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Roadmap - A Way To Read Markets

  • #1,201
  • May 4, 2020 1:54pm May 4, 2020 1:54pm
Quoting Mini7260
{quote} Hi OAPDave, Do you care sharing your colored moving average indicators? Thank you in advance.
Learn to use Metatrader properly, much easier and the code is not dodgy

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It takes a lot for me to IGNORE you, but you can try.
  • #1,202
  • May 4, 2020 2:06pm May 4, 2020 2:06pm
Quoting hanover
Just wanted to air some thoughts — LauraT, or anybody else, please tell me whether I'm on the right track or not. Many thanks. Buying at candle (1) in the screenshot (when price reaches the lower channel boundary) meets the rules, but I would describe it as a more brave and aggressive entry than waiting to buy at (2), after price has closed above the channel (this entry also has yesterday's high as possible turncoat support). More aggressive gets us in on the right side of the channel, and at a better price, but runs the risk (as in this case) that...
Thanks for the comprehensive post, hanover. I'll try to do it justice by addressing it in detail.

I'll start by focusing on the 7 points marked on your chart and then come back to cover general thoughts.

At (1) I wouldn't buy. Price had exceeded the previous day's high significantly but hadn't come back to test it. Price was also well above the SMA and would 'feel' expensive to me. The reason (2) is a good entry point is because price has now tested the previous day's high and found support there. I would have entered on the candle following (2), just inside the channel (more on this later).

If i'm honest I probably wouldn't take (3) either (despite it working fantastically well), it was the start of the day, the daily open line was still being played around with. But if we assume I had to enter that trend somewhere, (3) (or just before 4) would be the only options. At (4) the ship has sailed and I wouldn't chase price up the outside of the channel. There would have been a potential way into the trend for those who missed it, halfway between (4) and (1), when price closed within the channel.

(5) would indeed be a logical take profit point. I'm sure I've mentioned before but, just in case, I'll mention it here. A solid uptrend will result in MOST bars closing above or inside the channel. I say most because there will be outliers. How do we tell if (5) is the end of the party or just an outlier? We don't know for sure. However, we can tell from (1) that the trend is weakening. For the very first time in the whole move, we had a candle that threatened the area underneath the channel.

I see your thought process around (6). But if we look to the right of (2) we can see an example of a big red candle that did not signal a down move. From (6) to (7) is a move I would have missed because I would have felt like I was chasing price. Clearly that costs me money, which I'll come back to later.

In general terms, what I fear I've done is been too clever in trying to teach people about the channel. I originally said "buy at lower side of channel" in the hope that a few people following along would create for themselves a sense of discipline. I did not expect the volume of interest the thread has garnered. I later relaxed the guidelines, as I intended to do, saying "buy or sell within the channel" but unfortunately by that time my original message had taken hold.

When it comes to momentum and how that looks in relation to the channel, I definitely acknowledge the appeal in seeing a candle close above the upper band of the channel as a call to enter. Way back in the day, I had it drummed into me that I shouldn't chase price and I guess that has stuck with me. Now that I'm questioning myself to answer the post, I can experience dilemma. Perhaps a stubborn adherence to my own rule causes me to miss out on moves I should be capturing. Food for thought.

Ultimately we do this to make money and I don't like to miss opportunities so, with everyone's forbearance, I will carry out some further chart work and update both this thread and my journal with more definitive instruction.

When it comes to exits, I do agree that a candle closing on the 'wrong' side of the channel is the first sign you should think about taking what's on offer. Again, my instructions have probably been coloured by my own long ago lessons about letting a trade breathe. I happily sit through retracements if the end target still looks achievable. But I recognise that others will prefer to trade differently, getting in and out of positions repeatedly so as not to have to experience the periods of consolidation/retracement.

In terms of RSI, I agree that there is likely not a correlation between how high (or low) RSI is and the quality of the opportunity. That being said, I set out with the intention of getting people to not think in traditional RSI terms of overbought or oversold. I've seen plenty of markets stay beyond 85/15 for extended periods, with lots of money to be made during those periods.

Thank you again for the detailed post and for including a workable example. I will come back to everyone with an answer on entries in short order.
  • #1,203
  • May 4, 2020 2:53pm May 4, 2020 2:53pm
Hi Laura, once again thank you for this thread
do you recommend CompRSISelectv2 (with 55 and 45 lines) instead of RSI2/RSI9 for trading m1 gold (and other metals), too?
  • #1,204
  • May 4, 2020 3:07pm May 4, 2020 3:07pm
Quoting farshad.bah
Hi Laura, once again thank you for this thread do you recommend CompRSISelectv2 (with 55 and 45 lines) instead of RSI2/RSI9 for trading m1 gold (and other metals), too?
Hi

I'm not currently trading gold very much, and when I do it is mostly on the 5m/15m timeframe. Liquidity is low right now and it's resulting in many persistent ranges. If you decide to test it out on gold please do let me know how it goes. My instinct would be that 1m will be too short a timeframe though.

When/if it goes back to 'normal' we might have a better idea. The 1m settings are still experimental in any case so please don't risk capital before you test it out.

Hope this helps.
  • #1,205
  • May 4, 2020 3:56pm May 4, 2020 3:56pm
Quoting OAPDave
{quote} No Problem {file}
Thank you.
  • #1,206
  • May 4, 2020 4:01pm May 4, 2020 4:01pm
Trades i could do today of 5 minutes
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MTN
  • #1,207
  • May 4, 2020 8:12pm May 4, 2020 8:12pm
Quoting CaptMorgan
LauraT I have to add my cu-do's to your thread along with all the others excellent work. I also love the way you respond to the set ups the others show you. Very respectful and informative. Like others here I have been lurking at FF for a while and have not found a current thread worth following till now. I hope to learn this system as well as the others seem to have. I do have a question in regards to which session most people are using. It looks to me like most of the examples are the london session as I don't seem to see them developing in the...
I'd like to add my cu-do's too. What does it mean and how do I attach it?
All you touch and all you see, is all your life will ever be.
  • #1,208
  • May 4, 2020 8:24pm May 4, 2020 8:24pm
Quoting Erebus
{quote} Learn to use Metatrader properly, much easier and the code is not dodgy {image} {image} {image}
Jeez. After all these years, I never knew all this was here. That's my day sorted. Thanks.
All you touch and all you see, is all your life will ever be.
  • #1,209
  • May 4, 2020 8:48pm May 4, 2020 8:48pm
Quoting orrunec
{quote} Mine did the same thing its something to do with the dpi scaling the fix that worked for me is: 1. right-click on the icon you use to open mt4 2. click on properties 3. you should see a bunch of tabs at the top of the properties window click on the one that says compatibility 4. near the bottom you should see a button that says change high DPI settings click on that 5. In the new window near the bottom it should say override high DPI scaling behavior scaling performed by: click the check to Override high dpi scaling and use the drop down...
Hey Orrunec,

Thanks, it worked.
  • #1,210
  • Edited 9:48pm May 4, 2020 9:02pm | Edited 9:48pm
Another Trade I took yesterday before sleeping, PT at Day's low.

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Thanks, @lauraT. I let it breathe this time.

I am still reading through all the materials and Discussions here, on page 13 of the forum so far

So, kindly bear with me if I ask any question that has already been covered.

Thanks in advance everyone
  • #1,211
  • May 4, 2020 10:21pm May 4, 2020 10:21pm
Quoting Loftboy
{quote} I'd like to add my cu-do's too. What does it mean and how do I attach it?
MY apologies for the misspelling:

Definition of kudos

1: praise given for achievement
2: fame and renown resulting from an act or achievement : PRESTIGE
  • #1,212
  • May 4, 2020 11:26pm May 4, 2020 11:26pm
Quoting Loftboy
{quote} Jeez. After all these years, I never knew all this was here. That's my day sorted. Thanks.
But wait, there is more, try the Codebase Tab for completely FREE stuff

Click top of first column to sort alphabetically, if you have some idea of the description you are looking for, scroll down

Right click those to download, like a kid in the candy store

It takes a lot for me to IGNORE you, but you can try.
  • #1,213
  • May 5, 2020 12:56am May 5, 2020 12:56am
Quoting LauraT
{quote} Thanks for the comprehensive post, hanover. I'll try to do it justice by addressing it in detail. I'll start by focusing on the 7 points marked on your chart and then come back to cover general thoughts. At (1) I wouldn't buy. Price had exceeded the previous day's high significantly but hadn't come back to test it. Price was also well above the SMA and would 'feel' expensive to me. The reason (2) is a good entry point is because price has now tested the previous day's high and found support there. I would have entered on the candle following...
As promised, I want to provide some clarification on my guidelines, but also on the decisions a trader must make.

I began the thread by advising that, for long entries, the entry point should be on the lower side of the channel. Conversely, short entries should be at the upper side of the channel. This was always intended to be a temporary exercise in discipline. I later relaxed the advice, stating that entries could take place inside the channel.

With hanover's query, I have examined again the entry criteria and have concluded my advice remains as before. My preference is not to chase price up the outside of the channel and I therefore prefer to find an entry inside it. I presented the roadmap in accordance with what makes me money and old habits die hard.

However, traders must take responsibility for their own criteria, even if following my methodology. The point hanover makes about entries outside the channel has merit. It is true that many uptrends begin with a candle closing above the channel. If a visual backtest leads to the conclusion this should be an entry trigger, by all means act on that basis. I am of course interested to hear other conclusions based on testing/experience.

Thank you to hanover for providing me with the opportunity to think about, and clarify, the subject of entries.
  • #1,214
  • May 5, 2020 1:22am May 5, 2020 1:22am
Nice way to start a day
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It is not over until I win
  • #1,215
  • May 5, 2020 1:29am May 5, 2020 1:29am
Quoting Erebus
{quote} Learn to use Metatrader properly, much easier and the code is not dodgy {image} {image} {image}
Thank you.
  • #1,216
  • May 5, 2020 2:15am May 5, 2020 2:15am
Quoting Erebus
{quote} But wait, there is more, try the Codebase Tab for completely FREE stuff Click top of first column to sort alphabetically, if you have some idea of the description you are looking for, scroll down Right click those to download, like a kid in the candy store
All you touch and all you see, is all your life will ever be.
  • #1,217
  • May 5, 2020 3:27am May 5, 2020 3:27am
Quoting CaptMorgan
{quote} MY apologies for the misspelling: Definition of kudos 1: praise given for achievement 2: fame and renown resulting from an act or achievement : PRESTIGE
Kudos to you for not taking offence at a little tongue in cheek humour!
  • #1,218
  • May 5, 2020 3:31am May 5, 2020 3:31am
Still tracking the Usd/Cad
My thoughts
Although its falling its a bit of a grind,
1min, 5min & 15min Ok ish withh price below 200sma
30 min not so, need to keep an eye on that I think ?
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  • #1,219
  • May 5, 2020 3:45am May 5, 2020 3:45am
Quoting LauraT
{quote} As promised, I want to provide some clarification on my guidelines, but also on the decisions a trader must make. I began the thread by advising that, for long entries, the entry point should be on the lower side of the channel. Conversely, short entries should be at the upper side of the channel. This was always intended to be a temporary exercise in discipline. I later relaxed the advice, stating that entries could take place inside the channel. With hanover's query, I have examined again the entry criteria and have concluded my advice...
Dear LauraT, with the above explanation in mind, do we now go back to the first rules of taking trades at the low of the channels for BUY and at the top for SELL.
  • #1,220
  • May 5, 2020 3:55am May 5, 2020 3:55am
Quoting ogboriefor
{quote} Dear LauraT, with the above explanation in mind, do we now go back to the first rules of taking trades at the low of the channels for BUY and at the top for SELL.
No.

Apologies if I've confused matters further but what I was saying was that, for me personally, I will continue to take entries inside the channel. There is no need to wait to buy at the low of the channel.

However, I'm also leaving it up to the discretion of you all as to whether you consider a bar closing above the channel to be a sign you should enter long.
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