How do you trade with this indicator?

I'm a fan of indicators and I'll try just about any out of curiosity.

There are nice comfortable old timer indys that we know what they are doing and there are eye candy ones that are to die for.
But there are a lot of in-betweens with potential that maybe hard to really understand and implement correctly.

When I see an indicator, the first thing I ask myself is; 'How this indicator is going to help me make money?'
I know...selfish. But I think that's what they're made for.
If I figure it out, it's a keeper and use it regularly as needed. If I don't, it's a keeper, but sits there hoping to one day be used regularly as needed. Somebody worked to make it, so might as well see what they did it for.

Most indicators are obvious as to how they work, so I'm talking about just the odd ones.
If I can figure out how the indy works by myself, that is great but there are times that I can't at all answer that question. Or maybe I can come up with a half baked idea. It doesn't mean the indicator is useless, it just means I can't figure out how it is applied to the ultimate purpose of collecting coins.

I am certain that there are plenty of smart, intuitive traders with laser eyes and genius minds to see trough all the mysteries of indicators.
So, in this thread, I'm going to post indicators that don't immediately jump out as something functioning towards the goal.
They maybe just one piece of a forgotten strategy or...maybe not.
Indicator archaeologists do exist.


All that in order to gain knowledge from a different set(s) of eyes. Fair?
And to keep my mind busy doing something...when the market is dead.


Have an indy you're not sure of? Let's have a look.

For the first indicator, I like to ask about this one: Equal High Low
It was just made and posted here by our very talented member; jeanlouie
https://www.forexfactory.com/thread/...3#post14778973


So, it does as per description no doubt.
Equal H/L

What do you do with that info? How do you make money from seeing the lines?

I'm gonna be probably pissing off a bunch of ppl here cause I'm going to post some indicators with well explained/disused history.
Someone is going to say: OMG, don't you know there are 10 threads about it already and everything you want to know is somewhere in the 20,000 replies in the threads? Can't you read? Don't you know how to use Google. Here I found the answer by just typing one word into google while I was waving bye to my gf...

Let's get to the point.

Looking for shortcuts.

This one, Road Map is I think really is one of those.
So, question is, seeing all you see in this just example of how it looks, numbered zigs..levels, fibs..
Easy to see in the past but what is the trigger?


I know the idea of confirming indy's..if extra indy needed to get what you want, pls suggest accompanying indys....

Not looking for general use of components like fibo zz etc.
I like to see if this set up talks to you. And how|?

Another one.
Oh so simple. A ZZ indy that marks the ZIGZAGPIPS.
Informative. All info in one shot. No mystery.

But what do you do with that? What indy or vision needs to see the markers to make them useful?
Curious minds want to know.

BTW, there is a possibility that I might upload an indy that has been previously compromised. If you notice, pls let me know.

Palka2

This is one of my faves.
It says something indisputable. A straight line.
That is the past. Does it say any anything about the future?

The best use for it to settle the disputes over "who was right or wrong" in predicting the direction of GU in the GU thread.
By looking at this chart, You can see that whoever shouted around a year ago today, about GU going up and advised to hlod, was right...or at least whoever was heavy on the long side leanings.
Just kidding.

You have to count trading days to get the approximate correct distance. For example, the long line is 255 days long, medium half of that and the red short one half again at 63.

So, right away you see the long term trend, although rocky, from a bird's point of view has that particular slop. You can compare that with 6 mo (medium) and 3 mo (short). slopes...or darts whatever.
You can of course have whatever TF you want to put in it.
Good thing is you can put multiple instances of the indy on the chart and color them differently.
There is some extra code in there I think but the indy serves as an overall direction pointer...just like the arrow shape that the 3 combination produces.

Not trying to be judgmental but from a long out view and with Palka2 on the chart, would you short GU right now?

This one is so beautiful. A shooting star.
On H1, it looks like GJ is going for a double top.. maybe it is running out of steam.
But on daily zoomed out, With this look, would you short GJ?

Hi OutThere

That indy isn't going to make you one dam cent, I am waiting for you to show us something decent to be honest.
Personally I love indicators as they make trading far more interesting with some of them real dollar making machines.

The biggest issue with indicators is not their design but rather the trader's decision to make judgement calls halfway through its setup. If they just left it alone to hit either the Take Profit or Stop loss - the results would always be superior.

Thats why when I trade Forex positions, I use my favourite Indy's with a Stop Loss and an intelligent Exit strategy set
THEN I WALK AWAY FROM MONITOR AND DON"T LOOK.

The problem is market makers create moves that plays with traders' minds, they suck you into closing positions out of fear creating loss earnings.
This is the reason most NAKED traders lose money, they get faked out by very smart people / Algo's.

What else have you got?

Hi Rick,
Hope you have a nice day!
I am very grateful for your contribution. You always support traders wholeheartedly.
I have a question: Do you have experience using Hedge and capital compounding plans?
Thank you so much!

Hi Rick.

I didn't start this thread to 'teach' anyone anything. I'm not a good teacher and there aren't any good students around either.

I flip through a lot of indy/EAs all the time. Some of them make sense what they are doing at first glance and some of them are weird. It shows me how diversified trading is. My aim is to find out what the indys that I don't understand are doing and maybe fit some in with my personal way of trading in order to expand my skills as a trader. In that regard, I am hoping experienced traders such as yourself come in and do the teaching. So, what have you got yourself?

The Palka isn't supposed to make you money. It's just a straight line ruler that is supposed to put a chart in perspective. For example, in my post #6 image, if someone is looking at H1 and itching to short it, they can look at the big D1 picture with Palka and maybe think twice about shorting it. Not wasting money is making money.

I agree 100% with you when you say "issue with indicators is not their design but rather the trader's decision to make judgement calls halfway through its setup". That is one reason for this thread...to use them the right way but so far either no one has any clue how to trade the few indys I have posted so far or doesn't want to bother showing us how it is done.

I don't use SL. Trading without SL is a whole trading world of it's own and the realm isn't visited much, let alone respected or pursued. I am not going to touch on that at all because it requires traders whose brains are wired differently. I'm not looking for those traders either. I kinda like the idea that maybe 99% of traders use SL though. It adds liquidity to the mix which is much needed.

Just for you, I'll analyze a couple of Erebus's recent trades and see if an old faithful indy and a variation of it would have helped his trade...Will post within the next few hours.

I hope Erebus doesn't mind me using his chart image and my analyzing his trade. Let me know buddy.

Erebus posted 2 images of trades in GBPAUD here: https://www.forexfactory.com/thread/...4#post14781224

First chart, he says: Sold GBPAUD, not sure why...




I wanted to reply by saying maybe you it was because of Half Trend indicator's signal. This is default values. As you see the big white arrow points at approximately the same place as Erebus's trade.



Half Trend kept it's short arrow and red line even through the next couple of spikes up. It didn't waver and still hasn't as of this writing.

So, RickM, that goes directly to one of the points you made in your earlier comments.

Sorry Erebus...I know you are making good dough, so I am using a 'good trader' as an example.

I was waiting for a big $$$ screenshot but this image was posted the next day:





A second attempt and I'm guessing it was successful.


All good and everything.

However, me being so concerned about Erebus, my buddy , I wanted to see if I could find a way to eliminate the need for that first attempt.
I mean, nothing wrong with attempting to short at a really damn good spot..almost catching the high. If that doesn't work, since it's near the high, let's attempt again.

But with a bit of patience, maybe we can get in at the better price first attempt.

I changed the amplitude of half trend from 2 to 4.

It gave me this:




It's not exact price but you know, in the neighborhood of Erebus's 2nd entry.

Nothing proven...still tinkering but hey, maybe there is something to it.

I put a half trend 2 and a 4 on the same chart.



Yes a chart full of arrows.


First thing catches my eyes is the double arrows.
2nd double arrow patterns.
3rd arrow reliability
4th rules

5 demo

I was going to circle them but I'm sure you see the dble..close proximation of the 2 same color arrows.
Criteria here is to have no opposit color in between. Those are of interest to possibly take the more reliable trades.
1st arrow warns something is about to happen..get ready.
2nd arrow confirms the entry. 1st+2nd together seem to be reliable.

You could just use half trend with 4 if you don't need the 1st arrow and you would have an edge.

Rules... I suggested entry. Rest with you.


I know some are going to say it's curb fitting bla bla but check it out on all pairs and see for yourself if the double arrow is a workable signal.


So, RickM, what do you think?


This is the HalfTrend I used. https://www.forexfactory.com/thread/...3#post14635043


Also, I wouldn't rule out taking entries at both signals and averaging the two...need I say..or 3....?
Oh no, martingale...it's not going to work...run for cover...lol


But will it take more than 2 entries to succeed?
Erebus took 2 entries too.

No problem, buddy, I'm in again today, looks great but anything can happen, lots of USD and CAD news ahead.

I don't know about Half Trend, but I was recently seduced by Pivot Point Supertrend, as it shows quite good levels and direction changed confirmations.

Here it is on the GBPAUD pair which I'm short again today, posted in the other thread already.

Ya very nice for long term direction. You feel like you are in a cradle if in the correct side of the band.


Ok, so, can you demonstrate how to use it like a pro?
Please?

And how do you navigate your trades if you have any during the period of switching between the bands?


The color change is the trigger I guess.

on H4 looks like this

I'm getting there, I use shorter settings as shown.

Of course, in hindsight it always looks to simply enter at the line, but you FX, it's up and down.

So, watch for strength, time of day, news, any other price action; I'm usually out same day.

I like your indy. Tested. Passes.