Hi Robinhood,
How do you cope or identify a ranging market.
How do you cope or identify a ranging market.
- #7,622
- Edited 1:37pm Mar 25, 2022 10:45am | Edited 1:37pm
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
Hi Robinhood, How do you cope or identify a ranging market.
Here's are the ways I cope with them:
If I am day trading and that happens, I will often try to catch the breakout no more than 3 times, but I also use very tight stops. If a trade doesn't work within 3 tries, then I just stop trying. For me to be wrong on my entry more than 3 times in a row is demoralizing, so I just don't do it anymore.
If I am trading Daily charts, I usually will only try it once. If the trade doesn't work, I usually wait until it actually starts trending and I'll usually wait for a Continuation Trade before I go in.
A VERY important saying that I made up and have deeply ingrained in my mind is:
"Don't Trade What You Don't Recognize"
Meaning, for me, that means I ONLY take Crossover Trades and Continuation Trades when trading stocks. They are all a chart trader needs. Master them, use reasonably tight stops, let your profits run (and/or a reasonable R:R), and use a reasonable bet size on every trade (based on the size of your account).....and you will win. I guarantee it.
Here is something that I have been day trading all morning today. The first 5 boxes and the 7 box are Continuation Trades. The 6th box is a Crossover Trade.
"Trade What You See, NOT what you Think" !!!!!
Always a Student, Never a Master - Emulate What Works
- #7,623
- Edited 11:13am Mar 25, 2022 10:55am | Edited 11:13am
- Joined Apr 2019 | Status: Trader | 1,996 Posts
So far so good this month. My all time best result in the 3 years I have been attempting to trade forex.
Got about -$500 in DD due to another Bot i have been testing. Also an example of how I am trading using swingmans oscillator indi. One dud trade in amongst several winners. Move trade to BE soon as poss and trail it till it stops.
Got about -$500 in DD due to another Bot i have been testing. Also an example of how I am trading using swingmans oscillator indi. One dud trade in amongst several winners. Move trade to BE soon as poss and trail it till it stops.
- #7,624
- Edited 12:22pm Mar 25, 2022 11:59am | Edited 12:22pm
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
So far so good this month. My all time best result in the 3 years I have been attempting to trade forex.
I doubt most traders here know this so I will share it.
When Swingman initially created smTMMS Oscillator, he simply combined the indicators in the lower window together from Page 1, Post #1 into one indicator which made seeing when all 3 indicators had crossed the 50 Purple Line easier and it was more visually pleasing to many of us. Now, many of us use both the way I presented as well as also using his indicator both at the same time (I do).
THEN, at some point later, I asked Swingman to update the Oscillator by adding the yellow line you see.
Anyway, here's why I wanted it to be incorporated, and how I use it when I use it.
Look at the lower window. I have drawn red boxes identifying trades, and where you enter and exit.
Long Trades. When the vertical bars turn green, you enter, when the purple line crosses below the yellow line, you exit.
Short Trades. When the vertical bars turn red, you enter, when the purple line crosses above the yellow line, you exit.
Is it perfect? No. But then nothing is.
Always a Student, Never a Master - Emulate What Works
{quote} Good Job!! I doubt most traders here know this so I will share it. When Swingman initially created smTMMS Oscillator, he simply combined the indicators in the lower window together from Page 1, Post #1 into one indicator which made seeing when all 3 indicators had crossed the 50 Purple Line easier and it was more visually pleasing to many of us. Now, many of us use both the way I presented as well as also using his indicator both at the same time (I do). THEN, at some point later, I asked Swingman to update the Oscillator by adding the yellow...
Hello RobinHood.
Your trading system is very good, I like it a lot.
I've it expanded a bit. I think the most important thing is, to think about how many pips you want to get before making a trade.
I have found out, that when an indicator shows oversold or overbought, there is usually a resistance or support nearby. That's why I have this S-R indicator on the chart.
For example, when everything on the H4 chart indicates to make a trade, I first look at all other time frames to see if the price is currently arrived at a resistance or support. If so, one should wait a bit to see what happens before making the trade.
Very often I've only been in plus just a moment, and then the price has turned because it was at a resistance or support, in which case you run the risk of quickly hitting the stop-loss.
In this case, I see 3 solutions: Either forego a stop-loss, or place the stop-loss far enough away, or trade directly in the opposite direction. That's why I think it's very important to consider beforehand whether you want to make just a few pips or maybe take a whole trend with you.
What do you think about that?
Maybe it would be good, if some members could test this idea.
Best regards
_______________________
Michael.MSA
Don't trade because you think you have to do something.
- #7,626
- Edited 11:39am Mar 26, 2022 7:51am | Edited 11:39am
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
{quote} Hello RobinHood. Your trading system is very good, I like it a lot. I've it expanded a bit. I think the most important thing is, to think about how many pips you want to get before making a trade. I have found out, that when an indicator shows oversold or overbought, there is usually a resistance or support nearby. That's why I have this S-R indicator on the chart. For example, when everything on the H4 chart indicates to make a trade, I first look at all other time frames to see if the price is currently arrived at a resistance or support....
This is just a suggestion, but maybe you should start a new thread, and teach in depth what you've discovered because S/R is a VERY popular subject with traders.
----------------------------------
Although not connected to the ideas presented above, here's some of my thoughts since it's early on a Saturday morning while I have nothing else to do...
There is the saying "There are a thousand ways to skin a cat" and the same is true regarding how/why to enter or exit a trade.
I have studied in depth Support and Resistance, as well as Supply and Demand, Trendlines, Event Trading, Japanese Candlestick Patterns, CANSLIM, Cycles, Fibonacci, Elliot Wave Theory, Gann, Ichimoku, Scale Trading, etc. and 99% of the time, I don't use any of them.
Why? Because either they don't fit my personality, or my temperament, or intellectually I must not fully understand how to use them well enough to be successful with them.
Virtually none of those things has ever worked well FOR ME...Consistently. But, I am 100% certain that they have all worked for many, many other traders.
My philosophy is this...Einstein said "Make everything as simple as possible, but not less" and so that's what I ALWAYS TRY to do, and in everything I do in my life.
What has worked best for me are simple trading patterns that repeat over and over again in any time frame, and are on every chart. For example, try to find a normal looking chart that does not have any Continuation Trades and/or Crossover Trades on it and I'll bet you can't. Look at the 2 minute Apple (AAPL) chart below and you will EASILY see those two types of trades on it if you know how to (I placed white boxes around them).
* The indicator in the lower window is something new that I created recently but I am still trying to find the best settings overall to use. Possibly I'll share it one day here if I can get Swingman to code it for us. *The idea is that you should only take long trades when BOTH the yellow and magenta lines are above (or crossing above) the white dotted line and vice-versa for short trades. And, you should probably not use it just as a "stand alone" indicator for the best results.
As I mentioned yesterday during the trading day, I day traded this chart yesterday, and quite successfully. I'll show part of my trading account to prove it.
I have perfected the trading methods that I use so well that in nearly the blink of an eye I can look at a chart and know whether to enter or exit, or where I would have entered and exited every trade. Look at the chart below and see how quickly you can identify Continuation and/or Crossover Trades on it and you'll see what I mean. It's similar to riding a bicycle in that you don't even have to think about it to ride it if you know how to (and if you are physically able to).
In the pdf that I just posted recently (Post #7611), the author (if I remember correctly) makes reference to the fact that the traders featured in the book "Market Wizards" and how every one of them were immensely successful, yet none of them traded the same way.
So what's my point? That we can all trade different ways and still be successful.
It has always been my intention in this thread to present what works for me, (and to exchange ideas with each other just as Michael did above) AND even moreso...to be able to prove that the ideas make money. I do it because it's a rare thing to see both of those things from someone who presents his ideas on a trading forum AND proves that they are profitable by way of showing their trading account results. I know that it gives other traders faith and encouragement when they see that.
Always a Student, Never a Master - Emulate What Works
- #7,629
- Edited 2:33pm Mar 26, 2022 2:10pm | Edited 2:33pm
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
Always a Student, Never a Master - Emulate What Works
- #7,631
- Mar 26, 2022 2:29pm Mar 26, 2022 2:29pm
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
Don't come on this threade very often, what indicator is that?
Always a Student, Never a Master - Emulate What Works
- #7,632
- Edited 2:48pm Mar 26, 2022 2:33pm | Edited 2:48pm
- Joined Aug 2014 | Status: Trader | 4,260 Posts
- #7,633
- Mar 26, 2022 3:16pm Mar 26, 2022 3:16pm
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
Always a Student, Never a Master - Emulate What Works
- #7,635
- Edited Mar 27, 2022 10:54am Mar 26, 2022 6:42pm | Edited Mar 27, 2022 10:54am
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
Always a Student, Never a Master - Emulate What Works
So far so good this month. My all time best result in the 3 years I have been attempting to trade forex.
- #7,640
- Edited 8:40am Mar 28, 2022 7:59am | Edited 8:40am
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
Always a Student, Never a Master - Emulate What Works