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M1 Countertrend Scalping Strategy

  • #10,041
  • Nov 4, 2023 12:44am Nov 4, 2023 12:44am
M1 BTCUSD - aggressive or conservative?

the keltner channel gives me a choice when entering a countertrend, it can be entered on the extreme edge targeting the midline for an aggressive approach, or the more conservative approach is to wait for it to break and hold above the midline thus providing confirmation of the move and target the extreme edge from there...
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such as this trade and the previous one!
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every minute matters!
  • #10,042
  • Nov 4, 2023 1:28am Nov 4, 2023 1:28am
uniformity leads to consistency

for example, a programmer will not change language each day to complete a project or a surgeon will not use a scalpel one day and a knife the next - day in day out they refine the use of them over the years, obviously trading should be no different...

if each day i change my chart colours or set of indicators or bar style or whatever, then i will definitely not be achieving consistent results, and if i have tools that are never used or worse still not fully understood or faulty, then they will become a distraction!
every minute matters!
  • #10,043
  • Edited 4:50pm Nov 4, 2023 4:24pm | Edited 4:50pm
Quoting niks
M1 BTCUSD - aggressive or conservative? the keltner channel gives me a choice when entering a countertrend, it can be entered on the extreme edge targeting the midline for an aggressive approach, or the more conservative approach is to wait for it to break and hold above the midline thus providing confirmation of the move and target the extreme edge from there... {image} {image} {image} such as this trade and the previous one! {image}
hey niks great charts and trades, thanks... the way I see it is, the first method you described (aggressive) is definitely countertrend, as price is at extremes away from the mean/median/middle/equilibrium/whatever you like to call it, and the keltner channel indicates that really well because there are closes outside the upper/lower channel line, and price WILL revert towards the centre, especially if these charts are M1, which yours always are....

and the second method you describe (conservative) I would call that with trend, because, using your examples, price has begun the reversal/retracement/reversion process with a series of HHs & HLs, and the 20 SMA you use has turned from falling to rising, meaning the closing price is above average compared to the last 20 candles. Both work equally well imo.

For me. your charts show a clear downtrend, then distribution of profits/accumulation of long positions (the basing price action area with lots of upper & lower wicks & small candle bodies), and the beginnings of an uptrend. with clear institutional commitment with that dominant candle where you took your profits. It's that turnaroud where I like to get in too.

Thanks again niks, you're an inspiration!
We don't see things as they are - we see things as we are.
  • #10,044
  • Nov 4, 2023 4:37pm Nov 4, 2023 4:37pm
Quoting niks
uniformity leads to consistency for example, a programmer will not change language each day to complete a project or a surgeon will not use a scalpel one day and a knife the next - day in day out they refine the use of them over the years, obviously trading should be no different... if each day i change my chart colours or set of indicators or bar style or whatever, then i will definitely not be achieving consistent results, and if i have tools that are never used or worse still not fully understood or faulty, then they will become a distraction!...
Possibly the most powerful and profound post on this entire thread. Newbies take note, breathe in that truth and stop fiddling with your charts and indicators. Refine the simplicity of the process. Be repetitive. Be boringly consistent. Be stubbornly committed to improving your skill, not the indicator that you keep fiddling with.

Honestly I think of how many hours/days/weeks I have spent/wasted on finding new indicators, applying them to my charts, setting up new templates, getting all excited about this new holy grail indie that will work where all the others failed, only to discover it failed too... wasting similar numbers of hours/days/weeks on my candle types/colours and backgrounds...

................................and all the time the answers were staring me right in the face. Open High Low Close. The secrets they are trying to tell us! All within a single candle or group of candles!

I've gone off on a tangent. I'll stop now.

Niks thanks again for your posts.
We don't see things as they are - we see things as we are.
  • #10,045
  • Nov 4, 2023 8:10pm Nov 4, 2023 8:10pm
i think every trader has been or is still in that position - it all comes down to trust in oneself, and until that is achieved, the never ending search WILL go on unfortunately! once achieved though, the journey to consistency through refinement begins!

then when the realisation is made that EVERY trade decision is based on intuition and not an indicator, it should inspire most to learn to read price action, ditch their indicators, control their emotions and trust themselves...

thanks for sharing your experience and reinforcing the message sonicvista, mine was the same...
every minute matters!
  • #10,046
  • Nov 4, 2023 9:49pm Nov 4, 2023 9:49pm
M1 BTCUSD - same ole, same ole!

entered long after strong move down breaching lower channel targeting midline, move continued lower and entered two more orders before price returned to channel...
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very small profits were on offer on the return to midline, but by that stage my targets were on the upper channel, so now waiting for a break above the midline to hold...
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it holds and price moves higher, the next step is to break and hold above ema200 and move into the upper channel...
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it holds above ema200 and moves into upper channel...
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then hits my targets!
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every minute matters!
  • #10,047
  • Nov 5, 2023 7:02pm Nov 5, 2023 7:02pm
Some Sunday Sloth trading.
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  • #10,048
  • Nov 6, 2023 5:00am Nov 6, 2023 5:00am
Quoting niks
{quote} actually it was another traders snapshot, not mine, there are no fixed rules for this strategy, it still is as it is explained in post #1 and numerous other posts within the thread... the keltner channel is just an aid to the core strategy and can be used however you wish...
Thanks a lot!

I am trying to grasp the concept. working fine so far. combining it with stochastics for me. Seems like trading becomes so easy
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  • #10,049
  • Nov 6, 2023 6:04pm Nov 6, 2023 6:04pm
Quoting zacktrader08
{quote} Thanks a lot! I am trying to grasp the concept. working fine so far. combining it with stochastics for me. Seems like trading becomes so easy {image}
it's my pleasure, you are grasping it very well - best of luck to you!
every minute matters!
  • #10,050
  • Nov 7, 2023 7:53am Nov 7, 2023 7:53am
Quoting zacktrader08
{quote} Thanks a lot! I am trying to grasp the concept. working fine so far. combining it with stochastics for me. Seems like trading becomes so easy {image}

Clever use of the Stochastics! I presume you're using the Keltner Channel as well with niks' settings?
  • #10,051
  • Nov 7, 2023 7:17pm Nov 7, 2023 7:17pm
M1 XAUUSD - aggressive countertrend entry...

an aggressive countertrend entry carries more risk with it as i start entering on the initial breach of the channel which was originally designed to catch trends for continuation on the break, this is contrarian to the original purpose of the keltner channel and the reason i use two channels instead of one...
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it works equally well for both countertrend and trend trades because the inner channel identifies trend continuations as originally designed, and the outer channel identifies countertrend opportunities in combination with ema's!
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every minute matters!
  • #10,052
  • Nov 7, 2023 10:47pm Nov 7, 2023 10:47pm
Quoting niks
{quote} hey sonicvista, the earlier audusd snapshot was on the M1 chart with the M5 setting on the keltner channel: {image} the snapshot you have just quoted was on the M1 chart and set to current timeframe as below: {image}

I'm looking in the paperclip for this thread and I can't seem to find "Keltner" anywhere in the file attachments. Would you be able to post the mq5/ex5 file here?

Also, I don't see an option in your picture of the indicator settings to add in a second set of channel bands. How was this done?
  • #10,053
  • Nov 7, 2023 11:44pm Nov 7, 2023 11:44pm
Quoting TransparentT
{quote} I'm looking in the paperclip for this thread and I can't seem to find "Keltner" anywhere in the file attachments. Would you be able to post the mq5/ex5 file here? Also, I don't see an option in your picture of the indicator settings to add in a second set of channel bands. How was this done?
it is not mine to post, it is copyright of MQL5, you must download and install it yourself...
https://www.mql5.com/en/code/16740
you create the dual channel yourself, there is no setting for it, simply drop it onto your chart twice with different settings, it has all been explained in previous posts, please read them first before asking another question...
every minute matters!
  • #10,054
  • Nov 8, 2023 4:38am Nov 8, 2023 4:38am
Quoting TransparentT
{quote} Clever use of the Stochastics! I presume you're using the Keltner Channel as well with niks' settings?
Nope. just the default settings of Keltner
  • #10,055
  • Nov 8, 2023 5:30am Nov 8, 2023 5:30am
M1 XAGUSD
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every minute matters!
  • #10,056
  • Nov 8, 2023 7:31pm Nov 8, 2023 7:31pm
XAUUSD M1 early day breakout after gold has been beaten down for 3 days straight.
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We don't see things as they are - we see things as we are.
  • #10,057
  • Nov 8, 2023 7:58pm Nov 8, 2023 7:58pm
Quoting sonicvista12
XAUUSD M1 early day breakout after gold has been beaten down for 3 days straight. {image}
well picked, i can see what looks to me like shorts getting trapped on the break of ema200 just before your entries providing nice momentum to your targets!

i'm picking on the eur and aud at the moment!
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every minute matters!
  • #10,058
  • Nov 9, 2023 12:03am Nov 9, 2023 12:03am
Quoting niks
{quote} it is not mine to post, it is copyright of MQL5, you must download and install it yourself... https://www.mql5.com/en/code/16740 you create the dual channel yourself, there is no setting for it, simply drop it onto your chart twice with different settings, it has all been explained in previous posts, please read them first before asking another question...

My apologies, I didn't read through the past few pages properly. I managed to find the previous posts with your discussions about the Keltner channel.

I didn't go back all the way to the very beginning, but fortunately I didn't need to. I'll post the links here for people who may have similar questions as I did.

Link to the Keltner Channel for MT5 (will reply when I find a suitable MT4 version):
https://www.forexfactory.com/thread/...0#post14579140
https://www.forexfactory.com/thread/...5#post14619525

Settings used for Keltner Channel (at least on XAU), and how to set up the dual channels:
https://www.forexfactory.com/thread/...2#post14619602

An example of adjusting the Keltner Channel for trading BTC during the weekend:
https://www.forexfactory.com/thread/...9#post14626399

Using the top channels as take profit targets:
https://www.forexfactory.com/thread/...1#post14634471

Using M5 settings on an M1 chart:
https://www.forexfactory.com/thread/...6#post14640876

Keep in mind this is not comprehensive. One day I'll eventually catalog and organize every Keltner Channel post in this thread as I believe there's a lot of great material to extract from them not commonly seen or discussed in other places.

Thanks for encouraging me to dig into the past posts instead of just giving me the answer!
  • #10,059
  • Nov 9, 2023 12:32am Nov 9, 2023 12:32am
no need to apologise, accepting the kick in the right direction is all that's required!

yes, i only recently started posting about keltner channel, i forgot to mention that, glad you picked up on it!

that is very kind of you to catalog the posts so far, you have covered them very well, so thank you for that, i for one will find it very useful... i'm pretty sure you've captured everything i've posted about keltner channel, i'll let you know if not...

here is an MT4 version of keltner channel i found
https://www.mql5.com/en/code/8445

this may also be useful, a keltner oscillator for MT5
https://www.mql5.com/en/code/16744

i agree, it is seldom used or discussed, but possibly the most powerful and at least worth discussing...

anyway, it's always my pleasure - putting in the hard yards is all part of the journey and your heading in the right direction, best of luck to you!
every minute matters!
  • #10,060
  • Nov 9, 2023 2:13am Nov 9, 2023 2:13am
M1 AUDUSD - inner channel trend detection...

once price breaks the opposite inner channel for the first time, then enter on the pullback to ema9 or the midline and trend should continue...
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target a support\resistance level a bit below the outer channel...
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when it runs against me, the signs are clear, ema9 will cross the midline and price will move into the opposing inner channel, but the trade remains valid as long as the opposing inner channel break doesn't hold, these crosses are crucial points to watch closely...
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as long as the opposing inner channel break doesn't hold, keep entering on each break back of ema9 and it should cross the midline again back in my favour and resume the trend i was originally aiming for, that is why keltner channel breaks are so powerful and work extremely well for detecting trends...
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most trends are exhausted when relatively big bars appear so i target outside the outer channel anticipating such a move - and when it hits my targets and breaks the outer channel, then a countertrend opportunity will likely appear...
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as it does here!
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every minute matters!
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