THV system, final edition

well. got stopped out. Streak over.

Trade log

August 3, 2010 6:30 pm US time

win:8
loss:1

sed;

can you please show where you took that trade and why you think you got stopped out?

i think this would help out a lot of us.


thank you,

Hello ... Congratulations for their operations, but I got a doubt ... In this entry, the PA is not far from the Coral?

Thanks

Is it possibile to cancel these lines?

Friend

follow picture to remove lines

Regards
Arun...

i've gone throw the first couple dozen pages. is it just me, or is there no way a complete newbie can understand this system? it's almost as if everybody posting here already has ample experience. i don't understand how to read virtually every single chart being inputted by the different users that are being used in conjunction with the software.

is there another thread with the barebone basics without the assumption that the reader knows what's going on already, and is but using this system as a pointer?

http://www.forexfactory.com/showpost...ostcount=19253

Nasty area to trade in here



with a lot of trendlines that have been respected converging

MissPips,

Many many thanks ... It is working very well.

I'll test the idea performance for few days and let you know.


Cheers,

unfortunately; there's a lot of us that know that feeling: me included. if you werent around for the last 2000 posts than surely you will be lost. i know; im almost in the same boat as you.

sorry i cant be more of an assistance.

Friend ... .

If you knew the trend lines which you tested performing well , then why should you include it with thv (like rainbow) ?.

It may help everyone without stopped out.

Regards
Arun...

trix crossed into short cause of overbought
pa under cloud and coral

tp at pivot

= 20 pips

Sorry I dont understand what you mean here. You never know what IS going to happen in the market. The best you can do is have an opinion on where something MIGHT happen, wait to see if it DOES happen and then react.

Edit: Like for example in terms of waiting for something to happen and then reacting: time for a 6 point divergence short here. (Thought I would show something different for a change).

Why: Because it's retesting the pivot and the lower triangle trendline and pivot and bouncing off with divergence. There are 6 points with 1 from the 1m fast and 1 from the 5m fast and the other four from divergence both on the one minute and 5 min chart and I think it's going to try to take out the top of the old range at about 1.3185


Edit 2: Here are the reasons (posted later because it takes me a while to take the screenshot and annotate it.)

The basic idea behind THV is that we want to grab pips out of the middle of a trend by buying dips in a uptrend and selling rallies in a downtrend.

Here are some helpful basic rules:

How do we know whether the trend is up or down?

Rule 1: Trend is up when price is above the coral and down when it is below it.

Rule 2: In an uptrend we buy dips, in a downtrend we sell tops

After we have determined the direction of the trend, how do we know when to buy a dip or sell a rally?

2a. We buy a dip in an uptrend when the fast trix has crossed back up above the slow trix and price is above the Ichimoku, indicating that momentum has resumed in the direction of the uptrend

2.b We sell a top when fast trix has crossed below the slow trix and price is below the Ichimoku, indicating that momentum has resumed in the direction of the downtrend.

Best trix crosses are near zero and when both trixes are the same color as the trade. Reason: When the trix crosses near zero and price has crossed but is still near the coral, the trade has room to move Some people like to wait until the fast trix has crossed zero in the direction of the trade, but that is optional.

It is also best to trade in the direction of the trend on the next higher timeframe, or alternately to go one timeframe lower to look for a good entry.

That is, if you are trading the 5m chart (top down) and you get a signal, check the one minute chart to make sure the 1m is not way ovebought/oversold when you enter. Alternately, trading bottom up , it is best to trade when higher timeframe agrees with the direction of the trade. For example if you get a signal on the 1m chart, it is best if it is in the direction of the 5m trend.

How do we know when not to trade or not trade?

Rule 3: Do not trade against trendlines, pivots, support/resistance or divergence.
We need to watch out for trendlines, pivots and major support and resistance, and not buy or sell right on top of any of these. Instead we should wait for a break, or even better a break and retest. Reason: We are trying to grab pips out of the middle of a trend and any of these can spell the end of the trend. So we don't want to be too near them when we trade (too near meaning that we dont have enough room to hit our target before hitting one of these potential obstacles.)

For example, if you are about to take long trade, and the daily pivot is 3 pips above your entry, better to wait and see if you get a break first.

We should also watch out for divergences, and not trade against them.



Rule 4: Trading times: Trade when there is enough volatility but not during news

It is best to trade when there is enough volatility to get pips - which you can measure by which sessions are open and by the ATR (above 10 is better). However it is best not to trade just before or after news.

Rule 5: Use Good Money Management: Set stops and do not risk too much of your account.

Stops and targets: Either use the THV ATR suggestion or use 15 pip stop 10 pip target (that's my personal suggestion for the Euro for the 1m tf, plus spread for each of them. For other currencies that may differ. You can try 10 times the spread for the stop ). Or you can put the stop below/above the previous swing low/high, and trail it

Risk: Don't risk more than between 1 to 5 % of your account on any one trade. One percent is conservative, 5% is cowboy style. 1.5 or 2% is pretty average.


There is also, of course, the manual on the first page.

In addtion to the basic method there are several other ways that people trade using the tools provided by THV including:

- MTF THV using the 6 lights method or the 6 lights method with a rainbow filter.

- Divergence trading comparing the trix to price and taking a THV signal when there is both divergence and price bouncing of something solid.

The main reason you see so many different type of screens is that in order for a trend trading method to work you have be taking trades that ARE with the trend. So your basic problem is to identify when you have a trend. (THV rules specify that when price is above the coral it is and uptrend and below it a downtrend, however price can be above the coral when the market is flat or above it for a small retrace in a major downtrend.) Everyone has their own favorit method of identifying when there is a trend. The most common are:

Trendline breaks or bounces
Pivot breaks or bounces
Pattern breaks or bounces (like triangels, H&S)
Moving averages (like crossovers or the rainbow)
Divergence (to get in at the start of a new trend, one hopes).
Several higher highs and higher lows (or vice versa) in sequence

That mostly accounts for all the different charts you see.

M5 Chart

trix crossed into long pretty even
pa above cloud and coral and already tested daily pivot

closed at 10 pips because of the noise in M1

MissPips,

Could you explain how to identify the trend by using " Moving averages (like crossovers or the rainbow)"

Well there are various methods. One of the older versions of THV called for the T3 to cross the Coral for example, and some people still use that. When the rainbow flips and changes color thats because the moving averages that comprise it have crossed.

breakout from narrow area. PA will run down more.

entry follow basic rules

Further to what I mean about having an opinion about where something might happen, waiting for it to happen, and then reacting.





Edit: Entry on a signal with the usual characteristics:
Double top with divergence
Double rainbow flip with all colors on both showing and nicely spreading out in a pie shape
Nice wide spread on the 5m trix
Widening spread on the 15 m trix
Trix cross on the 1 m
Break and retest of support
Below Coral (goes without saying)