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Trading Made Simple for Day Charts

  • #161
  • Jan 3, 2012 2:59pm Jan 3, 2012 2:59pm
Quoting Intrepidpips
HAPPY NEW YEAR TO ALL TMS & S3 TRADERS!
I'm so happy for this thread because in retrospect if I had gone live on D1 charts I'd not have suffered the fate I met on my first day (sept 6th Swiss Govt intervention)
Going thru the charts I see that a working knowledge of PA & candlesticks patterns will enable one to enter as soon as a new trend starts, in fact if your broker closes at New york close you can have a head start above the rest on the beginning of a new trend with PA.
For those who have been once beaten and twice shy you can wait for the...

Intrepid,

can you post your indicators? is the XPMA your using located here? http://www.forexfactory.com/showthread.php?p=137294 the xpma.mq4 or is it a newer version? so you enter a trade as soon as xpma changes color?
  • #162
  • Jan 3, 2012 3:10pm Jan 3, 2012 3:10pm
Closed
EURAUD short +70
EURJPY short +70 (gave back 100 pips to the market..)
GBPJPY short +40 (gave back 100 pips to the market..)

Probably should exit earlier, e.g. at tweaking of TDI.

Opened
EURHKD long
GBPUSD long
USDSGD short
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURAUD short closed.PNG Size: 56 KB
Click to Enlarge Name: EURJPY short closed.PNG Size: 45 KB
Click to Enlarge Name: GBPJPY short closed.PNG Size: 51 KB
Click to Enlarge Name: EURHKD long.PNG Size: 40 KB
Click to Enlarge Name: GBPUSD long.PNG Size: 48 KB
Click to Enlarge Name: USDSGD short.PNG Size: 43 KB
Financial independence is what I live for
  • #163
  • Jan 3, 2012 8:06pm Jan 3, 2012 8:06pm
Thanks Britpip for starting this thread. I've been trading the tms system for awhile on the lower time frames without to much success and just went to the daily frame so this thread is perfect timing. Long live this thread
  • #164
  • Jan 3, 2012 10:09pm Jan 3, 2012 10:09pm
Now into day 7 of this trade and continuing with the dual approach to trade management as discussed earlier.

TP1 is nearing it's close at +324 pips - currently sitting around 300 - this has a TS of 100pips.

TP2 is still not set and the SL has been moved again to the top of the previous candle wick - coincidentally this SL is at the same level as the TP1 100pip TS!.

Warning signs that this trade is running out of steam, with the TDI running well below the 32 level AND the trade is now running into 1.6500 so possible BRN effect, especially when you look left at the previous Fractal Low at 1.6503.

Although the TMS-Osc is still showing D/W/M all red, this can easily flatten out and may bounce off of this strong Support line. On reflection, TP1 could have been set above the Support level at 1.6510 - 1.6525 to avoid this concern - I love hindsight

This brings up an earlier point about watching where your TP levels are set - avoid setting below previous strong S/R levels and watch for the BRNs!

This will become clearer as volume returns during the week and the ATR(7) returns to normal levels.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu nzd trade management.gif Size: 34 KB
Click to Enlarge Name: eu nzd support levels.gif Size: 41 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #165
  • Jan 3, 2012 10:30pm Jan 3, 2012 10:30pm
Quoting Britpip7
Now into day 7 of this trade and continuing with the dual approach to trade management as discussed earlier.

TP1 is nearing it's close at +324 pips - currently sitting around 300 - this has a TS of 100pips.

TP2 is still not set and the SL has been moved again to the top of the previous candle wick - coincidentally this SL is at the same level as the TP1 100pip TS!.

Warning signs that this trade is running out of steam, with the TDI running well below the 32 level AND the trade is now running into 1.6500 so possible BRN effect, especially when...
When you force yourself to document what is happening in a trade, it sometimes wakes you up.

I finally saw sense and rather than turning this into a hope trade for an extra 30 pips, with a downside of giving up 100pips, I closed the TP1 trade for +290pips.

TP2 trade remains in play with 200pips protected
"To live with Passion, it takes Courage and Grace to survive"
  • #166
  • Jan 3, 2012 10:32pm Jan 3, 2012 10:32pm
Quoting tayclabay
Thanks Britpip for starting this thread. I've been trading the tms system for awhile on the lower time frames without to much success and just went to the daily frame so this thread is perfect timing. Long live this thread
Longer timeframes = less stress, less false signals and a lot of pips.

Welcome
"To live with Passion, it takes Courage and Grace to survive"
  • #167
  • Jan 3, 2012 10:37pm Jan 3, 2012 10:37pm
Quoting Britpip7
Just be aware that we are still in a major down trend - look at previous bull candles and TDI signals on eu and then decide where you want your SL and TP.

Essentially the signal is good, however week and month may still drive this lower - enter with caution! For my set-ups this does not yet qualify for a high probability entry.
ok thanks. I took this trade but small SL so let see how it goes.

What about this Long signal AJ trade? TDI cross, RSI(10) above 50 stoch moving up. The only exception ATR7 is on 58 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: aj.gif Size: 16 KB
  • #168
  • Jan 3, 2012 10:48pm Jan 3, 2012 10:48pm
Quoting kijkij
ok thanks. I took this trade but small SL so let see how it goes.

What about this Long signal AJ trade? TDI cross, RSI(10) above 50 stoch moving up. The only exception ATR7 is on 58 pips.
Looks promising - 1.0379 is your next Fractal to clear.

With the ATR(7) it depends on which candle you entered - even on 58 pips, TP1 would be 116 and TP2 would be 232, so still not too shabby.

Good luck with the trade
"To live with Passion, it takes Courage and Grace to survive"
  • #169
  • Jan 3, 2012 10:58pm Jan 3, 2012 10:58pm
Well done Britpip7 - well managed trade!

Thank you for sharing your approach.


Quoting Britpip7
When you force yourself to document what is happening in a trade, it sometimes wakes you up.

I finally saw sense and rather than turning this into a hope trade for an extra 30 pips, with a downside of giving up 100pips, I closed the TP1 trade for +290pips.

TP2 trade remains in play with 200pips protected
  • #170
  • Jan 3, 2012 11:46pm Jan 3, 2012 11:46pm
Quoting Britpip7
Looks promising - 1.0379 is your next Fractal to clear.

With the ATR(7) it depends on which candle you entered - even on 58 pips, TP1 would be 116 and TP2 would be 232, so still not too shabby.

Good luck with the trade
Britpip, question for you.

With you using real candles, vs APB, on your AJ chart, if a screenshot was taken at the same time as kijkij, the second candle would currently show as a red candle (as close currently lower than open) ...

So, in this scenario, would you still enter? Or would you ensure two green/blue real candles before entering?

I ask because I came across this scenario myself and wasn't sure, because in these situations APB and real candles give you a different story.
1 pip at a time ... if the entries are strong, the rest will follow ...
  • #171
  • Jan 4, 2012 1:06am Jan 4, 2012 1:06am
I just recently had my eyes open to the color change phenomenon, I'd all the while been bonded to M5 and M1 and my experience is that the XPMA indy does not repaint after a candle close so once it says blue it does not go back after 2 candles to say red. believe me I've tried a whole lot of indicators.

Just today I went back and noticed that even on H1 TF, once XPMA changes color from blue to yellow (EMA5 shift 2) you could scalp a minimum of 7 pips in the direction of the color change that means after London and New york have had a good run, and the trend is exhausted, you can wait for a color change and pick some easy pips.

So my simple suggestion is that you experiment it on the D1 charts, load the indicator, and back-test 6 months data and draw your conclusions.

I've decided that the D1 charts is the way to go for me and I believe that the XPMA color change will be my litmus test to make me join a trend sure I'll get in late but hey someone said "experienced traders control risk inexperienced traders chase gain"
Thanks to Britpip 7 I'll include fractal breaks for adding on positions plus we have a drag net of over 10 currency pairs to choose from.

Here are the files, enjoy.
Attached File(s)
File Type: ex4 xpMA_v21.ex4   19 KB | 627 downloads
File Type: mq4 xpMA_v21.mq4   17 KB | 786 downloads
Let it turn and find your entry.
  • #172
  • Jan 4, 2012 2:29am Jan 4, 2012 2:29am
Quoting cajun
Could someone please explain how the settings of the EMA's are determined, is this based on TF or is this only trial and error. I am confused on how one determines the settings because i have seen so many different settings on this.
I was watching videos from someone who trades only the daily charts and PA, he uses complete different settings for the 2 ema's he is using.
Would be appreciated if someone could lighten me up on this.
BigE uses the EMA5 shift 2 as the setting basic setting for the TMS method.
This I think replaces the 5 period price channel which you'd have to waith like 4 hours for price to close above or below the channel for an entry and exit signal.

The EMA5 shift 2 also mirrors the TDI cross (i.e green crossing red) so when you see a candlestick closing above or beneath the EMA5 you should be seeing a TDI cross.

Here are the settings for the EMA5 which comes with all MT4 platforms.
Go to insert on your menu bar, select indicators, select trend and select moving averages.

Thereafter just follow the example attached.
Hope this helps.

Edit

The other EMA of note (my preference) is X-man's EMA60 this serves as an intermediate S&R level for H4 and D1 PA bounces off this level quite often on both time frames but you need to use what you are comfortable with.
Britpip7 recommends EMA55 (I think) some others EMA100 so go ahead and play with all one at a time make your observations and stick to your choice just remember the connecting link is the TDI and EMA5 represents that so you may not be able to do away with that.
Attached Image (click to enlarge)
Click to Enlarge Name: EMA5_SETTINGS.png Size: 136 KB
Let it turn and find your entry.
  • #173
  • Jan 4, 2012 2:50am Jan 4, 2012 2:50am
Intrepidpips

I also found your explanation helpful. Thank you.
  • #174
  • Jan 4, 2012 2:55am Jan 4, 2012 2:55am
Quoting migmac
Intrepid,

can you post your indicators? is the XPMA your using located here? http://www.forexfactory.com/showthread.php?p=137294 the xpma.mq4 or is it a newer version? so you enter a trade as soon as xpma changes color?
Please see my earlier post.
No I do not enter as soon as the XPMA changes color, that is only the final confirmation.
First TDI cross; then from where is the TDI cross coming, from 32 up or 68 down, from above 50 up or below 50 down?
Then is the currency pair ranging or trending? This you can tell from the slope of the EMA5.
The wonder of Forex is you can get all confirmations and still get faked out and stopped out so if all the considerations are met, my last line of defense would be the Xpma color change.
The attachment is the settings for the XPMA's EMA5 on a D1 chart: note the color change however I'm not taking this trade because I don't like the slope of the EMA5 and I don't think the pair EURUSD is perfectly trending.
Chew on this awhile.
Attached Image (click to enlarge)
Click to Enlarge Name: XPMA_EMA5_SETTINGS.png Size: 140 KB
Let it turn and find your entry.
  • #175
  • Jan 4, 2012 3:02am Jan 4, 2012 3:02am
Quoting Intrepidpips
BigE uses the EMA5 shift 2 as the setting basic setting for the TMS method.
This I think replaces the 5 period price channel which you'd have to waith like 4 hours for price to close above or below the channel for an entry and exit signal.

The EMA5 shift 2 also mirrors the TDI cross (i.e green crossing red) so when you see a candlestick closing above or beneath the EMA5 you should be seeing a TDI cross.

Here are the settings for the EMA5 which comes with all MT4 platforms.
Go to insert on your menu bar, select indicators, select trend and select...
Thanks, great explanation, seems like it's just what i thought, no real set rules, it's to each ones preference. I was watching videos on someone who trades the daily chart and he uses EMA 8 Expotential Close, amd EMA 21 Expotential Close, therefore there are so many different settings that is the reason i was confused although i understand it has to match the TDI as this person was not using the TDI.

Good Luck
  • #176
  • Jan 4, 2012 4:36am Jan 4, 2012 4:36am
Quoting Britpip7
Longer timeframes = less stress, less false signals and a lot of pips.

Welcome
I totally agree that the higher the TF the better your indicators work which will give less stress and definitely more pips.
Traders always tend to go to the lower TFs because they do not have patience. I personally think that patience and discipline is the key to the forex game. If any trader possess these qualities then you can make it big time.

Big E says that anything below the 1H TF is pure rubbish LOL
I totally agree and that made me a successful trader.
I trade the 1H TF only for E/U and the rest of the pairs i trade on higher TFs.
X-man the legendary conqueror of markets
  • #177
  • Jan 4, 2012 4:41am Jan 4, 2012 4:41am
Quoting cajun
Thanks, great explanation, seems like it's just what i thought, no real set rules, it's to each ones preference. I was watching videos on someone who trades the daily chart and he uses EMA 8 Expotential Close, amd EMA 21 Expotential Close, therefore there are so many different settings that is the reason i was confused although i understand it has to match the TDI as this person was not using the TDI.

Good Luck
EMAs can be played around with there is no set rules for emas.
Its just that you have to choose something that you as a trader is comfortable with.
Play around with the settings and then you will get a feel to it then you can tweek it to get the ema tight or loose.
X-man the legendary conqueror of markets
  • #178
  • Jan 4, 2012 5:14am Jan 4, 2012 5:14am
Quoting Intrepidpips
Please see my earlier post.
No I do not enter as soon as the XPMA changes color .....
First TDI cross; then from where is the TDI cross coming, from 32 up or 68 down, from above 50 up or below 50 down?
Where the TDI cross happens does not indicate UP or Down. It is the relative position of Red and Green Lines which indicate that. Am I wrong here ?
  • #179
  • Jan 4, 2012 5:19am Jan 4, 2012 5:19am
Could anyone here give a brief explanation about all these fractals which are on Top or bottom of some candles ? How could we use them to decide about the trade ? Are there necessary ? Thanks
  • #180
  • Jan 4, 2012 5:41am Jan 4, 2012 5:41am
Quoting Intrepidpips
Please see my earlier post.
No I do not enter as soon as the XPMA changes color, that is only the final confirmation.
First TDI cross; then from where is the TDI cross coming, from 32 up or 68 down, from above 50 up or below 50 down?
Then is the currency pair ranging or trending? This you can tell from the slope of the EMA5.
The wonder of Forex is you can get all confirmations and still get faked out and stopped out so if all the considerations are met, my last line of defense would be the Xpma color change.
The attachment is the settings for the...

Guys plz i will really appreciate it if anyone has an EMA that alerts with arrow when price closes above or below the 5EMA i think its going to be very helpful to trading this startegy...yours is very close but not exactly what i am looking for
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