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Easy Eyes (No Indicators) Simple Day Trading

  • #1
  • First Post: Edited Dec 3, 2010 12:16pm Nov 24, 2010 12:03pm | Edited Dec 3, 2010 12:16pm
I'd like to share a method which I personally find viewing the market in this perspective easier to make money... its very powerful in my opinion since its all about trading with the trend...


INTRO: I am personally sick and tired of threads says "easy scalping, simple system, etc." and guess what.. they want me to add 3 weird indicators to MT4 and enter when a dot does this.. and a cross of the wacky blob v12 indicator.. ok you get the point.

Here I'll use just canlde-sticks and a variation called Heikin-Ashi (dont get scared away) it is a smoothed out version of the candle sticks.. most brokers have these as an option to view price movement.. if Heikin-Ashi is new to you.. you'll probably love them so bear with me.

I'll share the method now.. but please read the outro before commenting




METHOD: The numbers refer to the pictures.. follow it like a picture book

Basically Heikin-Ashi is the heart of this method and you can pretty much ignore trend lines and every indicator in the book(when using it like this).



Setup: 30M, 5M, and 1M Heikin-Ashi charts.. and a 1M candlestick chart.

Step by Step Live Trade... (this is a short trade.. reverse for long)

1.) Check the last closed 30M Heikin-Ashi bar.. its red.. so were looking for a short trade. (In picture #1, I should have drawn my arrow to the candle behind where I drew... sorry, I drew my arrow to the active candle.. when I should have drawn to closed candle.)

2.) Wait for 5M Heikin-Ashi bar to turn red.. when it turns red do this: walk a limit sell 1 pip below the 1M candle-sticks until its triggered... if price moves down it triggers and your in.. and if its in a mini pullback you get a better price(as it retraces you'll need to check to see if 30M and 5M Heikin-Ashi still are red.. else close order)

3) Make money.. my trade was a 10 pip stoploss with 20 pip take profit.. I made my 20 pips..

4) our emergency exit is when the 1M turns green.. in this trade we got our take profit of 20 pips before the 1M turned green.. you could use 2 lots and let the second run until this single if you wanted..


OUTRO: HA( aka Heikin-Ashi) will keep you trading with the trend and makes things a lot easier to see so I hope you like it.

Heikin-Ashi works best on small time frames.. even 30M is pushing it so don't use it on 4 hours and such.

and please don't go adding a million indicators to this method.. its simple trend trading stuff.. your only hurting yourself if you add 3 lagging indicators.


Hope you like this method.. help redefine better entires and exits and we can have a nice easy on the eyes trading method..

PS: oh yeah and you can scalp against the 30M direction when the 5M turns green.. but thats more advanced stuff.. just aim for smaller profits in that situation

PSS: it helps to know how to look at Heikin-Ashi candles (just to know a weak one from a strong) so I added a PDF I found. If a 30M has a weak candle than just scalp some small pips on 5M signals and such.. like I said this is first draft we can refine things later




View post 102 to see some price action without HA.. its a little more advanced if you are interested
http://www.forexfactory.com/showpost...&postcount=102

and 108 is a follow up on 102..

http://www.forexfactory.com/showpost...&postcount=108
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File Type: pdf What Is Heikin-Ashi.pdf   1.1 MB | 17,388 downloads
  • #2
  • Nov 24, 2010 12:49pm Nov 24, 2010 12:49pm
Hi Ny, thanks for posting method. So we wait for the 30m bar to close and then look for 5m?
  • #3
  • Nov 24, 2010 1:13pm Nov 24, 2010 1:13pm
Quoting jmag
Hi Ny, thanks for posting method. So we wait for the 30m bar to close and then look for 5m?
You would be looking for the closed 30M, the one before the active candle.. (In picture #1,I should have drawn my arrow to the candle behind where I drew... sorry )

all you need to look for is the last closed 30M candle to be down.. and the closed or almost closed 5M candle to be down..

In the end all your doing is finding the intermediate trend (30M).. and waiting for the short trend (5M) to agree with each other and you take the trade.


PS: you see.. this method keeps things from getting to technical.. really whats going tho.. is if the 30M's were going red.. and the last one closed strong green its breaking the downward trend line and forming a new upward trendline... but you dont need to know all that since this is a simple easy on the eyes method... if its a small weak green candle then I scalp small pips on the 5M.. I'll need to write a second draft in the future...
  • #4
  • Edited 1:49pm Nov 24, 2010 1:36pm | Edited 1:49pm
Hi NY498

Like yr simple no indicators scalping method. Look forward to testing it out. Can u suggest what pairs are good to use this heikin ashi? My MT4 preset indicator is red n white so does this means the red is bearish n white is bullish?
What time of day do u suggest using this method and look forward to your guidance. BTW, do u advice if main trend is either bullish or bearish we can safely follow the direction of the Heikin Ashi candles? Tks.
  • #5
  • Nov 24, 2010 3:52pm Nov 24, 2010 3:52pm
Quoting newyear498
You would be looking for the closed 30M, the one before the active candle.. (In picture #1,I should have drawn my arrow to the candle behind where I drew... sorry )

all you need to look for is the last closed 30M candle to be down.. and the closed or almost closed 5M candle to be down..

In the end all your doing is finding the intermediate trend (30M).. and waiting for the short trend (5M) to agree with each other and you take the trade.


PS: you see.. this method keeps things from getting to technical.. really whats going tho.. is if...

hi

what are the settings on your heiken ashi candles ?

also say this was to happen:


30m closed candle green, 5m closed candle green, 5m open candle red, 1m closed candle red, 1m open candle green -= so can we enter buy (long) ?



is it mainly the case that if both the 30m and 5m candles are the same colour then regardless of what colour the 1m candle is, you enter in the 5m colour direction anyway ?


how long have you been trading it and do you have results ?


for one to make 20 pips, the trades must be taken during peak times right ? otherwise there would hardly be any movements.


thanks
  • #6
  • Nov 24, 2010 3:54pm Nov 24, 2010 3:54pm
Quoting triciahar
Hi NY498

Like yr simple no indicators scalping method. Look forward to testing it out. Can u suggest what pairs are good to use this heikin ashi? My MT4 preset indicator is red n white so does this means the red is bearish n white is bullish?
What time of day do u suggest using this method and look forward to your guidance. BTW, do u advice if main trend is either bullish or bearish we can safely follow the direction of the Heikin Ashi candles? Tks.
On MT4.. if you see a bunch of red candles going down those are the bearish ones.. and if you see a bunch of white ones in a row going upwards.. those are bullish.. and the other way around.. (don't have MT4 but thats how I would figure it out if I did...)

you can use heikin ashi on any pair.. but since this is really a daytrading and scalping method you want low spreads.. like EUR/USD.. and GBP/USD.. you should just try EUR/USD to begin with.. you really can't go wrong that way.

hours to trade.. start with london and newyork.. I trade mostly 6am-3pm EST
be patient and wait for the right signals

you say main trend.. but I'm not sure what you mean since we are trading the intermediate trends and such.. so I am going to assume that your mean the long term trend?

if thats the case yes you can go against the long term trend.. for example the EUR/USD is in a down trend overall right now.. but last Tuesday the 16th was a great example of trading the intermediate trend.. the day was rallying up against the longterm trend..

This strategy focuses on the intermediate and short term trend, its how I trade it.. you can't go wrong waiting for them to align with the long term trend though
  • #7
  • Nov 24, 2010 4:14pm Nov 24, 2010 4:14pm
Quoting whatfx
hi

what are the settings on your heiken ashi candles ?

also say this was to happen:


30m closed candle green,...
heikin ashi = HA

My settings on HA are default in oanda.. theres no changes I can make to oandas.. but the default for whatever your platform is should be the same I bet since they are all based around a standard formula.

Ok, even you have me confused on that question let me explain...

when you enter the position.. just look at the closed candle for the 30M HA and the 5M HA if they are both green you are ready to go long... ok so the active 5M HA candle is red.. so what.. you should be placing your buy order right above the last closed 1M candle sticks highes..

so 1 of 2 things will happen...

1) while your walking your order over last 1M candles high the next active candle hits it and your now long and most likely that 5M active HA will be going green

or

2) while your walking that buy order the 5M HA will close and you will now have a new 5M HA close candle thats red so you will cancel your buy order and wait for a green 5M HA


I have been trading trend line methods for years.. the only thing thats different here is that I use the HA so I can see things better.. I started doing this recently and its much faster for my mind to take in and also I feel more comfortable emotionally seeing the true direction all green and not back and forth.. I like it and I figure other would too.. easy on the eyes..

to me its super simple.. its just explaining the multi time frames and close and active candles are kinda confusing.. don't get stuck to details tho its simple stuff in the end

was that a good explanation of your question? focus on the close 30M and closed 5M for entries to begin with (sometimes I take 5M HA thats just about to close)

but you can mess around more once it starts making since.. if the HA's for 30M and 5M are green and the 1M HA is red.. remember we are walking the buy order so its fine.. onces the buy order gets trigger that HA's for 5M and 1M is gonna look green irremediably or in a few seconds.. thats why walking the buy order over the 1M candle sticks is important for entries


wow.. I guess its simple on the eyes just not in words hahaha.. let me know if you need help!
  • #8
  • Nov 24, 2010 4:17pm Nov 24, 2010 4:17pm
Quoting newyear498
On MT4.. if you see a bunch of red candles going down those are the bearish ones.. and if you see a bunch of white ones in a row going upwards.. those are bullish.. and the other way around.. (don't have MT4 but thats how I would figure it out if I did...)

you can use heikin ashi on any pair.. but since this is really a daytrading and scalping method you want low spreads.. like EUR/USD.. and GBP/USD.. you should just try EUR/USD to begin with.. you really can't go wrong that way.

hours to trade.. start with london and newyork.. I trade mostly...

still some confusion as to WHEN to actually enter trade. do we wait for a row of 30m red or white candles to change direction and then look to enter trade ? eg say we have 4 x 30m white candles and then the candle is red. that is the sign for a trade right ? then we can check the 5m and 1m candles to see if they match the red ? if the 5m matches the red but 1m is white, we still can enter trade or not ? or does the 1m closed candle have to be red as well ?


can we not enter at any other times ? like say we have 5 red 30m candles, and a 5m red candle, and the 1m is also red. we can still enter short here ?
but the problem here is there are too many red 30m candle so the market may have exhausted with the short so it may be too late to enter short, as the market may reverses to long. so how do we decide if its too late or not ?


regards
  • #9
  • Nov 24, 2010 4:29pm Nov 24, 2010 4:29pm
Quoting whatfx
still some confusion as to WHEN to actually enter trade. do we wait for a row of 30m red or white candles to change direction and then look to enter trade ? eg say we have 4 x 30m white candles and then the candle is red. that is the sign for a trade right ? then we can check the 5m and 1m candles to see if they match the red ? if the 5m matches the red but 1m is white, we still can enter trade or not ? or does the 1m closed candle have to be red as well ?


can we not enter at any other times ? like say we have 5 red 30m candles, and a 5m...
Ok, like I said focus just on the HA's 30M and 5M for entry.. the HA 1M is for emergency exit

if the 30M HA's has 10 red candles and the last one closed green you are looking to go long the intermediate trend is changing.

you can tell when the trend is exhasted if the 30M HA has what you may be familar with as a "doji" regular candle patterns don't work on HA but thats what an exhausted trend would look like on a HA.. (a really small candle with small area between its open and close) if that happens on the HA.. then I normally scalp for really small pips based on 5M HA... but thats a different story..

you could also just,
if you see a small body on HA compared to what came before it.. just wait a half hour for a new 30M HA to close with a stonger signal..

it doesnt have to be to complex.. if the 30M candle gave you a false signal you still trading with the 5M (aka short trend) and you still have you HA 1M for emergency exit..


yours gonna lose some trades.. theres nothing you can do about it.. but this strategy is like trading with the intermediate and short term trend are aligned for more probabilities..

and to get 20 pips you do want london/ newyork times.. or an active market... you can set your own take profit and stoplosses.. I change mine to what I think is possible on any given trade.. 10/20 is a good start..

like I said I will need to do some second drafts and include more information and stuff..

I am usually not one for mechanical systems since I adapt to the market and its hard to write all that info in one moment.. but what I posted in post #1 is the core of the method
  • #10
  • Nov 24, 2010 4:48pm Nov 24, 2010 4:48pm
Quoting newyear498
find easier to make loads of money...
Really? for how long have you been making these loads?
Time hides Nothing
  • #11
  • Edited 5:27pm Nov 24, 2010 4:56pm | Edited 5:27pm
Quoting CindyXXXX
Really? for how long have you been making these loads?
its been about 5 years trading but only 2 in the forex market.. spent the first 2 years losing money until I finally learned how not to lose money.. I'm on the same quest as everyone else trying to quit my day job and make money...

would you prefer I edit the way its worded?

Look there might be a holy grail system out there but while your out looking for it in the tombs will be making pips with odds on our side..

this isent the perfect system.. its mostly trend trading being viewed at in a neater perspective

I will edit that tho so no one gets the wrong idea.. really what I was saying is "I find viewing the market this way easier to make money" some people view it as bollinger bands.. others as SR, as trend lines.. as boxes, as waves..
  • #12
  • Nov 24, 2010 5:04pm Nov 24, 2010 5:04pm
Quoting newyear498
Ok, like I said focus just on the HA's 30M and 5M for entry.. the HA 1M is for emergency exit

if the 30M HA's has 10 red candles and the last one closed green you are looking to go long the intermediate trend is changing.

you can tell when the trend is exhasted if the 30M HA has what you may be familar with as a "doji" regular candle patterns don't work on HA but thats what an exhausted trend would look like on a HA.. (a really small candle with small area between its open and close) if that happens on the HA.. then I normally scalp for really...

hi

thanks for the clarification.


some candles are about 3 pips or 5 pips in length. do we still count these candles as valid ? how many pips must a candle be before we count it as a valid candle for our signals ?
#

do we exit trade if the opposite colour candle appears on a 30m chart or 5m / 1m chart ? if it is 5m / 1m chart then we will have to close trade quite quickly because short term different colour candles appear a lot, even though the trend is in one direction. so it will be a question of exiting quickly ?


a short backtest has shown price rarely reaches 20 pips before a change of candle occurs.


do you have past results you can post ?


cheers
  • #13
  • Nov 24, 2010 5:20pm Nov 24, 2010 5:20pm
Quoting whatfx
hi

thanks for the clarification.


some candles are about 3 pips or 5 pips in length. do we still count these candles as valid ? how many pips must a candle be before we count it as a valid candle for our signals ?
#

do we exit trade if the opposite colour candle appears on a 30m chart or 5m / 1m chart ? if it is 5m / 1m chart then we will have to close trade quite quickly because short term different colour candles appear a lot, even though the trend is in one direction. so it will be a question of exiting quickly ?


a short...
I don't know what you want as far as past results.. I don't have screen shots of all my past trades.. but I will do some forward trades and take pictures to show you..

I honestly rarly make 20 pips a trade.. like I said I change my targets every trade.. In that example I saw 20 pips coming so I went for 20..

A ton of your questions would require me to write a book lol..

I think the best thing we can do is just sit tight for a bit while I do some trades and post the screens.. I will explain everything that went through my head as I took the trades...

I will post whatever trade happens when I decide to take pics.. especially losing trades.. the important thing is taking a small loss..

how many pips per candle.. I'd like atleast 15-20 pips ideally in a 5M candle.. I usually just look for a strong candle in the 30M .. as long as 30M is not looking like a doji

I will do some ASIA trading tonight and walk through another live one.. I'll try my best to explain


I personally look to exit when the HA for 1M turns green.. because I am basically scalping.. if its had a really long run tho I might just move my stoploss to an area that will give me profit but also room for the price to pull back and continue..

feel free to take my core methods and make them your own tho.. modify away!
  • #14
  • Nov 24, 2010 5:37pm Nov 24, 2010 5:37pm
[quote=newyear498;4197666]I don't know what you want as far as past results.. I don't have screen shots of all my past trades.. but I will do some forward trades and take pictures to show you..

If you want to get a big (if you're successful)following just use Myfxbook. It puts an ea onto any chart and tracks your trades --gives you all the stats you could want. It lets you post a pdf of your results----you can edit out anything you dont want others to see. Never heard of any security problems with it.
Very easy to set up. Google Myfxbook.
We are all One. Be present. Be the Observer
  • #15
  • Nov 24, 2010 5:43pm Nov 24, 2010 5:43pm
[quote=Iamfx;4197684]
Quoting newyear498
I don't know what you want as far as past results.. I don't have screen shots of all my past trades.. but I will do some forward trades and take pictures to show you..

If you want to get a big (if you're successful)following just use Myfxbook. It puts an ea onto any chart and tracks your trades --gives you all the stats you could want. It lets you post a pdf of your results----you can edit out anything you dont want others to see. Never heard of any security problems with it.
Very easy to set up. Google Myfxbook.
Thanks Iamfx, would it work with oandas plateform you know?
  • #16
  • Nov 24, 2010 5:54pm Nov 24, 2010 5:54pm
[quote=newyear498;4197690]
Quoting Iamfx

Thanks Iamfx, would it work with oandas plateform you know?
Forgot you were with Oanda---wont work with them.
It would be fairly easy to download any old mt4 platform--keep it on your task bar and as soon as you make a trade on Oanda do the same on mt4. Might distract you from your trading though
We are all One. Be present. Be the Observer
  • #17
  • Nov 24, 2010 6:01pm Nov 24, 2010 6:01pm
[quote=Iamfx;4197699]
Quoting newyear498

Forgot you were with Oanda---wont work with them.
It would be fairly easy to download any old mt4 platform--keep it on your task bar and as soon as you make a trade on Oanda do the same on mt4. Might distract you from your trading though
on the side note I know nothing about MT4.. where can I get it.. would like to tinker since everyone has one

thank you!
  • #18
  • Nov 24, 2010 6:20pm Nov 24, 2010 6:20pm
[quote=newyear498;4197704]
Quoting Iamfx

on the side note I know nothing about MT4.. where can I get it.. would like to tinker since everyone has one

thank you!
I use Divisa and Gotrader. Just google them and download their MT4 platform---about 5 meg. You are ready to go in about 5 minutes
We are all One. Be present. Be the Observer
  • #19
  • Nov 24, 2010 6:28pm Nov 24, 2010 6:28pm
There's also a couple of sites that list most all MT4 broke rs.
Here's one.
  • #20
  • Nov 24, 2010 7:36pm Nov 24, 2010 7:36pm
[quote=newyear498;4197704]
Quoting Iamfx

on the side note I know nothing about MT4.. where can I get it.. would like to tinker since everyone has one

thank you!
try 'alpari'. you can open a demo account within seconds and start using the charts.

also i just realised, some confusion on candle times.

on 30m candle say we look at the close of 9.30 candle which is red. so on the 5m candle do we look at the 9.30 one or the one at 9.35 ? similarly, the 1m candle we look at is it the one at 9.31 or 9.36 ?


you say each 5m candle has to be at least 15-20pips , but that rarely happens. do we count the wicks as a size of the candle ?



i just did one trade on usd/jpy. on 30m there were 3 red candles. then a white candle closed. i looked at 5m and 1m, both were white. so i entered buy (long). the next 30m candle opened white. but didn't move much. the next candle after that opened red, moved down and hit my stop. so that is the point i was making before. you cannot be sure when to enter.

should i have waited for at least 9-10 red candles in a row then a white, before entering trade.


regards
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