DislikedSo, if either usdcad or usdchf is strong, sell jpy pairs. Or, if either usdcad or usdchf is weak, buy jpy pairs?Ignored
Hope it helps,
George
Hi Ben, great questions. Answers in your quoted section and below.
Yes, for individual CP trades, monitor for RSI divergence peak circa 30 or 70 followed by reversed RSI cross T3 moving average line.
For GROUP entry, monitor BuySellBasket12 indicator for line cross MIDDLE level with color change, followed by advance beyond a level which rules out whipsaw price action (I use 100). I also use attached BasketBars indicator to monitor GROUP price action. It uses red and green diamonds at end of bars to indicate the entire GROUP direction. We need an EA that will automate GROUP entry, and the author Scott Jones is working on that.
One can GROUP take profit exit when BSB12 peaks, or when GROUP line changes color at cross back over MIDDLE line. Notice that GJ RSI peaks also approximate these crosses. We could use an RSI-like indicator for the GROUP. In WAVES system, we prefer HMA for timing individual currency exits.
Prosperous blessings,
George
Hi Comdoc,
In your post 20, you don't reference how you're incorporating Orest's EA in your trade decision. I'm confused on your entry, so please expand if you can.
Of course. Orest's indicator serves as the Heatmap in my system. In post #8, I refer to checking Heatmap first. We need to distinguish between trading individual pairs and the entire GROUP.
What are you looking at in Orest's EA?
Are you only looking at the T3 on gbpjpy to make the decision on whether to buy or sell the groups, or do you have the same setup on every chart -- In other words, is GJ the proxy for your group?
No, GJ is not the proxy. It's simply the most volatile currency pair for scalping purposes. Have a look at the Heatmap indicator for info on all 7 TFs, and all 14 currency pairs (CPs) relative to each other. If you watch it long enough, you'll get a 'gestalt' or feeling for conditions within each CP, and for the entire GROUP. As indicated, we intend either to enter on single pair(s), or the entire GROUP.
If entire GROUP trading setup is not present, my preference is to choose 1 high volatility currency pair for trade entry. My own fave for now is GJ, but your mileage may vary. Pick a pair you're comfortable with. Identify whether it belongs to the JPY pairs group, or the USD group. If JPY group, look for the 'J' in first line at bottom of Heatmap; to the right is a green (LONG) number which indicates profit or loss in pips for each TF. To the right of that number is a red (SHORT) number which indicates profit or loss (-) in pips over same TF.
My advice is to set (Heatmap indicator properties) the 7th TF indicator column on the far right to your chosen entry TF. Observe the numbers changing. Are they increasing or decreasing? Do directions match up with adjacent timeframes? That is, are the various fractal periods in same or opposite direction? We are looking for a MIDDLE condition to change in direction of larger TF trends, for timing our entry.
And then you say to manually monitor the 14 with the TS and HMA. Do you mean individually or using GJ as a proxy? Can you post the HMA you're using and settings -- I'm assuming your talking about a Hull?
Individually. You can display all 14 charts on one screen platform to visually check present price action within the overall trend cycle. T3RSI will indicate whether it's at EXTREMES or MIDDLE (circa RSI 30 50 70 levels). The most profitable trades begin at the extremes. Yes, HMA is Hull Moving Average indicator (attached); I use default 21 period setting.
The way I understood your post #20, is that you watch the T3 on the gbpjpy to go above/below 30/70 and then cross. You then watch for the BuySellBasket indi to cross -- red above for sell, green above for buy.
Then monitor the trades and close all. I missing a few steps in there and hope you will fill in for me. Thanks.
For GROUP entry, monitor BuySellBasket12 indicator for line cross MIDDLE level with color change, followed by advance beyond a level which rules out whipsaw price action (I use 100). I also use attached BasketBars indicator to monitor GROUP price action. It uses red and green diamonds at end of bars to indicate the entire GROUP direction. We need an EA that will automate GROUP entry, and the author Scott Jones is working on that.
One can GROUP take profit exit when BSB12 peaks, or when GROUP line changes color at cross back over MIDDLE line. Notice that GJ RSI peaks also approximate these crosses. We could use an RSI-like indicator for the GROUP. In WAVES system, we prefer HMA for timing individual currency exits.
Prosperous blessings,
George
I'm trying to understand post #17 before I try to understand the indicators.
You said \"The JPY pairs group is like a herd of 12 animals...all heading in the same general direction (trending together). But UCa and UC don't move with the herd; instead they tend to head in the opposite direction.\"
I previously asked \"So, if either usdcad or usdchf is strong, sell jpy pairs. Or, if either usdcad or usdchf is weak, buy jpy pairs?\"
If you say usdcad and usdchf move in the opposite direction of JPY pairs, then the answer to my question would have to be yes.
Let me clarify. If your question had been, if both UCa and UC pairs are uptrending, sell JPY pairs group--then my answer would have been yes. Sell JPY pairs could have meant just currency pairs which include JPY. However, the JPY pairs group also includes 6 other currency pairs.
Your SELLJPY12 script has sell of 12 jpy pairs and buy usdcad and usdchf. So, if usdcad and usdchf is strong, then I should use the SELLJPY12 script, otherwise, why should the BUYJPY12 be used since usdcad and usdchf are sells within that script?
No, the SELLJPYpairs12 script includes short entries for 6 JPY currency pairs, and 6 other currency pairs which tend to trend with the JPY pairs. Again, let's specify that the UCa and UC group is in an uptrend or downtrend. You were correct in using the SELLJPYpairs12 script for TRADE entry if UCa and UC group was in an uptrend.
However, after reading your answer about 2 hours ago, I looked at a usdchf chart and saw that the pair was weakening, so I used the SELLJPY12 script to see if you were correct. Since then, usdchf has moved up, and I'm up about 1300p(!). If usdchf had continued moving down, I would be in the red - therefore, using SELLJPY12 script was the wrong one to use for a weakening usdchf pair (since buy usdchf is incl. in the script). I just happened to get lucky when the pair reversed.
You got it. This is not about luck. The WAVES HEATMAP system has been carefully designed to maximize trading profit.Prosperous regards,
George
- #28
- Oct 24, 2008 5:34am Oct 24, 2008 5:34am
After I submitted that post, my trades went up another 1200p, and then I closed them because I had to go to bed - besides, enough for a day's work anyway. I'm using stochastics now for entry/exit, but I'm also still studying your indicators. Great work George!
Congratulations!
Prosperous regards,
George
After I submitted that post, my trades went up another 1200p, and then I closed them because I had to go to bed - besides, enough for a day's work anyway. I'm using stochastics now for entry/exit, but I'm also still studying your indicators. Great work George!
Thanks for your kind words. My scalping profits today on just one currency pair were a few thousand pips. 
Prosperous regards,
George
- #38
- Edited 2:19am Oct 26, 2008 2:12am | Edited 2:19am
Hi paradox, and welcome. Please see answers below.
No offense taken. The groups direction cycles in harmonic fractal (embedded) WAVES. Without an EA, we must vigilantly observe our charts and indicators to catch the MIDDLE conditions, and subsequent trend reversal. Think 'eagle eye' and trigger finger on mouse. *ROTFL*
Keen observer,
George
Comdoc, I ran across this very interesting post on a different thread, and the picture certainly confirms what you found. How far back have you gone back? Is this common?
My research extends back to 1978. Is what common? (I don't understand what you meant.)
Based on the attached picture, you'd buy the 2 and sell the 12, obviously.
No, there's not enough information in the attached image to make a trading decision in my WAVES system.
What do you use to give you some idea that the very weak currencies will continue that way?
I use my indicators. First, the multiple timeframes price charts with color coded HMA, MTF Heatmap, the BuySellBasket12, and the T3/RSI. If you want, you can add Momentum indicator.
My question about basket trading that I haven't gotten a good answer for yet is that everyone seems to follow the trend, and that works great in a heavy trending market like we've had. But, what happens when it reverses, and all 14 trades start losing?
If all 14 trades start losing, we cut our losses short using CLOSEALL script. When Market is ranging, this system works great. The only market condition in which it won't work well is when there is very low volatility flat price action; under those conditions, we simply wait and observe for the beginning of a new market direction.
Next week, if they start geting things squared away in Europe, the weak currencies could shoot the other way in a hurry. Don't take this as a knock on your system, as I could be completely wrong about your system. It's just a question.
http://www.forexfactory.com/showthre...116412&page=53
Keen observer,
George
