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  • #10,701
  • Edited Jul 1, 2025 3:31am Jun 30, 2025 11:18pm | Edited Jul 1, 2025 3:31am
Quoting RobinHood
{quote} You're welcome! It may have failed simply because the market decided to go up OR there could be one or more reasons as to why the trade failed - such as: 1. There could be numerous reasons why, or maybe just one, for example: the time of the day. 2. 5 minute time frames are notoriously difficult to day trade successfully. 3. The XAUUSD is considered to be a volatile pair to day trade - NOT a good idea unless you are REALLY good it. 4. Crossover Trades (entering the way you did) don't have a 'high" win rate, but they can be "highly" profitable...


Thank you so much, RH. You’ve genuinely become the mentor I’ve always hoped to find on this trading journey and discovering your insights on this forum has already made a big difference.

I just had a few more questions if you don’t mind:

1. You mentioned that even solid setups can fail sometimes, are there any patterns, market conditions, or specific setups that tend to have a higher probability of failure in your experience?

2. When applying this setup on either higher or lower time frames, would you say it’s best used as confluence to existing market structure, or can it be traded more independently based on indicator signals?

3. What would you say is the ideal time frame for this setup when it comes to day trading or swing trading?

4. I’ve gone through much of the forum, but I still find it challenging to consistently identify clean continuation setups based on the roadmap concept and since TradingView doesn’t offer an HMA that changes color, would it be acceptable to use a signal like the Stochastic dropping below 50 and bouncing back up as a trigger, assuming other conditions align? A few trade examples might really help me out (if possible)

5. Finally, how do you typically handle losing trades? Is there a specific criteria or trigger you watch for that signals a trade is likely failing and needs to be cut early?

I really appreciate you taking the time to share your knowledge here. I know I’m asking a lot, but I’m just eager to learn and improve from someone who clearly has a deep understanding of this game.

Thanks again for everything you share.
  • #10,702
  • Jun 30, 2025 11:41pm Jun 30, 2025 11:41pm
Quoting Roscearm
{quote} I wanted to respond earlier but my points would have been at max a line or two suggesting trading HTF to begin with. I knew RH would respond in a better way and he has. Thank you RH. {image}
Hi,

First of all, thank you for sharing the template and for consistently posting your scorecards along with the charts. Honestly, your transparency and consistency have been one of the main reasons I felt motivated to give day trading another serious try.

I know RH already gave an incredibly detailed breakdown of what might’ve gone wrong, but I wanted to ask you a few specific questions based on your experience:

1. I’m currently using the TradingView template you shared. RH suggested removing the HMA 150 and EMA 200, were you using those as additional confluence for your trades? For example, going long only if price is above them and short if it’s below?

2. I’ve noticed that most of your trades are on the 5 or 15-minute time frames. Do you have any advice on what to look out for specifically when trading these lower time frames? For instance, if you’re entering short on the 5-minute chart, do you first check if the RSI and Stochastic are also trending down on the 15-minute chart, or is there something else you prioritize?

3. How important is it, in your experience, to factor in market structure elements like support and resistance when trading on lower time frames? Do you base your trades solely on the indicators, or do you use S/R zones as additional confluence?

Any kind of guidance would be truly appreciated, just trying to keep refining my approach and learning from those who are ahead in the game.

Thanks again for your time and for being so generous in sharing your journey.
  • #10,703
  • Jun 30, 2025 11:49pm Jun 30, 2025 11:49pm
Quoting emmanuel7788
{quote} hey @HackEat Don't beat yourself because of a few losing trades. Follow the OP @RobinHood' posts and his advice in post #10,695 above. It also important that you read, study and learn from the two pdfs "Best of Big E" in post #1 here. I trade Gold XAUUSD on the Daily chart timeframe and would take trades in the lower timeframes usually 1Hr during the day. Yesterday was the month-end and many things can happen like every other day. If you must trade Gold XAUUSD, then...
Thanks a lot for the reply and support, really appreciate it.

You mentioned following a top-down approach. Just to clarify, do you mean checking the overall trend direction or observing where the indicators are headed on the higher time frames (HTFs) before taking trades on the lower time frames?

Also, how do you usually determine your take-profit (TP) and stop-loss (SL) levels? Do you base them on market structure (like support/resistance or recent swing highs/lows), or do you use a fixed risk-to-reward (R:R) ratio and let the trade run until either level is hit?

Lastly, as you pointed out that it was month-end — do you generally avoid trading XAUUSD during month-end periods? Is there usually more volatility or unpredictability in price action around that time?
  • #10,704
  • Jul 1, 2025 5:58am Jul 1, 2025 5:58am
Quoting sclay115
{quote} Thanks RH, that's incredibly helpful and makes a lot of sense. When you were trading those 4 hour bars, I think you mentioned that you'd drop down to the 5 or 1 min chart to enter? Are you looking for the same signal/entry criteria that you are looking for on the HTF bars? And if so, how long would you let yourself wait for the confirmation before the entry became stale? Was that dependant on how far along the continuation or crossover was on the HTF chart? I know you've said at least a few times that you have no interest in looking at charts...
When you were trading those 4 hour bars, I think you mentioned that you'd drop down to the 5 or 1 min chart to enter? Are you looking for the same signal/entry criteria that you are looking for on the HTF bars?

Yes.

And if so, how long would you let yourself wait for the confirmation before the entry became stale? Was that dependant on how far along the continuation or crossover was on the HTF chart?

I don't have a specific amount of time because I can always "find" a reason to enter on a 1 or 5 min. within a relatively short period of time. Mainly, I just don't want to enter when the LTF is going in the opposite direction of the HTF.
Always a Student, Never a Master - Emulate What Works
  • #10,705
  • Edited 7:11am Jul 1, 2025 6:28am | Edited 7:11am
Quoting HackEat
{quote} Thank you so much, RH. You’ve genuinely become the mentor I’ve always hoped to find on this trading journey and discovering your insights on this forum has already made a big difference. I just had a few more questions if you don’t mind: 1. You mentioned that even solid setups can fail sometimes, are there any patterns, market conditions, or specific setups that tend to have a higher probability of failure in your experience? 2. When applying this setup on either higher or lower time frames, would you say it’s best used as confluence to...
1. You mentioned that even solid setups can fail sometimes, are there any patterns, market conditions, or specific setups that tend to have a higher probability of failure in your experience?

Continuation Trades. They are all you "really" need.

2. When applying this setup on either higher or lower time frames, would you say it’s best used as confluence to existing market structure, or can it be traded more independently based on indicator signals?

Ideally, yes.

3. What would you say is the ideal time frame for this setup when it comes to day trading or swing trading?

Assuming that you are day trading the Forex, 5-15-30 min. and trading the London and U.S sessions from 3 a.m. EST to 12 Noon is my preference.

4. I’ve gone through much of the forum, but I still find it challenging to consistently identify clean continuation setups based on the roadmap concept and since TradingView doesn’t offer an HMA that changes color, would it be acceptable to use a signal like the Stochastic dropping below 50 and bouncing back up as a trigger, assuming other conditions align? A few trade examples might really help me out (if possible)

For someone new at this, it is far easier for to see Continuation Trades if you use the 3, 8, 21, 34 ema's all together rather than the 5 ema and the HMA. This is talked about in depth later in the thread.
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5. Finally, how do you typically handle losing trades?

While I don't like them, they don't really bother me as I KNOW they are just part of the game.

Is there a specific criteria or trigger you watch for that signals a trade is likely failing and needs to be cut early?

There are a few instances such as pre-planned news events, pre-planned Federal Reserve Bank announcements, the Fed chairman speaking, the Close, etc., but most often, on losing trades, either my initial Stop or my Trailing Stop is what gets me out of a trade.

---------

You really need to read the whole thread and you will have a much better understanding of these things you are asking.
Always a Student, Never a Master - Emulate What Works
  • #10,706
  • Jul 1, 2025 7:59am Jul 1, 2025 7:59am
One thing I do every day that I trade is to check the calendar here on FF for upcoming economic news. It's at the top of every page. Here's a good reason WHY I always check it each day. When the Fed Chairman speaks, as he is going to do today at 9:30 EST, he can reek havoc on all financial trading markets. It's always a good idea not to enter any new trades while he is speaking or to exit any day trades that you may be in.

I one time saw Alan Greenspan, who was the Fed Chairman at the time, start off his speech with "Unfortunately..." and he basically crashed the markets. So you never know for sure what will happen when the Fed Chairman speaks, especially when he goes "off script" or during his Q&A period.
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Always a Student, Never a Master - Emulate What Works
  • #10,707
  • Jul 1, 2025 9:09am Jul 1, 2025 9:09am
GBP/USD Daily

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GBP/USD Weekly

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Hi all,

Would that have been a valid continuation setup on June 23, 2025, where one would have bought at the opening of the next daily candle, or perhaps a little earlier/later to avoid a high spread? On the daily chart, it looks to me as if not all criteria were met (stochastic line below the purple line). On the positive side, the Weekly seems to "confirm" all criteria for a long position at this point. The stop loss, however, would have been 140 pips. Currently, one would be up 200 pips.

I still think the daily chart and an instrument like GBP/USD hardly provide enough opportunity to at least achieve a positive result on a monthly basis (every 21 days). I would probably have to go to at least H4 here, but then the question again is at what times I would trade, since I would have to miss at least two of the 4-hour candles where I sleep.
  • #10,708
  • Jul 1, 2025 9:22am Jul 1, 2025 9:22am
Quoting emmanuel7788
{quote} hey @HackEat Don't beat yourself because of a few losing trades. Follow the OP @RobinHood' posts and his advice in post #10,695 above. It also important that you read, study and learn from the two pdfs "Best of Big E" in post #1 here. I trade Gold XAUUSD on the Daily chart timeframe and would take trades in the lower timeframes usually 1Hr during the day. Yesterday was the month-end and many things can happen like every other day. If you must trade Gold XAUUSD, then...
May I ask you a question?
When you entered the short position on gold at 3315 in the 30min TF, I noticed that the 4H candle had not yet closed.
When I backtested, I observed that at the point when price crossed 3315 , all three Stochastic lines and the RSI on the 4H chart were already below the 50 level.
Would this be considered a valid trade according to the rules in Post #1?
Thank you very much for your time and for sharing your valuable insights
  • #10,709
  • Jul 1, 2025 9:39am Jul 1, 2025 9:39am
Quoting Noisy
GBP/USD Daily {image} GBP/USD Weekly {image} Hi all, Would that have been a valid continuation setup on June 23, 2025, where one would have bought at the opening of the next daily candle, or perhaps a little earlier/later to avoid a high spread? On the daily chart, it looks to me as if not all criteria were met (stochastic line below the purple line). On the positive side, the Weekly seems to "confirm" all criteria for a long position at this point. The stop loss, however, would have been 140 pips. Currently,...
You basically asked and answered your own question according to the "suggested" rules in Post #1. Aside from that, you also missed some other criteria.

Crossover Trades:

1. The HMA Line is Lime Green and crosses above the Yellow Line for long trades OR the HMA Line and is Deep Pink and crosses below the Yellow Line for short trades.

2. The candles must have just changed from Red/Maroon to Dodger Blue/Blue for long trades.

3. After both # 1 and # 2 above have occurred, preferably, you want to initiate a trade after the 1st bar has closed on the same side of the Yellow Line as the direction of the trade or on the 2nd or 3rd candle ideally. Entering any later than that is more risky.

4. The trade set-up bar is the 1st candle to cross over the Yellow Line AND is the opposite colors of the previous candles. Both bars must either be: Red/Maroon or Dodger Blue/Blue. Red/Maroon for short trades or Dodger Blue/Blue for long trades. The set-up candle must close before you enter a trade.

5. The 2 Stochastic Lines must be above, or crossing above the Purple 50 Line for longs OR below for shorts.

6. The RSI Line (Brown) must be on the same side of the Purple 50 line as the direction of the trade at the time of entry.
Always a Student, Never a Master - Emulate What Works
  • #10,710
  • Jul 1, 2025 10:58am Jul 1, 2025 10:58am
Quoting RobinHood
{quote} You basically asked and answered your own question according to the "suggested" rules in Post #1. Aside from that, you also missed some other criteria. Crossover Trades: 1. The HMA Line is Lime Green and crosses above the Yellow Line for long trades OR the HMA Line and is Deep Pink and crosses below the Yellow Line for short trades. 2. The candles must have just changed from Red/Maroon to Dodger Blue/Blue for long trades. 3. After both # 1 and # 2 above have occurred, preferably, you want to initiate a trade after the 1st bar has closed...
Thank you. I thought it was a continuation setup. I see the HMA line for the setup candle wasn’t Lime Green and the Stochastic lines weren’t above/crossing the Purple 50 line.
  • #10,711
  • Jul 1, 2025 11:11am Jul 1, 2025 11:11am
Quoting RobinHood
{quote} 1. You mentioned that even solid setups can fail sometimes, are there any patterns, market conditions, or specific setups that tend to have a higher probability of failure in your experience? Continuation Trades. They are all you "really" need. 2. When applying this setup on either higher or lower time frames, would you say it’s best used as confluence to existing market structure, or can it be traded more independently based on indicator signals? Ideally, yes. 3. What would you say is the ideal time frame for this setup when it comes to...
Thank you RH for guiding me or nudging me in the right direction, i would also go back through the thread to check for any important points i might have missed.

I now do have an idea of what might or not might work in my favour as compared to just being right or wrong.

Thank you once again, really appreciate the support.
  • #10,712
  • Jul 1, 2025 1:18pm Jul 1, 2025 1:18pm
GBPJPY, AUDCHF M30
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  • #10,713
  • Jul 1, 2025 3:07pm Jul 1, 2025 3:07pm
Quoting kalimac1
{quote} May I ask you a question? When you entered the short position on gold at 3315 in the 30min TF, I noticed that the 4H candle had not yet closed. When I backtested, I observed that at the point when price crossed 3315 , all three Stochastic lines and the RSI on the 4H chart were already below the 50 level. Would this be considered a valid trade according to the rules in Post #1? Thank you very much for your time and for sharing your valuable insights
hi @kalimac1

If you are referring to these June 27 trades, I have them using RH template#1 below.

XAU M30 June 27
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- that is a dynamic M30 entry i.e. market order during the active candle
- it is based on the original 5-Method Price Action,
- let me zoom-in on that M30 entry

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I turn-off the APB and HA candles for better view of the price bars.
-note the swing low with fractal, and the failure of the swing,
- candle 5 reversed on candle 4,
- for a 5-Method True REVERSAL, we need to see candle 5 closed above candle 1 high.
- entry the next candle below the low of candle 4.

- do these charts explain and answer your question?

Post your M30, H1 and H4 chart and I will explain how I reconcile lower timeframes with higher timeframe.

...
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #10,714
  • Jul 1, 2025 7:53pm Jul 1, 2025 7:53pm
Quoting emmanuel7788
{quote} hi @kalimac1 If you are referring to these June 27 trades, I have them using RH template#1 below. XAU M30 June 27 {image} - that is a dynamic M30 entry i.e. market order during the active candle - it is based on the original 5-Method Price Action, - let me zoom-in on that M30 entry {image} I turn-off the APB and HA candles for better view of the price bars. -note the swing low with fractal, and the failure of the swing, - candle 5 reversed on candle 4, - for a 5-Method True REVERSAL, we need to see candle 5 closed above candle 1 high. -...
This is the H1 and H4 chart.
Thank you very much for taking the time to kindly help answer my question.
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  • #10,715
  • Jul 2, 2025 5:39am Jul 2, 2025 5:39am
XAUUSD M30
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  • #10,716
  • Jul 2, 2025 7:47am Jul 2, 2025 7:47am
GBPCHF M30
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  • #10,717
  • Jul 3, 2025 8:26am Jul 3, 2025 8:26am
USDCHF M30
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  • #10,718
  • Jul 3, 2025 8:41pm Jul 3, 2025 8:41pm
Quoting pusztafie
XAUUSD M30 {image}
How did you handle this long position?
  • #10,719
  • Jul 4, 2025 1:22am Jul 4, 2025 1:22am
[idézet=kalimac1;15298925]{idézet} Hogyan kezelted ezt a vételi pozíciót?[/idézet]
Yellow stoch crosses the blue one upwards, the time frame indicator is green on all time frames, the TMMS indicator shows buying, and I was in a good place for a long time.
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  • #10,720
  • Jul 4, 2025 9:42pm Jul 4, 2025 9:42pm
Quoting pusztafie
[idézet=kalimac1;15298925]{idézet} Hogyan kezelted ezt a vételi pozíciót?[/idézet] Yellow stoch crosses the blue one upwards, the time frame indicator is green on all time frames, the TMMS indicator shows buying, and I was in a good place for a long time. {image}
That's an interesting indicator. Am I correct in assuming that the 4 TF HA is showing the bar status/type of four separate timeframes of HA candles? If so, do you have the MQ4 file for it? And what time frames are you using if you are trading on the M30?

Thanks!
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