On My Way To The Top

Mj, my friend, you're realy scaring me now!

Please prommise me that you will employ Stop MARKET orders, predifined, for the rest of your life!!!!!

I dont know how this spot forex market works but if you're playing futures: you're burning money like hell. If something real bad happenes, out of nowhere, you could get hit real ugly!

ALWAYS EMPLOY STOP MARKET ORDERS!

I set my stops, predifined, at 10c when I enter the market. I migth adjust some to the actual situation: if the scale on the chart is quite big I perhaps ad some cents(rare) or I migth look to some previous significant point on the chart like some top or bottom and put it around there.

During the trade I adjust my stop most of the time between the EMA12(blue line on the chart) and EMA24(brown line) pending on the strength of the trend or just below the EMA24.

If I got some nice candle(s) rigth away, I dont let them eat this anymore and replace my stop to secure profit. Most of the cases price has run away far from the EMA(12) and its very likely to drop fast as well. In fact I migth put a very tigth stop here to secure most of the fast profit.

On weak situations I take profit after +8cents; than again at +6cent and so on. I likely sell fast after a nice run; probably all at once as well. After the first profit, I adjust my stop to break even. After the next profit taker at +6cent I adjust again. Perhaps just take it all and be happy is also often the case.

On strong situations I don't take any profit at all during the ride but point my arrows on some fixed point, most of the cases some Pivot point(blue horizontal lines). Ofcourse I dont let them eat my profit and adjust Stop manualy, most of the times around +/- 12cents..

Chart: Swiss Frank for today. Watch the EMA12 and EMA24..

Still looking for some nice confirming signals; this could well be one of them! Not sure about the settings but looks very strong in combination with other signals!

Here is the story I found with it:

Most Indicators are of little value since they LAG the market. Standard and Hidden Divergences are the closest thing to a leading indicator I have ever found. When there is an imbalance between price and an oscillating indicator, a standard divergence warns of a direction change IN ADVANCE and a hidden divergence warns of a continuation of the underlying trend, in advance, and AT the point of pullback. Amazing!

MT4 - MetaTrader 4 Platforms with a custom MACD_Histogram Divergence Indicator Alert added allows you to scan many pairs at the same time searching for such divergences and sounds an audio .wav file when located and places an UP or Down colored direction arrow.

The more substantial the divergence, the better the signal. Wait for a confirmation after the alert such as a MACD crossover. It works for all timeframes. Longer are better, yet fewer, but this even works on 1 min. charts for all pairs. Colored direction arrows point the way after an audio alert.

The best divergences are at overbought and oversold levels, you can use RSI for this. You'll quickly get better at recognizing the strong divergences and avoiding the weaker ones.

No need to be scared. My question was not because I do not use SL: it was just out of curiosity of what you guys are doing. especially on the lower TimeFrame and possible SL hunting.

Anyway - we should sleep at this time

Hey MJ,

To answer your question on the stop loss issue...I do usually set my stops manually and usually don't exceed 16 pips as far as the stop goes...I actually think that is the beauty of trading the 5 minute chart...and usually I look to place my stop at the most recent swing high or swing low...

Paul

Here is something I'm currently working with...I'm tossing around the idea of playing on range bars or as some may know them as renko bars with multiple moving averages and the stoch rope...each bar in this picture is set at 15 pips so stops would be wider than I would like for now but this seems to look very profitable...I'm also going to see how it would be if I set each bar to about 30 pips...the ropes and moving averages seem to get us right in...

first pic is with 15 pip renko bars...each bar equals 15 pips-short term
trades
second pic is with 50 pip renko bars...each bar equals 50 pips longer term
trades

This would eliminate the concept of time and just give me the market price and my signals to get in or out...although I haven't quite come up with exit technique with this aside from just exiting at a fib pivot level or when rope enters overbought or oversold...this is an idea I always come back to but never actually employ for whatever reason...

Today on the gbp usd...we had everything line up to go long...but I stayed out of the entire long move simply because the 5 minute 14,3,3 was in overbought when we got the signal to go long...so sometimes I get kind of spooked when I see situations like that and wait for it to come back down and than line up with everything else before getting back in....well...that is where the 100,3,3 comes in...at the time of the proposed entry...the 100,3,3 five minute stochastic was heading up still below 50 actually...and so the trigger could have been pulled at that point but I think I want to have a filter for when this happens using the 100,3,3 and so far what I have is when we have a signal and the 5 minute 14,3,3 stochastic is in overbought or oversold we look to the 5 minute 100,3,3 and wait for it to cross over a higher time frame stochastic or to cross below and than close over any of the higher time frame stochastics...and that would be our filter...or if the 5 (14,3,3)minute leaves overbought or oversold on its own and than turns back over which would be the ideal situation..but in scenarios like today on the gbp usd it never left overbought until it was time to exit...so I guess I will report back with my findings on that...and also hidden divergence is reversal divergence and regular divergence is divergence indicating trend continuation...I think you had it backwards up there...

Paul

Something I just came across that is very interesting and seems to work very well as far as a target is concerned...but one would first have to associate the difference between hidden and regular divergence when identifying on a chart before doing this as this is a formula for a target primarily using hidden or reverse divergence...it seems to hit this target most the time of course I am still looking into it but it looks good so far...you can see in the second picture...the two lines mark the points of the divergence that will be subtracted and then I added that to point y in order to get the point marked off by the horizontal line...and we can all see that price went there perfectly and reversed around that area...great tool to add to trader's tool box...that tool box can't ever get too full...

Paul

hmmm...I'm starting to like this...is it a coincidence...no I don't believe in coincidences...but the two horizontal lines are where I calculated the targets for the two cases of hidden bullish divergence in this chart snap shot...and we can see how price is reacting around these two horizontal lines after going on with the uptrend...wow I wonder why I've never come across this before...

Paul

I find that you have an interesting idea. I never really looked into renko bars myself so I can not really comment or have thought it through.

But in case you really test more on it: I guess it would be interesting to have both setup charts next to each other.

(one with renko bars and one normal.)

Sorry, I included the wrong indicator on the divergence from MACD; I corrected it now!

The Indicator I included was the one you will like more: the Divergence from OsMA, with alerter. I have to say I like this OsMA more than I thought at the beginning; its quite powerfull!

I'm studying the signals from both divergence on the rope.

Will let you know!

Included the OsMA divergence indicator on this post:

You probably understand why I hate waking up so early now!

I love the silence at nigth; I hate the birds in the morning..

Looking through this alerts signals as we speak...



I think from what I can see I would just rather look for the divergence myself...

Ok so I have a method I know works for sure so what I'm focusing on at this point isn't on ways to make this better or improve or anything simple like that but rather I am looking through and seeing where we had line ups of the mtf and price fail to move in the correct direction...not necessarily going through the actual checklist process because I know that some of the significant levels are no longer drawn on this chart...but just looking at each of the stochastic line ups at any given time in the day where I see price didn't move if it was lined up for a long or a short....and what I'm seeing is basically just as I thought and just the reason why we all must look to the higher time frames to see what's going on...whenever we have the stochastics line up on our 5 minute chart with the stochastic rope lined up and everything than we must go to our higher time frames like the 15 and the 30 to start with and go from there...see this method is multiple time frame in every aspect...we are using the multiple moving averages which is mtf...the stoch rope is pure mtf with all the different levels of stochastics and waiting for them to all come together to tell the same story...and than we have the actual mtf stochastics...so if we are trading purely just multiple time frames than it would only be logical that we would actually refer to the higher time frames to get the bigger picture of whats going on...you see spud gave us the example of the 5 minute being our nails and wood to build a house and the higher time frames being the finished house...so its just like that we can use the higher time frames to get a birds eye view of whats really going on...in a sense I guess...so in this example I'm posting here we can all see the mtf stochastics lined up as far as the 5 15 and 30 with the 4 hour oversold...with the 4 hour being oversold we know that price is going to want to come down...especially since the other time frame stochastics are so high up...we notice the 1 hour just closing above the 20...but we aren't usually too concerned with the one hour...again I'm not paying attention to the other checklist items such as the test and fail and etc...this is purely just testing out the stochastics side of this as these are the trigger for our entries...so we have a signal here to go short...but when we look to the 15 we can clearly see a no trade zone as the stoch rope is way too messy for us...remember there is plenty of opportunity so we can easily look for a nicer set up...and from what I'm seeing...so I'm saying all of this to say...when looking for trade set-ups...before pulling the trigger...Always Always Always remember to refer to the higher time frames and get an idea of the bigger picture before hand...it can save you a lot of grief and negative pips...

Paul

Attached is a trading guide I typed up for myself and and anyone else to refer to...it is just pertaining to the mtf stochastics mainly...this was before me incorporating the stochastic rope and all the other checklist rules such as the test and fail and divergence...but it outlines how the trading day and everything is started...But in addition to everything put in there as far as getting started I would like to say that as far as trend direction it is important to take note of the last instance of divergence that occurred on the 4 hour as this will likely be our trend for the day until we have a sign of divergence in the opposite way but of course we do still want to take note of the direction of the daily and 4 hour stochastics to just see where we are but definitely I would say that last divergence if bearish than we would more than likely still be seeing a sell off as momentum hasn't shifted yet and the same way around for longs if that makes any sense at all...Well its Sunday and I hope everyone is prepared to make some money this week and grab as many pips off the table as possible...I know I'm prepared but I don't think I have enough bags to fit all the money in...lol just kidding...
But many pips to everyone...Oh and another things with this guide...you can look at this and also look at the 1st page of this for additional information as far as entries are concerned...such as the checklist of things to look for when seeking a valid entry...

Paul

Not sure where you attached it?

Just spending some time now studying my candlestick patterns and price patterns again.........never hurts to review again and again...candlesticker is a good source for good candlestick patterns information...

[quote=pmullin86;4485506]Attached is a trading guide
I am reading your posts with a big interest and is very interesting to read your trading plan but there is no attachement.

[quote=A95h;4485699]
Sorry about that...I get ahead of myself sometimes when I'm typing and forget to attach my items in my post sometimes. So, I went ahead and edited that post and attached the guide in question...my apologies again...

Thanks for following....

Paul

MultiStochDirectionAlert_AndFilters_mj_v.1.01.mq4

Got rid of the annoying sound alert by wrong input: instead display error.

Changed default settings more closely to the first Alerter version

ClosedeCandles and no Filter enabled.


hi pmullin86;

I think it would be preferable if you use this version instead of the first one: so we can test if things work accordingly.

Thanks

For your interest: http://www.forexfactory.com/showpost...postcount=1621