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Trading Made Simple

  • #4,361
  • May 31, 2011 11:38am May 31, 2011 11:38am
I think eveyone needs to go back to the BigE template or at least make sure your preferred TDI/HA/Stoch combo is configured in the same exact way of BigE's. Remember we enter at the beginning of the candle not the near the end. Using BigE's template would have kept you out of this trade.
  • #4,362
  • May 31, 2011 11:48am May 31, 2011 11:48am
I'm assuming you entered near the end of the candle when you saw something like this using the TMS-OSC TDI that refreshes, it still looks like it didn't cross though. Also notice anything on that trend line you don't like and that your taking a short that is hitting the 32 TDI line.
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  • #4,363
  • May 31, 2011 11:49am May 31, 2011 11:49am
Quoting TheSnowman
Those Heiken-Ashi candles will get you every time; look real nice, but price is nowhere near what you see
I use HA candles but leave the price level on the chart so I know where price is in relation to the candle. I half agree with you though, you wouldn't want to trade them exclusively without knowing where the price was.
  • #4,364
  • May 31, 2011 11:52am May 31, 2011 11:52am
Sorry if I'm wrong here someone point it out if I am. But we can't just criticise HA candles and BigE's system if we're trading it wrong.
  • #4,365
  • May 31, 2011 11:56am May 31, 2011 11:56am
I know it's not part of this system but: the big red candle took the price down about 105 pips for the day. This is way more than the Average Daily Range for this pair of 84 pips (180 day range) which put the price near a reasonable low.
If you entered here odds are price would stall. That and the significant s/r area from 7 days ago appears to have had an effect on this trade.
That said......you'll never win them all.


Good trading.
Hej.
  • #4,366
  • May 31, 2011 12:12pm May 31, 2011 12:12pm
Quoting 2scoops
Ok using BigE's original template this is what the trade looked like when the second 1HR candle formed on that move. I see no clear cross, even looking back without using the strategy tester it looks like red was only touching green = no trade.
You mean this is HA candle right at the moment of candle opening (1600 GMT)? As far as I remember mine was much bigger (no picture though, might be wrong or just few minutes after candle start), later increased due to sharp down move... And I did see the cross...

Hmm... Is it just a coincidence you took that snapshot or you are saving every H1 beginings for every currency ? :-)

On analysis: I decided to stay despite H1 TDI turned flat/up for 1 hour. This time I trusted more Price Action rather then EXIT rule (I'll pay for this someday!).

On news: I was aware there are news coming at the moment and realized this plunge is a news reaction... So what? See weekly chart below.

I don't know, as I said, looks like exit rules tend to make us get out too early from hourly based trades. Maybe more Basic Forex should be taken in consideration then..

I really miss Big E to give us a hint
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Bah...
  • #4,367
  • May 31, 2011 12:17pm May 31, 2011 12:17pm
Quoting plamendp
You mean this is HA candle right at the moment of candle opening (1600 GMT)? As far as I remember mine was much bigger (no picture though, might be wrong or just few minutes after candle start), later increased due to sharp down move......
Lol no it was using the strategy tester, trade simulator (posted on this thread)
  • #4,368
  • May 31, 2011 12:21pm May 31, 2011 12:21pm
Quoting 2scoops
Lol no it was using the strategy tester
Bah...
  • #4,369
  • May 31, 2011 12:21pm May 31, 2011 12:21pm
just formed new candle , i'm in
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  • #4,370
  • May 31, 2011 12:26pm May 31, 2011 12:26pm
Careful old resistance area 20ish pips away old resistance becomes new support, and outside of normal BigE trading times.
  • #4,371
  • May 31, 2011 12:44pm May 31, 2011 12:44pm
Quoting Zr-fx
Loss on Usd/Cad short. Entered on a good cross, large candle, second candle, no close resistance. Next candle TDI flicked up and I existed with -16 pips. Any analysis would be useful.
I find that if the red is not either flat or pointing in the direction of the green on the TDI before the set up candle then the trade is less likely to work out. I think though Big E ignores the angle of the red.

Fred
  • #4,372
  • May 31, 2011 12:47pm May 31, 2011 12:47pm
Quoting Stitch961
I know it's not part of this system but: the big red candle took the price down about 105 pips for the day. This is way more than the Average Daily Range for this pair of 84 pips (180 day range) which put the price near a reasonable low.
If you entered here odds are price would stall. That and the significant s/r area from 7 days ago appears to have had an effect on this trade.
That said......you'll never win them all.


Good trading.
this makes sense.

In response to 2scoops, I think the chart you posted was just before the candle closed. I entered 4 minutes after the new candle started and at the time there was a clear cross, even with the original TDI. So I don't think it is a question of not following the rules but more of taking a high risk trade as Stitch has explained.
  • #4,373
  • May 31, 2011 12:57pm May 31, 2011 12:57pm
Quoting preetenzo
where can i find histogram for tdi? Thanks in advance
how do you get the tdi to download to your chart? I am using
fxcm tradestation ii. I really like the trading made simple thread and am looking forward to trading that method. I hope someone
will help me get started.
  • #4,374
  • May 31, 2011 1:06pm May 31, 2011 1:06pm
Ah ok, sorry it wasn't clear:

So you entered on something like the chart posted.

Problems I see with this chart:

1, You entered on the 3rd candle, ok the first candle is only just red but technically we try to enter in on the 1st or 2nd candle of the move.

2, Angle on the TDI didn't look right (2.3 slope on Plamen's very useful indicator)

3, Stochastics didn't look at the correct angle either.

4, You took a short below the 32 line.

5, Long tails on the candles, there's a very good post from BigE on this thread, I'll try to dig it out.

6, Its not technically part of the BigE method, more of a 4X basic, but price tends to bounce off trend lines and where trend lines are broken price often snaps back pretty quickly.

7, Outside of BigE's recommended trading hours.
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  • #4,375
  • May 31, 2011 1:08pm May 31, 2011 1:08pm
Thank you 2 Scoops for the good analysis.

Guys, need some advise from those trading H4 around London time. I am UK based but my first H4 candle starts at 7AM UK time so one hour before the London open.

It has been mentioned that we should trade at the start of whatever candle we have but have people found this setup to be OK?
  • #4,376
  • May 31, 2011 1:16pm May 31, 2011 1:16pm
is this possible to create an indicator which can show arrow on chart when daily and hourly TDI agrees.

if daily TDI is bearish>>>>>so when hourly also turns bearish it shows a bearish arrow.

for buy vise versa...

is this possible?
Trade responsiblypatience is the key/Swing trader
  • #4,377
  • May 31, 2011 1:17pm May 31, 2011 1:17pm
here it is:

post #701

Training Chart - example only

Look at the last short... The first red candle doesn't count... it's a nothin'... barely a speck... On my FXDD Charts the second candle is the entry candle barely... The TDI is at a 4 o'clock angle...on the next candle the TDI green line drops to a 5 o'clock angle.... TDI looks good with Stochs confirming... Flashing light, flashing light.... look at the wick pullback on the big candle !!!!! wow... I'm expecting a short lived trade... next candle is at the bottom of the TDI check mark with another candle pullback... time to exit... last two candle bottoms are about the same... exit, exit, exit ! Look to the left (2 blue boxes) that's what is stopping the downward movement... and the last candle starts up.

Take time to learn to read your candles and what their trying to shout at you as well as your TDI signals...

This is all BASIC FX things you need to know and recgonize...
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  • #4,378
  • May 31, 2011 1:32pm May 31, 2011 1:32pm
Quoting Zr-fx
Loss on Usd/Cad short. Entered on a good cross, large candle, second candle, no close resistance. Next candle TDI flicked up and I existed with -16 pips. Any analysis would be useful.
I got in just as the momentum from the news was moving it, remember wondering if I was too late. Got out too early for +20 pips because of the size of the candle and being a news action I figured it was going to retrace on me. My green was crossing red at the entry, thats why I like the indicator that refreshes as price moves. Otherwise green would not cross red until the candle finished, even with a 50 pip move, and be too late.
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  • #4,379
  • May 31, 2011 3:44pm May 31, 2011 3:44pm
Hi All!

Stumbled on this thread over the weekend and have managed to read the first 300 posts.... long way to go.... Like most of you, I have been trading a few years and struggling to make consistent profits, blown a few accounts, etc.

Just want to thank BigE for sharing this, and all you others for your contribution, it has made it easy to understand.....

I hate trading demo, so started to trade Yesterday with 1 micro lot risked per trade (I don't mind paying school fees). I use a strong Money Management system!

Well I am in South Africa, so GMT +2, and only realised it was a bank holiday in USA & UK after placing trades on the H1 tf. So went back and checked, and changed stops to H4 tf. Woke up this morning to find myself up 128 pips.... So thanks for every thing.

Excellent thread- I have 5 star rated it.....

QUESTIONs

1) 5 EMA - is it 2, or 3 horzontal offset?
2) Do I wait for the 2nd candle above (below) the EMA, or 2nd candle after TDI cross?

I have been scalping 5m & 15m tfs, but have moved to H1 for this system, will try to move to H4 when I get used to trading longer tfs.

Will
"It always seems impossible until it is done" Nelson Mandela
  • #4,380
  • May 31, 2011 3:55pm May 31, 2011 3:55pm
Alright Dogs.... the Big Dog is back.... Big E. Lets cut the BS and get back to the method I layed out originally.

2scoops... thanks for helping out and steering traders in the right direction. Thanks to others who have helped tooo... God knows I've needed the help.

Let's get this thing fired up again....
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