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Scalping/Trading the TrendWay

  • #81
  • Feb 1, 2008 12:31am Feb 1, 2008 12:31am
Quoting achandrasekaran99
May be you can checkout the following post (it has a program for horizontal line or trendline break):
http://www.forexfactory.com/showpost...postcount=5545

You may need the sound files from the following post (if you decide to use the voice alerts):
http://www.forexfactory.com/showpost...postcount=5505

chandra
Thanks, these are cool indicators, but there is a problem, the voice doesn't work on version 1.2s . It works on version 1.1 (with horizontal lines) but not with trendlines. I have the sound files downloaded and selected voice = true and it still doesn't work. Any ideas to troubleshoot?
  • #82
  • Sep 11, 2008 10:23pm Sep 11, 2008 10:23pm
I would like to work on reviving this thread, because I feel it has a lot of merit, but initially did not get a lot of attention. I am a huge fan of keeping your charts simple. Following this methodology even on a larger scale and not just looking at scalping has been probably one of my most successful ways of trading.

By combining what I have outlined in this method earlier in the thread, along with the usage of S/R levels, it has proved successful beyond doubt. I am currently on a 26 trade winning streak based upon these concepts. Over the next few days, I will start taking some examples and showing more of what I am doing. I hope a few of you will be willing to come along for the ride.

Happy trading!

GF
  • #83
  • Sep 11, 2008 11:26pm Sep 11, 2008 11:26pm
Hi Marci,

Are you still trading M5 charts, or have you been exploring longer TFs as well?

Also, will you exit if price returns to hit or cross back over the TL? If so, how far back?

I just stumbled upon this thread and feel you've explained your general method quite clearly. It's possible interest has waned as a result of the EA discussions; they always seem to clog up the threads and take focus away from the greater method. I have nothing against EAs, but I've observed this in other threads.

Good trading!
Jeff Singer, K2KV
  • #84
  • Sep 12, 2008 12:01am Sep 12, 2008 12:01am
Quoting k2kv
Hi Marci,

Are you still trading M5 charts, or have you been exploring longer TFs as well?

Also, will you exit if price returns to hit or cross back over the TL? If so, how far back?

I just stumbled upon this thread and feel you've explained your general method quite clearly. It's possible interest has waned as a result of the EA discussions; they always seem to clog up the threads and take focus away from the greater method. I have nothing against EAs, but I've observed this in other threads.

Good trading!
I still like the 5 minute, but it works well for all time frames too. 15 or 30 minute is a good one to get a larger picture.

Generally speaking if you get in right at the trend change, then you just follow until the trend changes again and get out. This is the disciplined approach whether you are in profit pips or not. The discipline is getting out if you're at a loss regardless of small the loss is, especially if you feel the potential for huge reversal exists and you don't want to wait for it to return. Otherwise if your trade is following in the direction of the larger daily trend, you can often sit on a small losing trade and wait for the longer trend to come into play. Follow these procedures consistently and you should find your profit pips exceed your loss pips.

Marci
  • #85
  • Sep 12, 2008 1:14am Sep 12, 2008 1:14am
Quoting GirlFlyer
I would like to work on reviving this thread, because I feel it has a lot of merit
Great to see your thread come back, Marci!

Really looking forward to more!

Great trading to you,
Brent
  • #86
  • Sep 12, 2008 2:05am Sep 12, 2008 2:05am
Marci,

Glad to see new life back in this simple and profitable thread. Looking forward to many great trades.
  • #87
  • Sep 12, 2008 6:16pm Sep 12, 2008 6:16pm
Hi Marci,

What hours do you trade to find the best trending price action? Is it the opening hours of London and US sessions?

I have tried looking for TL breaks on the 1M timeframe for scalping but have the same problem Jared posted (see below) months ago. That being a lot of false TL breaks and hitting my SL.


Quoting Jared
I've tried testing a method like this but ended up with a lot of false breakouts and had inconsistent results. Any advice to avoid false breakouts? For example, it may appear to break out but ends up just consolidating sideways and then continuing in the same direction as before - oposite of my position, and I get stopped out.
  • #88
  • Edited 5:12pm Sep 13, 2008 11:34am | Edited 5:12pm
[quote=GirlFlyer;2215080]I would like to work on reviving this thread, because I feel it has a lot of merit, but initially did not get a lot of attention. I am a huge fan of keeping your charts simple.

Marci
As k2kv pointed out the 'attempted' implementation of EA's and the 100's of pages which always seems to follow to get them to work correctly almost always seems to kill the original system/strategy.

Another reason I believe that your system/strategy didn't get a lot of attention is the general belief that simplicity and lack of indicators are not 'intellectually' supporting in becoming successful forex traders.

I am always surprised, surprisingly, in seeing so many new (or maybe not new but still unsuccessful) traders who somehow have erroniously adopted the concept that the more indicators they include in their charts that those will somehow collectively and cohesively become 'magnets' and will make price move in the direction of their 'prayers'.

Sadly, we eventually learn that price is going to go where price is going to go, and watching any amount of indicators will never influence where price is going to be 3 minutes from now.

No - I'm not a 'naked trader' but close. I use one indicator only on a 5M & 15M chart. My first two years of trading and following every system I could find (or buy) were all eventually dismal failures. Nor could I handle the stress of trading the large time frames and seeing hundreds if not thousands of dollars being eroded from my live account on reversals.

Scalping was the only form of trading which fit my personality (and stress levels) my financial needs, AND which held my interest. It's been my 'key to the mint' these past 3 years.

So - in essence I am encouraging you to not become discouraged with what may be lack of interest in your phenomenal strategy/system. Those who like scalping and observing their accounts increase daily will undoubtably endorse it. Those who are still seeking something more 'intellectually challenging' will go elsewhere in their constant search for the "Holy Grail".

Thank you Marci for your unselfish contribution with this thread and it's great trend scalping technique!

A quick P.S. Remember the old adage, "You can lead a horse to water BUT . . . . ".
  • #89
  • Sep 15, 2008 1:15am Sep 15, 2008 1:15am
Quoting a777
Hi Marci,

What hours do you trade to find the best trending price action? Is it the opening hours of London and US sessions?

I have tried looking for TL breaks on the 1M timeframe for scalping but have the same problem Jared posted (see below) months ago. That being a lot of false TL breaks and hitting my SL.
My favorite trading hours are from 06:00 GMT to about 19:00 GMT, that encompasses the London and US session for the most part. Though, I've been known to stay awake thru the Asian markets too, but one has to sleep sometimes .

The 1M timeframe can be used, but it is definitely a tricky one to play with. My favorite is the 5m for short times and the 30m for long times.

GF
  • #90
  • Sep 15, 2008 2:09am Sep 15, 2008 2:09am
I mentioned the 1M can be tricky, but doesn't always have to be. I was looking for some trades on the Aud/Jpy and I'm attaching a chart where I made trades. The 1st circle represents the long I made and I got out and reversed when it went below the trend for a fresh short. However, just to note, the price action on the short after that point was highly volatile and not for the weak hearted. With the financial mess over the weekend, the London open session was causing a lot of wild up and downs on this pair. But the trend break held true and i looked for the action to break the 5minute up trend as shown at the bottom of the chart. That eventually happened and I took it to the 86.5 support level and got out for a 43 pip profit. However, the price did go on lower after that and I could have made more. But, I often will exit my trades at support/resistance levels if I think those could hold up, or if I think a bounce could occur there.

Also, a note. I have a series of Ema's on the chart. These Ema's are not necessary for this method, but I do like the visualisation they provide. They are a good way to see how far "stretched" the trend is. The farther apart vertically the ema's are, the more likely the trend is overbought/oversold and you can look for a reversal to occur soon, or at the least a bounce.

I hope this helps a bit!

Good luck.

GF
Attached Image (click to enlarge)
Click to Enlarge Name: AUDJPY1M.jpg Size: 331 KB
  • #91
  • Sep 16, 2008 2:00am Sep 16, 2008 2:00am
Nice to see you back

I have to agree, trendlines do work. BUT... it's not as easy as it looks.

26 winners in a row ? Impressive.

The main problem for me is that their are different reactions to trendline breaks:

- A strong reaction, just like shown on your charts (Great)

- Pice breaking the trendline, but then turning sideways (Not so good)

- Pice breaking the trendline, but then continuing in the previous direction - maybe testing the previous trendline. That's because the the broken trend was just part of a larger trend which continues (and which wasn't visible until then). (Bad)

So I wonder how you identify those strong reaction type of trendline breaks?

Maybe you can also post an example trade where you mark you exact entry, SL and exit.

Thanks!
  • #92
  • Sep 16, 2008 3:33am Sep 16, 2008 3:33am
Do you ever use HA candles with your method, Marci?

Just wondering.

Good Trading!

Brent
Attached Image
  • #93
  • Sep 16, 2008 6:51pm Sep 16, 2008 6:51pm
Hi Marci,

Do you use a 5 pips break of the TL before entering for all currency pairs and for both 5M and 1M?

Also to achieve your high win rate do look for trends with very steep sloping EMAs (more volatile price movement) in addition to being spread apart as a better choice to find TL breaks?

I think your strategy is very good but I would like to know if you have any other tips for us that might help us achieve your high win rate.

Thank you.



Quoting GirlFlyer
If you wait for the bar to close... you may be too late... once the price exceeds the TL by a few pips (i find usually by around 5 on a short time frame more if longer) ... you can figure its going to make its break the other way.

Try using the method with a line chart instead of a bar/candle. It can help sometimes to visualize the break on the TL.

GF
  • #94
  • Sep 16, 2008 9:01pm Sep 16, 2008 9:01pm
Quoting FXSurfer
Do you ever use HA candles with your method, Marci?

Just wondering.

Good Trading!

Brent
I have used them, but I prefer a straight line chart.
  • #95
  • Sep 16, 2008 9:17pm Sep 16, 2008 9:17pm
Quoting a777
Hi Marci,

Do you use a 5 pips break of the TL before entering for all currency pairs and for both 5M and 1M?

Also to achieve your high win rate do look for trends with very steep sloping EMAs (more volatile price movement) in addition to being spread apart as a better choice to find TL breaks?

I think your strategy is very good but I would like to know if you have any other tips for us that might help us achieve your high win rate.

Thank you.
The 5 pips is a general rule of thumb. You have to use more for longer timeframes, but I would definitely use no less.

I generally look for trend changes on the stronger moves, because usually the stronger the trend, the more likely the change to the opposite direction will be strong too. You often see these around session opens.

But also look for places where the EMA's are very narrow, too. This shows signs of consolidation and the ongoing trend may be weak in one direction, but the moment it changes, the new trend can begin a signifcant move too. This happens also at session opens, but you see it often also after a major move and the market then sits and consolidates for a bit before going somewhere again.

Marci
  • #96
  • Nov 15, 2008 8:16pm Nov 15, 2008 8:16pm
Hi GirlFlyer,

I kind of like your system if you want to call it that. I too thought this type of trading would have more posts or interest as it really is simple.

Just to spark interest I thought I'd show how I see the trendlines on the 5min chart and what my screen looks like.

Entries are made once the candle closes through the trend line and hopefully price returns to the trend line (close enough to it) to give you a nice entry. S/L is up to ther individual but you can keep it just back inside the trendline for a better R/R but more stop outs or take it to the other side of the movement where there usually is another small trend line.

I'd like to get peoples comments on the pictures especially yours GirlFlyer.

(I'd like to add that I don't trade this method exclusively but I am thinking of it as it give many setups on many pairs so getting a few good trades a day shouldn't be too hard for anyone anytime.)

Also you'll see an arrow on my chart, forget about that for now, i'll probably explain that another time.

Juicyt
Attached Image (click to enlarge)
Click to Enlarge Name: trendlines5min.jpg Size: 233 KB
"Even if you fall down face first, you still went forward."
  • #97
  • Nov 15, 2008 10:44pm Nov 15, 2008 10:44pm
Just thought I'd show another screen shot of the time before the original picture I posted. (No set time, just whatever fit on my screen.)

You can see smaller trendline breaks etc but you can see how well they all do.
The red circles are trades I would have missed but they seemed to work out well.

Juicyt
Attached Image (click to enlarge)
Click to Enlarge Name: trendlines5min.2.jpg Size: 229 KB
"Even if you fall down face first, you still went forward."
  • #98
  • Nov 18, 2008 9:22am Nov 18, 2008 9:22am
I'm using trend too.
Attached Image (click to enlarge)
Click to Enlarge Name: scalper_champ_screen_7.gif Size: 77 KB
  • #99
  • Mar 12, 2009 9:20pm Mar 12, 2009 9:20pm
i like this system. it is quite similar to the one i was first taught many years ago. except that method had pivots as targets and used EMA crosses to provide direction. basic simple, raw, but delivers big pips. in the blizzard of indicators and counter indicators and counter -counter-counter indicators its good feeling to get back to the basics

Quoting GirlFlyer
The two MA's you see in the picture are the 150 & 10 EMA's. They're there in my chart just as visual aids to help see the market directions, but not absolutely necessary for the system. The methodology I present here is really based upon price action alone.

As to a template, perhaps I'll write an indicator to draw the arrows on the screen for someone. As of this time the arrows you see are part of an EA I'm working on that uses a similar method as this system. (No its not ready yet, but its looking promising).

Thanks for reading.

GF
  • #100
  • Mar 13, 2009 12:30pm Mar 13, 2009 12:30pm
I have just come accross this thread and i have to say it looks pretty good keeping it simple with this style of trading. Given the infrequency with which people post to this thread i have to wonder whether the 'indicator brainwashers' have done their worst!!

Is anybody using this style in the current market with real success, results would be good to hear?

Look after yourselves,
Django
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