THV system, final edition

[quote=MissPips;2928537]Well, for a 6 point trade I wouldn't do it. But I will also take 'regular' THV trades if they are in the direction of the Rainbow and they look good. This one, PA was bouncing off both the 1 m coral and the blue grey line, which is the 30 m Coral (just as the 15 m trix was crossing), so that's a real classic THV trade on both the 1m and the 15m charts


Hi Miss Pips,
Can you please explain what exactly you mean by 6 point trade?

Or send me to the area it is referred to in the blog? Any help would be great.
D

Started to feel a bit jealous...

Here were two darn good divergence trades based on the range in the 15 min and the bounce off of the low of the range....

I missed the first one becuase the terminal was not loaded but managed to grab a few on the second one....

By the way, that bouce right near the FPV seems like it was off of a trendline that I drew out some days ago...

Hello,

this is my first post after my more or less frustraded statement yesterday.

After spending alot of time with reading and understanding trading basics and methods I have noticed there are similarities between the theories of trading and theories of sport sience. In both cases there exist a massive amount of systems which partly disagree considerably. Some examples:

Trader N.1: To me price action is what it is ALL about. I scalp the 1 min tf, I don't care about fibs, pivots, higher time frames and so on. If priceaction and my indicators show go I take the trade. I take 5 to 15 pips without managing the trade.

Trader N.2: I trade the higher timeframes only. Everything shorter than 1 h is noise. I buy/ sell ONLY in the direction of the major trend and I buy/sell on dips (Use support lines to guide you as to price...also "round" numbers ... I also use the 50% Fib ratio..). If the trend is up over months I only go long. Managering the trade is important. I don't use indicators or MAs. I look at fundamentals.

Trader N.3: I don't worry about the fundamental side of trading, trading itself is emotional enough. I agree with trading with the trend but I will go against it if the setup is right. My system is based on MAs which act as floating s/r. I use them for balance points and price targets for profit taking...

These are the summaries of system developed by well known and very successful traders which are active in the ff board. This shows that the question whether a trader is successful or not depends on the trader and not on the timeframe or the trading tools. I wouldn't say 1 min isn't tradeable or pitchforks is the ultimate trading tool. It's up to me how good things work. Therefore cobras system doesn't fit me or I make mistakes.
From my point of view I know at least one mistake I have made. I tried to included as much information as possible. The forum is full of blinking and flashing indicators and tools. I think I put too much of them in the thv system and lost the overview. Too much distraction and not enough focusing. I'm sure I did that because the less indicators you use the more trading skill you need to earn pips. Skill means things like reading price action, knowing when it trends and when it's choppy and so on. I have not enough expirience to acquire this kind of skill. Thus I relyed on indicators to get more confidence.

Dear Misspips,

your posted trades and screenshots were very enlighten to me. You only measure the trend depending on the 1 min rainbow or do you use higher timeframes too?

I know it's easy to do the analysis afterwards but this is what I was noticing....

The upward sloping trix trendline was saying bullish divergence for some time...almost all of the touches and bounces led to a positive end trades excpet one if your S/L was at 15...

The break of the trix triangle was the great move that I missed out on...

By 6 point trade I mean trade when 6 out of 10 lights agree on the mtf histograms (1m f 5m f , 5m s, 15m f, 15m s, 30m f, 30m s, 60m f trix and 5m and 15 cloud). This method is described in the manual on the first page. There were two main ideas behind this method:

1) To provide some rules for when you can take divergence trades

2) To provide some additional entries besides just a trix cross for trend entries. (i.e you can trade when the 1m fast turns green but you don't have a trix cross or slow trix green yet). This is the reason I required that the 5 m fast also be green for 6 point trades, because trading when just the 1m fast turns green (before a trix cross and before the 1m s trix is green) is riskier (or vice versa for shorts of course). But regular THV trades (trix crosses when PA is above/below the cloud and Coral are perfectly good trades in and of themselves.

[quote=bythepound;2928609]

[quote=MissPips;2928750]By 6 point trade I mean trade when 6 out of 10 lights agree on the mtf histograms (1m f 5m f , 5m s, 15m f, 15m s, 30m f, 30m s, 60m f trix and 5m and 15 cloud). This method is described in the manual on the first page. There were two main ideas behind this method:

1) To provide some rules for when you can take divergence trades

2) To provide some additional entries besides just a trix cross for trend entries. (i.e you can trade when the 1m fast turns green but you don't have a trix cross or slow trix green yet). This is the reason I required that the 5 m fast also be green for 6 point trades, because trading when just the 1m fast turns green (before a trix cross and before the 1m s trix is green) is riskier (or vice versa for shorts of course). But regular THV trades (trix crosses when PA is above/below the cloud and Coral are perfectly good trades in and of themselves.

ok i know the thread and know the light system. Just wanted the clairifcation.
thank you

Just the one 1m because I'm only looking for 10 pips. I'm just looking for the trend to get going strong enough so that if I get in as the trix turns in my direction after a retrace the odds are good that it will go another 10 pips.

Okay thx. I have attached a screenshot which shows the trade form post 12478 on my chart. I noticed that my coral-MAs don't behave like yours. I'm using the 240 sma, 750 sma, 950 sma and 1500 sma. I think this are the values you recommended. Do you changed anything?

This is my first post and the first time i am writing something in any forum.
First many thanks to all of you guys.
In the first three days i was always lose in any trade and then i saw cashmeer pictures of his trades and i think i get it at last.
I have 87% hit rate with THV this is not a system who tells you press button now now. You must see,watch,analyze think what to do before enter a trade with THV all this in a hurry if you trading 1M TF
Those was fast trades without watching carefully the market.

I put all those MAs in my template for a reason. When they are not around to annoy you that is telling you something important. Take a look at yesterdays trending day screenshot without all my comments on entries.

Where might I find this Rainbow indicator? Thank you for some informative posts.

Where to read about Rainbow and it's rules?

If you PM me your email address I'll email it to you. Or Cobra also posted a nice one here

I can't send PM. Please, send me too at canislc (at) gmail.com

There are lots of threads about it here at FF. I don't trade the Rainbow per say (that has it's own set of rules and you need a lot of screen time for it.)

What I do is use the Rainbow to help me trade THV with the trend. (Everyone always says 'trade with the trend' but how do we know when there is a trend? On the rainbow you can see it very clearly. It's also a very good visual aid for picking out choppy price action.) So I use it as my analysis template to analyze whether PA is trending or choppy so I can know when to take THV trades, and which direction to take them in. (For example yesterday after about 915 GMT, it was clear from the rainbow that THV short trades should be avoided, even if PA was below the cloud and the coral, and the THV classic or 6 point rules would otherwise indicate taking them.)

You could also use it to decide when to take THV countertrend (divergence) trades when it shows choppy price action if you wanted to though I don't do that. (Those THV trades would have worked great today)

This is what I use now

240 simple, close corresponds to the 5m Coral - (gold)
750 simple close corresponds to the 15 m Coral (red)
1500 simple close corresponds to the 30 m Coral (blue gray)
3000 simple close corresponds to the 60 m Coral (maroon)

I'm testing one other but it's not that important. (1200 simple corresponds to the khaki MA on the 5m chart - not sure if it's very relevant.) I got rid of 950, didn't seem to do much.

quote=MCFly;2928783]Okay thx. I have attached a screenshot which shows the trade form post 12478 on my chart. I noticed that my coral-MAs don't behave like yours. I'm using the 240 sma, 750 sma, 950 sma and 1500 sma. I think this are the values you recommended. Do you changed anything?[/quote]

Everyone's trying to find the "Holy Grail" and I'm going to tell you, you aren't going to be able to find it in Forex.

People have different ways of thinking, and respond to different stimuli, so one person's setup [indicators] might not "compute" for another, thus making the system less effective for the other person.

Yes, you can suffer from "Analysis by Paralysis". So many indicators on a screen that you're trying to line up every one and by that time you're too late to enter the trade, or you sit for hours... and you go stir crazy.

I'm not going to criticize the Rainbow, [although pretty--you really only need 3or 4 MA's] but it should only be used for analysis.

On Miss Pip's Rainbow EU chart today-- I saw 4 valid trades each 10-30 pips strictly using trendlines and understanding *fully* how to interpret the Trix indicator--- and using support/resist levels

Yes, Rainbow shows trend, but if you only use 3 or 4MA's -[my MA's are different than rainbows] but perhaps if you like the rainbow, just choose 1 MA from each color -preferable the lowest one from each--so it's not too smoothed-

Then you are able to see true ATR [Average True Range] as well as volatility of the PA. The more angle and separation between the lines, the better trading conditions. If all the lines are making knots or look like a spaghetti bowl, then you stay out. Just because the lines start crossing doesn't mean it's not tradeable. It's when they become intertwined.

Traders need to step back and realize Forex is not a get rich scheme. I, like most, started, failed, got frustrated, went back to just a plain chart, thought I found another system-added more junk to the screen, wasn't satisfied with the action becasue the indicators were limiting, started doing weird stuff again, failed yet again--then took a real hard look at what would be realistic in terms of gains [achievable daily]

I then read everything I could about Forex fundamentals--how to properly draw trendlines on every TF-- candlestick patterns, Patterns within the PA--knowing to recognize triangles and flags, understanding S/R and psych levels, reading the news pertaining to the pair[s] I want to trade, and setting a daily goal--trust me once you find a setup that works for you and you start doing good like I did, I turned crazy and literally was on the computer every single moment I could. --Not good for family life.

2% a day is very achievable on an account--even 1--- compound that and you'll be rich in a short time

One needs to first decide which TF they want to trade from- each pair is different, and certain TF's are suitable for different pairs on trading--like I would never trade EUR/GBP on a 1 or 5M TF. Like wise, with the volatilty, I wouldn't trade GU/GY on 1M --as well as 30M or higher ---unless I wanted to lower my leverage and be ready for some severe DD.

Then you need to decide what indicators work for you--- there are different variations of THV--- just like all systems, people have added their own flavors--- have to find the ones you think are useful and make sense to you so you can apply them to your chart.

Let's keep this simple folks.

Thanks MissPips for sending indicator. I was curious how more than 8 lines were drawn. I don't find it overwhelming, I think it is fine. MAs in slow motion is my take on it. I wouldn't keep it on the chart I trade from because I need to see the candles clearly. But while waiting for a set up it does provide a good trend analysis. Perhaps better than HA candles. It certainly merits a closer look.

Thanks again.

I still have a problem with my MTF Trix , I don't know what to do ! Thanks