Trading Made Simple

Quoting NikiPink

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Hi Dear Emmanuel This is good signal ? SP500 / 4H Long {image} DowJones / 4H Long {image} GBPJPY / 4H Long {image} EURGBP / 4H Short {image}

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Quoting emmanuel7788

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{quote} when trading in sideways volatile market type conditions then the Stochastics and TDI are lagging and I do not consider them as good signals.

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Quoting MrPipster3

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{quote} hey Emmanuel... so how do we define when the market is volatile and sideways? And in these instances do we just steer clear of using OPs method and sit on the sidelines?

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Quoting NikiPink

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Hi Dear Emmanuel This is good signal ? SP500 / 4H Long {image} DowJones / 4H Long {image} GBPJPY / 4H Long {image} EURGBP / 4H Short {image}

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Quoting Rola

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I have been reading the thread for some time, but this is my first post as a member of the community. As the original poster of Post #1 has sadly passed away, I assume it can no longer be updated. However, I believe that the trading rules should be consolidated in Post #1. If that is not possible, then rather than unnecessarily increasing the number of posts, it would be better to summarise the key points in one place. I hope this post can serve as a catalyst for that. Indicators Used Heiken Ashi (default settings of Synergy_APB) TDI (default settings...

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Quoting emmanuel7788

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{quote} An example this week USDCAD which is the challenging one between Carney vs Trump this month to the left of the H4 is the Daily and Weekly to the right of the H4 are the timeframes you can trade, {image} {image} ...

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Quoting MrPipster3

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{quote} Rola - this is awesome, and almost exactly what I took from OP. Some questions though... 1. 'Confirm a reversal signal... the candle before the reversal should be small, and the reversal candle should be large.' - I missed this, where did you pick this up from? Would love to see OP's comments on this. 2. 'The TDI cross should occur around the 32 level with a steep angle.' Did this become a hard and fast rule beyond where I have read up to? My understanding was this area is great for reversals, but OP was quite relaxed about TDI levels, with...

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Quoting Rola

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{quote} Thank you for your feedback. I would appreciate it if you could let me know whether my interpretation is correct or reasonable, and please feel free to correct me if anything is mistaken. The points I summarised were based on what I believe to be important posts made by eelfranz (Big E) or emmanuel7788, and I then organised them through reviewing historical charts. However, I must apologise, as it’s difficult for me to trace exactly where each reference (in text or images) was originally posted. Post #150,653 reflects the outcome of my personal...

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Quoting emmanuel7788

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{quote} An example this week USDCAD which is the challenging one between Carney vs Trump this month to the left of the H4 is the Daily and Weekly to the right of the H4 are the timeframes you can trade, {image}

Attached Image (click to enlarge)

{image} ...

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Quoting emmanuel7788

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{quote} EURUSD Aug 05 Tokyo 10am - 4Hr in consolidation - IF Daily breaks above BRN11600, then good to go with buyers - meantime build on lower timeframes trades, {image}

Attached Image (click to enlarge)

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Quoting emmanuel7788

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{quote} Weekly Top Down Analysis Example US30 - previous week candle high-low range its a Weekly Control Candle , that is big candle - look at ATR(52) weeks, ATR(104) weeks, and recent ATR(5) weeks - Weekly is sideways, WCC high-low range is volatile {image} ...

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https://drive.google.com/file/d/1-Fl...ew?usp=sharing

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I. Essential Setup & Indicators

1. Trading Platform: You will need an MT4 platform to use the program.
2. Candle Type: Use Heiken Ashi (HA) candles as they are important for the method and make trading less stressful. They provide a more calming view compared to Japanese candles.
3. Primary Indicator: Traders Dynamic Index (TDI).
   1. This is the heart of the method and signals both entries and exits.
   2. Download the original TDI indicator.
   3. Simplify the TDI: Remove all extra lines, keeping only the green and red lines (double thickness) for clarity.
   4. The TDI has original 32, 50, and 68 lines. While the 50 line is ignored, favorite trades occur when the green line is near the 68 line (for shorts) or the 32 line (for longs), as these are often accurate reversal points and can lead to significant pips. Be aware that price can sometimes move an additional 50-100 pips beyond these lines.

   
   
   

4. Confirmation Indicator: Stochastics (8,3,3).
   1. This indicator is ONLY used to confirm direction.
   2. It should confirm the TDI signal.
   3. For Stochastics, use 80 and 20 lines.
   4. Do not enter a trade if Stochastics and the TDI give different signals or if the Stochastics line is outside the 20-80 lines.

   
   
   

5. Other Observations (Not Entry Signals):
   1. 5 EMA: Used to show current direction and to observe how Price Action (PA) interacts with it during a trade, but do not depend on it for entry signals.
   2. 100 Lines: These can be added to the chart as PA often acts like a magnet to them, which can help in seeing where PA might go.

   
   
   

II. Preparation and Learning

1. Start with Demo Trading: Always begin with a Demo account to build confidence before considering a live account.
2. Study Old Charts: This is crucial for building confidence and success.
   1. Look at TDI moves and how they appear on Price Action (PA).
   2. Identify successful setups, noting the TDI angle, proximity to Support/Resistance (S/R) levels, 68/32 line interactions, and entry candle numbers.
   3. Practice recognizing these patterns to make spotting trades second nature.

   
   
   

3. Master Basic Forex Principles: Before trading, understand fundamental concepts like:
   1. Consolidation: Avoid trading in ranging or consolidating markets.
   2. Support & Resistance (S/R) Levels: Always look to the left for possible S/R levels. If a setup is too close to S/R, pass on the trade.
   3. Trend: Identify short-term and long-term trends.
   4. Candle Size: Avoid entering trades when candles are small or undecided, as they indicate low momentum. Wait for strong, solid candles.
   5. Momentum: Observe the angle of the TDI green line.
   6. News: Be aware of major news releases (red on the Forex Factory Calendar). Avoid trading during these times; wait for the market to calm down.
   7. A good resource for learning these basics is www.babypips.com.

   
   
   

4. Keep it Simple: Do not complicate the method by adding other indicators or modifying the core rules. This will likely lead to reduced performance or failure.
5. Active Learning: Ask questions, post charts for feedback, and contribute observations.

III. Preferred Trading Times and Timeframes

1. Avoid Lower Timeframes (5min-30min): These are considered too fast, noisy, and require constant monitoring, leading to higher stress and losses.
2. Preferred Timeframes:
   1. 1-hour (1hr) charts: Used for day trading, typically during the first 3 hours of the USA OPEN.
   2. 4-hour (4hr) charts: Used for overnight trades, particularly during the London Session, which is considered the best for movement.
      1. Check for setups at specific Pacific times: 10 PM (for new 4hr candle), 2 AM, and close all 4hr trades by 6 AM. This allows for stress-free trading while sleeping.

      
      
      

   3. Daily charts: Also a viable option, especially for those working, as they offer nice runs per reversal. They have less noise and head fakes than lower timeframes.

   
   
   

3. Do Not Trade:
   1. During dead market times or ranging markets.
   2. On Sundays.
   3. Typically on Fridays, especially towards the end of the day.

   
   
   

IV. Entry Rules (When to Enter)

1. Primary Entry Signal: Enter a trade when the TDI green line clearly crosses the red line.
   1. Do not enter if green is just touching red, as it might bounce back. Wait for the clear cross.

   
   
   

2. Entry Candle: Only enter on candle #1 or #2 of the reversal after the TDI signal appears.
   1. Entering on candle #3 or later generally means you've lost most of the momentum and should find another setup.
   2. Enter at the beginning of the candle (its open) as soon as you see the cross.

   
   
   

3. TDI Angle (Momentum Confirmation):
   1. For a Long (Buy) trade: The green line should be pointing up at a 12-2 o'clock angle for best results (1 o'clock is ideal). A 2-4 o'clock angle is weak, so pass.
   2. For a Short (Sell) trade: The green line should be pointing down at a 4-6 o'clock angle for best results (5 o'clock is ideal).
   3. Always cherry-pick and look for the steepest angles.

   
   
   

4. Stochastics Confirmation: Ensure Stochastics (8,3,3) confirms the TDI direction and is within the 20-80 lines. If it doesn't confirm, pass.
5. Pre-Entry Basic Forex Checks: Before entering, quickly (within 30 seconds for experienced traders) review:
   1. Proximity to S/R levels.
   2. Current trend (long and short term).
   3. Whether the market is in consolidation.
   4. Size and appearance of current/previous candles (avoid small, undecided candles).
   5. Impact of upcoming major news.
   6. If any of these basic checks don't look good, pass on the trade. Only pick the best setups.

   
   
   

6. Bounce Trades: These are an exception where the green TDI line gets close to the red but bounces away and continues in the original direction. They are viable re-entry points. The TDI angle for bounce trades should still be strong (12-2 or 4-6).

V. Exit Rules (When to Exit)

1. Primary Exit Signals (TDI): Exit your trade when the TDI green line goes flat, starts to hook over, or makes a check mark reversal.
2. TDI Tweaks: If the green TDI line "tweeks" its angle, it's a warning to pay close attention. Check for smaller candles, wicks pulling back, proximity to S/R, or TDI highs/lows. This is a heads-up, not necessarily an immediate exit.
3. Price Action (PA) Observation: Continuously observe PA. If PA looks strong around the 5ema, stay in until the TDI gives an exit signal. If PA looks weak or small candles are forming, consider exiting.
4. Pullbacks: If a trade goes against you by 10-15 pips, exit immediately to preserve profit. You can re-enter later if the market turns back in your favor, possibly as a bounce trade.
5. Scheduled Exit for 4hr Trades: All 4hr trades are closed at 6 AM Pacific time.
6. Profit Target (Optional): While the author personally does not use Take Profit (TP) levels, some members find success setting TP at 30 or 50 pips. The author prefers to let trades run until an exit signal or pullback occurs.
7. Stop Loss (SL):
   1. 1hr charts: The author typically does not use a standard S/L but manually exits if a trade goes against him by 12-15 pips.
   2. 4hr charts: Place the S/L at the last high or low a couple of candles back. This allows you to go to sleep knowing your risk is managed.

   
   
   

VI. Money Management & Mindset

1. Start Small, Scale Up: When transitioning to live trading, begin with a Micro account, then move to a Mini account as confidence builds. This minimizes losses from poor entries or decisions.
2. Trade Full Lots for Greater Returns: Once confident and consistently profitable, consider trading full lots to significantly increase pip value (e.g., from $1 to $10 a pip).
3. Aim for Daily Pip Goals: The author aims for 50+ pips a day (often reaching $500-$1000 per evening trading full lots) and generally stops live trading once the goal is met to avoid greed.
4. Expect to Win: Approach each trade with the expectation of success, but be prepared for small losses. Losing 2 out of 14-16 trades is acceptable.
5. Patience and Discipline: Choose trades carefully, ensuring they meet all entry rules. Pass on "iffy" setups and look for clearer ones.
6. Avoid Over-Monitoring: Especially for 4hr charts, enter the trade and go to bed, checking only at the next candle's open.
7. Protect Your Gains: Actively think about protecting your tremendous gains, especially after significant runs. Build a "cash hoard" (e.g., enough to cover several months or years of expenses) in safe instruments like Treasury bills. This prevents panic selling during corrections and allows you to stay in the market for the long term.
8. Trade for Fun and Engagement: Trading should be enjoyable and keep your mind active.

VII. Preferred Currency Pairs

1. The "Three Amigos" are favored due to their tendency to move in the same direction, allowing multiple concurrent trades:
   1. EUR/USD (E/U)
   2. GBP/USD (G/U)
   3. AUD/USD (A/U)

   
   
   

2. Other pairs also traded: USD/CHF (often moves opposite E/U), USD/JPY, USD/CAD, GBP/JPY, EUR/JPY.
3. The method has also been successful with Silver.

VIII. Key Principles to Remember

1. Simplicity: The method is designed to be simple. Do not try to improve it or make it more complicated.
2. Confidence: Build confidence through demo trading and studying old charts. Without confidence in entries and exits, you have nothing worthwhile.
3. Observe and Think: Human observation and decision-making are crucial; Expert Advisors (EAs) are not recommended.
4. Learn from Losses: Lost trades offer the best lessons if you pay attention.
5. Patient Pursuit: Success takes hard work, late nights, and dedication. The market starts to pay you for your education expenses once you have a reliable method and confidence.

Quoting emmanuel7788

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Thursday Aug 07 {image} GBPUSD Aug 07 Tokyo 9am - Daily close above 1.3386 would be good for a new rally - today' target is RBN13400 {image} ... ...

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Quoting emmanuel7788

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{quote} EURUSD Aug 05 London 10am - {image} ... {image}

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