On my 4hr chart the TC was perfect. The candle closed 30 min ago. This is one of the reason for using 1hr to support the 4hr. Sometimes if you look only on the 4hr you can miss a good trading opportunity.
Only my 2 cents.
Only my 2 cents.
Here is a written copy of the daily wrapup for the 10th of March.
I can't belive I have missed the E/U long, was writting a plan when price went like a rocket. Well done for those who took it
.
You all were right HL - Higher Low, LH - Lower High, TL - trend line, except IB - Inside Bottom (introduced in this thread by Tamkras).
I can't belive I have missed the E/U long, was writting a plan when price went like a rocket. Well done for those who took it
.You all were right HL - Higher Low, LH - Lower High, TL - trend line, except IB - Inside Bottom (introduced in this thread by Tamkras).
- #12,707
- Mar 11, 2008 7:18am Mar 11, 2008 7:18am
Here is a written copy of the daily wrapup for the 10th of March.
I can't belive I have missed the E/U long, was writting a plan when price went like a rocket. Well done for those who took it
You all were right HL - Higher Low, LH - Lower High, TL - trend line, except IB - Inside Bottom (introduced in this thread by Tamkras).
BTW, could you tell me how to find the IB materials introduced by Tamkras?
I searched but found there were too many posts so that I could not find the post.
Thank you again.
Make pipsl
Aihua
Rhythm, Motion, Emotion and Risk Reward.
- #12,708
- Mar 11, 2008 7:22am Mar 11, 2008 7:22am
- | Joined Apr 2005 | Status: Cruising The Outer Rim... | 2,175 Posts
Hi ira
That’s really interesting
I don’t trade UJ- for no reason other than I am sticking to GU and EU until I get a little more experience with the strategy
The more I read the comments from experienced traders like yourself and Palmer who have been involved in Phillip’s strategy from the early days the more I see that it blends a combination of different factors- there are no hard and fast rules with it such as “when the MACD turns green at this point do x”
The posts recently also seem to remain true to the original strategy rather than be added to and added to until they become distant from the original idea
Can I ask please:
1) the MACD seems to be a final confirmation point- rather than the first signal- and it may be as in the chart you have posted that it is the entry on the 3rd or 4th green bar that is taken rather than the 1st?
You are absolutely right. First I do my analysis in terms of moving averages. I define is there trend or range, then is there any rhythm in terms of rules, and is there a rule that can be applied here. We use MACD only to pull the trigger, not to jump in the trade too early as conditions may change. As for my entry, I have taken the second bar, but the most important here was my other analysis not MACD signal. Be aware of taking old signals, they may be very unreliable.
2) Candlesticks seem to feature quite often in the posts- I get the impression that these are a factor along with the MACD but not given priority?
Candlestick patterns add probability to the trade. I feel more confident in trade if it's confirmed by candles. Don't forget candles are emotions of people, they show us what people think and how they act.
3) If anything seems to form the “hub” of the system- its S/R and how price reacts to Moving Averages?
The "hub" of the system is market rhythm - how price moves around moving averages. All other things are important too as they give additional conformation or help to filter bad trades.
4) In terms of timeframes- the 4hour chart again is central but sometimes the 1 hour chart is used for entry. My understanding here is that entry on the 1hour where the set up is right, in advance of the MACD giving the signal on the 4hr is a matter of trading more aggressively to “catch the wave” a little early- but that the 1 hr timeframe is not used to trade on at first instance?
Absolutely, for example I try to stay out of 1 hour charts at all, as there too much temptation for me. Initially the 1 hour was introduced by Phillip as a tool which helps to get in early when there is a TC forming on the 4 hour, as if you wait for the close of the candle, it would be too huge on the 4 hour, thus your stop loss too, and you would have to skip the trade because of the bad R/R (risk/reward). So you take the TC from the 1 hour in the direction of the TC of the 4 hour. All other entries are advanced, for more professional traders like Palmer. But we learn a lot from his charts.
5) Re the different types of signals- the TC signal seems to be the most highly probable trade because its with the trend rather than trying to spot the RT/RBs?
Again 100% right, I never trade RT's or RB's in a trending market, but they are very good in range, or out off support, for example RT or RB from 89 or 200 is a high probability trade, but again first it should show you that the support or resistance has been really established, and that's where candles will help you.
I’ve undoubtedly asked more questions than I intended but would welcome some help!
regards,
Mark
(PS: Cool Avatar!)
.Hope I could help you, and I welcome all other members to correct me or to add something.
