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ALF/TVI - Simple, effective daytrading

  • #901
  • May 16, 2010 5:02pm May 16, 2010 5:02pm
Quoting Pippopotamus
See Lou's post #796 for suggested re-entry technique. Of course, this is not the only way, but certainly worthy of consideration. Typically, I use a break of 6 pd. Price Channel for re-entry.
Thanks for pointing that out, will concider that, although I think sometimes you must be a bit faster when working with 4hr charts
  • #902
  • May 16, 2010 8:31pm May 16, 2010 8:31pm
Quoting bbolss
no Lou
in version i have had in line 55 and 56 was from post 886
TVI1 = iCustom(NULL,0,"TVI",8,8,5,0,i);
TVI2 = iCustom(NULL,0,"TVI",8,8,5,0,i+1);

instead of
TVI1 = iCustom(NULL,0,"TVI",r,s,u,0,i);
TVI2 = iCustom(NULL,0,"TVI",r,s,u,0,i+1);

Am I right?
Yes you are - my mistake.
Old Benjamin was right
  • #903
  • May 17, 2010 2:56am May 17, 2010 2:56am
New on this forum, very first post,
I want to use it to thank Lou for this brilliant system.

It's simple and effective, I tested it demo this morning on the 5M and then I have done a real trade on the EU +9 pip in about 2 minutes. Could have done more than 30 pips easily, just pointing to the 38% fib.

I'll post the chart asap.

Have a good day
Lorenzo
Lorenzo
  • #904
  • May 17, 2010 4:29am May 17, 2010 4:29am
Hi Lou G
Can u post your latest template and also what tf do u use?
thanks
  • #905
  • May 17, 2010 7:09am May 17, 2010 7:09am
Quoting hoichoi
Hi Lou G
Can u post your latest template and also what tf do u use?
thanks
All that is necessary attached below - I use M15 - others use M5 to H4, works well on all.
Attached File(s)
File Type: ex4 AdaptiveLaguerreFilter.ex4   5 KB | 583 downloads
File Type: ex4 TVI_Candles.ex4   4 KB | 560 downloads
File Type: ex4 TVI.ex4   4 KB | 1,107 downloads
File Type: tpl ALF.tpl   2 KB | 560 downloads
Old Benjamin was right
  • #906
  • May 17, 2010 7:41am May 17, 2010 7:41am
thanks Lou G for your system. Could you tell me what the white and the black candle mean(on top of Red and Green) Thanks a lot.
  • #907
  • May 17, 2010 7:42am May 17, 2010 7:42am
was produced on H4 TF at close of 08:00 GMT hr. I have not taken it. Fear of aftershocks will keep me sitting on my hands for a while.
Attached Image (click to enlarge)
Click to Enlarge Name: bb.gif Size: 19 KB
Vincit qui se vincit.
  • #908
  • May 17, 2010 7:44am May 17, 2010 7:44am
I sense a certain reluctance among members new to this thread to go back to old posts (much less the beginning of the thread). Can't say I blame them - therefore, I have posted the indicators and template in their current state in post #905.

Copy the three indicators to yourmt4/experts/indicators.

Copy the template to yourmt4/templates.

Go back a few pages and review posted trades - method is fairly self-explanatory after you put in some screen time.

Go long when candle is green and above ALF, short when red and below ALF, be very careful if you choose to trade counter-trend.

If you are unsure of the trend, compare the position of ALF at the left edge of your chart to the current position - that's the trend. It can be higher, lower or about the same. If about the same and PA is cycling back and forth through ALF, the market is ranging (rather than trending) and will require caution.

Exit trades when candles change color, or when current candle recrosses ALF.

I use 20 pip stop on M15 - longer TF requires larger stop - use good judgement.
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 8 KB
Old Benjamin was right
  • #909
  • May 17, 2010 7:55am May 17, 2010 7:55am
yes Lou we known this is great;]
i ask myself why other pepoul including me adding more indi etc
it is just very hard to belive for new treaders like me that it can be that easy! and they dont like hold trades this long (on 15min tf it is almoust always >1.5 / 2h)
they wanna find a way to make some money in just couple of min..
i need to be more patient ! mayby i should start some yoga or something;]
  • #910
  • May 17, 2010 7:57am May 17, 2010 7:57am
Quoting lorbax
New on this forum, very first post,
I want to use it to thank Lou for this brilliant system.

It's simple and effective, I tested it demo this morning on the 5M and then I have done a real trade on the EU +9 pip in about 2 minutes. Could have done more than 30 pips easily, just pointing to the 38% fib.

I'll post the chart asap.

Have a good day
Lorenzo
Start slow, be content with small profits (and small losses) at first until you acquire the "feel" of the method.

ALF/TVI is NOT 100% mechanical - requires some trading smarts that can only be gained with time and experience.
Old Benjamin was right
  • #911
  • May 17, 2010 8:00am May 17, 2010 8:00am
I still think that TVI_Histogram is visually better and more effective than TVI_2. It is very very similar to MACD. You can use 4 colours and also notice if the histo is under or above 0.
The settings 8,8,5 are very good for TVI but I would suggest to have also another one with 64,64,40 on the chart. Then you see what is going on at higher TF.
NB! This picture is only for illustrative purposes. I do not use ALF. Instead, I use TVI in combination with Andrew Forex indicators - supertrend and nonlagdot.
Attached Image (click to enlarge)
Click to Enlarge Name: sample.gif Size: 39 KB
  • #912
  • May 17, 2010 8:37am May 17, 2010 8:37am
Hi everybody,

I took this first trade on EURUSD. I lost it. I entred on TVI candle red closing below ALF. When I entred TVI candle and TVI histogram were red. Now u can notice that TVI histogram was green when I entred short.

Is TVI histgram re-painting. Settings on both are 8,8,5

Thanks
Attached Image
Make money Not pips
  • #913
  • May 17, 2010 8:38am May 17, 2010 8:38am
Quoting bbolss
yes Lou we known this is great;]
i ask myself why other pepoul including me adding more indi etc
it is just very hard to belive for new treaders like me that it can be that easy! and they dont like hold trades this long (on 15min tf it is almoust always >1.5 / 2h)
they wanna find a way to make some money in just couple of min..
i need to be more patient ! mayby i should start some yoga or something;]
New traders (and not-so-new traders) are often insecure and experience anxiety and fear when opening a trade - this is normal (see Trading In The Zone by Mark Douglas, often recommended here).

Many attempt to dispel this natural anxiety by adding more indicators in the belief that, if enough indicators point up or down, their trade will be more certain of success. IMHO, this isn't true.
Old Benjamin was right
  • #914
  • May 17, 2010 8:47am May 17, 2010 8:47am
RE: posts #905-908

Here's a good setup. Trend is up (current ALF higher than at left side of chart) - go long at the arrow, already good for 20-25 pips (more if you were paying attention).
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 7 KB
Old Benjamin was right
  • #915
  • May 17, 2010 8:53am May 17, 2010 8:53am
Entered later than on Lou's chart but still ran for +20 pips.

Short term Uptrend (from London session mostly), break of previous resistance. Target at round number and I have observed that price usually over runs round number a bit before re-testing and deciding which way to go. ( yes I have said this before but i use this observation in my decision process)

Mark
Attached Image (click to enlarge)
Click to Enlarge Name: 2010-05-17-0930-EurUsd.JPG Size: 37 KB
EllisEdi Moving on to my next trade ...
  • #916
  • Edited 9:11am May 17, 2010 8:57am | Edited 9:11am
Quoting balle1973
Hi everybody,

I took this first trade on EURUSD. I lost it. I entred on TVI candle red closing below ALF. When I entred TVI candle and TVI histogram were red. Now u can notice that TVI histogram was green when I entred short.

Is TVI histgram re-painting. Settings on both are 8,8,5

Thanks
No, there is no repainting. The current bar can change color as PA moves - this is normal and not "repainting".

You chose to enter counter-trend (current trend is up - notice the profusion of green candles and ALF position) and took a loss. Always best to trade WITH the trend.

There is no need for multiple TVI's - the setup in post #905 is all that's necessary.

Something is wrong with your TVI settings - see the attached chart
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 8 KB
Old Benjamin was right
  • #917
  • May 17, 2010 9:07am May 17, 2010 9:07am
Quoting dingueling
thanks Lou G for your system. Could you tell me what the white and the black candle mean(on top of Red and Green) Thanks a lot.
Candles show in normal color when they move opposite of TVI.
Old Benjamin was right
  • #918
  • May 17, 2010 9:21am May 17, 2010 9:21am
A couple of reasons why I did not take that 8am NY session Short signal.

1. The short signal candle closed down over an upwards sloping TVI line. This is because the short term trend was up. This means it would have been a counter trend trade. The short signal candle was not big enough to me to indicate strong shortable price action. (A judgement call)

2. Another reason is news related. When there is 9am NY session news, I tend to stay out of the market untill after the release. I do not always apply this guideline, but after some pretty good price movement from both the Asian (+125 pips mostly short) and the London session (+100 pips mostly long) I decided to wait until the 9am NY session news.


Mark
EllisEdi Moving on to my next trade ...
  • #919
  • May 17, 2010 9:37am May 17, 2010 9:37am
Quoting EllisEdi
A couple of reasons why I did not take that 8am NY session Short signal.

1....
I like the fact that you post your reasoning along with your trades - very helpful for all of us.
Old Benjamin was right
  • #920
  • May 17, 2010 10:41am May 17, 2010 10:41am
Here is a counter Trend trade I took in the Late NY morning Session.

All the standard ALF / TVI rules apply : Cross downward of Price over ALF, with TVI pointing (red) short as well. Current short term trend is up, but Price crossed the ALF in one big candle (size is relative to all others near it, especially the run up just before the candle). The one signal candle brought price back down to levels from before the news, this indicates the news release was probably just a short term movement.

good for +20 pips - This was a close one and came with 1 pip of my stop (I include spread in my calculations). Now even if I was stopped out I would have entered on the open of the next candle (after the arrow) because the previous candle shows that price tried to go up but could not sustain it and closed back near its open price. This indicates a move further downward.

Remeber Only (if ever) take counter trend trades when you are experienced. And when you do take them watch them carefully with solid stops and take profits.

Mark
Attached Image (click to enlarge)
Click to Enlarge Name: 2010-05-17-1045-EurUsd.JPG Size: 38 KB
EllisEdi Moving on to my next trade ...
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