ALF revisited - simple, effective daytrading

Not a bad way to trade in such a jumpy market...

Sure, and so was the long before that.

... coming in 20 minutes. I'll wait and see what happens.

... has everyone who has had platform/indicator issues gotten them resolved?

I hate seeing a post that says "the indicators don't appear" followed by a half dozen members riding to the rescue, followed by .......... nothing!

If you are having trouble getting the setup working, speak now.

Lou G, do you look/trust to see what effect the news has on the market by price action, or do you try to follow a gut instinct?

i.e., if the news is not favorable to the USD, would you trust an initial surge upward beyond ALF?

Sort of gut instinct, based on a few years of watching my stops being taken out on NFP day only to have the trade turn good a moment later...

I posted some entry guidelines in Post #1

This is an example of when not to trade:

Here's one that I'm in right now, up a few pips. Nice confluenece between the different TF's.

The two indicators posted below are the ones I used to develop the ALF_Candles indicator. They will help you understand why the indicator colors the candles the way it does.

The diamond shapes are Williams Fractals - the lines connecting them are therefore assumed to be S/R levels.

Note that when the indicator sees the first half of a fractal, it assumes that an actual fractal will occur (until proven otherwise). This is why the S/R lines track trends closely when they occur and remain the same when PA reverses.

At a fractal point one of two things will happen - PA will reverse or continue in the previous direction. ALF_Candles attempts to anticipate PA based on this behavior. It's not always right (what is?) but it's right a lot of the time, which is all we need to make pips.

Try not to post trades using these indicators - I'd like to keep the presentation of the method as simple as possible - but use them as much as you want to understand how ALF_Candles works.

Have fun...

Out with +20

Candle turned red at the line - enter there and see what happens

Nice method. Thanks Lou. Bagged some nice Pips on the EU M15 short. The price action on EU seems to work well with this. If you can hang through the retraces back to the ALF line it usually continues in the direction of the break... so IMHO you have to be patient with it and let the trade develop. Thanks again.

Nice trade - a bit hard to read the charts though, even when they are expanded...

Exit when the candle turns green - +25-30 pips - you can always re-enter if this turns out to be a retracement...

it's a multiple monitor setup, so ff doesn't do it justice with the attachments.


Edit: Resized images in post 189.

... curving up/down, it is busy deciding where parity is between overbought/oversold. eventually it will find that point, PA will cross and we'll start over again.

Has everyone with questions read the Entry, Exit and Stop guidelines in Post #1?

The exit from my previous trade exemplified Exit Guidelines 2 and 3:

I felt that 25-30 pips was enough for right now (guideline 3) and candle went green (guideline 2).

Speak up if you don't get it - we'll kick it around some more.

Lou,

On your last trade, did you enter when the first candle turned red below the ALF? Or, did you enter on the third candle, after price went back up to the line and came back down?

Just trying to get a better sense of how you're seeing things.

Been profitable thus far, thanks for your efforts!

Thanks!

Hey lou, +85 today using the old indies on m30. I have a question: can the settings on alf candles be changed? I am using 5/12/12 on the old indie, I don't see the settings on the new one. thanks.

fw