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EJ_4H method

  • #61
  • Apr 20, 2006 7:19pm Apr 20, 2006 7:19pm
Quoting eurusdtrader
Hello everybody,

Ian you asked a good question. We don't play with lines/MAs. my meaning of this type of entry was the best entry setup, you should recognize a decent trend then expect a good reversal (good distance between lines), so now you ask what is a decent trend, I have a short answer wait 1 day more and read it tomorrow in EJ_4H Method Part II.

Rgds
Ibo
Ibo,

Sounds good. We'll look forward to your next installment.

Regards,

Ian
  • #62
  • Apr 21, 2006 1:07am Apr 21, 2006 1:07am
Quoting iboersma
What is your rule of thumb in determining whether or not to open a trade when the trading signal is in conflict with the direction of the 55 SMA? Do you just look at a timeframe above the 4H (say Daily) to confirm the trade signal?
A common response (from various MA systems I've read about) to the question of when not to trade toward the slow MA is (another question):

Is it possible to tell the difference between a rebound off the slow MA versus a crossing of the MA, and still take some decent profit in the time it takes to react to the bad news?

My definitions for these things include at least 8-12 hours while I might be away from my computer after I think the trade is going well, and/or a well-considered stoploss placement. It's hard to translate price into time, so...

Some systems I've looked at don't consider entering the trade until both the price and fast MA fully cross or bounce off the slow MA, and then the price touches the fast MA and then starts to move in the desired direction.

There's a lot of stuff to consider, but the stuff about fitting the system to your schedule is really important and is the main mistake I've been making lately. There's some advice floating around about only trading off daily or higher charts, and it makes more and more sense as time goes on.
  • #63
  • Apr 21, 2006 1:35am Apr 21, 2006 1:35am
Quoting sashazz
I have a question for those of you, why are using MT4: There is a Fibonacci extension tool with the default values 61,8; 100; 161.8

I read somewhere before, and I did it this way: I added extensions to my regular Fibonacci tool, so that it draws retracements and extensions in one go at : 127. 2; 161.8; 2; 261.8. Why would the lines be at different places? And which one you think is correct? See yellow and magenta lines.
Fib levels fall under the category of "probable support and resistance". I like trendlines and actual recent highs and lows better.

The only lines that are correct are the ones you actually see the price reacting to. If several lines happen to be in the same place, one of them might be "correct" but you still need to see how price reacts to this level.

Watch how price reacts to the fib levels. It will tend to bounce around within them. This is more to keep you out of trades than get you in them, which is good. If price crashes through or bounces hard off several fib levels drawn from different points, you might have something.
  • #64
  • Apr 21, 2006 1:47am Apr 21, 2006 1:47am
Quoting Lindsay
Any comments on the trade I posted would be welcome.
USDJPY is tough. It's in a major squeeze going back several months, all about to start expanding. I'm playing daily trendline breakouts on this (hmm, it might have just broke upward as I'm writing this) but look at GBPUSD when it first started breaking out on the week of 4/2. It fully reversed, consolidated again, and then actually broke out. So be careful.
  • #65
  • Apr 21, 2006 2:33am Apr 21, 2006 2:33am
I don't want to monopolize the conversation, but there's a cool feature of the brightly colored EJ charts if you spread them out in an MT4 profile.

You can easily see which trades are correlated. For example, AUDUSD, EURJPY, EURUSD, and GBPUSD are behaving about the same right now. USDCAD, USDJPY, and USDCHF are all doing pretty much the opposite.

This looks like a good way to quickly judge the overall market and pick only the best pairs to trade while not getting overly invested in a single currency.
  • #66
  • Apr 21, 2006 5:37am Apr 21, 2006 5:37am
hey Mike,

my question was purely technical. i was and still am curious how other people are usning fibo lines on mt4. at least if we, as people who are interested in ej4 system, will be using it in the same way, then we all are on the same page, so i would guess it makes total sense to have it done the same way.

Ibo, are you just using defaults as fibo lines or you have some special tricks here as well? why all of us would not adjust it the same way? i am suggesting to use only one tool, which will be creating both extensions and retracements. if you are interested i can publish my settings and then we all can come to some common solution.

thanks
  • #67
  • Apr 21, 2006 6:23am Apr 21, 2006 6:23am
Hello

We will use most of instruments in trading, fibo is included. dont worry. I think I need more than 6 months to publish whole conceptions.

I changed the background into white that kids print the document easily. It took my time almost 2 days to rewrite the document.

I try to post part II late today.

Yours,
Ibo
  • #68
  • Apr 21, 2006 7:05am Apr 21, 2006 7:05am
There's a lot of stuff to consider, but the stuff about fitting the system to your schedule is really important and is the main mistake I've been making lately. There's some advice floating around about only trading off daily or higher charts, and it makes more and more sense as time goes on.[/quote]

I keep thinking about the higher time frames too. I can see direct benefit in trading the daily at least. but what stops me is the kinds of stop loss and trade management needed for these time frame. I expect you would need some pretty big "Kahoona's" or wallet to trade effectively
  • #69
  • Apr 21, 2006 7:26am Apr 21, 2006 7:26am
Quoting Lindsay
There's a lot of stuff to consider, but the stuff about fitting the system to your schedule is really important and is the main mistake I've been making lately. There's some advice floating around about only trading off daily or higher charts, and it makes more and more sense as time goes on.
I keep thinking about the higher time frames too. I can see direct benefit in trading the daily at least. but what stops me is the kinds of stop loss and trade management needed for these time frame. I expect you would need some pretty big "Kahoona's" or wallet to trade effectively[/quote]

Lindsay,

I agree. Trading the higher timeframes (daily and above) is a luxury that many of us "little guys/gals" can't really afford without significant capital to enable us to absorb the inevitably higher drawdowns. Whipsawing at this level takes on a whole new meaning and really tests your psychological trading mettle. That's why I think the 4H timeframe is a happy medium between the 1H and the daily. You can easily see the trend on that level, but your range/whipsawing generally isn't astronomical.

I use the Daily timeframe to confirm my trades at lower timeframes, but have had little success trading solely at that timeframe... Just my two cents on the issue.

Ian
  • #70
  • Apr 21, 2006 7:35am Apr 21, 2006 7:35am
Quoting Mike Jolley
A common response (from various MA systems I've read about) to the question of when not to trade toward the slow MA is (another question):

Is it possible to tell the difference between a rebound off the slow MA versus a crossing of the MA, and still take some decent profit in the time it takes to react to the bad news?

My definitions for these things include at least 8-12 hours while I might be away from my computer after I think the trade is going well, and/or a well-considered stoploss placement. It's hard to translate price into time, so...

Some systems I've looked at don't consider entering the trade until both the price and fast MA fully cross or bounce off the slow MA, and then the price touches the fast MA and then starts to move in the desired direction.

There's a lot of stuff to consider, but the stuff about fitting the system to your schedule is really important and is the main mistake I've been making lately. There's some advice floating around about only trading off daily or higher charts, and it makes more and more sense as time goes on.
Thanks for your insight, Mike. I think the issue with many of the systems I've seen that require a touch of the slow/fast MAs is that you have given up a significant portion of pips waiting for it to happen. I'm all for being conservative in Forex and waiting for multiple confirmations before entering a trade, but I'm not convinced that the touch/bounce MA systems are any more reliable than the "slope change"/bar color change systems like the EJ-4H and the like.

I also agree that trading on the daily and higher timeframes would be great - the trend is unmistakeable and gives you much more confidence in your trade - the downside is the fact that you need far more capital to absorb the greater drawdown and nerves of steel to wait out the big swings in price.

Like you, I also think Ibo's colored bars are one of the coolest additions to the MT4 charts I've seen.
  • #71
  • Apr 21, 2006 11:33am Apr 21, 2006 11:33am
Hi everybody,

Part II is available. I never had the time to check for proofreading, if there is a mistake either logical or grammatical please send me a private email that I revise it ASAP.

wb stands for white background

Rgds
Ibo
  • #72
  • Apr 21, 2006 11:47am Apr 21, 2006 11:47am
Ibo, i just downloaded your stuff. thank you. i can see new templates and indicators there. should i delete all i had before? will i still have pivot points? i cannot live without them now.

thanks.
  • #73
  • Apr 21, 2006 11:55am Apr 21, 2006 11:55am
Hi Ibo,

where do you download it from ?

thanks
"We are the superior beings, we obey no one!"
  • #74
  • Apr 21, 2006 12:07pm Apr 21, 2006 12:07pm
go to the very first page
  • #75
  • Apr 21, 2006 2:44pm Apr 21, 2006 2:44pm
Hi traders,

Keep all indicator and templates, use them in case that you need. when you need to use PP then up the template with pp and if you dont need then use plain templates. for saving your eye-sight health use black background. I just put the white back ground to facilitate printing.

Please:
1- take a good rest during weekend (dont think about forex)
2- Try to find similar examples on other charts yourself.
3- Study the history much before asking any question, a peompt answer never work for you always.

have a nice weekend
Ibo
  • #76
  • Apr 21, 2006 5:10pm Apr 21, 2006 5:10pm
Dear Eurusdtrader

Thanks a 100 x million for a wonderful system. I appreciate your work and time that you put into this. This is what I have been searching for a long time.

Enjoy your weekend.

Kind regards.

Nesalc
  • #77
  • Apr 21, 2006 6:43pm Apr 21, 2006 6:43pm
Quoting eurusdtrader
Hi traders,

Keep all indicator and templates, use them in case that you need. when you need to use PP then up the template with pp and if you dont need then use plain templates. for saving your eye-sight health use black background. I just put the white back ground to facilitate printing.

Please:
1- take a good rest during weekend (dont think about forex)
2- Try to find similar examples on other charts yourself.
3- Study the history much before asking any question, a peompt answer never work for you always.

have a nice weekend
Ibo
I just read this thread. I can't rest in this weekend. I have to re-read it. The documents also.
I will spend some time at the beach, but reading, of course.
Thanx for sharing the system.
Try hard, think fast, die young
  • #78
  • Apr 21, 2006 7:46pm Apr 21, 2006 7:46pm
Quoting eurusdtrader
Hi traders,

Keep all indicator and templates, use them in case that you need. when you need to use PP then up the template with pp and if you dont need then use plain templates. for saving your eye-sight health use black background. I just put the white back ground to facilitate printing.

Please:
1- take a good rest during weekend (dont think about forex)
2- Try to find similar examples on other charts yourself.
3- Study the history much before asking any question, a peompt answer never work for you always.

have a nice weekend
Ibo

Nice work IBO, thanks for giving me loads of work to do this weekend . Have a nice one.

MM
The greatest achievements are those that benefit others....
  • #79
  • Apr 21, 2006 8:44pm Apr 21, 2006 8:44pm
Ibo, i think it would be great if you could every once in a while publish a "proper" entry and exit examples, the way you do it. it would be much easier to follow your system. what do you think?

impatient
  • #80
  • Apr 21, 2006 11:44pm Apr 21, 2006 11:44pm
Thank you very much. I feel like I am learning a lot, thanks to you.

One question about your newly uploaded indicators (Part II). The new template (Ej_4H_mp) that shows the pivot and S/R lines are at different levels than the original one (Ej_4H_wp) from part I. I am assuming you're using a different calculation... which one do you recommend we use?

Thanks

Quoting eurusdtrader
Hi everybody,

Part II is available. I never had the time to check for proofreading, if there is a mistake either logical or grammatical please send me a private email that I revise it ASAP.

wb stands for white background

Rgds
Ibo
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