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SRDC Episode I

  • #501
  • Nov 18, 2006 7:28pm Nov 18, 2006 7:28pm
Quoting compro99
Yesterday Bullish Bar
================

Long it at yesterday High and Short it at yesterday Open.


Yesterday Bearish Bar
================

Short it at yesterday Low and Long it at yesterday Open.


This is correct now !
I like yesterday's Close (instead of the Open) for both short and long. For more action .

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #502
  • Nov 19, 2006 5:07pm Nov 19, 2006 5:07pm
Could someone post some results from the EA? Just curious as to how Skyline's version is working in forward tests.


Thanks
  • #503
  • Nov 19, 2006 6:06pm Nov 19, 2006 6:06pm
Quoting 4rex
Roshan,

Would you consider this a channel?
I would rather candles with a light background for es standardization.

Anyway, look at the chart I enclosed. Hope that pips.

MEDIAN

Watch how the price move up down, start and settle near the median (use period saperator). This way you will know where the price will go next. After drawing on Daily, draw on H1 and use it as Micro trading the Daily candles.

May your chart pips positively
Attached Image
Change Your Thinking. Change Your Life - JD
  • #504
  • Nov 19, 2006 6:57pm Nov 19, 2006 6:57pm
Roshan,

Thanks again, es? what is that? Your chart is not easy to read but are you using the strato? How about using Bollinger Bands? I am a bit confuse with the channel idea...sorry. I am trying to incorporate it into SRDC


Quoting OrangeRoshan
I would rather candles with a light background for es standardization.

Anyway, look at the chart I enclosed. Hope that pips.

MEDIAN

Watch how the price move up down, start and settle near the median (use period saperator). This way you will know where the price will go next. After drawing on Daily, draw on H1 and use it as Micro trading the Daily candles.

May your chart pips positively
Attached Image
All 4 1 and 1 4 All
  • #505
  • Nov 19, 2006 7:12pm Nov 19, 2006 7:12pm
Quoting 4rex
Roshan,

Thanks again, es? what is that? Your chart is not easy to read but are you using the strato? How about using Bollinger Bands? I am a bit confuse with the channel idea...sorry. I am trying to incorporate it into SRDC
LOL

es is EZ (easy) a type mismatch. That was your chart, sorry I make it smaller to follow the forum's maximum rule.

Try drawing the SRDC channel or even Pitchfork (similar) on the 1 hour chart. You will see, price starts at the median, move either to the High and low then back to the median at the end of the day. Its not perfect, but thats the general idea.

Now, How to apply to SRDC? When the candles is near to the channel (H 0r L), the chances of it breaking the trend is slim (unless a trend change). So, the only probable direction is towards the median and the opossite trendline.

See the prvious day's H & L (S&R). Since you have establish a probable direction, it is only logical to enter a trade following this direction. Early entry will be possible without waiting for it to break the previous H & L (actually this is part of level 2 explaination).

In the case of price near the trend line (H&L), T1 is the Median & T2 is break of previous day's H&L (S&R) and T3 is the opposite Trend. Proper Money Management will satisfy your lust for Jaba's GF, oppss sorry I mean positive pips!!

The rest is reversal!! When you can master this method, a day range can produce pips equal to 1 day range x 1.5. Eventually, the price will goback to the median again at end of the day!!

Understand the above statements, and SRDC level pandora's box is open!!
Change Your Thinking. Change Your Life - JD
  • #506
  • Nov 19, 2006 7:21pm Nov 19, 2006 7:21pm
Quoting OrangeRoshan
LOL

es is EZ (easy) a type mismatch. That was your chart, sorry I make it smaller to follow the forum's maximum rule.

Try drawing the SRDC channel or even Pitchfork (similar) on the 1 hour chart. You will see, price starts at the median, move either to the High and low then back to the median at the end of the day. Its not perfect, but thats the general idea.

Now, How to apply to SRDC? When the candles is near to the channel (H 0r L), the chances of it breaking the trend is slim (unless a trend change). So, the only probable direction is towards the median and the opossite trendline.

See the prvious day's H & L (S&R). Since you have establish a probable direction, it is only logical to enter a trade following this direction. Early entry will be possible without waiting for it to break the previous H & L (actually this is part of level 2 explaination).

In the case of price near the trend line (H&L), T1 is the Median & T2 is break of previous day's H&L (S&R) and T3 is the opposite Trend. Proper Money Management will satisfy your lust for Jaba's GF, oppss sorry I mean positive pips!!

The rest is reversal!! When you can master this method, a day range can produce pips equal to 1 day range x 1.5. Eventually, the price will goback to the median again at end of the day!!

Understand the above statements, and SRDC level pandora's box is open!!
Hey "Orange",

Do you have a set of rules for drawing the channel lines or is there a custom indicator for this?

Alex
  • #507
  • Nov 19, 2006 7:44pm Nov 19, 2006 7:44pm
Quoting AlexFX
Hey "Orange",

Do you have a set of rules for drawing the channel lines or is there a custom indicator for this?

Alex
I havent complied the rules in a standard manner, coz im so used to seeing the candles, a glance will click my thoughts to draw it. But, I will try to simplify it below.

Rules on 1hr:

1. Use Euiqdistant Channel to contain the latest trend within the channel
2. 1 day channel is not very accurate
3. 2 days channel will show a trend
4. 3 days channel will complete a channel.
5. Find the Highs of the 1-2-3days and the lows which touches the trendline the most!! = Channel. An extreme H & L may not count!!
6. Adjust as the next day candles finish forming.
7. Draw a Median (parallel to the Channel)
8. A perfect channel will be when you can draw, the start and end of day to be near or on the median. However sometimes this is not possible. The nearer the median to the day start and end the better.
9. use the end of day saperator.
10. Use candles & Bear black and bull white when possible. And light background so Jedi dont have wear glasses!! LOL

Channel Jedi, where PIPs eposide 1-99 are shown!!
Change Your Thinking. Change Your Life - JD
  • #508
  • Edited 2:36am Nov 20, 2006 2:25am | Edited 2:36am
Thanks for the low down on the rule set for channels. I did some digging around for a custom indicator and found this one. Maybe you could have a look and see if it fits your criteria.

Thanks again

Alex
Attached File(s)
File Type: mq4 shi_channel_M15_60_240.mq4   13 KB | 686 downloads
  • #509
  • Nov 20, 2006 4:19am Nov 20, 2006 4:19am
I know Orange said don't set up a trade in the same direction again because buying power may be over so today long would be over. BUT, what if you set it up 1 pip higher than the high so far. This in case some new buying power comes along. It is hard to test this on the daily charts because you don't know the details behind the day. Anyway, just thought I'd ask that question to see what others thought.

I traded compro's variation today and got 7 pips.
  • #510
  • Nov 20, 2006 4:45am Nov 20, 2006 4:45am
Quoting llambert3
I know Orange said don't set up a trade in the same direction again because buying power may be over so today long would be over. BUT, what if you set it up 1 pip higher than the high so far. This in case some new buying power comes along. It is hard to test this on the daily charts because you don't know the details behind the day. Anyway, just thought I'd ask that question to see what others thought.

I traded compro's variation today and got 7 pips.
You read my mind. I am just sitting here looking at GBP/USD?????
  • #511
  • Nov 20, 2006 5:41am Nov 20, 2006 5:41am
Hello Fellow Roshanites!

I came across this post that I think can help us determine/confirm the direction of our entries if we decide not to straddle. Basically, and there is probably more ways to use it, I plan to use it as a Stop Loss indicator and to help me determine based on Daily Range which way to go (long/short). The risk to reward can be modify to your taste.What do you guys/gals think?

<TABLE class=tborder id=post105584 cellSpacing=1 cellPadding=6 width="100%" align=center border=0><TBODY><TR><TD class=thead>09-25-06, 11:19 <!-- / status icon and date -->
</TD></TR><TR><TD class=alt2 style="PADDING-RIGHT: 0px; PADDING-LEFT: 0px; PADDING-BOTTOM: 0px; PADDING-TOP: 0px"><!-- user info --><TABLE cellSpacing=6 cellPadding=0 width="100%" border=0><TBODY><TR><TD noWrap>ogeima http://www.forexfactory.com/forexfor...er_offline.gif<SCRIPT type=text/javascript> vbmenu_register("postmenu_105584", true); </SCRIPT>
Junior Member
</TD><TD width="100%"> </TD><TD vAlign=top noWrap>Join Date: Jun 2006
Location: Tokyo
Posts: 10


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<HR style="COLOR: #d1d1e1" SIZE=1><!-- / icon and title --><!-- message -->Hi everyone,

Here's a little "indicator" that does some basic calculations for us.

Let's look at what it does:
It computes yesterday's range, the previous 5, 10 and 20 days ranges. And it calculates the "Average Day Range" of these four ranges (yesterday's+ Prev 5 Day Range + Prev 10 Day Range + Prev 20 Day Range)/4.
So, if yesterday's Day Range was 80, the Previous 5 Day Range was 110, the Previous 10 Day Range was 90 and the Previous 20 Day Range was 120, then the Average Day Range would be 100.

Then there's "Room Up" and "Room Down".
Let's imagine today's low is (so far) 1000 and today's high is (so far) 1050. At this moment the price is 1020.
So we're 1020-1000= 20 pips above the low, there is therefore 100-20=80 pips "left" up. For a risk-to-reward ratio of (say) 3, if a long trade was to be entered now, the stop loss should be no more than 80/3=26pips away, that is at 1020-26=994. So, if all conditions are met, we ll look for a "bottom" no lower than 994.
Same thing for a short trade: we are 1050-1020= 30 pips below the high, there is therefore 100-30=70 pips "left" down. For a risk-to-reward ratio of 3, if a short trade was to be entered now, the stop loss should be no more than 70/3=23pips away, that is at 1020+23=1043. So, if all conditions are met, we ll look for a "top" no higher than 1043.

As you can see, this indicator doesn't tell us whether or not we have a set up to trade. What it does is, considering some past day ranges, and for a given Risk to Reward ratio, it tells us how far away we can put a stop loss.

Hope this helps,

Ogeima.

P.S.: I used H-L (High-Low) to compute the Ranges. They are thus a bit different from mataf.net data, which computes what is known as the "True" Ranges (= Max(High for the period less the Low for the period,High for the period less the Close for the previous period,Close for the previous period and the Low for the current period)).
<!-- / message --><!-- attachments --><FIELDSET class=fieldset><LEGEND>Attached Files</LEGEND><TABLE cellSpacing=3 cellPadding=0 border=0><TBODY><TR><TD>http://www.forexfactory.com/forexfor...attach/mq4.gif</TD><TD>(T_S_R)-Daily Range Calculator v1.0.mq4 (3.2 KB, 21 views)</TD></TR></TBODY></TABLE></FIELDSET>
</TD></TR></TBODY></TABLE>
Attached Image
All 4 1 and 1 4 All
  • #512
  • Nov 20, 2006 5:47am Nov 20, 2006 5:47am
Master Roshan,


I find myself in a quagmire when dealing with channels . My apologies to the highest authority...but I may for now, stick to Habeeb's Pivot indicators where they can be trace daily/weekly/monthly. Is this a significant deviation from your up and coming Step2?

Thank you once again for your unrelentless effort to help

Quoting OrangeRoshan
I havent complied the rules in a standard manner, coz im so used to seeing the candles, a glance will click my thoughts to draw it. But, I will try to simplify it below.

Rules on 1hr:

1. Use Euiqdistant Channel to contain the latest trend within the channel
2. 1 day channel is not very accurate
3. 2 days channel will show a trend
4. 3 days channel will complete a channel.
5. Find the Highs of the 1-2-3days and the lows which touches the trendline the most!! = Channel. An extreme H & L may not count!!
6. Adjust as the next day candles finish forming.
7. Draw a Median (parallel to the Channel)
8. A perfect channel will be when you can draw, the start and end of day to be near or on the median. However sometimes this is not possible. The nearer the median to the day start and end the better.
9. use the end of day saperator.
10. Use candles & Bear black and bull white when possible. And light background so Jedi dont have wear glasses!! LOL

Channel Jedi, where PIPs eposide 1-99 are shown!!
All 4 1 and 1 4 All
  • #513
  • Nov 20, 2006 6:37am Nov 20, 2006 6:37am
Quoting bapxyz
You read my mind. I am just sitting here looking at GBP/USD?????
hmm, well I won't trade it, but we'll see what happens today if it makes it that way.
  • #514
  • Nov 20, 2006 7:05am Nov 20, 2006 7:05am
Quoting llambert3
hmm, well I won't trade it, but we'll see what happens today if it makes it that way.
well it went 2 pips higher then reversed. On a side note, another buy at the original long would've produced another +pip
  • #515
  • Nov 20, 2006 9:21am Nov 20, 2006 9:21am
I think I understand. Does this look right? The lines are for the previous day's open, close, high, low and middle. I found the indicator in eSignal.
Attached Image
  • #516
  • Nov 20, 2006 9:26am Nov 20, 2006 9:26am
Going long at the high made me pips. I think I understand.
Attached Image
  • #517
  • Nov 20, 2006 9:41am Nov 20, 2006 9:41am
Quoting PipControl
I think I understand. Does this look right? The lines are for the previous day's open, close, high, low and middle. I found the indicator in eSignal.
Pip are you using yesterday's high/low? or a 60 minute? I couldn't tell from your chart.
  • #518
  • Nov 20, 2006 10:08am Nov 20, 2006 10:08am
Quoting llambert3
Pip are you using yesterday's high/low? or a 60 minute? I couldn't tell from your chart.
I used yesterday's Open/Close/High/Low on 1 hour chart. Did I do it wrong?

I go short at yesterday's close and make pips.
Attached Image
  • #519
  • Nov 20, 2006 10:38am Nov 20, 2006 10:38am
Quoting PipControl
I used yesterday's Open/Close/High/Low on 1 hour chart. Did I do it wrong?

I go short at yesterday's close and make pips.
Ok, let me say this - orange strategy as posted you would use high/low from previous day. If you are using compro's variation you have to look at yesterday's candle. If green buy 1 pip higher than yesterday's HIGH, sell 1 pip lower than yesterday's OPEN (not close)... If red (down day), sell 1 pip lower than yesterday's LOW, buy 1 pip higher than yesterday's OPEN (again not close).

If you use yesterday's close, the chances the new daily candle going 1 pip above/below it are probably near 100%, but you may not get pips that way before it reverses.
  • #520
  • Nov 20, 2006 11:06am Nov 20, 2006 11:06am
Quoting llambert3
Ok, let me say this - orange strategy as posted you would use high/low from previous day. If you are using compro's variation you have to look at yesterday's candle. If green buy 1 pip higher than yesterday's HIGH, sell 1 pip lower than yesterday's OPEN (not close)... If red (down day), sell 1 pip lower than yesterday's LOW, buy 1 pip higher than yesterday's OPEN (again not close).

If you use yesterday's close, the chances the new daily candle going 1 pip above/below it are probably near 100%, but you may not get pips that way before it reverses.
Price was above yesterday's close and going down. I short at close number. I make pips. How I make pips if I do it wrong? I don't understand?
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