THV system, final edition | Page 607 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

THV System Trades & Patterns Thread 857 replies

THV 4 system with SAH; My Trading Journal 163 replies

Bow's trading journal (THV, Hmaoui simple system) 4 replies

My Journal - Based on THV V3.0 by Cobraforex 30 replies

the vouchers - THV System 2 replies

Attachments: THV system, final edition
Exit Attachments

THV system, final edition

  • #12,121
  • Jul 15, 2009 11:57am Jul 15, 2009 11:57am
Quoting jazz4some
Thank you CobraForex & THV Team

I'm a newbie in forex & this is my 1st post in FF. Had just set-up the THV template with the THV indicators on 1 min charts.

As i see the GBP/JPY at 5:43 (GMT) long signal for about 40 plus pips (20 mins)..i'm convinced scalping profitable is possible. other pairs like Eur/usd & Gbp/Usd also showed good signals.

I'm definitely going to read all the post here.

Kind regards
jazz4some
Hi jazz,
If you're serious about reading all the posts here...read this one first.
GBY/JPY and newbie in forex should never be combined. When a novice and the Beast are in the same room the Beast is going to win almost every time. Do yourself a huge favor and give youself some experience before trying to scalp the GJ. Other than that, welcome, enjoy, and ask if in doubt.
Listen to the whispers.... You may learn something
  • #12,122
  • Jul 15, 2009 12:34pm Jul 15, 2009 12:34pm
Quoting Scrutch
Hi jazz,
If you're serious about reading all the posts here...read this one first.
GBY/JPY and newbie in forex should never be combined. When a novice and the Beast are in the same room the Beast is going to win almost every time. Do yourself a huge favor and give youself some experience before trying to scalp the GJ. Other than that, welcome, enjoy, and ask if in doubt.

Newbie and the Beast, sounds like a Disney film!!

Good advice though

I have two questions somewhat related.

1/ what FX pairs do you recommend for scalping.
(I live in Toronto, and trade from early 5am EST and then again during the Asian session7pm EST) I have been thinking EURUSD is best for day and USDJPY is best for Asian session, or perhaps EURJPY

2/ I know somewhere in this great big thread is a post about a simulator tool for MT4 (I have started reading from the beginning of the thread a number of times and keep on finding something cool that distracts me, and then I go back to the beginning again....I know, I know, I could write down what page I am on)

By the way, the one bit of advice that I would pass on to anyone is....read Trading in the Zone, I have read about 1/4 of that book and it is really shifting my approach

Best wishes

PGPB
  • #12,123
  • Edited 2:03pm Jul 15, 2009 1:34pm | Edited 2:03pm
I thought a good topic of conversation for today was to talk about the Trix indicator and how it relates to the price action and what you see.

The Trix is actually 2 indicators in 1-- the signal line [the thin one that squiggles and moves more than the thick one] is a moving average that follows the trend--not too tight and not too loose. This happens to be a non-lag MA and will change color and direction as the trend does it's thing.

The thick line is the "hull line" of the indicator and is an oscillator -- similar to a Stochastic, and we use it like the stochastic in the regards to looking for divergence- higher highs on a trend with lower highs on the oscillator means the up trend is near an end.

This line is also the trend momentum indicator--where some people will get confused when they see the trend go one way and the trix colors are the opposite. You'll see this instance at the end of a trend-where there's a stall in action, and one last push before an immediate reversal. Don't consider this as lost pips--- this is pips you saved thanks to the indicator that knows more than you do trying to determine the trend from what you see. You'll aslo notice in the first picture below, where the arrow is and the Trix is red... notice the struggle it's having going North---it's taking a lot of effort to get there.

Divergence comes in 2 flavors-- where the PA actually goes the other way from the trend, or it just sits and stalls for a while, where PA bobs up and down for a bit before continuing.

On the picture I'm attaching I followed the the trend lines of the Trix as the indicator sees the trend--the thin yellow line is the signal line of the Trix and the [sloppy] green line is the momentum line. The white lines are the middles of each wave --this is what the Trix calulates for the 0 value--so if there's 1 wave, you take the middle value of that wave and for the next wave [provided it has the same amount of movement as the previous wave] should bring the value above/below the 0 line in regards to the direction you want to go in.

This is why it's so important to mind the 0 value of the Trix in regards to your trades---not just that both lines are the same color. You need to know that the trend is above/below the average of the last wave---trading by this method prevents 2 things:

Suffering the bite of a nasty pull back [test of previous trendline/PA "box", and also from a false breakout-- these are different things. Pull back happen to test the previous price to make sure it's rejected--therfore it must move, and false breakouts happen by "Big Money" to make the price higher/lower in their favor to make a more appealing price to do their trading. This is where the big moves happen-- example is last night on GBPUSD where there was a 50 pip move or so south [to the DP] and an immediate reversal for 200 or so points north. [talking about the over all trend--it first went to the previous high, then took off]

Slope/angle is another factor, as well as the separation of the Trix lines [lots of separation is good, I like to see high/low signal line coming towards the thick hull line] flats line are not good for trading--don't even try it. Buying thin line should be above thick and sell thin should be below line---preferably thick line above/below 0 as well, but sometimes the signal line gets through first. [on really strong moves] As long as your other indicators and your brain tell you it's safe to trade, the signal line crossing should be sufficient.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: divergence.gif Size: 25 KB
Click to Enlarge Name: trix.jpg Size: 87 KB
--- Gone --- RIP 11/27/09
  • #12,124
  • Jul 15, 2009 5:22pm Jul 15, 2009 5:22pm
Quoting pgpb
Newbie and the Beast, sounds like a Disney film!!

Good advice though
If you've ever seen it you'll understand...it's not a Disney film, but a Steven Spielberg film.

Quoting pgpb
I have two questions somewhat related.

1/ what FX pairs do you recommend for scalping.
(I live in Toronto, and trade from early 5am EST and then again during the Asian session7pm EST) I have been thinking EURUSD is best for day and USDJPY is best for Asian session, or perhaps EURJPY
I trade the EURJPY and it's been good to me, makes some good moves in the Aisian session.

Quoting pgpb
2/ I know somewhere in this great big thread is a post about a simulator tool for MT4 (I have started reading from the beginning of the thread a number of times and keep on finding something cool that distracts me, and then I go back to the beginning again....I know, I know, I could write down what page I am on)
Well, I looked...use the paper clip at the top right hand side of any page...click on hide images guy and it shows all the uploads. I didn't see it but I know it's been uploaded, perhaps it was called something else or a link to a download page. Anyway by doing this it narrows it down to only 8 pages of searchables. I know the Pip Princess and Cashmeer have/are using it, perhaps they will shed some light on this guy for you.

Save the page you're on as a favorite...then when you come back and do a few dozen more pages just right click your favorite and update the page number...this will keep you current with your reading.

Quoting pgpb
By the way, the one bit of advice that I would pass on to anyone is....read Trading in the Zone, I have read about 1/4 of that book and it is really shifting my approach

Best wishes

PGPB
Listen to the whispers.... You may learn something
  • #12,125
  • Jul 15, 2009 5:36pm Jul 15, 2009 5:36pm
Quoting Scrutch
Well, I looked...use the paper clip at the top right hand side of any page...click on hide images guy and it shows all the uploads. I didn't see it but I know it's been uploaded, perhaps it was called something else or a link to a download page. Anyway by doing this it narrows it down to only 8 pages of searchables. I know the Pip Princess and Cashmeer have/are using it, perhaps they will shed some light on this guy for you.

Save the page you're on as a favorite...then when you come back and do a few dozen more pages just right click your favorite...
I figured it out. The simulator was posted by "quantem" a search on that name finds it. I haved tried the simulator, but not on my desktop, but my weeny, tiny lap top and that made it difficult.

good idea about the favorites!!! thx!!!

The look and feel of the charts has changed over the year or so this thread has been evolving. There is mention of somthing called the "hull" which must have morphed into something else. So starting at the beginning is both enlightening and confusing. However as I go through the thread I pick up little tips.

best wishes

PGPB
  • #12,126
  • Jul 15, 2009 10:12pm Jul 15, 2009 10:12pm


Quoting Scrutch
Hi jazz,
If you're serious about reading all the posts here...read this one first.
GBY/JPY and newbie in forex should never be combined. When a novice and the Beast are in the same room the Beast is going to win almost every time. Do yourself a huge favor and give youself some experience before trying to scalp the GJ. Other than that, welcome, enjoy, and ask if in doubt.
  • #12,127
  • Jul 15, 2009 10:18pm Jul 15, 2009 10:18pm
Hi MCFly

Could you post your template for your chart in post #12115, please?

Thanks

Quoting MCFly
Hi cencored,

I meant the long trade on the 3 attached chart.
  • #12,128
  • Jul 16, 2009 12:32am Jul 16, 2009 12:32am
Quoting Scrutch
..I trade the EURJPY and it's been good to me, makes some good moves in the Aisian session....
I am trading EU and EJ. I have found EJ tends to do consistently better in all sessions. It also carries a lower spread from my broker. Further, it fits my trading schedule better.
  • #12,129
  • Jul 16, 2009 1:01am Jul 16, 2009 1:01am
Quoting TradeWell
I am trading EU and EJ. I have found EJ tends to do consistently better in all sessions. It also carries a lower spread from my broker. Further, it fits my trading schedule better.
I agree Tradewell. The EJ seems to make bigger moves than the EU. Unfortunately I pay a 4 pip spread on EJ, so I may change the broker for this pair soon...
Trading Makes Money!
  • #12,130
  • Jul 16, 2009 1:08am Jul 16, 2009 1:08am
Quoting Cencored
I agree Tradewell. The EJ seems to make bigger moves than the EU. Unfortunately I pay a 4 pip spread on EJ, so I may change the broker for this pair soon...
That's important when you are scalping. You must have a pair with a low spread. I only look for pairs with less than 2 pip spreads.
  • #12,131
  • Jul 16, 2009 1:21am Jul 16, 2009 1:21am
What is the best time to use the sytem for scalping ? Is there any specific time every day ?
  • #12,132
  • Jul 16, 2009 1:25am Jul 16, 2009 1:25am
Quoting nicesurf
What is the best time to use the sytem for scalping ? Is there any specific time every day ?
I will scalp EJ anytime. EU I prefer during European and New York Sessions.
  • #12,133
  • Jul 16, 2009 1:56am Jul 16, 2009 1:56am
Quoting TradeWell
That's important when you are scalping. You must have a pair with a low spread. I only look for pairs with less than 2 pip spreads.
TradeWell is it ok to ask who your broker is? If so, I guess umm I am asking.
  • #12,134
  • Jul 16, 2009 2:07am Jul 16, 2009 2:07am
Quoting Slider
TradeWell is it ok to ask who your broker is? If so, I guess umm I am asking.
FXCM UK.
  • #12,135
  • Jul 16, 2009 2:08am Jul 16, 2009 2:08am
Thanks TradeWell, have a good day trading today.
  • #12,136
  • Edited 3:29am Jul 16, 2009 2:26am | Edited 3:29am
I thought another good topic for newer traders is the understanding of the Waves of trading-- and how Fibs come into action.

My basket is full for today as I've made my daily goal, and I never go for more.

I'm posting this chart for a greater understanding of the Forex waves, and how it relates to THV trading.

This [even though tonight is relatively slow] is a Forex's trader's pure heaven, because it's very easy to know where to TP--the waves are extremely predictable


First thing to note is the bear pennant shape that has formed--which means a break out to the downside will eventually happen, marked by descending trianges and a flat bottom trendline.

First valid THV trade was a break of the previous swing low. Entry was at pause of trend [minor 5M bar pullback] TP at DP.

2nd trade at 61 fib after confirmation of continued downward momentum [downthrust bar] took a chance DP would be broken and I was right-- TP with my trigger finger. Also noted-if you have a confirmed trend, you don't have to wait for the thick trix line [hull] to change color--you can take trades off the confirmation of the thin signal line]

3rd trade- huge pin bar--need I say more? great effort up and an even greater effort down leaves a candle with a long wick and no body. Great trade signals. Traded to previous low, but took awhile to get there [I held on because I knew where the trend was going]
bit notice that the indicators don't line up--it took me a while to get to my final destination- and probably not a wise trade for a newer trader who doesn't know how to recognize chart patterns yet.


4th trade - I had originally made a long term trade to get to the 61 fib retracement level of NY's move from the last hourly low 01.6370 from the high of 1.6480-ish.--and my 4th trade I was aiming for that TP--and as you can see it's a good thing I knew exactly what that number was--and as you see it was an immediate 40+ pip reversal to the top of the last major swing high. This is why you should always aim for your target and set a TP. It can happen so fast you hardly have time to blink.

Now,with the THV template attached to the same chart and vertical lines for my trade entires, you'll notice that some of the indicators don't line up--- which is OK given that I have the knowledge that I do. The posts that I am doing [maybe I'll do a series of them] is to help people understand how Forex *usually* works-and what to look for so you can take the guess work out of your trades and hopefully prevent some bad ones.

Confidence is key. Proper entries are also key-- THV allows you catch the momentum of the waves of the trend Entries at the start of the momentum of the trend--so there's minimal drawdown.

This might have been a poor choice of trading pairs to show as an example= I'm sure on a more stable pair the indicators would have lined up with the trades--but this was so classic I had to share.

Hopefully now you understand a little bit better why you see charts with trend lines, and a little how fibs work.

I should probably mention the GBPUSD is not a recommended scalping pair for newer traders---given the example of the 2 immediate reversals shown on these charts. GBPUSD is very sensitive to fibs and one MUST have a clear understanding of how fib retracements work with this pair.

Also should be noted that once the trend has broken out, [broken a trendline to either change direction or continue downward, new fibs need to be drawn from the last major swing high [happens to be that huge tweezer tops] to the new low== then we redraw our fibs and start taking trades again.

Or just use THV =which pretty much does what I just took 1/2 hour to explain but without all the technical jargon
Attached Image(s) (click to enlarge)
Click to Enlarge Name: thvfibs.jpg Size: 138 KB
Click to Enlarge Name: fibs.jpg Size: 133 KB
--- Gone --- RIP 11/27/09
  • #12,137
  • Jul 16, 2009 3:25am Jul 16, 2009 3:25am
THX for contribution on this trade and for your great posts.

I have question about your last post: How Do you use cloud histos on 5 minutes frame ( you have 5/5, 15/60) do you wait for three reds (green) for trade?
  • #12,138
  • Jul 16, 2009 4:06am Jul 16, 2009 4:06am
Quoting jazz4some
Hi MCFly

Could you post your template for your chart in post #12115, please?

Thanks
Hi jazz4some,

that's the template Irishpips posted in this thread. Check his profile and read the posts he contributed. It isn't that much but it's worth the reading and you will find the template and how to use it.

Greetings
  • #12,139
  • Jul 16, 2009 4:07am Jul 16, 2009 4:07am
Quoting ataata
THX for contribution on this trade and for your great posts.

I have question about your last post: How Do you use cloud histos on 5 minutes frame ( you have 5/5, 15/60) do you wait for three reds (green) for trade?

No these trade examples were all for short trades.

I have the 1st Ichi indicator on 5/5 as I don't need to know what's happening on the 1M. I also don't use 30 M as it doesn't give me good signals...seems that if there's a pull back [retracement] on the higher TF it takes longer for that to turn around the the hour. I find that for 5M trading [which is my preferred TF for this pair--other pairs I use different TF's] 5, 15, and 60 work best.

GBPUSD is not the best pair to scalp [as stated] because of it's volatility and large moves--- even more so is GBP/JPY.

Because of the moves it made, my trades I took the indicators didn't line up- there was so much movement that it made the 3 moving averages that make up the Ichimoku Cloud change.

This post was more to show you what fibs are, how they work, and how it relate to THV as a system--showing you a chart without the indicators shows you what parts of the trend THV [would] pick up and more so how trends work and what to be looking for.

THV is a great system, but I think without a basic knowledge of how Forex works, you're apt to lose money. My effort is to try to make newer [perhaps refresh the older] traders know how to trade the system, what to look for [and watch out for] and hopefully keep you out of some bad trades if you know what to look for when trading
--- Gone --- RIP 11/27/09
  • #12,140
  • Jul 16, 2009 4:24am Jul 16, 2009 4:24am
Appreciate it....profitable trades to all THV traders.

Kind regards

Quoting MCFly
Hi jazz4some,

that's the template Irishpips posted in this thread. Check his profile and read the posts he contributed. It isn't that much but it's worth the reading and you will find the template and how to use it.

Greetings
14 traders viewing now