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Roadmap - A Way To Read Markets

  • #4,421
  • Apr 3, 2021 10:51am Apr 3, 2021 10:51am
Quoting swingtrade65
Good morning all Excellent thread here Laura! FF needs more of these type of threads. Anyone who wants to learn a SOLID trading method needs to read this thread from start to finish. First post here...no markup on the chart. {image}
i agree, i learned a lot.

especially the two 8EMA are nice to read and good for orientation to measure the trend&strength.

and nice for integrate in scalping strategies.
trading is like dancing, don't think and just listen to the music!
  • #4,422
  • Apr 3, 2021 7:02pm Apr 3, 2021 7:02pm
Quoting swingtrade65
Good morning all Excellent thread here Laura! FF needs more of these type of threads. Anyone who wants to learn a SOLID trading method needs to read this thread from start to finish. First post here...no markup on the chart. {image}
Agreed. This is indeed an excellent thread and probably all you'll ever need. Why then do you think FF needs more?
All you touch and all you see, is all your life will ever be.
  • #4,423
  • Apr 4, 2021 4:52am Apr 4, 2021 4:52am
Quoting Loftboy
{quote} Agreed. This is indeed an excellent thread and probably all you'll ever need. Why then do you think FF needs more?
because you NEVER stop learning as a trader. the moment you think you got everything, you will lose. also the markets keep constantly changing.
trading is like dancing, don't think and just listen to the music!
  • #4,424
  • Edited 9:45am Apr 4, 2021 5:23am | Edited 9:45am
Quoting birdland
{quote} because you NEVER stop learning as a trader. the moment you think you got everything, you will lose. also the markets keep constantly changing.
Before starting to trade with Laura's roadmap, I've lurked around here almost half a year before committing to using it and try to 'make it my own'. During this time I've manually back tested multiple decades of time series (FX and indices) and only after convincing myself that the roadmap is sound across multiple instruments and multiple economic cycles I decided to commit to it.
'Making it my own' entails testing very small adaptations, not because of perceived flaws in the method, much more because I learn about flaws in my own way of trading that I need to address. So far, the only small change that I'm likely going to keep is using Heikin-Ashi candles, as with these I prevent entering too soon and more importantly, exiting too soon. All the rest of the roadmap I left intact, the roadmap's underlying principles are sound, simple and logical. In that sense I don't think I need another method for the foreseeable future.

You are right, of course, that you never stop learning as a trader. With the roadmap basics in place, I can now concentrate on learning more about myself as a trader, less so about learning to trade the markets...
If I code, I can't trade...
  • #4,425
  • Apr 4, 2021 6:16am Apr 4, 2021 6:16am
Quoting RachelB
{quote} Thanks for the explanations Cognoscio. I haven't tried Heikin Ashi candles , so looking into them today. Edit: Have now tried Heikin Ashi candles. Will keep studying it. I like how it gave an early indication of loss of momentum.
Hi Rachel,

HA-candles indeed can show indication of loss of momentum, but there is a better way still:

If you trade the M5 candles, check the M1 candles to observe momentum. M1 is a precursor to M5, anything that is going to show up on M5 must have happened on M1 first...

cheers
Cognoscio
If I code, I can't trade...
  • #4,426
  • Apr 4, 2021 7:54am Apr 4, 2021 7:54am
Quoting Cognoscio
{quote} Hi Rachel, HA-candles indeed can show indication of loss of momentum, but there is a better way still: If you trade the M5 candles, check the M1 candles to observe momentum. M1 is a precursor to M5, anything that is going to show up on M5 must have happened on M1 first... cheers Cognoscio

Have you ever looked at RSI bars? Bar color is based on the RSI value

I have these set to up color greater than 55 and down color below 45

Attached Image (click to enlarge)
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Plan, Prepare, Execute, Repeat
  • #4,427
  • Edited 9:09am Apr 4, 2021 8:06am | Edited 9:09am
Actually I have looked into them, but ended up not adopting them.
The chart I arrived at so far is like this one: https://www.forexfactory.com/thread/...9#post13476469 Simple structure and as few (for me) distracting colours as possible. I admit to retaining some spill-over from previous trading experience.
If I code, I can't trade...
  • #4,428
  • Apr 4, 2021 7:18pm Apr 4, 2021 7:18pm
EURUSD

Attached Image (click to enlarge)
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Plan, Prepare, Execute, Repeat
  • #4,429
  • Apr 4, 2021 10:20pm Apr 4, 2021 10:20pm
Buy in Eur/USD. SL below 1.175

Attached Image (click to enlarge)
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  • #4,430
  • Apr 5, 2021 4:21am Apr 5, 2021 4:21am
Quoting needtolearn
Buy in Eur/USD. SL below 1.175 {image}
Did you get out in time?
If I code, I can't trade...
  • #4,431
  • Apr 5, 2021 8:21am Apr 5, 2021 8:21am
Quoting Cognoscio
{quote} Did you get out in time?
Yes, 10 pips loss. Could have been lesser but was indecisive.
  • #4,432
  • Apr 5, 2021 8:26am Apr 5, 2021 8:26am
Quoting needtolearn
Buy in Eur/USD. SL below 1.175 {image}
RSI was 47 and SMA200 was sloping down. Try to find less marginal setups if you can.
  • #4,433
  • Apr 5, 2021 9:09am Apr 5, 2021 9:09am
Quoting LauraT
{quote} RSI was 47 and SMA200 was sloping down. Try to find less marginal setups if you can.
Thank you.
  • #4,434
  • Apr 6, 2021 8:06am Apr 6, 2021 8:06am
Attached Image (click to enlarge)
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Plan, Prepare, Execute, Repeat
  • #4,435
  • Apr 6, 2021 8:08am Apr 6, 2021 8:08am
This is developing now. RSI is 60 and m1-h1 is bullish bias. I would like to enter when price retraces pehaps to where the green arrow is but i recalled Laura say something about the slope of 200MA which is currently laying flat on the daily open. Could you please clarify the slope point? would a retrace be valid trade not minding that 200ma is flat?
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  • #4,436
  • Apr 6, 2021 8:27am Apr 6, 2021 8:27am
Quoting swingtrade65
{image}
Although I like this trade, and it's the type I'd take, wanted to point out to thread readers that this is an ANTICIPATION of a channel break to the downside. This carries more risk than waiting for a confirmation. Of course, the advantage, if right, is that you get in at a much better price but be aware that anticipation trades do fail more than confirmed ones.
  • #4,437
  • Apr 6, 2021 8:31am Apr 6, 2021 8:31am
Quoting RachelB
This is developing now. RSI is 60 and m1-h1 is bullish bias. I would like to enter when price retraces pehaps to where the green arrow is but i recalled Laura say something about the slope of 200MA which is currently laying flat on the daily open. Could you please clarify the slope point? would a retrace be valid trade not minding that 200ma is flat? {image}
Looks fine for trading a retracement. Ideally you'd want price to spend a little time below the 8EMA channel and then get back above. This would ensure you had fresh momentum on your side.

You are right, I generally advise against taking trades where SMA is relatively flat as it's usually a sign the market has not committed to a direction. However, it would appear this market has now chosen a direction.
  • #4,438
  • Apr 6, 2021 8:38am Apr 6, 2021 8:38am
Quoting LauraT
{quote} Although I like this trade, and it's the type I'd take, wanted to point out to thread readers that this is an ANTICIPATION of a channel break to the downside. This carries more risk than waiting for a confirmation. Of course, the advantage, if right, is that you get in at a much better price but be aware that anticipation trades do fail more than confirmed ones.
Thanks for the feedback Laura! Agreed on the failure rate being higher.
Plan, Prepare, Execute, Repeat
  • #4,439
  • Apr 6, 2021 9:09am Apr 6, 2021 9:09am
Quoting LauraT
{quote} Looks fine for trading a retracement. Ideally you'd want price to spend a little time below the 8EMA channel and then get back above. This would ensure you had fresh momentum on your side. You are right, I generally advise against taking trades where SMA is relatively flat as it's usually a sign the market has not committed to a direction. However, it would appear this market has now chosen a direction.
Thanks Laura.
  • #4,440
  • Apr 6, 2021 9:57am Apr 6, 2021 9:57am
Attached Image (click to enlarge)
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Plan, Prepare, Execute, Repeat
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