The Dragon

Gotta go for now.
Be back later..
Good luck..
http://t3.gstatic.com/images?q=tbn:_...dragon-red.jpg

Hi Jiva,

Thanks for posting this, i'm definitely thinking a dragon in my trading arsenal might be a good thing. Going to start testing immediately.

Wes

Good post!

I will test it soon!

Regards and Thanks for sharing!!!

hi. does it matter that when macd has crossed, DSS stoch has already changed colours for a long time? or the best entries are when macd crossing coincides with dss colour n candle colour changes?

Thanks Jiva for your time in sharing your knowledge and focusing on keeping things simple. Will be silently following along the development here and hope things stay on track in this thread.

Much success to your trading and all who follow here. Kind regards,
Vish

Jiva, you giving up on on your thread?

Hi Jiva

What does it mean when there is separation between the 2 HA Indicatiors?

I really like your system and I'm having some sucess with it but I need to understand I little some of the small issues. I had 5 of 6 winners for +80 pips during NY Session BUT 1 of 5 winners in Asian session.

Thanks for your input - please don't give up on this thread. It's simple enough for me to understand and I think I can be successful with it if you stay with it!!!

JIm (Mr Chips)

Thanks for the feedback. Good to know you're there.
Since I am an active trader and absorbed pretty much during the day following the market and trading, I will mostly post on the weekends.

It is not so cut and dry, "when this then that", especially with macd and dss. After all they are simply measuring what the dragon is thinking... And just like us, he can and does change his mind frequently and sometimes quite quickly.
There are a number of other things to consider. We will get to it.
This weekend I can prepare some posts to explore the use of the macd and dss.
Till then,
good luck...

Hi

Welcome Back - I thought you left us. I will wait for the weekend to ask more questions.

Thanks Again.

Jim (MrChips)

It is like a jig saw puzzle..
At first all the pieces are there, but how do they fit together?
Then after much painstaking effort they start to form the picture....
http://t3.gstatic.com/images?q=tbn:n...saw_puzzle.jpghttp://t3.gstatic.com/images?q=tbn:0...zle_16515.jpeg

I will post this weekend.. with some exercises.

please practice the first two exercises.
Practice as much as possible.
Like a musician who practices getting used to the basics, the scales, the fingerings, until they become second nature.
Then the music... later...
The dragon is not a mechanical system.
The dragon is alive.

Good job Jiva, I like your approach. I hope I can contribute to this thread.

http://media.comicvine.com/uploads/0...u010_large.jpg

Ps.sorry,I couldn't find the version in english.

Where to start?
okay...
The dragon..
So far we have practiced following his movements. Tried entering on ashi candle change of color, then we added his landscape the pivot points, s/r, and the fantastic 200 ema... His favorite places to visit.
Now we can explore what he is thinking..
Especially the dss.. It is a default stochastic just expressed as dots in place of line crossings.
Let's start with the dss.
In the following chart we can see that the dss takes big swings but the dragon doesn't move.
He is sleeping. The dss is showing his dreaming. Just like when we dream. It seems real but all we are doing is lying in our bed asleep.
Macd confirms the snooze. macd is flat along 0....
dss is really the true internal guage of the dragon's mental state. macd is also very very useful but it is based on moving averages. Dss is measuring his appetite or desire for buying or selling. His desire... And he will be motivated to move to satisfy his desires. That is certain... But sometimes he may just desire and desire and desire and not make a move. Like in his dreaming state. Eventually he will move and in a big way...

yes, trading is vibrant, dynamic, exciting, challenging....

In learning the ways of the dragon there are many little tricks.
I use at least 2 time frames. Actually I have 3 monitors and keep the 1m, 5m, and 15m for EURUSD on the screen at all times. I toggle to the other time frames as well. All of them on mt4. Monthly as well. Even though I am a scalper.
On the following photoshot is the 1m and the 15 min. What I am looking for on the dss is agreement. Are the dragon's long range longings the same as his shorter term longings.
On the 15 min time frame the dss shows he has a strong desire to sell. Within that 15 mins there were 2 occurrences on the 1m time frame where he also had a strong desire to sell.
Shown by the yellow arrows.
(The entry in between the 2 obvious selling points was valid also based on change of color of the ashi candles and change of color of dss...
we are not looking at macd here... just dss...(But if we were we would see the macd crosses on the 1m as well)

Exercise #3
On live demo put up 2 charts of EURUSD. (Simulator and charts offline are not practical to do this exercise)
A 1m and 5m. On the 5m identify when dss is clearly making a move below 80 or above 20.
When the dragon has a strong desire to sell or buy. Then on the 1m find when dss is in agreement there.
This is just an exercise to become more familiar with coordinating the time frames. Practice entering when they agree. The entry is further supported if ashi candles change color also. Olive for a dive below 80 and green for a shot upward above 20. Look for 3 to 5 pips.
This is just one dynamic between a few of the components of the dragon's world. There are many. But too much at once will not help.
Practice practice and more practice...
Try different time frames. See what he is desiring on the 30 min and how that affects the 15... What is he desiring on the 1hr? the monthly?
By identifying his desires like this we can see how to always trade with the trend, so even if our entry is somehow not quite right we can feel confident that although we may have to ride out a retracement that it is indeed only that a retracement and not that he has changed his mind in any significant way, just a temporary diversion from his real longer term desire. And the dragon gets diverted a lot..
the following screen shot is a continuation from the previous post. The third yellow arrow shows another entry on the 1m that coincides with the 15m dss.
See if you can get the idea...

I don't want to go too fast. And introduce too much all at once. But I only have a little time on the weekends to put into the thread.
So here comes some more..
On the following screenshot a strong desire to buy was identified on the 15m and the same buy desire was seen on the 1m.
On the 15 the dss did not fully reach below the 20 and come back up. Often this can be a sign of very strong buying move. On the 15m the dragon is approaching the 200ema. A favorite of his. and on the 1m he has broken above the pivot. All this helps to confirm an entry long with target 200 ema on the 15m.

more examples
the first screen shot shows 5m and 30m in strong buying mood pushing above pivot resistance.
the 2nd screenshot shows the same situation on the 1m and 15m and what the trade looks like there...

There's more, lot's more... So far these are only bits and pieces of the total system. Let's get the basics down, then we can put it all together.
So we can know how the dragon moves..
Let me know how it goes.
Questions?
Comments?
Criticisms?