Empty Blank Chart

Excited for this one. Welcome back

Same structural anatomy of the idea applied to the same pair (EURAUD), but using the H4 Time Frame:



Same concept, bigger Time Frame, bigger RoR and bigger potential reward at the same time. You can take the idea and scale it up with Time Frame (D1, W1 MN1) as you wish. You can also scale this idea down in Time Frame to below M3 using M15, M5 and M1. However, be aware that those lower time Time Frames will typically have overlapping RoR Levels ("A" and "B" Range) in higher Time Frames that are adjacent.

So, here is the key for doing this right. Find as many RoR Levels "A" and "B" that are synchronized across as many adjacent Time Frames as possible. For example - A RoR structure that has the same "A" and "B" Levels for H1, M30 and M15 (as just one combination of TFs). Or, the same RoR structure having the exact same (synchronized) "A" and "B" Levels in H4, H1 and M30. That will provide more break out confirmation when the event comes.

The other key is (once again) making sure that there is sufficient Magnitude (Remaining unspent Range) in a larger Time Frame that has enough pips to provide the follow through necessary to generate a profit that suits your requirements.

Again, not rocket science. Just basic straight forward Internal Break Out with Momentum using Magnitude as the fuel for the trade. Any Newb Trader can do this, exercise and increase their patience (an absolute must for successful long term trading) and develop a much better understanding about WHY Magnitude is King among the four (4) fundamentals of Trading:

Timing
Direction
Magnitude
Probability

Good to see you Liquid.

As usual however, I'm "not back" - just a fly on the wall and making a short temporary visit with a little help for the Newbs.

This is a quality post covering lots of aspects of trading for nubes to learn from. Appropriate to link it here.

About RoR and magnitude, that's why I have it on the left corner, referencing how much Market Makers business left for the day.

Hi Jet, glad you started this thread. I read a whole bunch of what you wrote: Why Value, Yield Capacity, Time..so interesting, and valuable for me.
I noticed though people criticized you heavily in the past and for obvious reasons you quit for a while.
My advice, please ignore destructive comments, they will always show up, and they are such a waste of precious time. Sharing knowledge and wisdom are the traits of good people.
If others don´t like it, they should discuss fairly, learn,or simply move on.

Sorry, Newbs. In the last two concept posts I failed to mention the fact that you would want to (ideally) run this kind of trade with low spread pairs. When you start getting into the GBPAUD and GBPNZD type nose-bleed spread range - you really do need to pay attention to D1 Magnitude and make absolute sure you still have some quality unused volatility remaining for the trading session. Don't get me wrong - you can still do this with wider spread pairs, but you just need to have eyes wide open on available unused Magnitude at the higher Time Frame when you do.

Can the Newb get rich doing this?

Depends on how well perfect your entries and your exists and how well you mange available (remaining) larger TF Magnitude. You will have to work several hours, or build a scanner to locate the best set-ups and only take those RoR Ranges that your Lot Sizing and Money Management scheme can reasonably tolerate.

The point is that you can get "rich" doing a lot of different trading methods. There is no one way to skin the cat. The cat can be skinned in a number of different and rational ways in FX. It is the Data in FX as opposed to the Stock Market that makes this possible. The character and personality of FX data (among certain pairs - most all Majors and Exotics excluding those with absurdly wide continuous spreads) is what makes this particular method possible and something that (yes) can be optimized to net out a consistently profitable methodology. All with absolutely no Indicators on the chart. Difficult to believe but true nonetheless.

To make it work, the Newb will have to remain persistent even when some of the RoR breaks don't run to profit and the market reverses through the RoR to the opposite side. Having the courage to take that next trade becomes a test of your fortitude as a Trader. But, if you just remember that the Higher Time Frame Magnitude you've selected (this thread uses D1) still has sufficient gas in its tank to fuel enough of your RoR breaks into a condition where you can take profits, then you can push through and start doing this on a consistent basis.

Your next step will be to determine appropriate Targets after you've taken the RoR PEL or PES break.

Also keep in mind that inevitably when you do this, you will eventually run into the larger Time Frame's Highest High to Lowest Low move, or Lowest Low to Highest High move. Stop and think about what this is actually doing and you will see that it makes sense. Eventually, you have to run into the Primary Move of the larger Time Frame you used for Magnitude. In this case, the Primary D1 move of the day.

This predicated on the fact that all Price Deltas, those concepts I showed you in the TCD post, are physically connected to each other. If the Market is not extending the Long Delta, then by definition is must be extending the Short Delta. The Primary Delta or primary source of Magnitude for any given Time Frame, will be one or the other - which goes without saying.

If you can start thinking and behaving like a Delta Trader, then you will step into a world of trading that you never knew existed. And once you taste the power and freedom of Delta Based Trading, you won't want to go back.

This thread was not even the tip of the iceberg of what Delta Trading is all about. However, it does give you a glimpse into Delta Trading in a way that is easy to digest and easy to execute. In other words, it was the best that I can do as a hands-on primer for getting involved with Delta Trading concepts. I could have approached this a totally different way, but I felt that this would be something that New Traders could easily deploy immediately.

Just take a bare naked chart and a price line based on the Close Price and start hunting for RoR Ranges while combining as many of them as you can through adjacent Time Frames. Entering at the PEL or PES will automatically connect you to a Delta Trade. It won't be the most sophisticated or the most eloquent Delta Trade, nor will it be the most efficient of the most optimized Delta Trade. However, it will connect you to a Delta and you will experience better trades as a result (provided you follow the rules and use a large enough time frame for the RoR Levels).

Ok, that's it for me tonight. I'll drop by tomorrow.

Update

Which is extremely important information to know, no matter how you derive it. Good on you.

Thanks and will do, Cuchufilto.

Going back to Anatomy and Concept from last night before I called it a day and went to bed"

Post #42 shows the H4 RoR anatomy before EURAUD extended is downward momentum from 2/4/2020 to today (2/5/2020). That H4 RoR eventually turned into this:



A great example of why following process is important. 2/4/2020 D1 Magnitude was done on 2/4/2020. 2/5/2020 D1 Magnitude extended and the H4 RoR (A:B:stuck_out_tongue_winking_eye:ES) provided the kill shot using 2/5/2020 D1 Magnitude as the fuel for the move. Simple and straight forward.

As a side note. I realize that I did not get flat in this "simulation" from last night 2/4/2020 before going to bed. Of course, I hope that was common sense even for the Newb Trader. I do not "Hold" overnight positions while I'm asleep that are Naked and Exposed (uncovered). So, if that were a real trade, I get flat, take whatever profit or loss is on the table and then wait for my next trading day to re-engage the market on my terms.

Never hold a naked uncovered Directional position overnight in FX. Common sense, but I reviewed my posts from yesterday and realized that before going to sleep, I never posted a "Getting Flat" post. I should have done that. My bad. However, this is not a Trading Journal. This is a Trading Discussion on RoR Theory, Anatomy and Concept. Grasp the Concept first, the you can go out and experiment with it in a demo account.

Just for clarity sake.



A) No. I don't hold naked and exposed positions of any kind while sleeping at night (duh).
B) The M30 RoR entered on 2.4.2020 eventually reached 17.9 pips Max Favorable Extension
C) The M30 RoR entered on 2.4.2020 sustained negative Max Adverse Extension of 17.4 pips (the irony of that)
D) The M30 RoR Added Long Position never did better than BE and if held overnight while sleeping, naked and unprotected would have resulted in 71 pip loss

Moral of the story. I don't hold naked, uncontrolled, uncovered, exposed Directional positions overnight while sleeping. Just for absolute crystal clarity - because I know some people might not understand that given I did not post a "Getting Flat" tag before I went to sleep.

The "60-90 pip projection" from the Panel yesterday changed with a reversal of the D1 GMMA System Module. The Panel is live and dynamic. So, there is no way I can post every single change in the Panel. I can't stream the Panel through Forexfactory. So, when a projection changes you won't see it unless I tell you about it which I did not as I went to sleep just as it changed - according to my review of the Panel this morning.

For further clarification, here is the Panel in "Research Mode" which allows me to go back in time to review what the Panel looked like at the approximate time the M30 RoR Long was entered on 2/4/2020 and at the Open of the trading session on 2/5/20:

At Entry (2/4/2020)


At D1 Open (2/5/2020)


The D1 output in the Panel had changed and what was 67% GMMA D-Mag had dropped to 33% GMMA D-Mag, which is too low to sustain a Long bias for me personally. In addition, D1 GMMA Positive Slope dropped from double digit down to a single digit while D1 GMMA Micro TCD-Short slightly increased. Along with the rest of the Panel output it was clear that upside rotation that I used for my Long Hold stopped near the Open of today's trading session. That would have been enough for me to start accepting Short Side RoR Range Trades. The H4 RoR (see above pic) then provided the kill shot leading to a nice trade for this session.

Unfortunately, I cannot trade 24 hours a day. So, I miss a lot of good stuff. However, I also capture a lot of good stuff during my regular trading hours. However, if YOU were following the thread and reading in context correctly, then the H4 RoR provided the kill shot this thread speaks about.

Its not hard. Just practice it. I use the Panel, but you can use whatever tool you have for measuring Time Frame Magnitude which is nothing more than unused projected range for any given Time Frame. It is the unused portion that gets coupled to the RoR Range Trade concept.

Again, this thread is for the Newb Trader as as such I have decided to limit the focus on just anatomy and concept for how to set-up the RoR Range Trade using Magnitude from a higher Time Frame as fuel for the trade.

Got it? Good!

Today, I'll run three charts side-by-side. M30, H1 and H4 will be used so that you can see the differential in RoR Range Levels "A" and "B" in each Time Frame. Green Line is "A" and Red Line is "B" in the RoR Range. The Range itself is the distance between "A" and "B" and is that which defines Risk in the trade should you take it. Once again, at this time of day (my time zone and my MT4 platform) D1 Magnitude (the average expectation of the full daily range) has been fairly depleted. So, I don't expect much more continuation of the Short Side beyond the existing D1 Low, nor do I have the expectation of extending the Long Side beyond the existing D1 High.

This leave me with a fairly range bound market for the remainder of 2/5/2020. Within that range bound market however, trading opportunities can emerge whenever the market decides to make it happen. Here are some of the RoR Ranges in place right now using M30, H1 and H4:



The RoR Ranges you use may vary depending on the type of Risk you are looking for.

Changing the H1 RoR by moving the Lower Level down:



M30 has a 7.8 pip RoR Ranage
H1 has a 46.1 pip RoR Range
H4 has a 4.0 pip RoR Range

From my post yesterday on "Synchronizing" the time frames, this shows that the RoR Levels don't have synchronicity at this time. That does not mean it cannot be traded. It just means that the more synchronicity you have in the A/B Levels across multiple Time Frames the better the potential outcome.

Now, I can synchronize both M30 and H1 by doing this:



Moving the M30 Lower Level ("A") down to match that of H1's Lower Level.

This creates synchronized RoR Range Levels between M30 and H1 to 46.1 pips. This leave H4 as the solo RoR Range which is perfectly fine with me. Putting this into context however, a 46 pip move after D1 Magnitude has already been consumed carries far less probability than a simple break of the H4 RoR which is much tighter in its Range. So, I would lean towards accepting the H4 trade than expecting the synchronized M30/H1 trade to happen.

However, if I accept H4, given the consumption of D1 Magnitude today, it would be for nothing more than a quick scalp. We shall see.

Now, adding M15 to the Multi-Chart RoR Scan:



Doing this reveals an M15 RoR Range of 20 pips. Current EURAUD spread on my MT4 is about 3 pips. So, the spread represents about 15% of the total RoR Range which is acceptable.

Continuing to scan...

H4 is the only set-up that seems to be leaking Short. However, there's nothing forceful happening there yet and I suspect that is due to D1 Magnitude having already been significantly depleted already. That does not mean that H4 cannot provide a nice slow scalp. In fact, H4 is often times good for slow-bleeding scalps at end of day.

M30 just created a new 7.6 pip RoR that pulls it out of synchronicity with H1 which still has a 46 pip RoR, but seems to be working itself into a smaller Range:

H4 finally broke. M15 breaks a more narrow RoR adjustment. Both to the Short side. Let's see how much follow through there is:

M30 approaching its Short Side break (see last pic above).

M30 breaks: