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Quad Candle System

  • #4,281
  • Apr 16, 2020 4:50pm Apr 16, 2020 4:50pm
Quoting Meerrettich
{quote} As you suggested I spent some time looking at the last few years of some of the majors in order to find quad patterns that would have led to succesfull trade setups. To my surprise it seems as if the quality of a setup does not depend too much on the actual form of the candles but rather on the relative position of the occuring pattern in relation to PA (I believe this is what the Octive Zones are all about). The only disadvantage I could spot, for instance when a candle of the setup is engulfing the entire pattern, you may lose some pips...
A very good post indeed.

The ranges within the Quad Patterns need attention.

But you have identified some key points.

Where the Quad appears in relation to PA and the Master Octive Trading Frame is a critical observation.

RR is key to longer term sustainability.

Also you should run a study comparing symbols of different ADRs.

This means between typically slow to medium to fast movers.

Be careful choosing speeds of symbols under current market conditions due to much greater than expected volatility.

Simply extend out the number of periods used in the ADR calculation or use data pre-covid19.

An EA makes assessments of this quicker but a manual study allows the trader to follow more of the PA which is a critical learning phase in my opinion.

Nice work!

Masterrmind.........
Master your Mind then Master your Trades
  • #4,282
  • Apr 17, 2020 6:12am Apr 17, 2020 6:12am
Quoting Meerrettich
{quote} As you suggested I spent some time looking at the last few years of some of the majors in order to find quad patterns that would have led to succesfull trade setups. To my surprise it seems as if the quality of a setup does not depend too much on the actual form of the candles but rather on the relative position of the occuring pattern in relation to PA (I believe this is what the Octive Zones are all about). The only disadvantage I could spot, for instance when a candle of the setup is engulfing the entire pattern, you may lose some pips...
EURNZD [D1 TF]
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Masterrmind.................
Master your Mind then Master your Trades
  • #4,283
  • Apr 17, 2020 6:26am Apr 17, 2020 6:26am
Quad Candle Dashboard
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As an exercise which symbol of the Quads shown on the Dashboard appears to be the 'better' one to trade?

Masterrmind..............
Master your Mind then Master your Trades
  • #4,284
  • Apr 17, 2020 6:41am Apr 17, 2020 6:41am
EURGBP [D1 :: P64]
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EURJPY [D1 :: P64]
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GBPUSD [D1 :: P64]
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NZDCAD [D1 :: P64]
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NZDUSD [D1 :: P64]
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USDJPY [D1 :: P64]
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Masterrmind..............
Master your Mind then Master your Trades
  • #4,285
  • Apr 17, 2020 6:48am Apr 17, 2020 6:48am
Quad Candle Dashboard [Ranges]
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Masterrmind...............
Master your Mind then Master your Trades
  • #4,286
  • Apr 17, 2020 6:54am Apr 17, 2020 6:54am
Quad Candle Dashboard [D1/W1/MN1 pips to complete expected average ranges]
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ADR (21) taken over 21 previous days.

AWR (13) taken over 13 previous weeks.

AMR (8) taken over 8 previous months.

Which one should carry more weighting in terms of the decision making process regarding trading or not trading the symbol ?

Masterrmind...............
Master your Mind then Master your Trades
  • #4,287
  • Apr 17, 2020 1:05pm Apr 17, 2020 1:05pm
Right now a quad candle pattern forming on GBP/USD m15 timeframe. Let's see how it will end
  • #4,288
  • Apr 17, 2020 1:53pm Apr 17, 2020 1:53pm
Quoting Masterrmind
Quad Candle Dashboard {image} As an exercise which symbol of the Quads shown on the Dashboard appears to be the 'better' one to trade? Masterrmind..............
EUR/GBP: (short)

In my opinion one of the better setups. Although price currently stands about OPL_3 [Central Support] previous lows at OPL_0 [Octive Frame Support] can be targeted with almost 2:1 RR (with entry being OPL_3 and SL OPL_5). In addition, ADR and AWR show great potential for further movement in the desired direction with current WR being only around 40% of the AWR. Only potential risk I see fundamentally are EUR and GBP PMIs next thursday which could cause some unexpected reactions, but I am not sure about that.

EUR/JPY: (short)

Bad setup in my eyes. Price sits at OPL_1 where it has been rejected already 3 times and failed to break through that level. I would be much more inclined to take a long at this level if an according quad pattern would form right there. Furthermore, WR for this pair seems quite exhausted and does not seem to offer much room for movement south.

GPB/USD: (short)

I am not quite sure about this one since my decision would be to buy GBP (see EUR/GBP) and thus I would not want to sell this pair. QPL_3 acted as a resistance in the past and may now act as a strong support preventing PA to move further down. On the other hand price may retrace to OPL_2 where it could bounce once again. But in the end I would not take any action here since I am not sure what to do.

NZD/CAD: (short)

Again one of the better setups in my opinion. With target at OPL_3 [Central Support] and SL at around OPL_7 we can achieve around 1:1 RR. In addition, the most recent candle (trading day) shows serious pullback from the price level that was reached by the quad pattern, so that may yield even better RR. WR currently sits at around 54% of AWR which allows room for further movement. Only AMR is almost reached (almost 79%).

NZD/USD: (short)

Bad setup once again. Price is near OPL_0 [Octive Frame Support] where PA has recently bounced off. In order to achieve a good RR we would need targets that are at and below the low (lowest low since 2008) with SL being OPL_3. Furthermore, ADR (AMR too) are almost already reached (WR almost 89% of AWR) and leave not much room for PA to move south.

USD/JPY: (long)

I consider this setup to be quite good aswell (no as good as the other good ones). Although the pattern is located at OPL_5 [Central Resistance] this resistance, once broken, can act as a support. The recent PA shows, that this is the case and thus this level can be used for a long entry. On the downside, in order to achieve a good RR once again, we would need to target recent resistances (OPL_8) where PA failed to break through. AWR and AMR offer enough room for PA to move, so I would be inclined to take this trade aswell.



In general I think that the ADR can be very useful when assessing the pullback on the trading day. For example: When the D1 candle after the quad setup retraces to, let's say 38.2 fib level of the last setup-candle, and the DR already covers like 70%+ from the ADR, it is quite probable that the current price will not retrace much further at the given day.

In hindsight I noticed that I may have made a mistake concerning the AWR. Since its Friday, it should be normal that on average the AWR is exhausted. Is that correct? How does that affect the weekly analysis?

Quote
Which one should carry more weighting in terms of the decision making process regarding trading or not trading the symbol ?

I may be wrong but since most of the trades last days to weeks I would pay most attention to AWR and AMR. To me it seems as if ADR is a very useful tool for assessing the situation at the point of entry but it lacks longterm significance.

I am excited to hear how you see these opportunities and I will continue my studies concerning ADR, AWR and AMR of different pairs in the next days.

Until then, thank you once again and have a nice weekend,
Meerrettich
  • #4,289
  • Apr 19, 2020 1:11am Apr 19, 2020 1:11am
Quoting MrGreen95
Right now a quad candle pattern forming on GBP/USD m15 timeframe. Let's see how it will end
Careful with the LTF (<D1 TF) Quads, might pay to keep a tight leash on your stop loss.

Certainly close monitoring of the setup would be needed.

Masterrmind.............
Master your Mind then Master your Trades
  • #4,290
  • Apr 19, 2020 1:34am Apr 19, 2020 1:34am
Quoting Meerrettich
{quote} EUR/GBP: (short) In my opinion one of the better setups. Although price currently stands about OPL_3 [Central Support] previous lows at OPL_0 [Octive Frame Support] can be targeted with almost 2:1 RR (with entry being OPL_3 and SL OPL_5). In addition, ADR and AWR show great potential for further movement in the desired direction with current WR being only around 40% of the AWR. Only potential risk I see fundamentally are EUR and GBP PMIs next thursday which could cause some unexpected reactions, but I am not sure about that. EUR/JPY: (short)...
Great comments and I tend to agree.

I also factor in "confluence" be it PA, Fibs, HTF etc.

Certainly the weekly ranges are also what grabbed my attention and yes they should carry the greater weighting in this situation.
Considering all ranges is important of course, but paying attention to how these ranges are / are not being populated is also key.

Great comments on the Central zones and how PA is interacting within these areas.

Often price will 'range' within the Central zones which can offer some reversals off the OPL_3 and OPL_5 levels playing a 1 OG SL for a 1-2 OG TP.

These type entries are viewed as more risky in general and so at the early Equity building stages of the account I tend to NOT trade them.
In any case there are generally plenty of trading opportunities elsewhere, afterall The Dashboard lists 30 symbols and that's just the beginning.

One factor alone is never enough to engage in a setup unless your account has demonstrated good profit and the risk being applied is well below QCS Guidelines based on the current Equity levels of the traders' trading account.

As Equity grows on the current account, certainly I will seek out other Quad and Octive Setups within the MOTF structure.

At this stage the account is in a 'minor' drawdown period meaning current Equity level is below the highest Equity level so its a case of playing it strict with the risk and attempting to carefully 'bend' the Equity Curve back up and above the recent peak.

Good trading,

Masterrmind.............
Master your Mind then Master your Trades
  • #4,291
  • Apr 23, 2020 6:40am Apr 23, 2020 6:40am
Quad Candle Dashboard
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Which Symbol shall I trade ?

Masterrmind..............
Master your Mind then Master your Trades
  • #4,292
  • May 3, 2020 11:31pm May 3, 2020 11:31pm
Quad Short on AUDJPY in progress.

Masterrmind.........
Master your Mind then Master your Trades
  • #4,293
  • May 9, 2020 3:24pm May 9, 2020 3:24pm
Quoting Masterrmind
Quad Short on AUDJPY in progress. Masterrmind.........
Hello I am newcomer to Forex. I read several texts about Abonacci strategy . Now I have some questions but unfortunately there is no one in my country that use this strategy who can help me or maybe they are but I can't find them.
I can I have your email address or do something that can make a connection between us if you like to help me?
I am really interested to learn this Strategy
  • #4,294
  • May 11, 2020 6:34am May 11, 2020 6:34am
Quoting mahtab1994
{quote} Hello I am newcomer to Forex. I read several texts about Abonacci strategy . Now I have some questions but unfortunately there is no one in my country that use this strategy who can help me or maybe they are but I can't find them. I can I have your email address or do something that can make a connection between us if you like to help me? I am really interested to learn this Strategy
I would suggest reading Post 1 material in this thread several times.

Then post questions regarding any information you do not fully understand.

I'm trading a 1K initial equity account as a live trading example that showcases the QCS methodology however, longer term trading on the D1 TF is geared more towards a larger account balance because in general the gains are modest and take time to unfold.

Nevertheless, there are several subtle techniques that can be applied to accelerate account growth but with them comes additional risk.

A smart trader would use a phased risk approach with respect to equity (Phased RARE).

Such as basic approach until let's say 20% Gain in Equity then apply Phased RARE 1; as equity hits higher levels advance to higher risk as guidelines or as set rules allow.

Traders will have different risk appetites and therefore varying risk profiles.

I could elaborate on this phased risk approach in far greater detail but I will leave it at that for now.

I wish you well and I look forward to reading your questions in due course.

Masterrmind........
Master your Mind then Master your Trades
  • #4,295
  • May 11, 2020 6:54am May 11, 2020 6:54am
Quoting Masterrmind
{quote} I would suggest reading Post 1 material in this thread several times. Then post questions regarding any information you do not fully understand. I'm trading a 1K initial equity account as a live trading example that showcases the QCS methodology however, longer term trading on the D1 TF is geared more towards a larger account balance because in general the gains are modest and take time to unfold. Nevertheless, there are several subtle techniques that can be applied to accelerate account growth but with them comes additional risk. A smart...

Would you give us those free (no expired) indicators in Post 1?
  • #4,296
  • May 11, 2020 7:48am May 11, 2020 7:48am
Quoting ganc
{quote} Would you give us those free (no expired) indicators in Post 1?
Give it some time and I'll put together a basic no frills zip folder.

The Quad Dash will not be made available anytime soon.

Any specific indicators will contain expiries.

Masterrmind........
Master your Mind then Master your Trades
  • #4,297
  • May 31, 2020 10:58pm May 31, 2020 10:58pm
Result of the AUDJPY long entry was an eventual stopout for about 2.2%.

My aim is to keep the Gain in Equity above or equal to a 30% level since in terms of a long term trading strategy this represents a very good return.

Current Account Equity = $1332.14 (33.21% return)

Max Loss = $32.14 (to maintain at least a 30% return)

Stop Out must be <= $32.14

After perusing the Quad Candle Dashboard in D1 format I have chosen to go long on USDCAD symbol.

Octive Gap SL applied will be 1.5 which is ~$27 or ~2% and therefore less than the Max Loss allowable of $32.14 to keep the return at least 30% should things turn bad.

USDCAD [D1 :: P64]
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Going long off a valid Quad pattern after a decent pullback closer to OPL_0 (Octive Frame Support).

So the entry is not exactly where I would like it which typically is deeper inside the Lower Extreme Zone looking to go long.

Nevertheless, it is worth an attempt in my opinion even though there is plenty of news floating around that could whip it in either direction.

Under favorable progress to the upside I will likely place a series of higher volume pending orders all with the same target price but staggered stops.

Lets see how this potentially last trade fairs.

Masterrmind..............
Master your Mind then Master your Trades
  • #4,298
  • Jun 3, 2020 12:53am Jun 3, 2020 12:53am
Quoting Masterrmind
Result of the AUDJPY long entry was an eventual stopout for about 2.2%. My aim is to keep the Gain in Equity above or equal to a 30% level since in terms of a long term trading strategy this represents a very good return. Current Account Equity = $1332.14 (33.21% return) Max Loss = $32.14 (to maintain at least a 30% return) Stop Out must be <= $32.14 After perusing the Quad Candle Dashboard in D1 format I have chosen to go long on USDCAD symbol. Octive Gap SL applied will be 1.5 which is ~$27 or ~2% and therefore less than the Max Loss allowable...
I have adjusted the SL on the USDCAD long entry marginally lower at 1.33230.

This suggests a risk on the trade of about 2.26%.

Basically, I have given the stop a touch more than a 1.5 OG SL but more importantly it gives the entry close to max loss which would still have the account at 30% return.

Price is currently hugging the 1.35 handle.

Stop Out would occur if price drops another 177 pips or so.

Given this trade as much breathing space as possible so let's see how it unfolds.

If Stop Out occurs this trade will be the last trade on this account for the 12 month period since inception.

Masterrmind.........
Master your Mind then Master your Trades
  • #4,299
  • Jun 5, 2020 9:13pm Jun 5, 2020 9:13pm
Master Octive Trading Frame has reset due to likely market contraction.

I have adjusted the target lower at 1.46484.

Stop Out is about 100 pips away.

Masterrmind.........
Master your Mind then Master your Trades
  • #4,300
  • Jun 15, 2020 4:41pm Jun 15, 2020 4:41pm
QUAD CANDLE SYSTEM - Master 1K

Eventually tagged stopout level for a loss of just over 2.2% on the USDCAD position.

Trading will now cease on this particular account with a final Return on Equity of 30.1%.

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