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Directional Movement

  • #21
  • Apr 2, 2009 4:14am Apr 2, 2009 4:14am
Quoting ubp
Do you only use this on hourly charts. I am used to trading shorter timeframes. How do get your trade signals? Do you just check your charts every hour? Thanx
I prefer to use this on hourly charts.

This is due to wanting maybe 1 to 2 trades a day.

This strategy also works on lower time frames with the same sort of % success rate but you iwll have to change your take profit/break even part of the strategy.

You will probably get 4-5 trades as result of reducing the time frame.
  • #22
  • Apr 2, 2009 4:15am Apr 2, 2009 4:15am
Quoting Alberto_Jazz
Hi ACartwright, I don't understand your exit rule.
Could you explain whtat do you mean with "standard s/r or movement in the DMI"?
Thank you.
Hi Jazz,

I will get a screenshot of the exits I use over later today.

These are discretionary but I do use the indicators to provide a rough idea.
  • #23
  • Apr 2, 2009 4:22am Apr 2, 2009 4:22am
Hi guys,

Screenshot of trade that I am in from this morning.

Currently up 156 pips.

I have moved my stop so I get at least a 75 pip profit.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp-jpy - 1h 02.04.2009.gif Size: 52 KB
  • #24
  • Apr 2, 2009 5:44am Apr 2, 2009 5:44am
Now it's around 350pips. Great work!
  • #25
  • Apr 2, 2009 6:18am Apr 2, 2009 6:18am
Quoting Briian
Now it's around 350pips. Great work!
TX.

This system also works effectively on other pairs. You just have to adjust your take profit and break even accordingly.

Today it would have worked on a lot of others also.

I am confident of its winning %.
  • #26
  • Apr 2, 2009 6:26am Apr 2, 2009 6:26am
Hi AC,

The Label on the chart should read "Buy", as the +DMI and price show?

Thanks for a nice and simple system.

Herty
  • #27
  • Apr 2, 2009 6:55am Apr 2, 2009 6:55am
Quoting herty
Hi AC,

The Label on the chart should read "Buy", as the +DMI and price show?

Thanks for a nice and simple system.

Herty
Thanks Herty - Well spotted.
  • #28
  • Apr 2, 2009 9:22am Apr 2, 2009 9:22am
Hi AC,
Please can you post your MACD, mine looks different,

Also, that trade you took seems valid for one or two bars previous, to where you took it, any reasons?

thanks for posting your system

Steve.
  • #29
  • Apr 2, 2009 11:46am Apr 2, 2009 11:46am
Quoting Arnold49
Hi AC,
Please can you post your MACD, mine looks different,

Also, that trade you took seems valid for one or two bars previous, to where you took it, any reasons?

thanks for posting your system

Steve.
Hi Steve,

You are correct the trade would have been valid two bars earlier.

I trade from 7am GMT to around6pm GMT.

If I had taken the trade before I would have to have been up at 4am.

No thank you!!!!

These trades could be covered with those people cvoering different time zones.

I have however found the best times are the ones above.

I have attached my MACD also which is differetn to the standard one in MT4. I prefer this one as you have a histogram of the macd and signal line difference which I someitmes use for exits.
Attached File(s)
File Type: mq4 MACD_with_crossing.mq4   3 KB | 818 downloads
  • #30
  • Apr 2, 2009 12:07pm Apr 2, 2009 12:07pm
thanks, AC

I guessed that might be the reason!

Steve.
  • #31
  • Apr 2, 2009 12:16pm Apr 2, 2009 12:16pm
Hi guys,

These are the cad/jpy trades for this week.

5 trades so far - 2 outright losers.

However the other 3 have made some pretty good gains.

It is also good to look at basic candlstick formations with this system.

This is due to the DMI taking the highs and lows into account and cannot necessarily distinguish candlestick patterns.

A candlestick showing a hammer could be shown on the DMI as a good candle - i.e. on a down trend it may have a lower low and a lower high. However it is still hammer and any trade should be taken with caution.

Especially if it is this candle that causes the ADX to rise.

Hope that makes sense.
Attached Image (click to enlarge)
Click to Enlarge Name: cad-jpy - 1h 30.03.2009 to 02.04.2009.gif Size: 49 KB
  • #32
  • Apr 2, 2009 12:51pm Apr 2, 2009 12:51pm
I've been demoing this and have done really well.
I made a tub of money on the GBP/USD and the EUR/JPY.

The USD/CHF gave me a small loss.
The EUR/USD also made good money, although I didn't trade it.

The SLs and exits need to be firmed up.
I'll have to part company on the candle formations. I've found them to be about like reading tea leaves.

All-in-all, this looks really good- one of the better ones I've seen.
Good work!
  • #33
  • Apr 2, 2009 1:06pm Apr 2, 2009 1:06pm
Quoting billbss
I've been demoing this and have done really well.
I made a tub of money on the GBP/USD and the EUR/JPY.

The USD/CHF gave me a small loss.
The EUR/USD also made good money, although I didn't trade it.

The SLs and exits need to be firmed up.
I'll have to part company on the candle formations. I've found them to be about like reading tea leaves.

All-in-all, this looks really good- one of the better ones I've seen.
Good work!
Hi Billbss,

Glad you had some success.

I have posted the usd/chf trade that you may have taken.

It is worth noting that if you got in at the right time your position should have been up 33 pips (not inc spread).

As this pair does not move as much as some others I would say to have gone to break even after 25-30 pips.

Also the indicating candle was rather a large one and these trades are prone to some form of pull back.

As for candlesticks and tea leaves - well some people like them and some dont.

The good thing about this strategy is the if you get a signal after a large run down it may be best to stay out and play another day.

Just like the large indicating candle scenario.
Attached Image (click to enlarge)
Click to Enlarge Name: usd-chf - 1h 30.03.2009 to 02.04.2009.gif Size: 50 KB
  • #34
  • Apr 2, 2009 1:08pm Apr 2, 2009 1:08pm
Billbss,

I have used a couple of (what seem to be good) exit strategies using DMI and MACD in the past but do not have time to post them today.

Maybe tomorrow.

Al
  • #35
  • Apr 2, 2009 1:47pm Apr 2, 2009 1:47pm
Hi guys,

This is an exit I have been using.

The exit strategy relates to the histogram made by the macd and it's signal line.

i.e. difference between the two.

When there is a down movement (long) or an up movement (short) in the histogram place your take profits on the low of the corresponding candle.

I have attached a screenshot.

This signals that a reversal (or temporary pull back) is on the cards.

This movment normally proceedes a downturn in the ADX - so when you should be getting out of a trade anyway.

But it is normally one candle quicker which is always a good thing.

Hope it helps.
Attached Image (click to enlarge)
Click to Enlarge Name: eur-usd - 1h 30.03.2009 to 02.04.2009.gif Size: 49 KB
  • #36
  • Apr 2, 2009 2:06pm Apr 2, 2009 2:06pm
Just to add to the exit strategy.

If you do not get taken out on the low of the indicating candle and MACD histogram makes another low simply move the take profit up to the low o fthe next candle and keeping doing so until it is hit.

You may find the histogram starts to widen again.

Simply follow the same process as before.

Hope thats clear as mud.
  • #37
  • Apr 2, 2009 2:08pm Apr 2, 2009 2:08pm
hey

thanks for posting up some examples, the reason why this system wasn't working for me was because i wouldn't let my profits run but always take a certain take profit. so even IF the failure rate was high (not saying it is) because of the high Reward/Risk ratio it works out, i'll b backtesting this....it looks like the 1 hour timeframe is good for it too.
  • #38
  • Apr 2, 2009 2:19pm Apr 2, 2009 2:19pm
Quoting pipping4life
hey

thanks for posting up some examples, the reason why this system wasn't working for me was because i wouldn't let my profits run but always take a certain take profit. so even IF the failure rate was high (not saying it is) because of the high Reward/Risk ratio it works out, i'll b backtesting this....it looks like the 1 hour timeframe is good for it too.
1hr timeframe is to keep the amount of trades down and to keep the "noise" to a minimum.

It also allows you to look over the last 4 days so you can get a visual of the overall trend and any s/r that may crop up.
  • #39
  • Apr 2, 2009 2:24pm Apr 2, 2009 2:24pm
For a long position do u wait for both lines to cross above on the MACD histogram or just the yellow? and vice versa for a short
  • #40
  • Apr 2, 2009 2:25pm Apr 2, 2009 2:25pm
Quoting ACartwright
1hr timeframe is to keep the amount of trades down and to keep the "noise" to a minimum.

It also allows you to look over the last 4 days so you can get a visual of the overall trend and any s/r that may crop up.
ACartwright please send a temlate of your system , it will help me
Thank you
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