Quad Candle System | Page 131 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

How to make EA that send Open Price of Candle for every new candle 5 replies

Day's first H4 candle correlation to daily candle 14 replies

Correlation between first 4 hour candle and daily candle 1 reply

quad core multiple CPU's, multiple MT4 sessions, Virtual Machine 53 replies

Attachments: Quad Candle System
Exit Attachments

Quad Candle System

  • #2,601
  • Oct 20, 2018 12:44am Oct 20, 2018 12:44am
Quoting Masterrmind
{quote} This setup was not a Quad pattern. Note that entries may be taken that are Quad patterns or MML or a combination of both. The XAUEUR short was an MML setup attempting to get into the pair from near the 8/8 MML level and trade it down to the 4/8 MML zone. Please refer to the screenshot for a general guide as to the technical considerations. {image} 1. Resistance zone; 2. 8/8 MML; 3. Harmonic 1 to 1 completion near entry level; 4. Stops just above the 127.2 Fib Expansion level (since price does not usually reverse on a dime, it takes time...
XAUEUR [D1]

After Weekly close what do we observe ?
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 25 KB

1. Price pushed up to just above the 127.2 exhaustion zone and then made a hasty retreat to the downside on the same D1 bar;
2. Same volume as 1st entry was applied to the higher priced Sell Stop which has now triggered and progressed well;
3. If price pulls against you do not be tempted to apply higher lot position (since the market has already started to show that you might be wrong);
4. If price moves in your favored direction then you might be right and therefore increasing volume carefully on consecutive entries is ok;
5. If price continues to drop we can expect price to reach a 61.8 Fib pullback of the whole AD move;
6. However, obstacles litter the chart so we need to manage the trade as price unfolds and starts to reveal more about its intentions; and
7. Continue to manage the risk, protect capital and look for opportunities to accelerate account growth in a reasonable and realistic manner.

Please note that we are not close to being out of trouble just yet and need to keep monitoring this setup especially on market commencement next week when a gapping issue is always possible.

You will notice perhaps (if trade entry details were viewed) that my initial stops were well placed at 175.50 and did not require any adjustment to avoid a stop out as price moved higher up the chart and against my position.

However, being the end of the week and not yet completely out of trouble I decided to push the stops out to the +2/8 MML price line to give my entries just a little more breathing space should a non-favorable weekend gap occur.

All well within risk tolerance levels.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,602
  • Oct 20, 2018 12:57am Oct 20, 2018 12:57am
Thank you for the clarification. My wonder was when you announced the trade since what I saw was:

1) price on daily showed bullish signs even though it was in the 8/8 - +2/8 area. The Fib 50 was also in front of the price
2) on weekly the 4/8 area is also a resistance but there was also a bullish quad on the weekly
3) the bar on monthly is currently bullish plus it somewhat shows a rejection above the 4/8 area?

Plus in all charts the price bars were bullish not showing exhaustion, except some strong resistance in front of it. Only the AB-CD pattern suggested completion but we should consider confluence with only the harmonics and some strong resistance in front of the price ( not knowing how it would react ? )

Now things seem to unfold as you instructed and the resistances will hold, but boy you got some supernatural powers in predicting the price movement
I was only thinking the price would go higher
Forex - It's finger lickin' good
  • #2,603
  • Oct 20, 2018 1:44am Oct 20, 2018 1:44am
I just noticed this post part, for the entry reasons. I checked the post on my phone and don't know why it didn't show. Now everything is clear.

1. Resistance zone;
2. 8/8 MML;
3. Harmonic 1 to 1 completion near entry level;
4. Stops just above the 127.2 Fib Expansion level (since price does not usually reverse on a dime, it takes time to lose momentum);
5. Target zone falls just within the 61.8 pullback of the entire AD leg (since price has pushed up higher some adjustments are in order);
6. Low risk applied in case I am wrong (about 1% only).

I have now moved the stop of Entry 1 up to the +2/8 MML (1078.13) area where it shall remain so risk is now slightly higher than 1% at 1.3%.

I have also added in a Sell Stop order at the MML level just below current price such that a drop would increase the final gain on this cycle.

At worst if I am wrong the account takes about a 1.3% hit.

Note that the fundamental considerations should also be addressed.
Forex - It's finger lickin' good
  • #2,604
  • Oct 20, 2018 2:23am Oct 20, 2018 2:23am
Quoting pipsandkfc
Thank you for the clarification. My wonder was when you announced the trade since what I saw was: 1) price on daily showed bullish signs even though it was in the 8/8 - +2/8 area. The Fib 50 was also in front of the price 2) on weekly the 4/8 area is also a resistance but there was also a bullish quad on the weekly 3) the bar on monthly is currently bullish plus it somewhat shows a rejection above the 4/8 area? Plus in all charts the price bars were bullish not showing exhaustion, except some strong resistance in front of it. Only the AB-CD pattern...
What goes up must eventually come down right ?

Well maybe yes or maybe no ... it all depends on the fire within the markets belly.

Remember that we are trading the D1 TF and setups belonging to them so don't get too carried away with the Weekly Quad patterns.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 29 KB

I really don't use them in this strategy.

But certainly being aware of confluent price levels is very important and I certainly use them alot in my trade setups.

For example, use a general weekly level where price has reversed off it, hesitated and then followed on through or closed higher only to reverse the following week.

Depending on the situation a D1 setup might look well out of sync on a W1 TF and if so then make a decision to ignore the information or to simply rely on it and pass the setup at this time.

Rarely is a setup 100% clear cut so a trader will need to apply some discretion.

I simply apply a probabalistic approach where I'm looking for 'most' of the factors to be confluent in nature.

Although sometimes I do rank each factor according to my interpretation of importance to the current setup on the current chart at the current time.

Some are very easy such as if price is above the upper extreme zone or below the lower extreme zone I'll pass on the trade and then re-visit the setup once the MML Grid has reset and PA has started to show me more information.

We can never be sure of what reaction will unfold at a given level but we do have experience on our side so we know what typically occurs under certain conditions in the market and we can apply an appropriate stop that fits within our risk profile and also allows the trade plenty of breathing space.

Sometimes price will carry on through your stop and provided you have assigned a realistic and reasonable risk per trade then the loss should not worry you at all because you know the system is solid, you know the RR is solid, you know the stops are placed correctly and you know that over the longer term you will have more winners than losers so you know your account stands a very high chance of surviving long term.

You just have to get some experience in and then it will all be rather straight forward ... most of the time.

Accepting losers is one thing but you need to make sure that you analyze each of your failed setups seeking out logical reasons for the loss and if there is anything you could have done better that you are now aware of and can put straight to use in a setup in the future that is a similar type setup.

If you made a silly mistake, and many traders do at times, note it down, post it to this thread and ask for commentary.

I am always available to post constructive criticism regarding any traders setups that were either winners or losers.

ps. Keep an open mind and understand that price can just as easily continue up the chart as it can reverse down it or change directions at will.

Masterrmind..............
Master your Mind then Master your Trades
  • #2,605
  • Oct 20, 2018 6:20am Oct 20, 2018 6:20am
Hi Mastermind,

I am sorry when I intrude in your blog but I have a question. In post 2393 you had a discussion with SIMNZ about an indicator that can calculate the BE and stop out level if multiple entries were taken. So basically a planning tool . I have been searching for such an indicator my entire time but could not find one. Were you able to manage or even create one? If you have it would be a godsend for me

Thanks

Invictus
  • #2,606
  • Oct 21, 2018 2:04am Oct 21, 2018 2:04am
Quoting Invictus2000
Hi Mastermind, I am sorry when I intrude in your blog but I have a question. In post 2393 you had a discussion with SIMNZ about an indicator that can calculate the BE and stop out level if multiple entries were taken. So basically a planning tool . I have been searching for such an indicator my entire time but could not find one. Were you able to manage or even create one? If you have it would be a godsend for me Thanks Invictus
No not a multiple currency planning tool in MT4.

I'm assuming you are referring to a tool that can display lines and values for multiple trades such as in the case of an active Grid setup with varying lot sizes over multiple entries that shows the price level at which BE currently occurs as a floating (updating) line on any given currency pair or instrument where trades are currently active and has the functionality to display data for any given symbols or indeed over the entire account.

Simple enough to code but too tied up in other projects at the current time.

In any case my preference favors MT5 tools.

Masterrmind............
Master your Mind then Master your Trades
  • #2,607
  • Oct 21, 2018 3:20am Oct 21, 2018 3:20am
Hi Mastermind,

yes a tool that basically is as followed

It should give me the ability to highlight before I place a trade where my stop out point and Break Even point would be. So basically -taking into consideration risk percent or (dollar amount),different pip values per pair and position size - to serve the following planning process/thought process.

Thought process: If I placed a trade (number 1) with x position size here > where would be my stop out point?
If I placed another trade (same currency pair) ( trade number 2) with x position size here > where would now be my stop out point? Where would be
my average entry price etc etc etc.......up to say 10 trades.

I have an indicator for MT4 that shows me all this when a trade is placed but not beforehand for the planning process. Not sure if you had planned to so something like this for the future? I am not a programmer so I am basically at the mercy of people who are good in that and have the same thought process but as you know our kind of trading is not something that common

Cheers

Invictus
  • #2,608
  • Oct 21, 2018 12:41pm Oct 21, 2018 12:41pm
I've taken a few more trades based on price action/MML/quads and I think my biggest issue comes from the lack of appreciation related to stop loss/take profit areas. And I don't know why but most of the times I'm not imagining price could go higher than 1:1, don't know why I hope in time it'll vanish and will be able to achieve, at least mentally if not in trading 3 or even 4 to 1 R:R.

My current trade is: EUR/GBP buy 0.87801 with an updated stop loss at 0.87820 and take profit at 0.88800

On the daily chart, the quad was formed in a good zone extreme MML showing rejection. To be honest I didn't enter immediately on the next daily bar as you advise but waited for a little for the pinbar on the weekly to get a complete shape. The AB-CD pattern showed completion in the same area and it was also a support area.

On the weekly chart the pinbar formed in good MML zone along with support area ( red line )

On the monthly chart it's an opposing quad ( for sale ) but as you advised we shouldn't consider greatly this as we got enough space for the price to move on the chart. Still, the price is in a good MML and previously it showed a good rejection from the same support area.

As always I'm not sure about stop loss and take profit. I think that moving SL, in this case, won't give it breathing space enough. And as far TP is concerned, I really have no ideea, it just looked plausible on the chart.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Chart_EUR_GBP_Daily_snapshot.png Size: 26 KB
Click to Enlarge Name: Chart_EUR_GBP_Monthly_snapshot.png Size: 18 KB
Click to Enlarge Name: Chart_EUR_GBP_Weekly_snapshot.png Size: 16 KB
Forex - It's finger lickin' good
  • #2,609
  • Oct 22, 2018 3:15am Oct 22, 2018 3:15am
Quoting pipsandkfc
I've taken a few more trades based on price action/MML/quads and I think my biggest issue comes from the lack of appreciation related to stop loss/take profit areas. And I don't know why but most of the times I'm not imagining price could go higher than 1:1, don't know why I hope in time it'll vanish and will be able to achieve, at least mentally if not in trading 3 or even 4 to 1 R:R. My current trade is: EUR/GBP buy 0.87801 with an updated stop loss at 0.87820 and take profit at 0.88800 On the daily chart, the quad was formed in a good...
It does take a little bit of time to get used to allowing trades to play out, humans are far too keen on getting a 'quick buck' and moving on.

In fact the majority of traders are very impatient about most of what they do and this can lead to issues with being able to trade longer term .

Ofcourse we know only too well that some trade outcomes can produce better gains had they been closed out sooner whilst others produce better results had they been allowed to run on.

The idea should always be to manage your positions very well and attempt to target a higher pip realistic gain.

This is not as simple in practise as it is in words.

Fact is you never know if you made the 'best' decision until after the trade has been closed out and a large number of bars have proven you right.

One way to overcome the higher RR pip dilemma is to open trades with very small lot sizing with respect to Equity.
Just throw in a few very small entries and allow them to run their course with say at least 2 to 1 RR.
Ensure that trade entries are valid though and follow the QCS guidelines.

This exercise will teach you to monitor your trades but not get too fixated on wanting to close them out too soon for profit partially because the profit will be relatively small since you are using small lot sizes.

You will need to manage the trades though and try and avoid any unnecessary stop outs (use a loose trailing stop such as trail 1 octive after price has moved at least 1 octive).

On a 3 RR setup only trail 1 octive gap after price has moved favorably say 2 octives (price moves +2 octives you move SL to BE+ a few pips).

EURGBP a slow mover for the most part but perhaps more manageable.

A nice set of charts and great post.

Lets see how the collection of pips unfolds.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,610
  • Oct 22, 2018 3:22am Oct 22, 2018 3:22am
XAUEUR [D1; Update]
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 25 KB

Initial DD from entry 1 all but over as price slowly moves down the chart and entry 2 powers ahead.

A little cautious though as its only the first trading day of the week so I'll be keen to see how the shorts pan out over the next few days.

Notice the pullback against entry 1 of a little more than an octive gap ... reason enough to play these entries using 1.5 to 2 octives as initial SL.

Notice the PA (far leftside) once price entered into the pipe zone it ranged for multiple days although what I'm more interested in is perhaps taking profit around the 1040 area.

Why would I be interested in the 1040 zone ?

Masterrmind............
Master your Mind then Master your Trades
  • #2,611
  • Oct 22, 2018 4:11am Oct 22, 2018 4:11am
The following QuadCandleDashboard indicator will be finished off soon in the MT4 version.
Attached Image

But I'll then code it up in MT5 and any future improvements or updates will only be in mql5 code.

The MT4 version will only be updated such that it continues to function correctly (ie it works) in whatever updates MetaQuotes is likely to throw at us.

This was meant to be completed a long time ago but never got to finishing it off and I think it will be very useful in finding potential setups rather quickly.

The current MT4 version displays about 36 Symbols but double this number could fill the screen.

ps. Most likely only the MT5 version will show all symbols.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,612
  • Oct 22, 2018 4:27am Oct 22, 2018 4:27am
Quoting Masterrmind
{quote} It does take a little bit of time to get used to allowing trades to play out, humans are far too keen on getting a 'quick buck' and moving on. In fact the majority of traders are very impatient about most of what they do and this can lead to issues with being able to trade longer term . Ofcourse we know only too well that some trade outcomes can produce better gains had they been closed out sooner whilst others produce better results had they been allowed to run on. The idea should always be to manage your positions very well and attempt...
Thank you again for your input. I've analyzed the situation and it's not bothering me if I win or lose as I accepted the loss and it's according to the plan. It's bothering me knowing that I have a trade open as I feel obliged to watch it and I do this maybe 1-2 times an hour and it breaks focus on my daily activities. Now that I identified the issue I must work it out.

The octave trailing solution is great, I'll do my best to implement it and try to only view 1 time a day at candle close the charts and evolution.
Forex - It's finger lickin' good
  • #2,613
  • Oct 22, 2018 4:31am Oct 22, 2018 4:31am
Quoting Masterrmind
XAUEUR [D1; Update] {image} Initial DD from entry 1 all but over as price slowly moves down the chart and entry 2 powers ahead. A little cautious though as its only the first trading day of the week so I'll be keen to see how the shorts pan out over the next few days. Notice the pullback against entry 1 of a little more than an octive gap ... reason enough to play these entries using 1.5 to 2 octives as initial SL. Notice the PA (far leftside) once price entered into the pipe zone it ranged for multiple days although what I'm more interested in...

The 1040 zone is targeted as it looks like a strong support but the 1046 area look as well so how is it possible to predict that it'll go through the 1046 area with ease and go to 1040? Also the final profit destination is the 4.8 MML? As you previously mentioned the 3/8 - 5/8 is usually a range and this is why you're planning to go to those levels? Meaning that once it's in the range area you don't worry to much about the price shooting back up and it increases chances to take your TP?
Forex - It's finger lickin' good
  • #2,614
  • Oct 22, 2018 4:34am Oct 22, 2018 4:34am
Quoting Masterrmind
The following QuadCandleDashboard indicator will be finished off soon in the MT4 version. {image} But I'll then code it up in MT5 and any future improvements or updates will only be in mql5 code. The MT4 version will only be updated such that it continues to function correctly (ie it works) in whatever updates MetaQuotes is likely to throw at us. This was meant to be completed a long time ago but never got to finishing it off and I think it will be very useful in finding potential setups rather quickly. The current MT4 version displays about 36...

Great job, would you mind please telling me how the indicator considers the trend? Is it actually by drawing the trendline on daily? As now the price sits just above it ( true it's not a definitive thing and it could be just a false breakout ) for the EUR.GBP pair
Forex - It's finger lickin' good
  • #2,615
  • Oct 22, 2018 8:20am Oct 22, 2018 8:20am
Quoting pipsandkfc
{quote} The 1040 zone is targeted as it looks like a strong support but the 1046 area look as well so how is it possible to predict that it'll go through the 1046 area with ease and go to 1040? Also the final profit destination is the 4.8 MML? As you previously mentioned the 3/8 - 5/8 is usually a range and this is why you're planning to go to those levels? Meaning that once it's in the range area you don't worry to much about the price shooting back up and it increases chances to take your TP?
Many things can happen between current price and the target at 4/8 MML.

There are many obstacles along the way that can form as difficult support levels to break through.

I do not know that price will run to 1040 without any issues, actually I am sure it will not.

This is why I always need to keep monitoring the trade entries so that adjustments if any can be made in a timely manner.

The timeliness is not so important as the assigned risk per trade since the market could move price against my positions whilst I'm not watching the charts and I'm ok with this because I have already allocated $X or y% as risk I am prepared to take.

Yes you are right about the 3/8to 5/8 pipe zone and this is the reason for at least observing how price reacts when it approaches the 5/8 MML.

Also take a look at chart structure it provides some areas worth watching as price approaches, if it does.

Price could also take off up the chart too !

Masterrmind.............
Master your Mind then Master your Trades
  • #2,616
  • Oct 22, 2018 8:33am Oct 22, 2018 8:33am
Quoting pipsandkfc
{quote} Great job, would you mind please telling me how the indicator considers the trend? Is it actually by drawing the trendline on daily? As now the price sits just above it ( true it's not a definitive thing and it could be just a false breakout ) for the EUR.GBP pair
I may remove the trend section as it can confuse traders.

Trend is highly discretionary and highly time dependent meaning one trader will read the trend differently from the next trader.

I suppose what I want to provide in terms of useable tools in this thread is clear cut tools with limited discretion involved.

Colors of previous D1 bars for example are clear cut, they can be bullish or they can be bearish and perhaps a Doji (neutral) and nothing else.
However, using different Broker data can lead to different colored bars too if D1 Open and D1 Close prices are very close but slightly different.

Anyway my guideline regarding this situation is to trade using the data provided by your broker or skip the setup if you feel the need to do so.

The false breakouts are another difficult PA to deal with and also highly time dependent.
Breakout on a bullish M1 bar is not the same as the breakout on a bullish D1 bar !

Masterrmind.............
Master your Mind then Master your Trades
  • #2,617
  • Oct 23, 2018 8:25am Oct 23, 2018 8:25am
Quoting Masterrmind
XAUEUR [D1; Update] {image} Initial DD from entry 1 all but over as price slowly moves down the chart and entry 2 powers ahead. A little cautious though as its only the first trading day of the week so I'll be keen to see how the shorts pan out over the next few days. Notice the pullback against entry 1 of a little more than an octive gap ... reason enough to play these entries using 1.5 to 2 octives as initial SL. Notice the PA (far leftside) once price entered into the pipe zone it ranged for multiple days although what I'm more interested in...
XAUEUR [D1; Update]
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 22 KB

Stops taken out on both shorts by an aggressive continuation up the chart.

~1.9% loss

Pending Sell Stops have now been deleted and a reassessment will be made before any further entries are made (if indeed they are).

Certainly will be considering other symbols.

Masterrmind..............
Master your Mind then Master your Trades
  • #2,618
  • Oct 24, 2018 10:48am Oct 24, 2018 10:48am
Masterrmind sorry about the loss. When the price goes overshoot MML we wait for it to go into the new extremes or we can consider shorting it at lower MML numbers?
Not sure if I'm saying it right so I'm going to post an example.

The trade you just took XAUEUR begins to look exhausted now but the price is in the 5/8 MML(previous +2/8 area) and not 8/8 as it should. Would you consider shorting it again from this place?
Forex - It's finger lickin' good
  • #2,619
  • Oct 25, 2018 8:44am Oct 25, 2018 8:44am
Quoting pipsandkfc
Masterrmind sorry about the loss. When the price goes overshoot MML we wait for it to go into the new extremes or we can consider shorting it at lower MML numbers? Not sure if I'm saying it right so I'm going to post an example. The trade you just took XAUEUR begins to look exhausted now but the price is in the 5/8 MML(previous +2/8 area) and not 8/8 as it should. Would you consider shorting it again from this place?
Best to reassess the whole setup from the beginning.

If the analysis justifies another short setup then a short setup can be made.

I'm only monitoring this symbol for the time being.

Losses are part of the business of trading longer term, or indeed trading in general but all well within risk tolerance so not even an issue.

Although taking a small loss this late in the month may well lead to a negative monthly return for the month of October.

Making a recovery is somewhat of a small challenge in itself, afterall another loss and I could be down 4-5% for the month.

I do like to generate positive month by month gains in Equity though so I will attempt another setup.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,620
  • Oct 25, 2018 8:57am Oct 25, 2018 8:57am
GBPJPY [M15; Short term long setup]
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 26 KB

Pending orders only applied meaning I will be looking for price to come my way otherwise no entries.

MML Grid entries all as current Buy Stops are now in place.

If price keeps running down the chart then so be it, no issue with this.

If price decides to reverse and turn up as it very often does on the GJ pair then I stand to make a nice gain over this short term setup noting that it is only over 3 Octives on a D1 Chart.

Question is how will this setup turn out and will I recover the current DD on the account considering the fact there are only 4 more trading days left in this month ?

So a full recovery of the DD in October is perhaps limited by time, longer term recovery is a different story altogether.

Masterrmind...............
Master your Mind then Master your Trades
2 traders viewing now