to me to zip the images I had saved on my computer. Please note that your TrendLines goes out further in the past, this is the normal TD TrendLines. My TD TrendLines is based upon Mouteki system which is to use two candles before and after for drawing the TD TrendLines Level 2. Please correct me if I am wrong in drawing the trendlines.....
Attached File(s)
File Type: zip ScreenShots.zip   146 KB | 671 downloads
  • #10
  • Oct 5, 2006 9:11am Oct 5, 2006 9:11am
Hmm... I am having second thoughts about this 4h to 1h thingy. This trade failed as can be seen -- not even a signal for 4h.

Another thought -- the 1h may perhaps be used to confirm the 4h.
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I am JuMPeR.
  • #11
  • Oct 5, 2006 10:23am Oct 5, 2006 10:23am
hi guys

it seems the indicator draws the lines wrong. it doesnt wait at the first point(the right point) for the 8 candles on the right side.
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  • #12
  • Oct 5, 2006 10:26am Oct 5, 2006 10:26am
Quoting et_phonehome_2
Once I get my brain cranking, the idea occurred to me to zip the images I had saved on my computer. Please note that your TrendLines goes out further in the past, this is the normal TD TrendLines. My TD TrendLines is based upon Mouteki system which is to use two candles before and after for drawing the TD TrendLines Level 2. Please correct me if I am wrong in drawing the trendlines.....
You attached "my" indicator to H4. The whole idea of this thread and the indicator is to work on H1. Change that and try it again.
  • #13
  • Oct 5, 2006 10:31am Oct 5, 2006 10:31am
Quoting ART_1_
hi guys

it seems the indicator draws the lines wrong. it doesnt wait at the first point(the right point) for the 8 candles on the right side.
thats because the indicator knows already that in about 5 hours this point will be an established fractal.

Duh ... you should now that I write prescient indicators ...



Ok, I check it again. Back to the drawing-board
  • #14
  • Oct 5, 2006 10:34am Oct 5, 2006 10:34am
Quoting fukinagashi
thats because the indicator knows already that in about 5 hours this point will be an established fractal.

Duh ... you should now that I write prescient indicators ...



Ok, I check it again. Back to the drawing-board

hehe, you are funny
  • #15
  • Oct 5, 2006 11:24am Oct 5, 2006 11:24am
Quoting fukinagashi
You attached "my" indicator to H4. The whole idea of this thread and the indicator is to work on H1. Change that and try it again.
Sorry, I screwed up....
  • #16
  • Oct 5, 2006 11:52am Oct 5, 2006 11:52am
I really like this idea, possibly may work better on the 2hr chart. I will definitely want to try and test this out . These should also be used in conjunction with the entry and exits article by daerus in one of these posts somewhere.

here it is: http://www.forexfactory.com/forexfor...ead.php?t=8660
  • #17
  • Oct 5, 2006 12:09pm Oct 5, 2006 12:09pm
Hi Fuki,

It's great to see you posting here at FF.
You don't know me but I just happened to have seen your posts elsewhere.

I think the idea of using 1H chart is simply brilliant!
Not only can it solve the problem of time difference in different timezones, but it can also let traders better confirm the entry signals...waiting for 2 or more consecutive bar closes below/above the trendline for entry, for example.

Keep up the good work, Fuki!
  • #18
  • Oct 5, 2006 12:18pm Oct 5, 2006 12:18pm
Yes I noticed that too... didn't work for 1h time frame either.
I am JuMPeR.
  • #19
  • Oct 5, 2006 11:50pm Oct 5, 2006 11:50pm
The original article specifically state using H4 to avoide whipsaw/reveral. Using
H1 charts will definitely result in "earlier" entry signals BUT some of these signals are premature as you already have seen when you apply Mouteki on H1.

Sure H1 mouteki solves the timezone problem but it also created false entry signals.

Which one is more important?
a) Early signals with higher probability of reversal (but of course, earlier signal = early profit if the signal is true)
b) Late signals with lowered probability of reversal (but late signals is also a disadvantage as the steam may have left the move already)

Hmm...
Earlier I was trying out ways to use H1 charts but grouping each candle into 4 .. problem is, this will cause TimeZone problem as well; when must I start off the grouping? must I start it off on Monday Asia Open (Sunday 6PM EST)? But there are only 118 trading hours a week - 118 is not divisible by 4!!!!

Right now, i am studing using pure H1 chart, BUT needing at least 2 candles (or more) below/above the trendlines as a valid signals.

Your inputs are appreciated!
  • #20
  • Oct 6, 2006 3:21am Oct 6, 2006 3:21am
hi Fuki

i noticed another bug. if i draw fibonacci levels or trendlines or any object on the chart then they all disappear after a few seconds(at the next price tick). is there any way to fix those bugs especially the first one which i mentioned on the previous page of this thread.

thx

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