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Quad Candle System

  • #2,401
  • Edited 10:15am Aug 1, 2018 9:55am | Edited 10:15am
Quoting Masterrmind
{quote} One could select a symbol that is trading at a certain number of standard deviations (SD's) away from the mean of a pre-defined trading range. Trading back to the mean (4/8 MML central pivot) of a predefined trading range (MML Trading Frame) in much the same way as mean reversion. Reward to Risk is good from these outer boundaries or SD's (OB or OS zones). Focus on the symbols that typically (or are now) exhibit a mean reverting tendency. Masterrmind............
Masterrmind

it could be interesting and operatively useful to understand how Tradingview and/or a different platform elaborate its scaling
Attached Image (click to enlarge)
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  • #2,402
  • Aug 1, 2018 2:12pm Aug 1, 2018 2:12pm
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD TRADING VIEW SCALLING 1 YEAR 1 AOUT 2018. SRL.png Size: 250 KB
  • #2,403
  • Aug 1, 2018 8:57pm Aug 1, 2018 8:57pm
Quoting parisboy
{quote} Masterrmind it could be interesting and operatively useful to understand how Tradingview and/or a different platform elaborate its scaling {image}
Trading View certainly contains plenty of useful drawing tools.

It is certainly adequate for many charting activities.

But there are far superior platforms out there provided budget is not an option !

Traders are free to post charts to this thread using:

TradingView, MT4, MT5, JForex, Ninja Trader, cTrader, eSignal, Trade Navigator, AgenaTrader, Sierra, SmartQuant (if you have the depth of capital).

Plenty more out there but as always the drawing qualities may have nothing whatsoever to do with the brokerage trading conditions.

For example, I trade mostly with Interactive Brokers because of access to regulated worldwide exchanges consisting of tens of thousands of stocks, options, bonds, futures etc and very low commisions and the fact IB is run for professional traders by a professional team.

However, IB is in no way a high quality drawing platform ... not in the slightest.
Attached Image (click to enlarge)
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In fact I would argue that it is rather dated, chunky type platform especially in as far as technical analysis drawing is concerned.

However, from a fundamental trading view point it is very highly rated, multiple economic data feeds all customisable to your own desires or related to your portfolio, direct access to Bloomberg and Reuters news feeds and multiple other subscription feeds.
Attached Image (click to enlarge)
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The majority of my trading is via fundamental bias with a technical entry (subject to instrument), simple as that in words anyway.

I use other platforms for the technical analysis part and make the trade entries in the IB terminal.

Would I like to be able to do both technical and fundamental from IB platform to my standard of charting needs .. absolutely I would !

Bottom line though is that I'm very satisfied trading with IB as a professional trading environment and the favorable cost of doing business.

Note: Traders must perform their own due diligence and weigh up the pros and cons of a given trading platform/broker that best fits their needs.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,404
  • Aug 2, 2018 12:24am Aug 2, 2018 12:24am
EURCAD [D1; stopped out]

Loss trade

-3.2%
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 36 KB

Long entry has now been stopped out at the 1.51500 level.

Certainly was posssible to place a deeper SL under support line shown in magenta on the attached chart.

However, considering that the risk was already just over 3% on this long trade the stop was left in place.

There are a few pending orders in place but with the negative swap issue I may look at deleting them in search for a more favorable pair to trade.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,405
  • Aug 2, 2018 12:38am Aug 2, 2018 12:38am
GBPUSD [D1; Update]

2 positions currently active but underwater at the moment.
Attached Image (click to enlarge)
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Floating loss currently close to 5% (on Balance).

Negative swap also accumulating on this pair for the long entries.

At this stage I'll keep the GU setup active but will monitor progress.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,406
  • Aug 2, 2018 6:52am Aug 2, 2018 6:52am
Quoting Masterrmind
{quote} One could select a symbol that is trading at a certain number of standard deviations (SD's) away from the mean of a pre-defined trading range. Trading back to the mean (4/8 MML central pivot) of a predefined trading range (MML Trading Frame) in much the same way as mean reversion. Reward to Risk is good from these outer boundaries or SD's (OB or OS zones). Focus on the symbols that typically (or are now) exhibit a mean reverting tendency. Masterrmind............
All symbols exhibit a mean reverting tendancy
Attached Image (click to enlarge)
Click to Enlarge Name: DAX RETURN TO THE MEAN 12 AOUT 2018.png Size: 235 KB
  • #2,407
  • Aug 2, 2018 7:04am Aug 2, 2018 7:04am
Quoting parisboy
{quote} All symbols exhibit a mean reverting tendancy {image}
Certainly they do however, the idea is to select the most favorable ones to trade not just any pair.

Masterrmind................
Master your Mind then Master your Trades
  • #2,408
  • Aug 2, 2018 7:42am Aug 2, 2018 7:42am
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD RETURN TO THE MEAN MMC 32 1 YEAR 2 AOUT 2018.png Size: 157 KB
  • #2,409
  • Aug 2, 2018 7:57am Aug 2, 2018 7:57am
Attached Image (click to enlarge)
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  • #2,410
  • Aug 2, 2018 8:09am Aug 2, 2018 8:09am
Attached Image (click to enlarge)
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  • #2,411
  • Aug 2, 2018 8:34am Aug 2, 2018 8:34am
Quoting parisboy
{image}
Pick one that closely matches up to simple harmonic motion.

Just don't get bitten !

ps. Confluence !

Masterrmind.............
Master your Mind then Master your Trades
  • #2,412
  • Aug 2, 2018 8:36am Aug 2, 2018 8:36am
GBPUSD [D1]

Long entry added in at close to the 1.30500 level.

Masterrmind...........
Master your Mind then Master your Trades
  • #2,413
  • Edited 5:06pm Aug 2, 2018 8:45am | Edited 5:06pm
You can use it on whatever Time unit you choose

The "return to the mean" is linked to the Center of Gravity of Price Action and of the Fractal of Price

it is also linked with the doubling or halving of the price Action Amplitude (octave / vibration at work in price)

The fact that Price tends to fluctuate between the Lower and Upper Limits of the Envelopes derives from a very simple phenomenon.

Basically any given price pulse has a very limited ability to diverge from the trend of the adjacent price pulse of a higher degree

Divergence is limited as for the direction and as for the amplitude which very rarely exceeds the amplitude of the observed Envelope , amplitude which itself is an harmonic of the Octave

Consequently, the lower order price pulse is forced to centre itself on the trend of the higher order pulse, and divergences above this trend will be approximatively equal to divergences below it
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD RETURN TO THE MEAN MMC 256 5 DAYS 2 AOUT 2018.png Size: 162 KB
  • #2,414
  • Aug 2, 2018 11:00pm Aug 2, 2018 11:00pm
Quoting parisboy
You can use it on whatever Time unit you choose The "return to the mean" is linked to the Center of Gravity of Price Action and of the Fractal of Price it is also linked with the doubling or halving of the price Action Amplitude (octave / vibration at work in price) The fact that Price tends to fluctuate between the Lower and Upper Limits of the Envelopes derives from a very simple phenomenon. Basically any given price pulse has a very limited ability to diverge from the trend of the adjacent price pulse of a higher degree Divergence is limited...
Care must be exercised in any MA related entry.

I have annotated your chart with an extreme case example of trading 'blindly' based on an MA cross.
Attached Image (click to enlarge)
Click to Enlarge Name: Mean-Reversion.png Size: 171 KB

Enter long as price cuts the lower MA.
Exit as price cuts the higher MA.

Ofcourse other trade entry/exit logic could be applied here such as exit at the mean (which in this example would have resulted in a loss).

Notice the significant DD on this trade !

Notice the horrendous Reward to Risk ratio from this setup !

Now shoot off to the far right end of the chart, price is again crossing the lower MA so based on the trade entry logic a trader would be ready to go long if not already in a long trade.

Potentially a disastrous trade awaits the unsuspecting novice trader.

Price decides to continue down to the 1.10 handle on the EURUSD and DD once again is significant.

This is just 1 simple example why I suggest to traders to never use MA's as a sole trigger , they will get you killed in trading.

Far better to search for a confluent set of trading factors that support a higher Reward to Risk outcome.

The only reason I would suggest having a MA on your chart is to "see" what other traders might be looking at on the charts.
For example, a 50 SMA, 100 SMA or 200 SMA on an H4 or D1 chart simply to show areas that the herd might be watching.

Note: I'm not suggesting that you personally trade this way, as I know you apply an FLD trigger etc but I had to outline an example so that traders less familiar at least see both sides of the MA approach.

I recommend that traders do not use MA's as a trigger for any entry in any trade setup !

Masterrmind...............
Master your Mind then Master your Trades
  • #2,415
  • Edited 3:34am Aug 3, 2018 3:10am | Edited 3:34am
May be some confluence ?
Attached Image(s) (click to enlarge)
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  • #2,416
  • Aug 3, 2018 4:44am Aug 3, 2018 4:44am
Based on a MM 256
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: GBPUSDSBDaily2.png Size: 84 KB
  • #2,417
  • Aug 3, 2018 7:14am Aug 3, 2018 7:14am
Quoting OAPDave
May be some confluence ? {image} {image} {image} {image} {image}
Using different MMLs is one way to start adding confluence.

Masterrmind.........
Master your Mind then Master your Trades
  • #2,418
  • Aug 3, 2018 10:41am Aug 3, 2018 10:41am
If you link 2 Tops of the same nature you draw what Jim Hurst call a Descending Valid Trend Line (VTL) - the yellow line on the graph

The 2 Tops are labelled T 21 and T 22 - 2 because Price Action has broken the first 2 adjacent Envelopes

As long as GBPUSD Price Action fluctuates UNDER the Descending Valid Trend Line in the red area then the Trend is DOWN and all upmoves can be classified as uptrending Corrections within a Downtrend

When Price Action breaks the Descending Valid Trend Line in yellow, it generates an Action Signal

If Price action then fluctuates above the yellow Descending Valid Trend Line in the green area you can now define the corrective move between the last low noted L 25 as a Directional Change and assume a Long Entry
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD OAPDAVE VTL 3 AOUT 2018.png Size: 98 KB
  • #2,419
  • Aug 3, 2018 11:02am Aug 3, 2018 11:02am
Quoting parisboy
If you link 2 Tops of the same nature you draw what Jim Hurst call a Descending Valid Trend Line (VTL) - the yellow line on the graph The 2 Tops are labelled T 21 and T 22 - 2 because Price Action has broken the first 2 adjacent Envelopes As long as GBPUSD Price Action fluctuates UNDER the Descending Valid Trend Line in the red area then the Trend is DOWN and all upmoves can be classified as uptrending Corrections within a Downtrend When Price Action breaks the Descending Valid Trend Line in yellow, it generates an Action Signal If Price action...
So I could scalp off this ?
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: GBPUSDSBM1b.png Size: 99 KB
  • #2,420
  • Aug 3, 2018 11:39am Aug 3, 2018 11:39am
Masterrmind

the aim of this chart was NOT to be a tool for Trading - at least directly

This chart primarily shows the observer that :

a) Price Action is (roughly) in a Cyclic Mode
b) Price Action returns regularly to the mean - here the Centered Moving Average 256 Time units
c) that Price Action Areas above (in green) and under(in red) the Centered Moving Average 256 Time Units are more or less equivalents which IMHO explains why Backtest results are on the long run mediocre with substantial drawdowns
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD RETURN TO THE MEAN MMC 256 5 DAYS 2 AOUT 2018 MASTERRMIND.png Size: 162 KB
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