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  • #1,081
  • Edited Aug 20, 2010 6:08am Aug 19, 2010 6:51am | Edited Aug 20, 2010 6:08am
Hi,

My first post here

I've coded a simple indicator for MT4 to show occurrences of Flying Buddhas as per Graeme's explanation from Joe. If I understand correctly it is when the high and low for a candle are both either above or below the exponential MA with a period of 5?

Anyway, here it is, hope it's useful and not out of line with this thread.

Regards,
Paul

Edit: New version that will display the EMA5 line as well as FB indicators. Both will only be displayed for completed candles to prevent bouncing around on current candle for every tick.
Attached File(s)
File Type: ex4 Flying Buddha.ex4   2 KB | 1,050 downloads
  • #1,082
  • Aug 19, 2010 11:51am Aug 19, 2010 11:51am
Hi Graeme,

I have recently found your thread and this has made me think very hard about how I have been trading. I have been trading intraday and a little while ago I summarised in a note to myself my top 4 reasons for achieving trading results opposite to that planned (see below). You can guess that I have been "caught up" in the intraday noise. Your approach of building positions for the long term - more like investing really - strikes a chord with me and makes complete sense.

The following was the personal note to myself:

My top 4 reasons for achieving trading results opposite to that planned

 

  1. Inappropriate stops - still my biggest weakness. By inappropriate I mean that the initial stop is too close for the market or that I have moved my stop too soon once the market has moved in my favour, getting stopped out before the market continues in my original planned direction.
  2. Over-analysing and not looking at the bigger picture - I need to stand back more, look at the daily and 1 hour charts to see what the trend is, where price is going and where is it likely to find resistance or support. I get caught up too much on the lower time frames often and don't see the bigger picture. This results in both missing obvious trades or getting into the market when it lacks direction.
  3. Trading when not completely focused - the market is quiet and opportunities may not develop for a while, so my mind starts thinking that I really ought to be getting on with something else. When I am in my allocated time for trading my mind must be on trading to the exclusion of everything else.
  4. Trading when in the wrong mindset - usually brought upon by not being completely focused (above) or having taken a trade "just to get one in for the day" or having traded after errors 1 or 2 above.


No mention of one type of set-up being better than another here. It seems to me that set-up's are just detail really. Intelligent trading should be about being in with the trend with a protective stop that takes me out of the position only if the trend is clearly over. It's just plain stupid to be taken out in the noise because my stop is too tight.

I would now add to number 2 above that I need to be aware of the overall weekly trend and look to build positions with that trend.

I hope that this is an appropriate place for the above.

Best wishes
Matt

  • #1,083
  • Edited 1:53pm Aug 19, 2010 12:57pm | Edited 1:53pm
Quoting FxMatt
Hi Graeme,

I have recently found your thread and this has made me think very hard about how I have been trading. I have been trading intraday and a little while ago I summarised in a note to myself my top 4 reasons for achieving trading results opposite to that planned (see below). You can guess that I have been "caught up" in the intraday noise. Your approach of building positions for the long term - more like investing really - strikes a chord with me and makes complete sense.

The following was the personal note to myself:

[b]My top 4 reasons...
Very interesting analysis. I could have easily wrote this about myself. I think I am passed SL problem now. Nothing more frustrating than getting taken out of a perfectly good position by a tight SL, only to have the price run off for hundreds of pips of lost profit. What I do is make sure I put my stops on the other side of the next s/r area. The s/r must be on the same time frame or better yet a higher time frame. Sometimes that means I have to take a smaller position to keep my risk in check but I am usually glad I did.
  • #1,084
  • Aug 19, 2010 4:10pm Aug 19, 2010 4:10pm
Morning All,
There are a few F.B.s this morning Im on GBP/AUD and EUR/AUD. Another of my legs got wiped out today it was 150 pips up yesterday. Patience is the key with this method. I am on demo for another 2 weeks then Im going live. The main reason been I dont want to miss out on a real leg opportunity. My main reason for the demo is to practise stacking positions and get a feel for diversification. I think any longer than a month on demo is counter productive for this system.
Regards,
Ben
  • #1,085
  • Aug 19, 2010 4:40pm Aug 19, 2010 4:40pm
hey ben,
i will be watching the eu/au as well,
also be watching the eu/gb for a volitility breakout.

Quoting leggo
Morning All,
There are a few F.B.s this morning Im on GBP/AUD and EUR/AUD. Another of my legs got wiped out today it was 150 pips up yesterday. Patience is the key with this method. I am on demo for another 2 weeks then Im going live. The main reason been I dont want to miss out on a real leg opportunity. My main reason for the demo is to practise stacking positions and get a feel for diversification. I think any longer than a month on demo is counter productive for this system.
Regards,
Ben
  • #1,086
  • Aug 19, 2010 5:03pm Aug 19, 2010 5:03pm
Morning Geoffrod,
I have decided to concentrate on bearish flying buddahs for now. The reason for this is that I was, in my view, taking too many trades. I decided yesterday that I needed more focus and discipline. Successful stacking is going to take alot of practice and a very thick skin!!!!
Regards,
Ben
  • #1,087
  • Aug 19, 2010 5:18pm Aug 19, 2010 5:18pm
Good morning, all

Hope everyone is safe and warm. It is winter here in Australia and it now changing season to Spring. As I grow older I can actually feel and smell the season changing. Something that I couldnt do when I was much younger. When I was young, I knew it was Spring when everyone started wearing short sleeved shirts and the jacket I was wearing is no longer necessary. However as I age more I can add more reasons to why I personally believe season is changing. Its the different glow in the morning when the sun is coming up, the smell of early spring flowers, the extended sunlight in the afternoons. Its experience and age telling me that Spring is arriving with greater 'clarity.'

Much like trading, a learner has reasons to indicate what is happening in the markets because it was told at a seminar, a strategy thread, or by an indicator. It is the age and experience that will add clarity into this interpretation. However, most traders will not make it there. Everyone is born as a trader however it is up to each individual traders approach to make it happen.

All of us expect to make an outrageous lifestyle out of trading. Just like a real estate investor aiming to mark his name on the Forbes magazine or the newly realeased hip hop artist trying to make it to billboard chart number 1. We are all doing the same thing by trying to be the best in the industry. The amount of practice required for a hip hop star to sing and dance to an awe-inspiring effect it is just more than few sessions, it is years of hard work. They do not whinge that its hard work and things are not working out at the moment. Its their unbending beliefs in themselves and the bone-aching sessions they go through to maintain their voice and body will payoff later on much greater than all his/her efforts put together for now. Risk:Reward

The key lesson for the past week is perserverance. Does everyone know the definition? It simply means not giving up or steering away from the intended goal.

What is your intended goal then?

It is your positions that could have been few pips loss or zero loss that turn out to be few hundred pips.

Does it happen often?

Not enough but just enough.

Not enough to drop all whinging, nagging pessimistic traders off the board. And just enough for the unbending true traders to profit over them.

Market knows your efforts. The more you try in a constant attempt, the market will soon notice your efforts and repay you more than you lost to get there. It is your job to minimize the losses and stretch the profits when market is finally giving you a good opportunity. And the market doesnt offer good opportunities everyday or everyweek. That would create too many millionaires.

Remember Joe lost -17 pips 2 days ago. Market took notice and gave him back more than 17 pips. Only a small opportunity but he still cashed out 200+ pips last night.

http://img812.imageshack.us/img812/1378/aa1z.png
  • #1,088
  • Aug 19, 2010 5:21pm Aug 19, 2010 5:21pm
Quoting leggo
Morning Geoffrod,
I have decided to concentrate on bearish flying buddahs for now. The reason for this is that I was, in my view, taking too many trades. I decided yesterday that I needed more focus and discipline. Successful stacking is going to take alot of practice and a very thick skin!!!!
Regards,
Ben

hey ben, that is fair enough mate, nothing wrong with focus and discipline.

you might wantto look into a testing program, i use forextester, you can run the charts just as you do in realtime, have 4hr chart running along with a 5min chart when you get a F/B go to the 5min chart and start placing trades, you can speed it up when there are no F/B and slow it down when they happen.

cheers
Geoff
  • #1,089
  • Aug 19, 2010 5:25pm Aug 19, 2010 5:25pm
Quoting geoffrod
hey ben, that is fair enough mate, nothing wrong with focus and discipline.

you might wantto look into a testing program, i use forextester, you can run the charts just as you do in realtime, have 4hr chart running along with a 5min chart when you get a F/B go to the 5min chart and start placing trades, you can speed it up when there are no F/B and slow it down when they happen.

cheers
Geoff
Thanks Geoff,
Will look into that.
Thanks
Ben
  • #1,090
  • Aug 19, 2010 5:27pm Aug 19, 2010 5:27pm
This is a dirty week. Why? Wicks.

http://img809.imageshack.us/img809/4514/aa1a.png

How about last week then? Which was very hard and fast downtrend. Compare.

http://img291.imageshack.us/img291/8601/aa1u.png
  • #1,091
  • Aug 19, 2010 5:35pm Aug 19, 2010 5:35pm
Perserverance. Can you?

http://img830.imageshack.us/img830/9643/aa1i.png
  • #1,092
  • Aug 19, 2010 5:49pm Aug 19, 2010 5:49pm
Graeme,
thanks again for your elegantly simple explanation of the weekly action, i personally am becoming very frendly with the weekly line chart as you showed it a while back, for me, it is easy to see the area's of consolitation, and to pinpoint where i might be taking some acton, put out my feelers,

cheers
geoff
Attached Image (click to enlarge)
Click to Enlarge Name: aujpy weekly line chart.gif Size: 12 KB
  • #1,093
  • Aug 19, 2010 5:54pm Aug 19, 2010 5:54pm
Quoting pipEASY
Good morning, all

Hope everyone is safe and warm. It is winter here in Australia and it now changing season to Spring. As I grow older I can actually feel and smell the season changing. Something that I couldnt do when I was much younger. When I was young, I knew it was Spring when everyone started wearing short sleeved shirts and the jacket I was wearing is no longer necessary. However as I age more I can add more reasons to why I personally believe season is changing. Its the different glow in the morning when the sun is coming up, the smell...
Morning Graeme,
Does Joe use 1hr chart for flying buddahs too? I only ask because there was no flying buddah on 4hr last night only 1hr.
Kind Regards,
Ben
  • #1,094
  • Aug 19, 2010 5:55pm Aug 19, 2010 5:55pm
hey pipeasy......a question if ya have the time...... in post 1087, in the picture someone has written, 'double wick bottom it's over'.....

courious as to what is thought to be over and how a double wick bottom suggests it.....

if ya have the time......thanks......h
to trade and code, keep both simple... no call to impress....h
  • #1,095
  • Aug 19, 2010 5:55pm Aug 19, 2010 5:55pm
Quoting geoffrod
Graeme,
thanks again for your elegantly simple explanation of the weekly action, i personally am becoming very frendly with the weekly line chart as you showed it a while back, for me, it is easy to see the area's of consolitation, and to pinpoint where i might be taking some acton, put out my feelers,

cheers
geoff
Good morning, Geoff

Absolutely.

And im so glad to see you made the connection.

May I add that I have been using 1ema charts for daily/weekly chart for the last one year to great success.

Its very simple and powerful. But most importantly gets rid of all the candles, wicks, ranges.

Sincerely,

Graeme
  • #1,096
  • Aug 19, 2010 5:58pm Aug 19, 2010 5:58pm
Quoting leggo
Morning Graeme,
Does Joe use 1hr chart for flying buddahs too? I only ask because there was no flying buddah on 4hr last night only 1hr.
Kind Regards,
Ben
Hi Ben

Yes, Joe uses flying buddhas on 4hr and 1hr. All methods should work on all timeframe. Just different 'scale'

Joe knows that 4hr golden flying buddhas work just as well as 1hr golden flying buddhas however different scale.

It can also work on smaller timeframe than 1hr but it would be useless as the golden opportunity will be relatively small for the efforts.

1hr is the smallest timeframe he will look for them.

He uses only sell flying buddhas and 50% fib only.

Sincerely,

Graeme
  • #1,097
  • Aug 19, 2010 6:01pm Aug 19, 2010 6:01pm
Quoting pipEASY
Hi Ben

Yes, Joe uses flying buddhas on 4hr and 1hr. All methods should work on all timeframe. Just difference 'scale'

Joe knows that 4hr golden flying buddhas work just as well as 1hr golden flying buddhas however different scale.

It can also work on smaller timeframe than 1hr but it would be useless as the golden opportunity will be relatively small for the efforts.

1hr is the smallest timeframe he will look for them.

He uses only sell flying buddhas and 50% fib only.

Sincerely,

Graeme
Thanks Graeme
  • #1,098
  • Aug 19, 2010 6:03pm Aug 19, 2010 6:03pm
Quoting hayseed
hey pipeasy......a question if ya have the time...... in post 1087, in the picture someone has written, 'double wick bottom it's over'.....

courious as to what is thought to be over and how a double wick bottom suggests it.....

if ya have the time......thanks......h
Good question.

Few posts ago I explained to all the importance of interpreting long wicks.

Long wicks are great pressure for the price to continue but failed due to equal/stronger opposite force. Long wicks are the first sign of weakness for the current movement.

Some price or tight area cannot be breached and gets tested twice or third times to finally see the price reverse strongly to opposite direction.

Not all the times but enough times to keep in mind all times.

This can be used very effectively as a trader can set a very tight stop loss just pass the tip of wick when he notices a wick bounce on the 2nd or 3rd wick. Risking very small for something much bigger. Such like inside bars, flying buddhas.

Most important aspect of long wicks are that it shows first weakness of buying/selling power before the complete formation of the candle.

Sincerely,

Graeme
  • #1,099
  • Aug 19, 2010 6:14pm Aug 19, 2010 6:14pm
Quoting geoffrod
Graeme,
thanks again for your elegantly simple explanation of the weekly action, i personally am becoming very frendly with the weekly line chart as you showed it a while back, for me, it is easy to see the area's of consolitation, and to pinpoint where i might be taking some acton, put out my feelers,

cheers
geoff
Mate, likewise. the line charts have really made things different for me also.

* As Graeme said before Spring is definitely in the air here in Aus. love it!
  • #1,100
  • Aug 19, 2010 6:18pm Aug 19, 2010 6:18pm
Quoting iamboston
Mate, likewise. the line charts have really made things different for me also.

* As Graeme said before Spring is definitely in the air here in Aus. love it!

yeah i love spring here in aus, but only because it means summer is on its way, dont like the way my eyes itch, and the sneezing attacks i am getting as i get older, come on summer.
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