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

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Trading Made Simple(r)

  • #9,981
  • Edited 2:14pm Mar 11, 2025 2:00pm | Edited 2:14pm
Quoting Dino10
Hi Robinhood, in your experience using RSO how do you recommend entries,Hiekinashi color change or break and close 8 ema thanks for the amazing thread.
I use the RSO in so many different ways that I can't give just give you one precise way to use the RSO for entries, but I will show you my favorite way that I to use it to enter trades.

1. The blue line of the RSO MUST be at, near or below the red line. The lower and longer it is below the red line, the better.

2. The orange line of the RSO MUST go up and be at, near or below the green line. Then when it goes back below the green line is when I enter.

The premise of this entry is that when the blue is below the red line, it's tell you that the market is extremely weak.

The very opposite of this is true for entering Long trades. Also, read or re-read Post #9963.
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Always a Student, Never a Master - Emulate What Works
  • #9,982
  • Edited 4:13pm Mar 11, 2025 3:52pm | Edited 4:13pm
Quoting RobinHood
{quote} I am good with you posting it and I think that it is an excellent idea. Good job!
Find attached the MA Direcion Indicator I use. This is based on EMA 10, 20, 30 ,60 and 8 to set direction. If the 8 ema crosses the 20 ema the trend has ended. Whilst this indicator uses different EMAs to the recommended, it does compliment the method well. On request I will provide inputs for the EMA / change the EMAs when time allows. R
Attached File(s)
File Type: ex4 MA Direction v1.ex4   10 KB | 254 downloads
  • #9,983
  • Mar 11, 2025 4:21pm Mar 11, 2025 4:21pm
Quoting RobinHood
{quote} I use the RSO in so many different ways that I can't give just give you one precise way to use the RSO for entries, but I will show you my favorite way that I to use it to enter trades. 1. The blue line of the RSO MUST be at, near or below the red line. The lower and longer it is below the red line, the better. 2. The orange line of the RSO MUST go up and be at, near or below the green line. Then when it goes back below the green line is when I enter. The premise of this entry is that when the blue is below the red line, it's tell you that...
RobinHood, This might be a helpful addition to the RSO Indicator with additional settings; see below. If interested?

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Might be able to add divergence, but don't quote me, as it depends on available time.
  • #9,984
  • Mar 11, 2025 4:53pm Mar 11, 2025 4:53pm
Quoting Ronin-
{quote} Find attached the MA Direcion Indicator I use. This is based on EMA 10, 20, 30 ,60 and 8 to set direction. If the 8 ema crosses the 20 ema the trend has ended. Whilst this indicator uses different EMAs to the recommended, it does compliment the method well. On request I will provide inputs for the EMA / change the EMAs when time allows. R {file}
The emas settings I use are very important to my trading success. They are: 3, 8, 21, 34, 55, and 200. But as long as the 8, 21, 34, 55 align correctly, that's mainly all I care about.
Always a Student, Never a Master - Emulate What Works
  • #9,985
  • Mar 11, 2025 4:54pm Mar 11, 2025 4:54pm
Quoting Ronin-
{quote} RobinHood, This might be a helpful addition to the RSO Indicator with additional settings; see below. If interested? {image} Might be able to add divergence, but don't quote me, as it depends on available time.
That's another good idea that I can see where it could be helpful to some traders.
Always a Student, Never a Master - Emulate What Works
  • #9,986
  • Mar 11, 2025 5:52pm Mar 11, 2025 5:52pm
Quoting Cannonfairy
Hi RH, Thanks for your stories, they are golden nuggets or rather chicken soup to the heart..... I have a qustion to ask on the lower indicator, in the past you have RSI but no longer see it. Have your removed RSI for the 2 Oscillator now? Is it no longer needed?
I have not introduced the way I am currently using the RSI because it usually takes quite a bit of nerve to use it in the way that I am going to explain because I am usually Shorting while Price is going up and I am going Long when the Price is going down. Again, trading in this way is not for the faint of heart and I don't suggest that most traders do this. I like it because it usually gets me into trades earlier than Continuation trades, which means I can also use a smaller Stop.

Also, these types of trades don't tend to happen very often so keep that in mind.

First look at the chart below:
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Here are my rules when using the RSI in this way:

1. I use the RSI(5). *I call this indicator the RHRSI, because in order to be able to save "my preferred" indicator settings on my trading platform, I have to give it a new name. I always choose it to be R something, or RH something, or RobinHood something because that way it tells me that it's the indicator settings that I want something defaulted to so each time I put it on a chart, it is exactly the way that I want it to be displayed. It also helps others to easily recognize my indicators or settings.

2. I place the 2 horizontal lines at the "areas" where I have seen Price "turn" just recently in the past, but I also want to weed out most of the RSI's changes back and forth in direction as it's mostly just "noise". You MUST do this on every chart you trade, meaning to place the horizontal lines where they appear that they would have worked the best for market direction reverses the most recently.

3. Also VERY importantly, you can only use the RSI in this way during a STRONG trend, otherwise they can and will grind you up. The blue line in the RSO will tell you when you are in a strong trend. If it's near, at, or above the green line, that denotes a strong uptrend. If it's near, at, or below the red line, that denotes a strong downtrend.
Always a Student, Never a Master - Emulate What Works
  • #9,987
  • Mar 11, 2025 7:09pm Mar 11, 2025 7:09pm
Quoting RobinHood
{quote} The emas settings I use are very important to my trading success. They are: 3, 8, 21, 34, 55, and 200. But as long as the 8, 21, 34, 55 align correctly, that's mainly all I care about.
Agree method not to be changed. Just seeing if there are any possible improvements in how the indicators support the method or not. Kind regards, R

I note the pull back entries appear to occur around a 5 bar fractal formation.
  • #9,988
  • Mar 11, 2025 9:59pm Mar 11, 2025 9:59pm
Quoting RobinHood
I'll share another short story that I wrote from my book... We Only Have to Cut Off Your Arm One day a man named Bob goes to visit his doctor because he isn’t feeling very well. The doctor gives the Bob a thorough physical examination and requests that he immediately go have blood work done and to return to the doctor’s office the next day for the results. Upon Bob’s return to the doctor’s office the next day, the doctor tells him that he has some bad news for him. The doctor says, “You have bone cancer in your left arm, and you will have to have...

So after reading this a couple times I felt like I was on to how it could relate to trading. I had an idea, but I'm terrible at riddles. I absolutely understood the starfish story from a ways past. But this was a bigger riddle... Yes I over complicate and overthink things. This was no exception but I just had to get it right. So I asked Good ol Dr.GPT. and actually I was pleasantly surprised with his answers. Although it sounded like I was getting an answer straight from Dr tharpe lol:

Gpt answered after I asked:"How can this story be related to Day trading and day trading paychology?"
.....

This story perfectly illustrates trading psychology, especially how perspective shapes our emotional reactions and decisions. Here’s how it connects to trading:

---
1. Market News & Emotional Reactions
Bob’s emotional rollercoaster mirrors how traders react to market news.
Example: If a trader hears a rumor of economic collapse, they may panic and exit trades early, only to realize later that it was false information.
Lesson: Don't react emotionally to every piece of news—analyze the full picture before making decisions.
---
2. Taking a Loss vs. Losing Everything
When Bob first hears he will lose his arm, he is devastated—but when he learns he won’t die, losing an arm suddenly feels like a relief.
This is like a trader taking a small loss—it may feel bad, but it's better than blowing up the account.
Lesson: A small, controlled loss is not the end—it’s a necessary part of survival in trading.
---
3. Perspective Determines Opinion
If Bob had been told upfront only about the arm amputation, he would have seen it as terrible news.
But after believing he would lose everything, keeping his life changed his whole outlook.
In trading, how you frame things affects your confidence—one bad trade doesn’t mean your strategy is useless.

Example:
Trader A: “I lost $200, I’m a failure.” (Negative perspective)
Trader B: “I lost $200, but I followed my plan and kept risk small.” (Growth perspective)
Lesson: Your mindset determines how you react to wins and losses. If you focus only on negatives, you’ll trade emotionally. If you see losses as part of the game, you’ll stay calm and improve.

---
4. The Market Constantly Changes—Adaptability is Key
The doctor’s updates forced Bob to constantly adjust to new information.
In trading, the market is always changing—what seems like a winning trend can suddenly reverse.
Lesson: Stay adaptable. Don't get attached to a single outcome. Adjust to new information and trade accordingly.
---
The Ultimate Takeaway for Traders
Losing is part of trading, but how you react defines your success.
Perspective controls your emotions—reframe losses as learning experiences.
Stay adaptable—trading conditions change, and so should your decisions.
How do you personally handle losses in trading? Do you find it hard to detach emotionally?




Just thought I'd share lol
Trying to learn how to learn how to teach a robot how to learn
  • #9,989
  • Mar 12, 2025 3:15am Mar 12, 2025 3:15am
RobinHood is this correct for pullback trades entry???

EURUSD M1

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  • #9,990
  • Mar 12, 2025 8:11am Mar 12, 2025 8:11am
Quoting Ronin-
RobinHood is this correct for pullback trades entry??? EURUSD M1 {image}
Yes
Always a Student, Never a Master - Emulate What Works
  • #9,991
  • Edited 2:30pm Mar 12, 2025 8:25am | Edited 2:30pm
Quoting Webb1003
{quote} So after reading this a couple times I felt like I was on to how it could relate to trading. I had an idea, but I'm terrible at riddles. I absolutely understood the starfish story from a ways past. But this was a bigger riddle... Yes I over complicate and overthink things. This was no exception but I just had to get it right. So I asked Good ol Dr.GPT. and actually I was pleasantly surprised with his answers. Although it sounded like I was getting an answer straight from Dr tharpe lol: Gpt answered after I asked:"How can this story be related...
This was really good.

I created the quote: "Perspective Determines Opinion"

What it means is, how you look at something determines what your opinion is about it.

For example, if you go to the airport and you look head on at a 767 jetliner on the ground, it's HUGE. But later when it's thousands of feet in the sky, it's TINY. Which one is the truth? They both are. The only thing that has changed is your perspective.

Here are just a few of the hundreds of quotes that I have created that are in my book:

Anybody Can Justify Anything

Perspective Determines Opinion

Most Pain is Self-Inflicted

When trying to catch something, always use the most irresistible bait

If you're going to swim in the river, you'd better make friends with the crocodile

He who needs the least is the most content

3 more. Always do 3 more

Always Be Improving

Maybe We Are the Aliens.

Never Leave Happiness

You should embrace every stage of life. The most difficult part is making each transition, and accepting it

Do what you do best, and pay others to do the rest

To succeed, you absolutely, positively, have to believe that you will accomplish whatever you set out to achieve

When You are Inspired, and Truly Motivated, You Can Accomplish Almost Anything

Greed Can Be Good, or Greed Can Be Evil. It's Up to You Decide Which Way You Use It
Always a Student, Never a Master - Emulate What Works
  • #9,992
  • Mar 12, 2025 1:55pm Mar 12, 2025 1:55pm
Quoting RobinHood
{quote} This was really good. I created the quote: "Perspective Determines Opinion" What it means is, how you look at something determines what your opinion is about it. For example, if you go to the airport and you look head on at a 767 jetliner on the ground, it's HUGE. But later when it's thousands of feet in the sky, it's TINY. Which one is the truth? They both are. The only thing that has changed is your perspective. Here are just a few of the hundreds of quotes that I have created that are in my book: Anybody Can Justify Anything Perspective...
All those are very beautiful and seem to relate to almost every aspect of my life. Not just trading. I have 3 littles girls, ages from 5 months to 13. All live with me, all are a pain in the ass, love them all though I attempt to excersise and instill these types of mindsets into my youthful creatures running around my house.

I do have a trading question though!
Do you ever incorporate any Support and resistance levels? Mentally or with lines?
Trying to learn how to learn how to teach a robot how to learn
  • #9,993
  • Mar 12, 2025 2:16pm Mar 12, 2025 2:16pm
Quoting Webb1003
{quote} All those are very beautiful and seem to relate to almost every aspect of my life. Not just trading. I have 3 littles girls, ages from 5 months to 13. All live with me, all are a pain in the ass, love them all though I attempt to excersise and instill these types of mindsets into my youthful creatures running around my house. I do have a trading question though! Do you ever incorporate any Support and resistance levels? Mentally or with lines?
I always try to be conscious of S/R areas but I don't use them to trade per se. Personally, I think they work better on the Forex than they do on stocks. The Forex often trades between "levels" thereby creating S/R areas. The Forex is just constantly try to balance out exchange rates, where in theory you buy shares of stocks in companies always hoping that they will increase in value over time. So that's why I think they matter more in the Forex rather than in stocks.
Always a Student, Never a Master - Emulate What Works
  • #9,994
  • Mar 12, 2025 5:33pm Mar 12, 2025 5:33pm
Hi Robin I only trade futures, and was using the ROS with great success. I was wondering if you flip through time-frames for the instrument you are looking at to find a setup. I noticed that if an instrument was trending I would find a setup on the 1,2,3 or 5 minute. Just my observation sorry if you guys already discussed this previously.
  • #9,995
  • Mar 12, 2025 5:48pm Mar 12, 2025 5:48pm
Quoting RobinHood
{quote} I always try to be conscious of S/R areas but I don't use them to trade per se. Personally, I think they work better on the Forex than they do on stocks. The Forex often trades between "levels" thereby creating S/R areas. The Forex is just constantly try to balance out exchange rates, where in theory you buy shares of stocks in companies always hoping that they will increase in value over time. So that's why I think they matter more in the Forex rather than in stocks.
I can see the argument against it in stocks. But i've got a watchlist of the major pairs for forex, and NASDAQ, good, oil, Bitcoin, and ethereum. All futures. Been doing research on adding support and resistance levels in futures on those
Trying to learn how to learn how to teach a robot how to learn
  • #9,996
  • Mar 12, 2025 7:17pm Mar 12, 2025 7:17pm
Quoting Dino10
Hi Robin I only trade futures, and was using the ROS with great success. I was wondering if you flip through time-frames for the instrument you are looking at to find a setup. I noticed that if an instrument was trending I would find a setup on the 1,2,3 or 5 minute. Just my observation sorry if you guys already discussed this previously.
alot of the times if i start a trade on the one minute and it goes really well, i end up going to higher time frames to monitor the trade. But yeah Id assume that if a trend is happening on the 1 minute ... its happening on those others.
Its almost like the one minute is like a Time machine or a machine of some sort that monitors time and projects it into a future tab that we pic on labeled 2, 3, or 5.


Man... now you got me all thinkin' n' shit.
Trying to learn how to learn how to teach a robot how to learn
  • #9,997
  • Edited 7:41pm Mar 12, 2025 7:18pm | Edited 7:41pm
Quoting Dino10
Hi Robin I only trade futures, and was using the ROS with great success. I was wondering if you flip through time-frames for the instrument you are looking at to find a setup. I noticed that if an instrument was trending I would find a setup on the 1,2,3 or 5 minute. Just my observation sorry if you guys already discussed this previously.
Good, I am pleased to hear that you are having success using the RSO as it's a very powerful indicator, but it also takes a long time to understand its many nuances. It takes hundreds of hours of screen time to train your eyes to see it all, or at least it did for me.

Yes, that's pretty much exactly what I do when day trading stocks. I watch the 1, 2, 3 and 5 (or 15 or 1 hr.) charts all day long.
Always a Student, Never a Master - Emulate What Works
  • #9,998
  • Mar 12, 2025 7:32pm Mar 12, 2025 7:32pm
Quoting Webb1003
{quote} alot of the times if i start a trade on the one minute and it goes really well, i end up going to higher time frames to monitor the trade. But yeah Id assume that if a trend is happening on the 1 minute ... its happening on those others. Its almost like the one minute is like a Time machine or a machine of some sort that monitors time and projects it into a future tab that we pic on labeled 2, 3, or 5. Man... now you got me all thinkin' n' shit.
Personally, I dislike the way Price moves on a 1 min. chart most of the time, but it's like a train wreck that I can't stop watching, lol. I much prefer the 2 min. as it is usually way smoother than the 1 min. Here's an example from my trading today. The 1 min. is on the left and 2 min. is on the right.

*I am posting these 2 charts specifically for the traders that have never looked at the 1 min. and the 2 min. side-by-side because so many traders here use MT4/MT5 to trade with and they don't have 2 min. charts.
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Always a Student, Never a Master - Emulate What Works
  • #9,999
  • Edited 9:10pm Mar 12, 2025 7:51pm | Edited 9:10pm
Quoting RobinHood
{quote} Personally, I dislike the way Price moves on a 1 min. chart most of the time, but it's like a train wreck that I can't stop watching, lol. I much prefer the 2 min. as it is usually way smoother than the 1 min. Here's an example from my trading today. The 1 min. is on the left and 2 min. is on the right. *I am posting these 2 charts specifically for the traders that have never looked at the 1 min. and the 2 min. side-by-side because so many traders here use MT4/MT5 to trade with and they don't have 2 min. charts. {image}
On average (simple guess) how much time do you spend on the charts? Do you have a set timeframe that's your favorite? Do you avoid specific times?

Second question.. do you ever trade the Asian open? I work a 7am-3pm job still. I find myself watching charts but not able to follow along well enough for some good moves and end up missing some good signals. I've been curious about checking out the Asian open when I'm at home after dinner or so for an hour or two while everyone is just chilling on the couch. Curious if you've ever had success with that? I mean I guess people do it for a living in Asia so there is a market for it. Just wondering about your personal opinion of that opening market.

Third question (sorry thought of this way later)
You have mentioned a few times a few books to read... Do you mind re-stating those books? I purchased a kindle for some extra book reading and it seems I definitely value your opinion on these things more so than the YouTube gurus who pretty much push their own books.

P.s. to anyone else, don't comment. Let RH get the 10,000th post

I mean really I'm not the warden of the thread. Haha anyone can comment. Just something I noticed.
Trying to learn how to learn how to teach a robot how to learn
  • #10,000
  • Mar 13, 2025 5:16am Mar 13, 2025 5:16am
hi guys, just come across this strategy looks really good just want to check im understanding it correct. ive read through the pdf document which was full of information can't believe how much you've put into helping people achieve their goals RH. I have just placed this trade on the following basis and want peoples opinions if they'd have got in or wouldn't have got in and why?
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- Fast MA crossed the slow MA on the TDI with a sharp turn
-previous up trend appears to be broken suggesting do
wntrend possible
-looking for TP to be either when the green line (fast MA) smoothes out or if possible holding it on until the support area below
-entered on second red candle.

let me know if you would do anything different or if im reading the chart all wrong. will update on result once its played out
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