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ALF revisited - simple, effective daytrading

  • #401
  • Jun 10, 2010 6:44am Jun 10, 2010 6:44am
Risky to trade against the prevailing trend. If you do it anyway, be prepared to take small gains and exit as soon as you see the slightest sign of trouble.

As for finding the trend if you are in doubt - try switching to H1 from M15 and see what it looks like there. Than you can go back to M5 or M15 with an understanding of the bigger picture.
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Old Benjamin was right
  • #402
  • Jun 10, 2010 7:34am Jun 10, 2010 7:34am
Here is what I think is a good example of trading with the current trend, which I can easily on the time frames from 5 minutes to daily, which are ALL red. When the price action went back down over the the ALF line just awhile ago, I took a short. Naturally, i wouldn't be looking for a long trade on the UCAD now. Only shorts because that's its current trend for every single time period.
I am currently up 20 pips on this after only 5 minutes while typing. This is/was a a picture perfect setup as a good example of what to look for and with a good indicator at the top right that is unobtrusive. I'll put a stop on it now of one pip past my entry so I can't lose.
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File Type: ex4 #Signal_Bars_v7.ex4   43 KB | 513 downloads
  • #403
  • Jun 10, 2010 7:39am Jun 10, 2010 7:39am
i have nice results tooday with 1min scalps using this
and use some avagrees as filter
look nice i will test for couple days and mayby post it if it will be this good as tooday

check out last hours
green arrow enter
red exit

about 70 pips
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  • #404
  • Jun 10, 2010 7:44am Jun 10, 2010 7:44am
A few here are having difficulty understanding retracements and how to trade them. This is an important chunk of knowledge you need to grasp.

Trends rarely move uninterrupted from inception to conclusion, There are usually points along the way when PA seems to have a "second thought" about the trend. PA stops and actually backs up a bit before continuing.

Examine the swing move (or trend) in the chart. The move begins at "High" and continues to "Low" with two points of hesitation marked A and B.

The move starts at 05:45 GMT and ends at 08:00 - the retracements occur at 07:00 and 07:30.

Using these times as a reference, shift your chart to M5 and see what's happening inside the M15 candles. I'll post that M5 chart later and continue this discussion.
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Old Benjamin was right
  • #405
  • Jun 10, 2010 7:53am Jun 10, 2010 7:53am
Here's the same swing move on M5 with the same places marked.

Notice that the retracement highs (A and B) are descending from the point marked "High". Also notice the potential re-entry points when the candles turned red again. If you chose to take profits when PA reversed these would be the places to enter short again.

I hope this is some help.
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Old Benjamin was right
  • #406
  • Jun 10, 2010 8:04am Jun 10, 2010 8:04am
Just went long when candle split at resistance, exit at bar close - +16 pips in a hurry.

Overall trend still up but getting a bit shaky (maybe).
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Old Benjamin was right
  • #407
  • Jun 10, 2010 8:07am Jun 10, 2010 8:07am
Quoting 4xplosion
MM....so are we waiting for the candles to turn White and or Black depending on the timeframe that we are in....along with bounce/penetration of the ALF line? Thanks in advance....

First, reread post 1. Reread until something clicks. (hint: it may be an aha moment)
I highly suggest reading Lou's first ALF/TVI thread.
If you've done your homework, you're waiting for the green and red colors.
  • #408
  • Jun 10, 2010 8:15am Jun 10, 2010 8:15am
Quoting MoneyMaker
First, reread post 1. Reread until something clicks. (hint: it may be an aha moment)
I highly suggest reading Lou's first ALF/TVI thread.
If you've done your homework, you're waiting for the green and red colors.
Any candle open above or below ALF is a potential entry - you need to look at the overall trend to decide if it's a good entry or not:

If PA is chopping back and forth through a flat ALF, wait.

If PA is moving up or down through ALF (preferably from a bar or two prior to crossing) your odds of a good trade go up.

It really is all about pattern recognition and takes some screen time to see clearly. Have a look at Post #407...
Old Benjamin was right
  • #409
  • Edited 8:28am Jun 10, 2010 8:16am | Edited 8:28am
Quoting gopsat77
Hi Lou G

Here is a 15M charte where I enter a short, all conditions seem ok (candle red close below ALF) but PA goes against me.Will you please tell me what's going wrong with it ?

Thanks in advance

regards
Gopsat

Standard ALF as I understand it.
A signal occured For a Short Entry @ 1.2041. This is against the recent strong uptrend and should be considered a counter-trend trade and should not be taken until you have a solid grasp of the system. The most recent previous high was at 1.2064 According to this method your stop should be a bit above that. When price went up to cross the Alf, you should have manually exited for a small loss of about -10 pips. Not Every signal will generate a profitable trade.

I hope this helps a bit.

Mark
EllisEdi Moving on to my next trade ...
  • #410
  • Jun 10, 2010 8:21am Jun 10, 2010 8:21am
Does everyone see the large up trend with two retracements along the way?

If not, speak up and I will mark them for you...

These retracements are so large they could be traded counter-trend (but let's leave that until later).
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Old Benjamin was right
  • #411
  • Jun 10, 2010 8:23am Jun 10, 2010 8:23am
the book. Waited for green candle crossing ALF to close. Entered @ 77.00, H1 and H4 were both in agreement. A no brainer, to use BRV's terminology, if I may.


Edit: trade exited for +40.9 pips after price stabilized and waffled around.
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  • #412
  • Jun 10, 2010 8:28am Jun 10, 2010 8:28am
Has the Euro finally turned the corner?
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Old Benjamin was right
  • #413
  • Jun 10, 2010 8:40am Jun 10, 2010 8:40am
Up +30 or so on two trades within the the current up swing.
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Old Benjamin was right
  • #414
  • Jun 10, 2010 8:41am Jun 10, 2010 8:41am
Not Kosher, but thematic(reformed??). TP is calculated vs ALF value at time of entry. Aud/Usd has already reached TP for 245 pips. 4 additional trades open, 3 are pos., 1 neg.
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Vincit qui se vincit.
  • #415
  • Jun 10, 2010 8:48am Jun 10, 2010 8:48am
Quoting Pippopotamus
Not Kosher, but thematic(reformed??). TP is calculated vs ALF value at time of entry. Aud/Usd has already reached TP for 245 pips. 4 additional trades open, 3 are pos., 1 neg.
Good to see you here, Pippo. You have an interesting way of using the indicators.
Old Benjamin was right
  • #416
  • Jun 10, 2010 9:01am Jun 10, 2010 9:01am
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...
but I want everyone to "get" this...
Old Benjamin was right
  • #417
  • Jun 10, 2010 9:02am Jun 10, 2010 9:02am
Caught the last nice move, I bailed at the last surge over 1.2100.

Lou G, after I enter a trade I tend to switch back and forth between ALF view and 1m w/Bollinger Bands. I've been doing this awhile but am definitely still learning. It seems by my observation, that the rallies seem to end with a last surge on the 1m chart. Does that sound accurate to you?

Steve
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  • #418
  • Jun 10, 2010 9:06am Jun 10, 2010 9:06am
Quoting evynsdad
Caught the last nice move, I bailed at the last surge over 1.2100.

Lou G, after I enter a trade I tend to switch back and forth between ALF view and 1m w/Bollinger Bands. I've been doing this awhile but am definitely still learning. It seems by my observation, that the rallies seem to end with a last surge on the 1m chart. Does that sound accurate to you?

Steve
I'm a devout pragmatist - if it works for you...
Old Benjamin was right
  • #419
  • Jun 10, 2010 9:25am Jun 10, 2010 9:25am
Quoting EllisEdi
Standard ALF as I understand it.
A signal occured For a Short Entry @ 1.2041. This is against the recent strong uptrend and should be considered a counter-trend trade and should not be taken until you have a solid grasp of the system. The most recent previous high was at 1.2064 According to this method your stop should be a bit above that. When price went up to cross the Alf, you should have manually exited for a small loss of about -10 pips. Not Every signal will generate a profitable trade.

I hope this helps a bit.

Mark...
Thanks a lot for these clarifications
regards
Gopsat
  • #420
  • Jun 10, 2010 9:26am Jun 10, 2010 9:26am
Don't forget, if the split candles don't float your boat, you can turn them off on the Inputs Tab.

I have both running, split on my live account and non-split on demo. I was originally undecided but I'm getting to like the split version.
Old Benjamin was right
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