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  • #141
  • Feb 22, 2011 4:22am Feb 22, 2011 4:22am
Divergence,

E/$ overnight offered about 5 examples of what this thread is all about. Clean & easy to spot on the 5M. Outstanding price action trading & no indicators needed.

GBP/USD & EUR/CHF offered about the same amout of examples as well.
New traders.......printout some charts depicing these examples & trade accordingly.

If this thread should die, it will be from the lack of NO INDICATORS & nothing more. The new trader would do themselves a great favor my joining onboard & learning this & any other price action trading methods they can get their hands on. It get NO BETTER than this.

_______________________
  • #142
  • Feb 22, 2011 7:24am Feb 22, 2011 7:24am
Hi Divergence
Gotta love those 1 2 3's, higher lows/lower highs. All the best for your thread.
  • #143
  • Feb 22, 2011 7:34am Feb 22, 2011 7:34am
Hi Div,

Two examples from today's London session, the second one is not in the time zone suggested by you but worked out fairly well. I hopefully did it right. Your comments would be appreciated. I still sometimes have difficulty qualifying the swings as there are lot of smaller swings within major swings and it is difficult to judge whether the trend is up or down. It is relatively easy in hindsight for me but in real time it is sometimes confusing to interpret in the way you do it. You have posted quite a lot of examples in this thread but any further comments would be helpful.
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  • #144
  • Feb 22, 2011 7:39am Feb 22, 2011 7:39am
WE got one last leg down and then a nice reversal into a long position.
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  • #145
  • Edited 7:48am Feb 22, 2011 7:45am | Edited 7:48am
Quoting Sujith
Hi Div,

I still sometimes have difficulty qualifying the swings as there are lot of smaller swings within major swings and it is difficult to judge whether the trend is up or down.
My 2c.

Follow the higher lows and lower highs.

The arrow down is the 4th attempt to go lower. The left arrow up is a clear higher low/1 2 3 bottom. Once price takes out 112.58 the lower high lower low cycle is broken.

Right arrow up shows a higher low. How to spot the moves in terms of div's methods a pullback and cross of the sma and cci right side of +50 for buys and -50 for sells. Oh yes and flags/1 2 3's.

If its really not clear like gu today then prob good time to sit on the side.
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  • #146
  • Feb 22, 2011 7:55am Feb 22, 2011 7:55am
Quoting Vantage
My 2c.

Follow the higher lows and lower highs.

The arrow down is the 4th attempt to go lower. The left arrow up is a clear higher low/1 2 3 bottom. Once price takes out 112.58 the lower high lower low cycle is broken.

Right arrow up shows a higher low. How to spot the moves in terms of div's methods a pullback and cross of the sma and cci right side of +50 for buys and -50 for sells. Oh yes and flags/1 2 3's.

If its really not clear like gu today then prob good time to sit on the side.
Thanks for the explanation. Yes, the real difficulty is in situations like the one shown in chart 2 and I guess the best thing to do is stay out as you suggested. Again, thanks.
  • #147
  • Feb 22, 2011 9:00am Feb 22, 2011 9:00am
I understand that defining swings is somewhat subjective. Can someone explain how the swing high and swing low are being described for this method?

I notice that sometimes the charts look like the swing is not simply the previous higher low or lower high. It looks like sometimes the swing is defined several highs or lows ago.

A visual would help. Thanks.
  • #148
  • Feb 22, 2011 9:03am Feb 22, 2011 9:03am
Hi Divergence
neat and simple system.

I always like a system that works on multiple time frames and pairs. To me it implies that it has some value and isn't just based on some quirk of a particular currency, i.e. a quirk that will disappear in 6 months time.

Just to confirm though is your R:R 1:1 or 1:2?

Many thanks..........
  • #149
  • Feb 22, 2011 12:34pm Feb 22, 2011 12:34pm
Can anyone comment as to why this trade was a loser?
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  • #150
  • Feb 22, 2011 2:06pm Feb 22, 2011 2:06pm
Quoting d4n
Can anyone comment as to why this trade was a loser?

According to your drawing, you would have gone Short somewhere around 1.3657. This was a perfect entry. The price broke for 20 pips. You should have moved your S/L to BE after about 7 pips and Trailed your trade by about 10 pips. This would have guaranteed you a 10 pip win.

Rule #1 - Protect your account! On a 5M chart, if you are up 7 or 8 pips, never let the trade go negative. Take 1 pip, save your account and fight another day.
  • #151
  • Edited 8:20pm Feb 22, 2011 2:45pm | Edited 8:20pm
I wrote a Trendline indicator that I think will be helpful for this system. If you don't like it, then I apologize.

It draws a 30 degree retrace trendline from the previous High or Low. It determines which to draw using a 5 MA and 21 MA cross to determine the Major Trend direction.

For Divergence on my charts, I use an MACD of 5 and 21. So, if you place the MACD 5 and 21, you will see better where and why this trendline is being drawn

The angle may be adjusted, but I have found that 30 degrees works well for most, maybe 38.

Hope someone finds it useful..


EDIT: new version
FS
Attached File(s)
File Type: ex4 Trendiine_Retrace_v1.1.ex4   3 KB | 1,434 downloads
  • #152
  • Feb 22, 2011 3:34pm Feb 22, 2011 3:34pm
Quoting ForexSam
I wrote a Trendline indicator that I think will be helpful for this system....
I already found a small glitch. If I adjust the Price Scale, the Trendline doesn't adjust. Not sure how that will react during trading, or on other traders charts. Work in Progress ....

FS
  • #153
  • Feb 22, 2011 4:23pm Feb 22, 2011 4:23pm
Quoting d4n
Can anyone comment as to why this trade was a loser?
Yes good setup---5 wave pattern ---broke swing low. The only problem late us session and not early us session.Wait for asian and early us. Every strategy has losers . Pefrect entry imo.

Tex
  • #154
  • Feb 22, 2011 4:36pm Feb 22, 2011 4:36pm
thanks Tex.

looked like the perfect entry to me too, but as you say you cant win them all
maybe the entry bar was a little on the large side aswell.
  • #155
  • Feb 22, 2011 4:46pm Feb 22, 2011 4:46pm
Quoting d4n
thanks Tex.

looked like the perfect entry to me too, but as you say you cant win them all
maybe the entry bar was a little on the large side aswell.
Please correct me, but I am not waiting for the bar to close, only for the Trendline to be broken strong. Am I jumping the gun?

FS
  • #156
  • Feb 22, 2011 4:51pm Feb 22, 2011 4:51pm
Quoting ForexSam
Please correct me, but I am not waiting for the bar to close, only for the Trendline to be broken strong. Am I jumping the gun?

FS
According to Divergence he says the entry should be one pip below the trigger bar... so i have always waited for the bar to close.
  • #157
  • Feb 22, 2011 4:58pm Feb 22, 2011 4:58pm
Quoting d4n
According to Divergence he says the entry should be one pip below the trigger bar... so i have always waited for the bar to close.
Thanks!
  • #158
  • Feb 22, 2011 5:20pm Feb 22, 2011 5:20pm
Quoting Divergence
there should be no problem making consistent money in the forex if you impliment these techniques so you now have the plan to trade so then trade the plan right?
i just found your thread!
your method is unbelievable... for me it is still hard to "see" those moments to pull the trigger.
  • #159
  • Feb 22, 2011 5:39pm Feb 22, 2011 5:39pm
ok lots of question so let me put them in a few post hey ozzie heres the thing your using a 1 hr chart we are using a 5 minute chart which is a day trading chart not that you cant daytrade off the hour i just dont. each chart gives you the picture of what your trying to accomplish. there is 2 - 10 different schools of thought the top down which is viable or just picking 1 time frame which is also viable, you see the bigger pictur than the 1 hr is the 4 hr which then has the daily which then has the weekly,ETC. you get the point this is a trend first method which when a swing is taken out we just wait for a pullback and then go with the trend. as for fibs in my experience noone has proven to me that 1 level is any better than another to me fibs pivot points murrey math etc are just potential s/r levels but nothing ever replaces price swings and i mean nothing. Thanks again ace trader simple trend trading produces simple profit.
  • #160
  • Edited 5:51pm Feb 22, 2011 5:40pm | Edited 5:51pm
sujith 2 super entries good job. my risk to reward is 1 to 1 this is an extremely high winning pct and i mean extremely high. when i get to with 5 pips of target i move my stop to break even i then watch to see if there is any bounces if there is a significant one i wait for price to come back to the bounce and get out with a few less there is no SIN taking profit also there were no setups today here is a chart again to show those what i look for if you cant draw a 45 degree trendline then stay away i hope i answered all questions if not ask away
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