Can someone please try to explain why is the heavy relying upon H/V lines?
I just can't understand how to use it...
And what's all this "follow the flame" thingy... Can you please be specific?
- #2,622
- Oct 18, 2007 8:29am Oct 18, 2007 8:29am
- Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Can someone please try to explain why is the heavy relying upon H/V lines?
I just can't understand how to use it...
And what's all this "follow the flame" thingy... Can you please be specific?
To be honest the answers really are through this thread. [I have personally overcomplicated the method at points and thought there was more to it... but I am starting to warm to the reality that this is all we need
]If you post some charts of trades you took/might have taken/should have taken etc. and why you did/why you didn't them the regulars here will most likely critique you that way.
Your question is very general.
However, really study this post made by Alessandro yesterday. It gives some excellent examples of how, when, why, why not, and when not to enter trades.
Ask some questions on it...
Magnus
Its kind of like watching a movie . if you start watching it at the end you won't get the PLOT and so you can't understand whats going on. But if you watch it from the beginning you would . So when I came to this thread I spent hours reading to get up to speed so to speek . thats what everyone has to do. Its all there just spend the time and effort , its worth it . Good Trading ....
....
- #2,626
- Oct 18, 2007 10:01am Oct 18, 2007 10:01am
Its kind of like watching a movie . if you start watching it at the end you won't get the PLOT and so you can't understand whats going on. But if you watch it from the beginning you would . So when I came to this thread I spent hours reading to get up to speed so to speek . thats what everyone has to do. Its all there just spend the time and effort , its worth it . Good Trading
"Nothing is unexplainable, Everything is mystery" W. Liquorman
- #2,628
- Oct 18, 2007 11:19am Oct 18, 2007 11:19am
- Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Just a quick note to all--I feel this thread has moved ahead greatly in the past few days in helping all to understand the Rainbow--thanks to Magnus for insightful questions and to CYSM, Hensch, and all others for answers--it is a privilege to be a part of a community that truly wants to learn and teach...pk
Flame On!! Charge On!!
That's great to hear pk...
I initially thought that I was going to be a hinderance, but I really needed some answers though...
I have learned a great deal from some excellent replies from people and I am extremely pleased to hear that others are benefiting from this...
I know from my uni days that I learn from examples and not a lot else. I can sit and read theory 'til the cows come home and have absolutely no idea what to do when it came to implementation/calculation/solving of whatever the task/problem was. Everyone has there individual strengths and weaknesses. When you learn how you learn, then you take on new concepts quicker and easier, and with a greater understanding.
From my own experiences, my strength is in seeing actual examples and being able to formulate my own theory. This is not something I consciously do - it is just the way I learn new things. Maybe it is the way most people learn new things, I'm really not sure about this though. This may hopefully explain the motivation behind some of my questions over the last few days.
Anyway, this is a great method LT is teaching. I can appreciate how important screentime is. But I also have to say that, for me personally, there were (and possibly still are) some things that I was unclear on. For the most part though, I believe I am getting it. It's not that there is complex new concepts, it is more a stripping away of biases and presumptions...
... This method is very different to most others you will find on FF. Not different it it's depth, but in the way you must think about every aspect of it. Money management, stoplosses, exit strategy, and even [type of] broker choice is critical and inter-twined with this method.
I hope this thread continues to grow in quality and every contributor can add their own unique slant. We have a solid method here. It is great to see how the Rainbow is interpereted and utilised by each person in a different way.
Keep those pips coming in...
Magnus
- #2,629
- Oct 18, 2007 12:21pm Oct 18, 2007 12:21pm
- Joined Mar 2007 | Status: ~~~~~~~~~ | 3,692 Posts
I have learned a great deal from some excellent replies
Great posts everyone! Thanks so much!
- #2,633
- Oct 18, 2007 1:23pm Oct 18, 2007 1:23pm
- Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Screentime. It is also called experience, feel for price action... What I want (and you Magnus probably too) is to describe what is this "entry based on experience" based on because not all "follow the flame" trades are supposed to be taken. It is good to post screenshots of trades. Both loosing and winning trades. And even comments to winning trades if they turned to be winning just because of luck.
I usually post screenshots of my winning trades and not my losers. The reason for this is because I know very soon if the trade is not going to work out. And in 9 out of 10 cases, even before I get out of the trade I say to myself, "You f**kin' idiot Magnus... etc...". Sometimes I look back on trades and I think, 'Why did I enter there? There's no set-up...'. Now, these are not just 'lack of experience' biases, they are also psychological biases that I believe screen time will [help] get rid of. You see what you want to see. You want to see things that really are not there at all, and in doing so, you fail to see the obvious. You don't take it at face value. You add things; and in doing so, you take away things...
So, basically I don't generally post failed trades as the reason for them failing was so blindingly obvious - in hindsight of course... What I am wondering is if seeing failed trades as examples would actually stifle progress for others? Not sure on this one. Maybe it depends on how well it was explained and if the person put across their reasons well enough...
It is not about fine tuning indicators. It is about fine tuning trades.
I was chatting with Alessandro today [please accept my apologies for bringing you in here as an example Alessandro
] and he was mentioning that he hesitates before pulling the trigger on a setup. I have the opposite problem - I don't want to miss any movement at all and keep pulling the trigger like a semi-automatic... (Alessandro said he used to be like that - so I am guessing we all go through stages. I do notice that I am more hesitant since I went live though :surprised)...I am finding my own discipline and psychology interesting to observe as I watch for setups, and enter, manage, and exit trades.
What are your thoughts on this?...
Magnus
- #2,634
- Oct 18, 2007 1:25pm Oct 18, 2007 1:25pm
In a nutshell ...
Horizontal lines set at 5 pips apart and vertical llines set at 5 minutes apart all on a 5 second chart. When price (or spine depending who you are following) crosses both in one direction in a matter of seconds or so, this indicates price will continue to do so for a bit longer. Now this is conditional based on what the 30 second chart is doing (price going in same direction as 5 second chart), price nearing "round" numbers, nearby support and resistance levels, and of course trading volume (only trade when higher volume).
"Follow the Flame" is really about trading in the same direction as price and the first few weighted ma's (red in the rainbow)
Read this entire thread and put in some screen time and you will say ... "Oh now I get it", if you want a jump start get Linuxtroll's e-book. It is worth the buy ( find it here http://www.cyrox.com/)
--Mark
- #2,636
- Oct 18, 2007 1:35pm Oct 18, 2007 1:35pm
- Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
I wondered why some of you use one color or 2-3 colors MAs instead of color rainbow. Do the colors confuse you?
Then I read the eBook and changed to the Rainbow...
I found this too busy for me and so returned to blue...
[I tried pretty much every colour as well, but blue was the best on OandA]
I then found it difficult to distinguish the Spine and flame sometime and so have recently changed to what you see in the picture below...
I honestly don't think it makes much difference, especially once you have some experience. But just now, I am finding my most recent MA setup by far the best...
I took out every other MA to make it cleaner - this has made a hell of a difference for me
...Magnus
- #2,637
- Oct 18, 2007 1:52pm Oct 18, 2007 1:52pm
- Joined Mar 2007 | Status: ~~~~~~~~~ | 3,692 Posts
I then found it difficult to distinguish the Spine and flame sometime and so have recently changed to what you see in the picture below...
- #2,638
- Oct 18, 2007 1:57pm Oct 18, 2007 1:57pm
- Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Very true Mark!
I personally feel that LT's method is very valuable, and with patience and practice it can become very lucrative to those who employ it. However, the additional knowledge I have gained from this thread is just as valuable to me. Specifically, the information in the Mantra and the Jesse Livermore narrative have provided me with more than a few "Aha" moments. The comments from everyone who have contributed to this thread have also helped me get closer to the trader I want to become.
For those of you who have not already done so, I strongly recommend that you read both the Mantra and Jesse Livermore's story. They are found much earlier in the thread, but for convenience I have attached them here.
My advice to all of us, including myself, is to have confidence that you will "get it", and charge on! Don't be discouraged by mistakes, but just look at them as taking you one step closer to the trader you want to become. Don't be frustrated if you aren't "getting it" as quickly as you would like. If six months, or one year, or five years from now, you are able to trade with 90%+ accuracy every moment of screen time and study will be worth it!
LT often encourages us to "Charge on...make millions...multi-millions...". Believe it or not, that is actually a reality for successful traders. That can be reality for us! So, my goal is to become a successful trader. Each day I think of my studying, and screen time, and practice, as "becoming". We are not trading each day, we are "becoming" great traders each day!!
Wow, not sure where that came from! Hope someone can benefit from it. I know I did!
Glen
Yes, yes, and yes. That was one hell of a post Mark!
I have studied a lot of methods. Not jumping from method to method, system to system trying to find the holy grail. More trying to find something that I could really relate to...
It did not take me very long to figure out that indicators were not for me. Something about price action struck a chord with me. I then spent a couple of months reading the James16 thread and demo trading and studying price action... long story short... I ended up here... and I just know (everyone knows when they know) this is the one for me... [I have to confess to seeing this thread before I saw the James16 thread - I never bothered with it 'cos I thought, 'What's that maniac doing with all those squiggly lines!?!...']...
Price action has given me a good grounding in S/R and other general trading concepts so it certainly was not wasted time.
But, if the worst came to the worst, and for some strange reason this Rainbow thing stopped working. It really does not matter. This method gets you watching a pair so closely that you will have it's profile down fairly soon. Once you know a pair well enough, you can really just trade off that alone...
I was trading 1-hour charts for a while and about 20+ pairs... Now, I'll tell you this... Concentrating on one pair is one of the best things I have done... Less is more... Then again, if less is more, just think how much more, more will be
:...This method is truly different...
Magnus
- #2,639
- Oct 18, 2007 2:01pm Oct 18, 2007 2:01pm
- Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
A real beauty of a rainbow!
The slowest MA is very visible now...
The red/white combination for flame I find very vivid...
Magnus