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Trading Made Simple the right way, and other trading lessons 334 replies

Indicators for the 'Trading Made Simple' system 343 replies

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Trading Made Simple(r)

  • #8,681
  • Jan 17, 2024 12:03am Jan 17, 2024 12:03am
Quoting RobinHood
{quote} I use it on every timeframe and every chart that I trade. But I use it most often on these: 1 min. 2 min. 3 min. 5 min. 15 min. 1 hr. 4hr. daily, weekly and monthly. Which ones I use them on all depends on what and how I am trading. For example... When day trading (mostly scalping) Tesla, I use the 1 min. 5. and 15 min. When day trading and/or scalping the QQQ (ETF) or SPY (ETF) I use the 3 min. and 15 min. and 1 hr. When swing trading I use 1hr. 4hr. and daily. When position trading I use daily, weekly and monthly.[/highlight]...
Hi RH, when all the crossover(HMA crossover above 5EMA, Stochastic 8 and 14 cross above 50 level line, and 14 RSI cross above 50level line too) just confirmed on 4H or Daily chart, may I know at 5min chart what are things you looking at?
  • #8,682
  • Jan 17, 2024 3:12am Jan 17, 2024 3:12am
Quoting RobinHood
{quote} I use it on every timeframe and every chart that I trade. But I use it most often on these: 1 min. 2 min. 3 min. 5 min. 15 min. 1 hr. 4hr. daily, weekly and monthly. Which ones I use them on all depends on what and how I am trading. For example... When day trading (mostly scalping) Tesla, I use the 1 min. 5. and 15 min. When day trading and/or scalping the QQQ (ETF) or SPY (ETF) I use the 3 min. and 15 min. and 1 hr. When swing trading I use 1hr. 4hr. and daily. When position trading I use daily, weekly and monthly. I also use the 5 min....
Thanks for this, very useful. I'm new to trading and had an extremely good week (probably beginners luck), followed by pretty big losses this week. I think I'm a bit trigger happy and also impatient.
  • #8,683
  • Jan 17, 2024 9:24am Jan 17, 2024 9:24am
Quoting jettli
{quote} Hi RH, when all the crossover(HMA crossover above 5EMA, Stochastic 8 and 14 cross above 50 level line, and 14 RSI cross above 50level line too) just confirmed on 4H or Daily chart, may I know at 5min chart what are things you looking at?
I look at the exact same things on the 5 min. that I look at on the higher time frames.

I use the 5 min. because if I get a buy signal on a higher time frame, I don't want to be entering a new trade while the 5 min. is in a downtrend.
Always a Student, Never a Master - Emulate What Works
  • #8,684
  • Edited 3:27pm Jan 17, 2024 9:34am | Edited 3:27pm
Quoting nickyoung
{quote} Thanks for this, very useful. I'm new to trading and had an extremely good week (probably beginners luck), followed by pretty big losses this week. I think I'm a bit trigger happy and also impatient.
In all honesty, winning big early on in your trading career is usually not a good thing long term because it tricks you into thinking you have it all figured out, which is never the case. It's similar to winning big in a casino, people often give most or all of it back thinking they can do it again.

Controlling risk is paramount to being a successful trader.

"Amateur traders focus on how much they can win, professional traders focus on how much they can lose"

After trading for about 35 years, I just learned something this past weekend that I never really used, nor even really understood (it's using Volume when trading stocks) and now that I do, it will forever change how I trade.
Always a Student, Never a Master - Emulate What Works
  • #8,685
  • Jan 18, 2024 12:19pm Jan 18, 2024 12:19pm
Very well said, and most definitely true.

Inserted Video
Always a Student, Never a Master - Emulate What Works
  • #8,686
  • Jan 18, 2024 1:52pm Jan 18, 2024 1:52pm
Quoting RobinHood
{quote} In all honesty, winning big early on in your trading career is usually not a good thing long term because it tricks you into thinking you have it all figured out, which is never the case. It's similar to winning big in a casino, people often give most or all of it back thinking they can do it again. Controlling risk is paramount to being a successful trader. "Amateur traders focus on how much they can win, professional traders focus on how much they can lose" After trading for about 35 years, I just learned something this past weekend that...
Exactly, and I know that learning how to trade isn't easy, and I expect to blow an account at least a few times before I can consistently make profits but learning how to not blow an account is important. If you can learn how not to blow an account then you must be doing something right in regards to risk.

In terms of your oscillator, I know you buy/sell when the yellow disappears behind the magenta, but, how can you tell whether to buy or sell? Correct me if I'm wrong, but in the first picture below, the first magenta bar with no yellow indicates a signal, in this case, a sell signal. Sometimes the same signal can appear but the price will actually go up.

For example, in the second picture the same signal appears (below the zero line) which to me would indicate a buy signal yet the price ends up going down.

What else do you use to determine whether to buy/sell?
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  • #8,687
  • Edited 6:58pm Jan 18, 2024 4:01pm | Edited 6:58pm
Quoting nickyoung
{quote} Exactly, and I know that learning how to trade isn't easy, and I expect to blow an account at least a few times before I can consistently make profits but learning how to not blow an account is important. If you can learn how not to blow an account then you must be doing something right in regards to risk. In terms of your oscillator, I know you buy/sell when the yellow disappears behind the magenta, but, how can you tell whether to buy or sell? Correct me if I'm wrong, but in the first picture below, the first magenta bar with no yellow...
Many times traders ask me simple questions just as you have that I feel "require" a more complex answer. So with that being said, I could write a book just on the different ways I use the RHO (RobinHood Oscillator), alone OR in conjunction with some or more of my other indicators.

If you REALLY study the RHO "in depth", I think you'll come to realize as I have that it's a fascinating indicator. For example, it shows increasing or decreasing momentum, or when the market is trending or chopping around, etc.

While I can remember at least one trader here criticize the RHO as just being another "me too" indicator, I think that what they didn't take into account was that often times it's easier for someone to see the same thing, but, to be shown it in different ways. Like a blind person may not be able to see to read, but if they know brail, they can still read.

The most important aspect about the RHO is that you do not use IT ALONE to enter trades, although you can use ONLY IT to exit trades if you should want to, and I often do that.

Ideally, I want to utilize as many of my indicators as possible at the same time to enter trades. Sometimes it's just 3-4-5, and sometimes it 11 (that I can think of). But, I only NEED 1 of them to exit...BUT, ideally I like to use at least 2-3.

To answer your questions, I OFTEN use the RHO to enter using it in 3 different ways...depending on Market conditions.

For Long trades (the opposite is true for Short trades)...

1. Aggressive entries - Red and Yellow bars, when yellow hides behind red for the first time.

2. Less Aggressive entries - Red below the white dotted line and yellow shows up above that line at the same time.

3. Conservative entries - Blue and Yellow are both above the white dotted line.

I am posting the chart below from my trading today which should also help.

BTW, you should NEVER blow an account. If you ALWAYS use something like a 1% Stop for every trade, mathematically, it's virtually impossible to blow an account.
Attached Image (click to enlarge)
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Always a Student, Never a Master - Emulate What Works
  • #8,688
  • Jan 19, 2024 4:04am Jan 19, 2024 4:04am
Quoting RobinHood
{quote} Many times traders ask me simple questions just as you have that I feel "require" a more complex answer. So with that being said, I could write a book just on the different ways I use the RHO (RobinHood Oscillator), alone OR in conjunction with some or more of my other indicators. If you REALLY study the RHO "in depth", I think you'll come to realize as I have that it's a fascinating indicator. For example, it shows increasing or decreasing momentum, or when the market is trending or chopping around, etc. While I can remember at least one...
I appreciate its not just a set-it-and-forget-it. The RHO is a powerful indicator as I've seen it used in many different ways during this thread.

Thank you for saying how you use RHO to enter a trade, but as you also say, you don't just use RHO. So what other indicators do you use? I know your method is tried-and-true but having the other indicators you use would be useful. I am using your 'RH Awesome' template and I have the 12 HMA, 5 EMA, 34 EMA (close, high, low) and of course your RHO.

I don't always set a stop-loss but I know I should and it's a habit I should start getting into. Why do you say it's virtually impossible to blow an account? If you set a 1% loss for every trade and then lost every trade, you would lose your account.
  • #8,689
  • Jan 19, 2024 8:45am Jan 19, 2024 8:45am
Quoting nickyoung
{quote} I appreciate its not just a set-it-and-forget-it. The RHO is a powerful indicator as I've seen it used in many different ways during this thread. Thank you for saying how you use RHO to enter a trade, but as you also say, you don't just use RHO. So what other indicators do you use? I know your method is tried-and-true but having the other indicators you use would be useful. I am using your 'RH Awesome' template and I have the 12 HMA, 5 EMA, 34 EMA (close, high, low) and of course your RHO. I don't always set a stop-loss but I know I should...
I use 5 different trading platforms. MT4, IB, TradeStation, TC 2000 and TradingView. No 2 have the same exact indicators available, so I sometimes use the same indicators when possible and sometimes different indicators, depending on what's available on each platform.

Assuming you are using MT4, I would just stick with the Awesome template.

Regarding, blowing an account. Mathematically speaking, if you always only lose 1% of your current account balance (which is a good method) you can never get to zero.
Always a Student, Never a Master - Emulate What Works
  • #8,690
  • Edited 11:01am Jan 19, 2024 9:46am | Edited 11:01am
Quoting RobinHood
{quote} I use 5 different trading platforms. MT4, IB, TradeStation, TC 2000 and TradingView. No 2 have the same exact indicators available, so I sometimes use the same indicators when possible and sometimes different indicators, depending on what's available on each platform. Assuming you are using MT4, I would just stick with the Awesome template. Regarding, blowing an account. Mathematically speaking, if you always only lose 1% of your current account balance (which is a good method) you can never get to zero.
Thanks for this. Would you mind pointing me to the post where you explain the indicators on the Awesome template and how you use them to enter a trade?

First photo shows the RHO gives a signal to sell but actually isn't a good time to sell and the second photo shows that it actually was a good time to sell. How can the other indicators (EMA and HMA) on the Awesome template help me?

Bear in mind I am using MT4.
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  • #8,691
  • Jan 19, 2024 12:33pm Jan 19, 2024 12:33pm
Quoting nickyoung
{quote} Thanks for this. Would you mind pointing me to the post where you explain the indicators on the Awesome template and how you use them to enter a trade? First photo shows the RHO gives a signal to sell but actually isn't a good time to sell and the second photo shows that it actually was a good time to sell. How can the other indicators (EMA and HMA) on the Awesome template help me? Bear in mind I am using MT4. {image} {image}
There are now 8691 posts in this thread spread out over the course of going on nearly 5 years so I have no idea when or where I explained these things.

About a month ago, Microsoft Windows did an automatic update to my computer and wiped out all of my data (or so I thought at the time) so I spent 5 hours going through this thread collecting indicators that I use and then reconstructed my trading template. Basically, it's the Awesome template (Post # 8082) with the smTMMS Oscillator_v7.2 added to it.

Regarding your questions about the RHO. The top image does not show a sell signal based on the way I use it, it shows me 2 Long Continuation trades.

In the 2nd image, yes, the RHO shows what could be a short trade, and the HMA being magenta and below the yellow EMA and Price going below the RoadMap all confirm it as good indications to me to enter a short trade. Whether the trade wins or loses is just a guess until the trade is over. Also, all of the indicators did say short WHILE price was inside of the RoadMap, but I never enter a trade when Price is inside of the RoadMap, but that's just a personal thing I do.
Always a Student, Never a Master - Emulate What Works
  • #8,692
  • Edited 2:24pm Jan 19, 2024 2:01pm | Edited 2:24pm
I figured that since no one took a shot at what the 11 indicators are that I mentioned on the stock chart in Post #8687 that I would list them.

Here's the chart again for ease of reference:
Attached Image (click to enlarge)
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The 11 Indicators Are:

Top Window
1. The time of day to trade is correct
2. The shape of certain candles just before the move up
3. The blue dots
4. The yellow line crossing above the magenta line
5. Price consolidating just before the move up
6. Price surging up through a downtrend line (not shown on chart)

Middle Window
7. The RHO turning blue and yellow
8. The green line crossing above the magenta and purple-ish line

Lower Window
9. Blue line crossing above the white dotted line
10. The cluster of green vertical lines in the red box (which imply UP)
11. The height of the tallest green vertical line in the red box

My trading philosophy is that the more indicators of my choosing (reasonably speaking) that I can get pointing in the same direction at the same time, the better. While many other traders believe that indicators are a waste of time, I think you can look at my chart and see why I think otherwise.
Always a Student, Never a Master - Emulate What Works
  • #8,693
  • Jan 20, 2024 2:32pm Jan 20, 2024 2:32pm
Quoting nickyoung
Is anyone using the RHO on a M1/M5 timeframe?
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any line
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  • #8,694
  • Jan 25, 2024 10:51am Jan 25, 2024 10:51am
What pairs do you all find that work best with this strategy in the lower timeframes like 15m - 1hr?
  • #8,695
  • Edited 4:36pm Jan 26, 2024 4:22pm | Edited 4:36pm
Quoting jayhlara7
What pairs do you all find that work best with this strategy in the lower timeframes like 15m - 1hr?
I most favor these pairs:

Euro and US Dollar: EUR/USD.
US Dollar and Japanese Yen: USD/JPY.
British Pound and US Dollar: GBP/USD.
Australian Dollar and US Dollar: AUD/USD.
US Dollar and Canadian Dollar: USD/CAD.
New Zealand Dollar and US Dollar: NZD/USD.

If I had to just pick one to day trade, I would chose the AUD/USD.
Always a Student, Never a Master - Emulate What Works
  • #8,696
  • Feb 7, 2024 1:24am Feb 7, 2024 1:24am
Hello,
congratulation to RH for great Thread!! It is clear and the stategy suites for me.
The BiG E stategy was too subjective for my status.
I jumped until the end of the thread to make a question even if i am at page 6 reading every detail.
I try to make a question even if it will be already answered but a kind answer would help me in experimenting while i keep reading...
On the exit i am using daily TF, RH you wrote " very often if I get 2 or more indicators changing colors and/or any of the lower window indicators crossing the Purple 50 Line i got out of the trade"
my doubt is:
even if you are during the day before the candle close if one or more indicator go against you do you close the trade or you mean you wait the end of the candle and as a new one is arising you close if indicators are against you?
I would probably wait the end of the candle beacause the volatility of the pair can move the price...but it may be you exit avoiding big loss.
Any suggstion also from others are accepted.
It is 3 years i trade FX but still not consistent....

Thanks a lot.

I keep studyng every detail, as said i am at page 6...

Bye
Paolo
  • #8,697
  • Feb 7, 2024 3:32am Feb 7, 2024 3:32am
Quoting paolo7
Hello, congratulation to RH for great Thread!! It is clear and the stategy suites for me. The BiG E stategy was too subjective for my status. I jumped until the end of the thread to make a question even if i am at page 6 reading every detail. I try to make a question even if it will be already answered but a kind answer would help me in experimenting while i keep reading... On the exit i am using daily TF, RH you wrote " very often if I get 2 or more indicators changing colors and/or any of the lower window indicators crossing the Purple 50 Line...
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STEP 2 go to the 1H to confirm the exit. If the structure brakes at the close of the bar, exit. if not don't move. Stochastic gave the wrong signal for the exit. Put an alert in the 1H chart at the point where the structure will break.
This is what I use for exiting.
  • #8,698
  • Feb 7, 2024 11:20am Feb 7, 2024 11:20am
Attached Image (click to enlarge)
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  • #8,699
  • Feb 7, 2024 1:22pm Feb 7, 2024 1:22pm
Quoting paolo7
Hello, congratulation to RH for great Thread!! It is clear and the stategy suites for me. The BiG E stategy was too subjective for my status. I jumped until the end of the thread to make a question even if i am at page 6 reading every detail. I try to make a question even if it will be already answered but a kind answer would help me in experimenting while i keep reading... On the exit i am using daily TF, RH you wrote " very often if I get 2 or more indicators changing colors and/or any of the lower window indicators crossing the Purple 50 Line...
Unless my Stop or my Profit Target is hit, I "try" not close a trade (nor enter a trade) until the candle closes because doing otherwise has cost me dearly on too many occasions. When I say "try", it's because sometimes, like everyone else, my emotions will overtake my brain.
Always a Student, Never a Master - Emulate What Works
  • #8,700
  • Feb 7, 2024 2:31pm Feb 7, 2024 2:31pm
Thanks a lot for clear explanation!
You too trade1969..

Good luck everybody!

Paolo
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