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Roadmap - A Way To Read Markets

  • #2,001
  • May 23, 2020 6:34am May 23, 2020 6:34am
Quoting thegrimreape
Let's see how and from what perspective can this strategy be optimize to enhance its entry precision {image}
The channel's slope can be a quick indicator to read the changes of it, however, it's not accurate because we know MA are tune to the movement of price. If there is a sudden spike, so will the MA slope changes according to it.

But what if an SMA 20 were added into the fray to optimize the efficacy of intermediate projection? SMA 20 is a no brainer, and has been used by many analyst worldwide. So, if you noticed, when the channel crosses SMA20, price tend to bounce back towards the equilibrium = SMA200.

SMA 20 is the red moving average on the chart in this uploaded screenshot
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  • #2,002
  • May 23, 2020 6:37am May 23, 2020 6:37am
Another example
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  • #2,003
  • May 23, 2020 6:51am May 23, 2020 6:51am
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  • #2,004
  • May 23, 2020 6:56am May 23, 2020 6:56am
Quoting thegrimreape
Another example {image}
Funnily enough, I originally used EMA20 (and later EMA10) as momentum indicators in the way you've described. The problem is, it will work perfectly in a strong trend but will whipsaw you considerably in other conditions. By taking a conservative approach to entries we are hopefully minimising the damage.

However, there is a way to time your entries so you capture the beginnings of a move. Trendlines.

Although I've mentioned trendlines a lot recently, I deliberately haven't mentioned how they can be used for 'counter-trend' entries (so as not to muddy the waters or encourage inexperienced traders to suddenly start going against the trend).

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In the above chart we see that the breaking of a simple downward trendline can alert us to the change of direction. Notice that, prior to this, price was printing either side of your SMA20 line (magenta).

I must be responsible and stress that using trendlines in this way is not recommended for traders who are inexperienced or new to the strategy. Such traders should initially content themselves with channel crosses, which are the bread and butter of the methodology.
  • #2,005
  • May 23, 2020 7:03am May 23, 2020 7:03am
Quoting LauraT
{quote} Funnily enough, I originally used EMA20 (and later EMA10) as momentum indicators in the way you've described. The problem is, it will work perfectly in a strong trend but will whipsaw you considerably in other conditions. By taking a conservative approach to entries we are hopefully minimising the damage. However, there is a way to time your entries so you capture the beginnings of a move. Trendlines. Although I've mentioned trendlines a lot recently, I deliberately haven't mentioned how they can be used for 'counter-trend' entries (so as...
Interesting, isn't it beautiful how ideas can bring forth specific development to the evolution of a strategy. I am parking my seat here on this thread in the long-term, if you don't mind
  • #2,006
  • May 23, 2020 7:12am May 23, 2020 7:12am
Quoting LauraT
{quote} Funnily enough, I originally used EMA20 (and later EMA10) as momentum indicators in the way you've described. The problem is, it will work perfectly in a strong trend but will whipsaw you considerably in other conditions. By taking a conservative approach to entries we are hopefully minimising the damage. However, there is a way to time your entries so you capture the beginnings of a move. Trendlines. Although I've mentioned trendlines a lot recently, I deliberately haven't mentioned how they can be used for 'counter-trend' entries (so as...
I saw something that can be applied in a quick fashion and that was from the observation centered on the illustration of your screenshot at initial glance. Here's my take on it in an experimental SOP
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  • #2,007
  • May 23, 2020 7:16am May 23, 2020 7:16am
Another trendline format following the trend
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  • #2,008
  • May 23, 2020 8:48am May 23, 2020 8:48am
Quoting bojack34
{quote} You should start with this......... {file} Here are my notes again, just cleaned up a little and slightly condensed. IMO these are great notes to read and re-read as you trade the system. I am cutting your learning curve a lot here yalgaar. Hours and hours of reading went into these notes. Good Luck everyone! Green pips!
Very good work on putting this together. Thank you very much.
  • #2,009
  • May 23, 2020 9:43am May 23, 2020 9:43am
Quoting Patje
{quote}for across we wait for confirmation, so yes a close or otherwise it could still possibly turn in a failure, hope this helps and, Cheers
Does this mean for a channel failure we can enter on a moving candle? or should we be waiting for candle close for this as well? I wonder what Laura says for both. I would think she would say candle close for both. Thanks for your help.
  • #2,010
  • May 23, 2020 9:56am May 23, 2020 9:56am
New Journal Entry - Look Left

Please refer here for an updated journal entry:
https://www.forexfactory.com/showthread.php?t=995014

I'd ask that comments and queries be posted here as I am trying to keep my journal clear for information posts.

Thank you.
  • #2,011
  • May 23, 2020 9:59am May 23, 2020 9:59am
Quoting bojack34
{quote} Does this mean for a channel failure we can enter on a moving candle? or should we be waiting for candle close for this as well? I wonder what Laura says for both. I would think she would say candle close for both. Thanks for your help.
Ideally you would wait for candle close. Some traders like to anticipate a channel failure by getting in while the channel is still straddling the SMA but this is an aggressive move and will lead to more losses.
  • #2,012
  • May 23, 2020 10:09am May 23, 2020 10:09am
Quoting LauraT
New Journal Entry - Look Left Please refer here for an updated journal entry: https://www.forexfactory.com/showthread.php?t=995014 I'd ask that comments and queries be posted here as I am trying to keep my journal clear for information posts. Thank you.
What I haven't mentioned in that journal post is how you could use the information.

I'm guilty of assuming things are self-explanatory but perhaps they aren't so here's a quick rundown.

The highs and lows form areas where price turned around previously. Regardless of whether you believe markets have a memory or are simply a result of human psychology, or perhaps even that support and resistance is a self-fulfilling prophecy, we can say with some degree of confidence that a previous turning point will become a future turning point.

Knowing where these turning points are (by looking left) allows you to be alert to future support/resistance. This can be helpful in terms of defining targets for your in progress trades.

This is a very basic introduction to the subject but marking up your charts in the way described will at least start to give you an increased awareness of where price has been and how it reacted at certain levels.
  • #2,013
  • May 23, 2020 12:18pm May 23, 2020 12:18pm
Quoting LauraT
New Journal Entry - Look Left Please refer here for an updated journal entry: https://www.forexfactory.com/showthread.php?t=995014 I'd ask that comments and queries be posted here as I am trying to keep my journal clear for information posts. Thank you.
technical question from a techie dunce:

Your screen shots have a black back ground which would use a lot of black ink if I printed them. How would I put in a white background to enable printing and save on black ink ?
every Saint has a past. Every Sinner has a Future
  • #2,014
  • May 23, 2020 2:10pm May 23, 2020 2:10pm
Quoting turnip15
{quote}technical question from a techie dunce: Your screen shots have a black back ground which would use a lot of black ink if I printed them. How would I put in a white background to enable printing and save on black ink ?
Hi Turnip,

You can change the back ground color from within MT4 charts like this:

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Regards,
Ben
  • #2,015
  • May 24, 2020 2:53am May 24, 2020 2:53am
For Ease of determine trend I use MA_In+Color and for keeping charts I ""snip "" and save to folder called charts hope this helps SP
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  • #2,016
  • May 24, 2020 6:08am May 24, 2020 6:08am
Dear LauraT, In Roadmap strategy should we worry of "Red News Release" or "Option Expiry" in Short-term trading ?
Consistency & Patience
  • #2,017
  • May 24, 2020 6:41am May 24, 2020 6:41am
Quoting coolsjc
Dear LauraT, In Roadmap strategy should we worry of "Red News Release" or "Option Expiry" in Short-term trading ?
Yes, absolutely. I prefer to be flat when red news is due.
  • #2,018
  • May 24, 2020 2:26pm May 24, 2020 2:26pm
Quoting Degolep
{quote} This one doensn't repaint?
Hi,

Had a few minutes, so I changed the original version of CompRSISelectv2 so that it will not repaint in realtime use in the indicator window. Logically looks ok to me. However, I don't follow this strategy or know how you are using the indicator, so advise you test alongside what you have. If you like it, keep it, if not no harm in trying. Took longer to type this than to make the change

Attached File(s)
File Type: mq4 CompRSISelectv2a.mq4   2 KB | 511 downloads


swd

P.S Indicator renamed so as to retain your old version.
  • #2,019
  • May 24, 2020 2:43pm May 24, 2020 2:43pm
Quoting swd
{quote} Hi, Had a few minutes, so I changed the original version of CompRSISelectv2 so that it will not repaint in realtime use in the indicator window. Logically looks ok to me. However, I don't follow this strategy or know how you are using the indicator, so advise you test alongside what you have. If you like it, keep it, if not no harm in trying. Took longer to type this than to make the change {file} swd P.S Indicator renamed so as to retain your old version.
Great news! Will test it tommorow.
Anything above the line is an uptrend, below the line is a downtrend.
  • #2,020
  • May 25, 2020 1:41am May 25, 2020 1:41am
this time try to trade by the rules
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