Ezakimak's Trading Blog

Well price has now hit a previous support level. A goodly pile of pips are locked in now. Will price push on or turn around...?

Last nights test trade of my Waverunner / MACD strategy turned finished well in the positive. As mentioned in the post above, price had hit a previous support level. At the time that it hit support I had 372 pips locked in and that was what I walked away with as price bounced off the support line bigtime and took out the trailing stop.

Sweet!

This is a trade from earlier this evening, took the screen shot before heading out for a couple of hours.

This was a re-entry trade, as you can see, a couple of red renko blocks formed and crossed under the Waverunner dots. Because the dots did not change colour and the MACD histogram did not pull under the signal line, indications were that the trend would continue upwards. So when a green block formed, since the dots were blue and the MACD histogram was above the signal line, it was safe to re-enter. The green line was where I went long and the red line was where the stop loss had been moved well into the profit zone. The trade closed while I was out with a profit of 362 pips.

Another win for the Waverunner / MACD strategy!

Just posted up some info on my trade on the EURUSD from earlier this evening and it is interesting to see what price is doing now on there now.

If you look at the chart below, you can see where I have drawn a red trend line. You can see that the Waverunner dots have begun veering away from that trendline. The dots have also moved back in towards the renko blocks and peppering them like machine gun bullet holes. The histogram seems to be pulling under the signal line. These could all be signs that the current trend is running out of steam and may change.

Might be worth watching...

Hmmm interesting....

I made a note in my previous post that I was going to keep an eye on the EURUSD as it seemed to be signalling a trend change. Have a look at the chart below. The white arrow is the box that was forming in the chart attached to my previous post. That box formed red and then a couple of blocks later the Waverunner changed colour and the MACD histogram was well below the signal line.

That would have been a sweet trade with about 600 pips on offer!

Before heading off to work this morning, there was a sweet looking set up on the USDJPY. I kicked off the trade and headed off to work. Just got home and was pleased to see that, not only was the trade still open, but it's well into profit.

In response to a couple of queries about the renko indicator I use, I am happy to attach it for those that would like to use it. All thanks and credit must go to the Trading Renko thread here at Forex Factory which is where I found the file - if you want to learn a lot about renko, and indeed trading in general, that thread is recommended reading.

Just one thing to remember, this is an Expert Advisor not an indicator. This means that it needs to go in your Expert Advisor folder, not your indicators folder in MT4.

Happy to answer any questions if you have them.

All the best!

Things are going well with the USDJPY testing of my Waverunner / MACD strategy. Got about 50 pips locked and price is heading up to my take profit. No matter what happens now, it will be a winner!

Oooh price is so close to hitting my take profit. C'mon baby!

Ha! While I was posting that last post, price hit my take profit - 240 pips in the demo bank. Nice!

Hi guys,

Hope you had a good day! I just set a trade off on the USDCHF to test my Waverunner / MACD system. This also shows how a bit of knowledge of price action should play a key part in trading, even with a 'signals' system.

Notice how price came down a long way on the left of the screen then consolidated across the bottom. You will note that if you were to trade the Waverunner / MACD system mechanically, you would have entered the trade on the appearance of the first blue dot as at that time, the histogram had pulled inside the signal line. With a knowledge of price action though, you can have the foreknowledge that after a big move in any direction, price will often consolidate before moving on. As to which direction in will move on in, no-one knows. But by knowing that price consolidates, you would be cautious about trading the first signal that comes up. You thus allow yourself a higher probability of success by waiting to hear what price action tells you.

Use price action to dictate your trading, even with a signals system. As you can see here, instead of jumping in on the first signal, draw a channel to show the swing low and swing high of the consolidation that normally comes after a big move. Once price breaks out of that channel, and if your signals are still valid, trade.

Normally I would have traded at the close of the first fully formed renko box out of the channel, but I was out this evening. Since a red renko block formed and it was followed by a green block with the dots still blue and the histogram inside the signal line, I feel that it is safe to enter here.

Let's see how we go....

Morning!

Before going to bed last night I set a take profit target of 0.97315 on the USDCHF trade. I chose this number for no other reason that it was about 350 pips away from my trade entry. The trade closed overnight with a profit of 349 pips.

It looks like price began to move sideways after that. Jolly good!

Hi Kamikaze,

I like your strategy! Will try it also.

Btw what settings do you use for the MACD and the Waverunner indicator?

Thanks and good luck.

Regards

Alrighty this should be a good test of the Waverunner / MACD strategy that I have been developing and testing over the last little while. Here is why I think it will be a good test:

- This is the first signal in the opposite direction of a strong downtrend (refer my notes from yesterday about price action)

- It's Friday and trading on a Friday can sometimes suck.

Anyhoo, let's see how we go - the purpose is to test and thrash the strategy. Let's do exactly that.

msiamd I will reply to your post and PM soon, just wording up some details for you my friend!

I have to go out for a couple of hours. Price is still fiddling around where I entered this trade. I have set a take profit up at a recent resistance level.

Will check back in when I get home.

Well this one didn't work, never mind.

Interestingly I think that the trade didn't work this time because it was simply 'one of those times' that a strategy doesn't work, rather than just price action working against it.

It was good to trade this though, gotta fully test the strategy before letting it near real money.

Hi msiamd,

The MACD that I use is the MACD that comes with MT4. The settings are the usual 12,26,9. I set the Waverunner at 30. I found it somewhere here on Forex Factory, it appears to be the same as another indicator called NonLagDot. If you are not into dots, the smHullMA set at 25 will put a moving average line on your screen that is pretty close to the curve of the Waverunner.

Waverunner is attached for you to have a fiddle with. Let me know how you get on! I am only testing this strategy at the moment. After Xmas I will start to compare this method with the method I use on my live account (Naked Renko) and see which gives the most regular profitable signals.

All the best!

Hi guys!

Its a new week with new opportunities.....

Hope you had a great weekend!

Going well....

Have set a take profit at a previous resistance level.

Just moved stop loss to lock in some profit. Whatever happens now she is a winner!