Directional Movement | Page 10 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MACDForest + Directional Movement System in MetaTrader 5 replies

Directional Movement Index For MT4 0 replies

Directional Movement Indicator Strategy 14 replies

GBP/USD daily pip movement vs. EUR/USD daily pip movement 3 replies

What DI interval, DX period and smoothing period for directional movement indicator? 5 replies

Attachments: Directional Movement
Exit Attachments

Directional Movement

  • #181
  • Edited 12:03pm Apr 16, 2009 11:54am | Edited 12:03pm
Quoting ACartwright
Hey what do I know.

Looks like you will be bagging a few extra pips Delta!
Hey Al

I've set the Stop Loss to the Parabolic SAR at the 30min set at
0.005, 0.008, 0.2 (on the quick chart IGIndex) and I am moving the stop loss up every 30 mins. I have set a few parameters that will get me out of the trade

1. I have set a trend line on the ADX if it breaks it,
2. RSI (if it falls below 50)
3. If the Trix Crosses

Entry at 18321.4
My Limit is set for 19000
and Stop loss is at 18283
Also set the Trailing to move at Distance:112.2, Step:10pip


(Shown on the chart as green thumbs)

And thanks for your support

Regards
Tareq
Attached Image(s) (click to enlarge)
Click to Enlarge Name: euraud2.gif Size: 117 KB
Click to Enlarge Name: euraud.gif Size: 60 KB
_______________ Say Good-bye to Buy-and-Hold
  • #182
  • Apr 16, 2009 12:43pm Apr 16, 2009 12:43pm
Hi Delta,

I don't think over the long run that the SAR will provide good exit points.

The problem with any indicator and this includes MACD and DMI is that they lag.

It is normally good to use them to get in but getting out you need something twice as dynamic.

Saying that I still like using th MACD histogram as this show the convergence of 2 emas.

I still think the best way is to plot s/r (including use of trenlines) reversal points because price action is the quickest indicator.

Also use pivot points.

I hope that you bagged a few pips from the eur/aud trade.
  • #183
  • Apr 16, 2009 1:09pm Apr 16, 2009 1:09pm
Still in the trade!!! at +40 pips

The Parabolic SAR is there only to keep you in the trade for as long as possible and is there just to protect you from any sudden movements in the markets or sudden sentiment change, it's like an insurance blanket.

From analysing trends, they either suddenly change and reverse, or they run out of steam.

With the trends that run out of steam the Para SAR is your friend as it stays with you till the trend goes flat, but with sudden sentiment change, not so much but it does protect you from sudden drops but at the same time iron out any minor retracements to the overall trend.

From looking at trends, most trends actually run out of steam, in regards to maximising the profit margin for sudden changes then you need a leading indicator, there is not that many about and reading them is not that easy as some of them are inauspicous. One that I have found easy to read is the Trix, as soon as the Fast trix changes to red then it may be a sign to get out.

I have set the TP point to 161.8% Fib retracement of high-low of last down trend. which is calculated at 18732.1

(see attached)

Another way is reading divergences in the RSI, this is a good article
http://www.guppytraders.com/gup342.shtml
as with these signals it can get you out of trouble before it happens.
Attached Image (click to enlarge)
Click to Enlarge Name: euraud164.gif Size: 62 KB
_______________ Say Good-bye to Buy-and-Hold
  • #184
  • Apr 16, 2009 1:40pm Apr 16, 2009 1:40pm
Out of trade at -5.6pips. Maybe I should have listened to you.

I'll watch this trade and see where it goes.

((kicking myself in the shins))
_______________ Say Good-bye to Buy-and-Hold
  • #185
  • Apr 16, 2009 2:20pm Apr 16, 2009 2:20pm
Quoting deltaworld
Still in the trade!!! at +40 pips

The Parabolic SAR is there only to keep you in the trade for as long as possible and is there just to protect you from any sudden movements in the markets or sudden sentiment change, it's like an insurance blanket.

From analysing trends, they either suddenly change and reverse, or they run out of steam.

With the trends that run out of steam the Para SAR is your friend as it stays with you till the trend goes flat, but with sudden sentiment change, not so much but it does protect you from sudden drops but at...
Ok - we will agree to disagree on the SAR !

I have never provided an exit strategy as aprt of this thread - only suggestions of what I use.

At the end of the day each trader is different.

What we do have howeve ris a great way to enter trades.

This in itself should be enough (whatever peoples exit strategies are) to mkae profit.
  • #186
  • Apr 16, 2009 2:25pm Apr 16, 2009 2:25pm
Quoting ACartwright
Ok - we will agree to disagree on the SAR !

I have never provided an exit strategy as aprt of this thread - only suggestions of what I use.

At the end of the day each trader is different.

What we do have howeve ris a great way to enter trades.

This in itself should be enough (whatever peoples exit strategies are) to mkae profit.
Definately is a great way to get in to a trade, and maybe I was being over-zealous with attempting alternative exit strategies with the use of SAR's and other indicators. I think these are fine if you are in a multi-lot trade where you can close part of the trade at s/r and let the other half run or get stopped by a trailing SAR stop. I'll learn to be more conservative with the 1 lot trades that I have.
_______________________________________________
**One day, I'll get there, just hoping it's tomorrow**
_______________ Say Good-bye to Buy-and-Hold
  • #187
  • Apr 16, 2009 3:05pm Apr 16, 2009 3:05pm
Quoting deltaworld
Definately is a great way to get in to a trade, and maybe I was being over-zealous with attempting alternative exit strategies with the use of SAR's and other indicators. I think these are fine if you are in a multi-lot trade where you can close part of the trade at s/r and let the other half run or get stopped by a trailing SAR stop. I'll learn to be more conservative with the 1 lot trades that I have.
_______________________________________________
**One day, I'll get there, just hoping it's tomorrow**
I have looked over last 4-5 years on ways to exit a trade.

S/R is one if the best.
  • #188
  • Apr 16, 2009 4:01pm Apr 16, 2009 4:01pm
ok thanks.. I'll stick to your rules like glue tomorrow!!
_______________ Say Good-bye to Buy-and-Hold
  • #189
  • Apr 16, 2009 5:28pm Apr 16, 2009 5:28pm
Quoting deltaworld
ok thanks.. I'll stick to your rules like glue tomorrow!!
Hi Delta,

No probs.

It's a shame that you did not get anything from the last trade - but hey sometimes this is how they go.

Look for s/r for exits or slowing down in macd/dmi in the future.

When you enter a trade let me know and I will try and offer some asistance.
  • #190
  • Apr 16, 2009 6:18pm Apr 16, 2009 6:18pm
Quoting ACartwright
Hi Delta,

No probs.

It's a shame that you did not get anything from the last trade - but hey sometimes this is how they go.

Look for s/r for exits or slowing down in macd/dmi in the future.

When you enter a trade let me know and I will try and offer some asistance.
Good night and much appreciated. I'll be up by the crack of dawn hunting for a new entry.

Food for thought: Chart below.

I'm still convinced that there is room for refinement on the exit strategy, but that will have to be trialled out on a few runs on a demo account before I try it out on a live one.

I have attached a screenshot on the last trade of the EURAUD and I narrowed it down to the 15min chart and we see a divergence from the Trix to the price where the trix has made lower highs but the price has made higher highs, which is a strong indication of a reversal.

I'll try and pick up on that on the next trade, but I'll only experiment with this strategy on a demo account, will of course keep you updated on its progress and a comparison between this and the live trade and I'll probably test it on 10 trades compare avg pip difference between these two techniques
Attached Image (click to enlarge)
Click to Enlarge Name: euraud164 divergence.gif Size: 50 KB
_______________ Say Good-bye to Buy-and-Hold
  • #191
  • Edited 1:25am Apr 17, 2009 12:14am | Edited 1:25am
There are loads of trades ready for setup according to this strategy. I have chosen CHF/JPY, as I seem to like this pair as they have strong long trends.

Entered at 8616.9 stop at 8644.7
strong resistance at 8605. if 1h candle opens below that then 85.55 i've set tp at that
_______________ Say Good-bye to Buy-and-Hold
  • #192
  • Apr 17, 2009 4:06am Apr 17, 2009 4:06am
Quoting deltaworld
There are loads of trades ready for setup according to this strategy. I have chosen CHF/JPY, as I seem to like this pair as they have strong long trends.

Entered at 8616.9 stop at 8644.7
strong resistance at 8605. if 1h candle opens below that then 85.55 i've set tp at that
Good work Delta.

It was a case this morning of take your pick.

chf/jpy has moved well - along with soem other pairs.

It would have been very difficult to have not made pips.
  • #193
  • Apr 17, 2009 4:10am Apr 17, 2009 4:10am
I made 61.9 pips on that. it went even lower than my tp and it look like it might still go lower further.

I have left my demo trade open
_______________ Say Good-bye to Buy-and-Hold
  • #194
  • Apr 17, 2009 4:31am Apr 17, 2009 4:31am
Quoting deltaworld
I made 61.9 pips on that. it went even lower than my tp and it look like it might still go lower further.

I have left my demo trade open
You had a good and realistic TP level to start with so many congrats.

The next level is prob around 84.00 ish so it is good to ocme out of this one and wait for the next that takes us down to that level.

Using s/r is a very good way of TP. It is pure market dynamics that cause s/r levels.

Most of the time price bounces a few time off these areas before it goes through. Why wait to get on a monster - just take the profit and wait for the next set up.

Well done again.
  • #195
  • Apr 17, 2009 4:42am Apr 17, 2009 4:42am
On a slightly different topic than this strategy, I am looking at a channel breakout on GBPJPY attachement shown.. with their take profit levels..

I just wanted your opinion on what you think about this potential breakout trade?
Attached Image (click to enlarge)
Click to Enlarge Name: Spot FX GBP_JPY (17-APR-09).png Size: 19 KB
_______________ Say Good-bye to Buy-and-Hold
  • #196
  • Apr 17, 2009 4:49am Apr 17, 2009 4:49am
Entered this trade here live. (a small pip gain)
CADJPY Short
8182.3 Entry Sell
Limit 8150
Stop 8203.3

I was thinking, is that stop a bit too tight, should I give the pair a bit more freedom, due to the volatility of this trend?
Attached Image (click to enlarge)
Click to Enlarge Name: cadjpy.gif Size: 59 KB
_______________ Say Good-bye to Buy-and-Hold
  • #197
  • Apr 17, 2009 5:02am Apr 17, 2009 5:02am
Quoting deltaworld
Entered this trade here live. (a small pip gain)
CADJPY Short
8182.3 Entry Sell
Limit 8150
Stop 8203.3

I was thinking, is that stop a bit too tight, should I give the pair a bit more freedom, due to the volatility of this trend?
This pair for me did not show the ADX above 20 - so this on my chart would be a no trade
Attached Image (click to enlarge)
Click to Enlarge Name: cad-jpy- 1h 17.04.2009.gif Size: 50 KB
  • #198
  • Apr 17, 2009 5:07am Apr 17, 2009 5:07am
Quoting ACartwright
This pair for me did not show the ADX above 20 - so this on my chart would be a no trade
wierd.. on the signaling candle shows ADX: 20.54 on my chart.
_______________ Say Good-bye to Buy-and-Hold
  • #199
  • Apr 17, 2009 5:25am Apr 17, 2009 5:25am
Quoting deltaworld
wierd.. on the signaling candle shows ADX: 20.54 on my chart.
Just one of those things I guess.
  • #200
  • Apr 17, 2009 5:28am Apr 17, 2009 5:28am
closed the order with a small loss
_______________ Say Good-bye to Buy-and-Hold
1 trader viewing now