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Trading Made Simple

  • #6,521
  • Jun 30, 2011 12:36am Jun 30, 2011 12:36am
Personally, when trading H4 I'm watching D1 and W1 and considering only those pairs having on both D1 and W1 STO (8,3,3) on same side of 50% line (this define a strong trend), no matter what slope.
I'm entering in H4 only in the direction of D1/W1 trend.



Quoting DayTraderBiH
Could someone explain me in more detail how to look at the charts at the higher timeframe that we are trading. What I mean is, if Im trading hte 4H then what do I have to watch for at the Daily?
I'm having problems figuring out when to enter a trade. Lets say I have a sell signal at 4H and I swith to daily where I see it trending up, then I swith to 1H and I see the downside movement is coming to an end. Do I still take the 4H sell signal?
I'm getting kinda confused with those timeframes.
Thanks in advance !
  • #6,522
  • Jun 30, 2011 12:42am Jun 30, 2011 12:42am
Quoting dean
Entering at the opening of the first candle is considered aggressive, but many are happy to go with it provided the tdi has crossed and the forex basics are met. You can always choode the more passive method of waiting for the second candle to get confirmation. BUT you enter on the OPEN of the candle...so be ready at the close of the first candle.
Entering at the CLOSE of the second candle is too late.
Everybody confused about this....listen.....YOUR TRADE ENTRIES ARE AT THE OPENING OF EITHER THE FIRST OR SECOND CANDLE.
THE FIRST CANDLE IS THE...
thanks dean.
makes it a bit more clear. I jumped in as soon as the first candle formed. I'll try at the open of 2nd candle next trade. is this how u trade?
  • #6,523
  • Jun 30, 2011 12:56am Jun 30, 2011 12:56am
Hi,

Anyone please confirm if NZD/USD formation is good on H4. Eventhough it is against the trend, i believe it reached the resistance level.
  • #6,524
  • Jun 30, 2011 12:56am Jun 30, 2011 12:56am
Quoting dean
Entering at the opening of the first candle is considered aggressive, but many are happy to go with it provided the tdi has crossed and the forex basics are met. You can always choode the more passive method of waiting for the second candle to get confirmation. BUT you enter on the OPEN of the candle...so be ready at the close of the first candle.
Entering at the CLOSE of the second candle is too late.
Everybody confused about this....listen.....YOUR TRADE ENTRIES ARE AT THE OPENING OF EITHER THE FIRST OR SECOND CANDLE.
THE FIRST CANDLE IS THE...
Great explanation. Thanks.

I do have a follow on question. The first candle that crosses must also be crossing the 5 MA as well correct? So in other words, if a candle changes color but does NOT cross the 5 MA by the close it would or would not be considered the first candle as you explain above? Or do you literally count the candles from the color change regardless of the 5 MA cross or not? How would this apply or not to the 3 candle rule?

What do you mean by "forex basics?"

Thanks for the help.
  • #6,525
  • Jun 30, 2011 12:59am Jun 30, 2011 12:59am
Hi,
Is it somewhere such an indi available.
Alarm should rise at the close of the bar.

Thank you !
  • #6,526
  • Jun 30, 2011 1:13am Jun 30, 2011 1:13am
Quoting Rcwso
Great explanation. Thanks.

I do have a follow on question. The first candle that crosses must also be crossing the 5 MA as well correct? So in other words, if a candle changes color but does NOT cross the 5 MA by the close it would or would not be considered the first candle as you explain above? Or do you literally count the candles from the color change regardless of the 5 MA cross or not? How would this apply or not to the 3 candle rule?

What do you mean by "forex basics?"

Thanks for the help.
The MA is not really required.....some like to use it to confirm a less aggressive entry but it is not part of the method. In my opinion if the first candle is the size it needs to be for entry it will probably be crossing it anyway but it is not part of the method.
Forex basics are checking for support/resistance, round numbers, last swing high or low etc
There is no third candle rule.....the only rule about the third candle is....too late no entry.
  • #6,527
  • Jun 30, 2011 1:22am Jun 30, 2011 1:22am
Heres a trade I took yesterday in the Ney York session.
TDI cross, nice angle, strong bearish candles, with the Daily and Weekly trend, enterd at the opening of the second candle,
in other words the perfect setup ?!

What do you guys think?

Attached Image (click to enlarge)
Click to Enlarge Name: uj.gif Size: 34 KB
The Mind creates reality.
  • #6,528
  • Edited 1:41am Jun 30, 2011 1:37am | Edited 1:41am
Quoting kodex750
Hi

I've been playing with this method on demo for the past three weeks.

The main pair I trade with is GBP/USD on the 1hr and 4hr tf. Had more success with the 1hr chart those 3 weeks (2 losses & 12 wins ). btw the 2 losses were from the 4hr chart.

But this week seems different. PA on gu shows the market is ranging. I've had 3 losses in a row so far following the same rules. Whats going on with the gu pair? I see many people on this thread make more pips with the 4hr than the 1hr. I have been entering on all TDI crosses. last night...
Hi,

I think that you tried to trade against the trend on higher TFs. On the attached picture the TDI shows uptrend on Daily and Weekly TFs at the time you entered (red vertical line).
Ric
Attached Image (click to enlarge)
Click to Enlarge Name: eurgbph4.gif Size: 28 KB
  • #6,529
  • Jun 30, 2011 1:38am Jun 30, 2011 1:38am
Hi,

I took this trade. Can anyone please confirm if this is a valid setup?
Attached Image (click to enlarge)
Click to Enlarge Name: NZD-USD-H4.JPG Size: 67 KB
  • #6,530
  • Jun 30, 2011 1:39am Jun 30, 2011 1:39am
Quoting kodex750
thanks dean.
makes it a bit more clear. I jumped in as soon as the first candle formed. I'll try at the open of 2nd candle next trade. is this how u trade?
you get used to seeing what is a straong candle and what isnt so it might be worth waiting for the second candle while you learn and as you get used to the method and the signals you can become more aggressive with your entry. Or yo may have success with the second candle...its really up to you
  • #6,531
  • Jun 30, 2011 1:42am Jun 30, 2011 1:42am
Quoting netwatchpips
Hi,

I took this trade. Can anyone please confirm if this is a valid setup?
It is BUT you are against a heavy uptrend so be careful
  • #6,532
  • Jun 30, 2011 1:50am Jun 30, 2011 1:50am
My rule is never trade against the higher trend, that is the daily trend in my case. I'm using a trading log, and about 90% of my failed trades are those against the higher trend.
Never trade against the higher trend, make it a rule for yourself.
The Mind creates reality.
  • #6,533
  • Jun 30, 2011 1:52am Jun 30, 2011 1:52am
Quoting Surge-my-pip
Bez3000,

I admire the kind of pips you bring in. I am a newbie and been trading this system for a month now, with up and down success. But ? How many pairs do you trade and what are they? I currently trade the six major pairs but some times I am just on the sideline for too long and end up doing something stupid.
surge,

Check back a couple of pages at my posts i answered this same question
  • #6,534
  • Jun 30, 2011 1:55am Jun 30, 2011 1:55am
Quoting Danyjoe
Hello, what do you think?
too far from the yellow?
resistence.. third candle..

or good?
Looks great trades to me, i am in the usdcad from the 4h chart and i wish i traded Daily to get me in the audusd looks a good trade.
How are you finding trading the Daily charts?
  • #6,535
  • Jun 30, 2011 2:04am Jun 30, 2011 2:04am
Quoting kodex750
Hi

I've been playing with this method on demo for the past three weeks.

The main pair I trade with is GBP/USD on the 1hr and 4hr tf. Had more success with the 1hr chart those 3 weeks (2 losses & 12 wins ). btw the 2 losses were from the 4hr chart.

But this week seems different. PA on gu shows the market is ranging. I've had 3 losses in a row so far following the same rules. Whats going on with the gu pair? I see many people on this thread make more pips with the 4hr than the 1hr. I have been entering on all TDI crosses. last night...
I think your problem is as you put it "I have been entering on all TDI crosses" you need to be picky.
Take your chart above i really don't understand your thinking behide going short. I mean look at the closing candle!!! It's a doji at best i think you need a strong candle to close below the yellow MA. But apart from that i would never trade it as it's again the trend "The trend really is your Friend".
Keep learning and posting mate .
You will get there with hard work.
  • #6,536
  • Jun 30, 2011 2:07am Jun 30, 2011 2:07am
hi guys..
i'm newbies in forex..
1st step, what i can do if i wanna trade with TDI?

thanks guys
  • #6,537
  • Jun 30, 2011 2:07am Jun 30, 2011 2:07am
Quoting netwatchpips
Hi,
I took the trade and so far 10 pips in profit. Got to wait and see.
I am also short this pair, good luck all.
  • #6,538
  • Jun 30, 2011 2:11am Jun 30, 2011 2:11am
Quoting DayTraderBiH
Heres a trade I took yesterday in the Ney York session.
TDI cross, nice angle, strong bearish candles, with the Daily and Weekly trend, entered at the opening of the second candle,
in other words the perfect setup ?!

What do you guys think?

Attachment
A++ for me, i entered the same trade
  • #6,539
  • Jun 30, 2011 2:11am Jun 30, 2011 2:11am
Quoting bez3000
Looks great trades to me, i am in the usdcad from the 4h chart and i wish i traded Daily to get me in the audusd looks a good trade.
How are you finding trading the Daily charts?
I look at the daily chart at midnight
  • #6,540
  • Jun 30, 2011 2:17am Jun 30, 2011 2:17am
Quoting Danyjoe
I look at the daily chart at midnight
Have the Daily charts been working well for you and making pips?
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