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Quad Candle System

  • #2,361
  • Edited 4:32am Jul 26, 2018 3:31am | Edited 4:32am
Quoting Masterrmind
{quote} Some questions I must ask are as follows: Under what conditions do you decide to go long or short off the Murrey chart you posted? On an ideal longer term setup off this posted Murrey chart where would your likely entry be, where would your Stop be placed and where would your longer term target be placed? For example, certain levels or the candlestick colors and formations or a deeper fundamental bias. What about entries via intersecting lines, horizontal with vertical or horizontal with angled or angled with vertical. Masterrmind.............
Ok here are my thoughts, Murrey gives us trade-frames of 256 128 64 32 16 8 4 and also time based in dates to square the Octave to both Time and Price, I have enclosed screenshots of all these, now by scanning all these we can see both the bigger and smaller picture and also were each octave sits in relation with each other, we can form a view based on were the 16 sits within the 64 which sits within the 256, giving us a time and price view, in a way very similar to our friend Parisboy use of waves in his case 256 128 32, Now when you see at least 2 or more sitting at the same OB/OS level it is time to take a trade, to do this we can just enter at a level or wait to see PA at the level we expected or even use the last candle . The trend-lines should just intersect at 50% of each mini level so they are just a visual aid to me the dates are more important tried doing them with the mt4 cycle finder but it does not work correct,as you can see we are on the last or 1st day of a new 16 day cycle.
I will let you read this and see the charts then come back with any questions and i will carry on.
PS when we see say a 4 8 16 32 etc giving us the same OB/OS level to me its like a set of m/averages all meeting so its important ie if they break we have a chart shift, We can add range into it eg how much range would you expect in say 4 8 16 days etc etc well we have an idea with our zones
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GU 256.jpg Size: 624 KB
Click to Enlarge Name: GU 128.jpg Size: 628 KB
Click to Enlarge Name: GU 64.jpg Size: 628 KB
Click to Enlarge Name: GU 32.jpg Size: 605 KB
Click to Enlarge Name: GU 16.jpg Size: 603 KB
Click to Enlarge Name: GU 8.jpg Size: 593 KB
Click to Enlarge Name: GU4.jpg Size: 562 KB
  • #2,362
  • Jul 26, 2018 4:09am Jul 26, 2018 4:09am
Something to compare. Monthly Pivots against Murrey 16 & 32
or even Wkly Pivot against Murrey 4 & 8
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPUSDSBDailyPivots.png Size: 67 KB
Click to Enlarge Name: GU 16.jpg Size: 603 KB
Click to Enlarge Name: GU 32.jpg Size: 605 KB
Click to Enlarge Name: GBPUSDSBWkly.png Size: 93 KB
Click to Enlarge Name: GU4.jpg Size: 562 KB
Click to Enlarge Name: GU 8.jpg Size: 593 KB
  • #2,363
  • Jul 26, 2018 4:47am Jul 26, 2018 4:47am
Quoting OAPDave
{quote} Ok here are my thoughts, Murrey gives us trade-frames of 256 128 64 32 16 8 4 and also time based in dates to square the Octave to both Time and Price, I have enclosed screenshots of all these, now by scanning all these we can see both the bigger and smaller picture and also were each octave sits in relation with each other, we can form a view based on were the 16 sits within the 64 which sits within the 256, giving us a time and price view, in a way very similar to our friend Parisboy use of waves in his case 256 128 32, Now when you see...
Food for thoughts
Attached Image (click to enlarge)
Click to Enlarge Name: GANN HOW TO DIVIDE THE YEARLY TIME PERIOD.png Size: 127 KB
Attached Image
  • #2,364
  • Jul 26, 2018 4:55am Jul 26, 2018 4:55am
Quoting parisboy
{quote} Food for thoughts {image} {image}
Pairsboy you are a pain in the arse, you always give me something out of the box to think about, thank you for your thoughts even though you keep making me work
  • #2,365
  • Jul 26, 2018 5:19am Jul 26, 2018 5:19am
Food for thoughts again
Attached File(s)
File Type: pptx 2 FRACTAL STRUCTURE OF TIME AND PRICE ENGLISH 17.pptx   2.2 MB | 343 downloads
  • #2,366
  • Jul 26, 2018 5:24am Jul 26, 2018 5:24am
Food for thoughts again and again

When using a weekly Time unit it is best (more operative) and logical to use a multiple or a sub-harmonic of 52 - 26 / 13 / 6,5, / 3,25 etc - then the "Square of 52" of Gann

Time and Price are not of the same nature - Time never goes backwards always forwards -
  • #2,367
  • Jul 26, 2018 6:55am Jul 26, 2018 6:55am
Quoting parisboy
Food for thoughts again and again When using a weekly Time unit it is best (more operative) and logical to use a multiple or a sub-harmonic of 52 - 26 / 13 / 6,5, / 3,25 etc - then the "Square of 52" of Gann Time and Price are not of the same nature - Time never goes backwards always forwards -
Parisboy I have never used Tradeview so know nothing about it, would it be possible to set a grid up as you have explained (Gbp-Usd Daily) but leave you envelopes off and if i can understand it i just might give the platform a closer look ?
Thanks
Dave
  • #2,368
  • Jul 26, 2018 7:43am Jul 26, 2018 7:43am
GBPUSD [D1: MT5] Update

Decided to close out 1 long position on the GU pair.

Net profit @ US$ 11.32 (after accounting for the negative swap and commission).

~ +1% gain
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 8 KB

Current Account:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 41 KB

Note: Took an opportunity to close out 1 trade on GU at the 1.32 handle to firstly take some profit and keep the monthly gain ticking over, secondly to offset some 'annoying' accumulating negative swap and thirdly just in case the pair decides to drop down retest the 1.30 handle again.

Masterrmind............
Master your Mind then Master your Trades
  • #2,369
  • Jul 26, 2018 7:46am Jul 26, 2018 7:46am
Quoting OAPDave
{quote} Parisboy I have never used Tradeview so know nothing about it, would it be possible to set a grid up as you have explained (Gbp-Usd Daily) but leave you envelopes off and if i can understand it i just might give the platform a closer look ? Thanks Dave

Here a built in " Gannbox " in TradingView

the Envelopes I built myself as a personal "template" of my own based on existing tools I modified a little
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD OAPDAVE GANNBOX.png Size: 284 KB
  • #2,370
  • Jul 26, 2018 8:23am Jul 26, 2018 8:23am
Quoting OAPDave
Time & Price ? {image}
I can see no reason why a complete Trading Frame could not be coded such that everything is included!

Only need some time !

Masterrmind..............
Master your Mind then Master your Trades
  • #2,371
  • Jul 26, 2018 8:34am Jul 26, 2018 8:34am
Quoting OAPDave
{quote} Parisboy I have never used Tradeview so know nothing about it, would it be possible to set a grid up as you have explained (Gbp-Usd Daily) but leave you envelopes off and if i can understand it i just might give the platform a closer look ? Thanks Dave
Dave, you will find a lot of built-in tools you can play with
Attached Image (click to enlarge)
Click to Enlarge Name: TRADINGVIEW BUILT-IN TOOLS.png Size: 52 KB
  • #2,372
  • Jul 26, 2018 8:37am Jul 26, 2018 8:37am
Quoting Masterrmind
{quote} I can see no reason why a complete Trading Frame could not be coded such that everything is included! Only need some time ! Masterrmind..............
Well you are the man for that, as said many times i struggle to spell my own name, so that stuff is way beyond me
  • #2,373
  • Jul 26, 2018 8:40am Jul 26, 2018 8:40am
Quoting parisboy
{quote} Dave, you will find a lot of built-in tools you can play with {image}
It seems well worth a look, 1 last favour please, screenshot of a Daily Gbp-Usd for a year similar to Murrey 256
Attached Image (click to enlarge)
Click to Enlarge Name: GU 256.jpg Size: 624 KB
  • #2,374
  • Edited 9:03am Jul 26, 2018 8:48am | Edited 9:03am
Dave

the mathematics developped in the article I read are surely above my pay grade.

Anyway I think I have understood the general idea : numbers are not equals or some numbers are more equal than others.

for example :

you can reach 49 only by doing 7 x 7 = 1 occurence

but 32 = 5 occurences

32 x 1
16 x 2
8 x 4
4 x 8
2 x 16
Attached Image (click to enlarge)
Click to Enlarge Name: STRENGTH OF HARMONIC NUMBERS 0-100.png Size: 8 KB
  • #2,375
  • Jul 26, 2018 8:50am Jul 26, 2018 8:50am
Quoting OAPDave
{quote} It seems well worth a look, 1 last favour please, screenshot of a Daily Gbp-Usd for a year similar to Murrey 256 {image}

a 1 Year (for TradingView) screenshot with a "Gannbox"
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD OAPDAVE GANNBOX. 1 YEAR.png Size: 127 KB
  • #2,376
  • Jul 26, 2018 8:58am Jul 26, 2018 8:58am
Quoting OAPDave
{quote} Ok here are my thoughts, Murrey gives us trade-frames of 256 128 64 32 16 8 4 and also time based in dates to square the Octave to both Time and Price, I have enclosed screenshots of all these, now by scanning all these we can see both the bigger and smaller picture and also were each octave sits in relation with each other, we can form a view based on were the 16 sits within the 64 which sits within the 256, giving us a time and price view, in a way very similar to our friend Parisboy use of waves in his case 256 128 32, Now when you see...
Thanks for a great post OAPDave !

Makes good sense to run a few charts together and apply them in tandem.

"tried doing them with the mt4 cycle finder but it does not work correct .... "
Do you know why it fails in MT4 ?

The ranges being added in might need a comprehensive response especially in regards to which ranges.

For example, trading a 4 day chart are you considering simply a 'current' 4 day range, and based on your entry level are you projecting a possible target that somehow falls within an average 4 day trading range ?

Say a 4 day Range (not including current bar):

High @ 1.32008
Low @ 1.29950

4 day range ~205.8 pips as for the GU pair.

How would you run your trade setup based on Entry level, SL level and target pips remaining in 4 day range ?

An example chart would be very welcome.

The following chart shows a simple trend line approach that was only 1 of the reasons why I decided to close 1 trade out.

Ofcourse there is plenty going on in the GU pair at the moment so why not grab a little profit while I can !
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 25 KB

Masterrmind.............
Master your Mind then Master your Trades
  • #2,377
  • Jul 26, 2018 9:14am Jul 26, 2018 9:14am
Quoting Masterrmind
{quote} Thanks for a great post OAPDave ! Makes good sense to run a few charts together and apply them in tandem. "tried doing them with the mt4 cycle finder but it does not work correct .... " Do you know why it fails in MT4 ? The ranges being added in might need a comprehensive response especially in regards to which ranges. For example, trading a 4 day chart are you considering simply a 'current' 4 day range, and based on your entry level are you projecting a possible target that somehow falls within an average 4 day trading range ? Say a 4 day...
My Murrey gives me a 8/8th 1.3428 and 0/8th 1.2939 as we are in a downtrend on bigger time-frames, we have at least an idea we could bounce at 1.2939 because of confluence of time frames now if we take the buy we are counter trend trading so we need to take care at every level, with the pipe being the main cause of concern
Attached Image (click to enlarge)
Click to Enlarge Name: GU4.jpg Size: 562 KB
  • #2,378
  • Jul 26, 2018 9:15am Jul 26, 2018 9:15am
Quoting Masterrmind
{quote} Thanks for a great post OAPDave ! Makes good sense to run a few charts together and apply them in tandem. "tried doing them with the mt4 cycle finder but it does not work correct .... " Do you know why it fails in MT4 ? The ranges being added in might need a comprehensive response especially in regards to which ranges. For example, trading a 4 day chart are you considering simply a 'current' 4 day range, and based on your entry level are you projecting a possible target that somehow falls within an average 4 day trading range ? Say a 4 day...
Ofcourse now one could simply start from the next previous bar and determine the range over 4 days (simply a shift of 1 bar back in time).

This could then be continued over say 100 sets of 4 day bars comprising a constant 1 bar shift and then an average '4 day range' determined.

I'd be interested to know which 4 day range you consider or if you simply just consider the most recent 4 day range and use it.

Note: I am using a D1 charts data for the example ranges but it would mimic a single 4 day bar.

Masterrmind............
Master your Mind then Master your Trades
  • #2,379
  • Jul 26, 2018 9:43am Jul 26, 2018 9:43am
Quoting OAPDave
{quote} My Murrey gives me a 8/8th 1.3428 and 0/8th 1.2939 as we are in a downtrend on bigger time-frames, we have at least an idea we could bounce at 1.2939 because of confluence of time frames now if we take the buy we are counter trend trading so we need to take care at every level, with the pipe being the main cause of concern {image}
Yes certainly possible with the PA currently developing on the GU pair which is a nice pullback from about the 1.32 handle.

As I type this GU is trading at 1.31295.

If the pipe on your chart is an area of concern then its easy to see that you would probably not be interested in any entry at current levels (unless you were confident that PA would remain within the 3/8 to 5/8 pipe and you planned to trade this inner range) and if you were trading a longer term setup then your 'potential' entry might coincide somewhere closer to the 1.29390 level.

As per Murrey, this is sound trading judgement and especially the fact that we are indeed in a major longer term down trend so care certainly must be exercised.

A trade entry criteria for the Quad Candle System is to wait for a possible bounce in the OS zone and wait for a bullish Quad Pattern to form.

However, an MML long entry can be taken from within this OS zone if preferred which means that an earlier entry is actioned which might seek to reduce the number of lost pips on a favorable run up the chart although at a perceived higher potential risk because no 2 day bullish candle pattern has formed.

The main function of the bullish Quad pattern is to give a little reassurance that a possible down trend is possibly running out of steam and therefore a possible opportunity exists to make an entry against the longer term trend applying somwhat of a minimal risk approach (Reward to Risk much greater than 1 to 1 more like 3 or 4 to 1).

The risk ofcourse is that price is only making a small pullback and will continue down the chart as a pullback and continuation.

We know this and this is why we apply an appropriate level of risk to our trade entries since it is imposssible to win every trade we take.

There will be some winners and there will be some losers.

The idea is to manage the trade setup such that a favorable longer term setup yields many times the gain in Equity that a losing setup might produce.

Note: If GU price drops down below the 1.30 handle I will simply apply a Buy Stop order at the 1.30 handle.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,380
  • Jul 26, 2018 10:01am Jul 26, 2018 10:01am
@ OAPDave & @ parisboy

Some very good discussions being developed here.

Really good to see it.

Time to retire for the day so I'll be back again tomorrow.

Good trading,

Masterrmind.............
Master your Mind then Master your Trades
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