Good Morning
Some time ago Strada you said something about being careful when the price goes against the signal bar, could you please expand on that.
Would you then wait for the price to break the hi/lo of the signal bar, or just improve on the close, and if the price did not improve for 4-5 bars how would treat this.
Many thanks Aj1
Ignored
Morning AJ, this would depend on the strategy you've developed. I prefer in the main to work off the closing price of the signal bar so I will look for an improvement on that price for entry. If there have been a few recent hi/lo's then I'll be mindful of those and may wait for a break of those prices.
If price goes against the signal bar and if the 5/12 or RSI recrosses (on a completed bar/candle) then I consider that signal to be void, but not forgotten. I'll then watch for a fresh signal. If a new signal appears in the same direction as the previous one I will use either that closing price or the closing price of the previously voided signal whichever is furthest out. I use this rule if there isn't much space between the signals but if there is a long period between them then I will just use the closing price of the new signal. But always being mindful of any recent series of hi/lo points that may have created a floor or ceiling or channel etc.
If you get a signal then price dawdles with no real improvement or recrossing I'll just be patient and as long as there is no other reason for not entering then I will enter if I get that improvement in price regardless of how many bars it takes.
Your trade this morning could have run until closer to the news, easy to see now in hindsight!!
On the point of the news ~ if it is part of your strategy to be out of the market during news releases then you have to look carefully at the timeframe used. On the hourly there aren't many bars between the euro/gbp news and us news and as this is regarded as the premier trading session this has to be taken into consideration. This could also apply to 15 min, and AJ even 10min some days; this was one of my reasons for going from 10 to 5min, quite often the 10m trade didn't have enough time to develop between news releases.
Also on the news if you are running a trade close to a release be mindful of the fact that some are released 2 mins before the scheduled time. The PMI's do (Reuters did a deal giving them the figures 2 mins early for their subscribers, bordering on insider trading I think). Otherwise be careful of any euro news coming from Brussels, the european centre for corruption where leaks are normal.
All the best, strada.
Ok hopefully I attached the chart properly. The arrows represent the EMA crossover. The Thick green line if the 50 EMA which as you can see is the same as the RSI crossing the middle line below. To the right of the chart you can see that price starts to go choppy and wondering if you have a filter for that.
Morning AJ, this would depend on the strategy you've developed. I prefer in the main to work off the closing price of the signal bar so I will look for an improvement on that price for entry. If there have been a few recent hi/lo's then I'll be mindful of those and may wait for a break of those prices.
If price goes against the signal bar and if the 5/12 or RSI recrosses (on a completed bar/candle) then I consider that signal to be void, but not forgotten. I'll then watch for a fresh signal. If a new signal appears in the same direction as the previous...
Ignored
Thanks Strada, you also say that the signal bars after the news can be good bars to trade, can you shed some light on that please.
And why do my posts always come with the edit box next to the quote box?
Aj1
This may be getting off the track or some of you might find it is getting on the track or at least making the track clearer? Your thoughts are appreciated. Anyway if you look at the pic attached you can see that I have added a BB. If you look further at the middle line or 20 ma you can see that most of the time the crossover of the EMAs represented by the colored arrows happen when price crosses the 20 MA. And still using the 50 EMA to represent the 21 RSI if you trade only those arrows in the direction of the 50EMA perhaps exiting at the opposite band then you have a filter of sorts against chop. Your thoughts?
Ok hopefully I attached the chart properly. The arrows represent the EMA crossover. The Thick green line if the 50 EMA which as you can see is the same as the RSI crossing the middle line below. To the right of the chart you can see that price starts to go choppy and wondering if you have a filter for that.
Ignored
Might have more to do with the time than anything else, the asian trading session can be slow, much less liquidity. The 50ema crossover doesn't always concur with RSI, quite often it's later. But if that's your preference, go for it.
Regards your other chart you've now got bollies + 50ema in your quest to filter during periods of market inaction. If the market is predominantly choppy it would be best to leave well alone, there is no profit to be gained long term from a sideways market. One alternative might be trying a shorter timeframe but again only if there is enough range in the market.
strada.
Thanks Strada, you also say that the signal bars after the news can be good bars to trade, can you shed some light on that please.
And why do my posts always come with the edit box next to the quote box?
Aj1
Ignored
Hi AJ, Yes I like trading post news signal bars but you have to be a bit more careful and if price is swinging by several pips a time wait for it to settle down. Quite often there will be increased volatility so I adjust my stops accordingly and hang on to my hat. It also requires some deft mousework at times ~ your tp can be there 1 second and a split second later you're back in the minuses. Also make sure the platform you are using doesn't use wider spreads and doesn't conveniently freeze at these times.
The edit box is for you in case you may want to change your post, only you have access to your posts.
rgds, strada.
Might have more to do with the time than anything else, the asian trading session can be slow, much less liquidity. The 50ema crossover doesn't always concur with RSI, quite often it's later. But if that's your preference, go for it.
Regards your other chart you've now got bollies + 50ema in your quest to filter during periods of market inaction. If the market is predominantly choppy it would be best to leave well alone, there is no profit to be gained long term from a sideways market. One alternative might be trying a shorter timeframe but again...
Ignored
I actually trade the euro open just grabbed those charts for an example but hey thanks for the info. Liquidity is definately the go
hi all,
im loving this system. i trade M15 or H1 depending on screen time.
Heres my version:
white - price
Purple 200 LW - just for trend
arrows are the 5/12 (lines gone- not req)
blue and red are TRO SSRR for last 21 bars S&R
rsi is at 21 - "color RSI V1.02 - i live the defination (red / green)
bars in background just show me session. black- asian, grey Lon, red - NY and overlap.
if anyone wants indis and temp, just say.
confession. i read the 1st 30 pages and skipped to here. - way too big.
anything to note in a couply hundred pages?
..
