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Trading Made Simple for Day Charts

  • #501
  • Jan 17, 2012 10:50pm Jan 17, 2012 10:50pm
Quoting marcoxq
Britpip,

so yesterday D1 candle is 70+ pips is that a valid long trade as it is still hovering 1.037x
Yesterday's push did not hold above the 1.0400 and the candle was pulling back for 50% - looks like it is having another attempt.

Currently I am waiting for this to close above the resistance. Also there is slight divergence between PA and TDI
Attached Image (click to enlarge)
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"To live with Passion, it takes Courage and Grace to survive"
  • #502
  • Jan 18, 2012 1:52am Jan 18, 2012 1:52am
Quoting Britpip7
Yesterday's push did not hold above the 1.0400 and the candle was pulling back for 50% - looks like it is having another attempt.

Currently I am waiting for this to close above the resistance. Also there is slight divergence between PA and TDI

Based on what you mention earlier, am i right to say that you will enter on the following condition:

1. TDI cross
2. D1 close above 1.04
3. Candle size must be min 60pips ( 75% of ATR7 81 pips)

Please correct me if i am wrong.
  • #503
  • Jan 18, 2012 10:27am Jan 18, 2012 10:27am
Quoting marcoxq
Based on what you mention earlier, am i right to say that you will enter on the following condition:

1. TDI cross
2. D1 close above 1.04
3. Candle size must be min 60pips ( 75% of ATR7 81 pips)

Please correct me if i am wrong.
At this time, there is no entry condition on this pair - PA has stalled and the resistance line is holding.

I re-assess the entry conditions / set-ups on each day and as such this makes the entry criteria dynamic. At a minimum, this has to close above 1.0400 before I'll consider entering and then it'll be time to re-assess all of the other aspects.
"To live with Passion, it takes Courage and Grace to survive"
  • #504
  • Jan 18, 2012 11:40am Jan 18, 2012 11:40am
Quoting Britpip7
You mean in real words?

OK - I'll give it a go.

This was written for reversal trades. PA is for the Price Action move and is basically the signal candle (Change in colour / direction) - I will look to enter based on the next candle breaking the H/L of the signal candle.

The ATR(7) provides you with the Average True (Trading) Range for the pair over the past 7 candles.

Folks keep asking what size of candle should they use to enter a trade and I was basing my entries off of an individual candle - ATR(1), so I am looking for a strong...
This is a good training chart.

Thanks.
  • #505
  • Jan 18, 2012 1:22pm Jan 18, 2012 1:22pm
Quoting firsttimer
This is a good training chart.

Thanks.
The main challenge now is recognizing the patterns so that when they appear in real time, we act on the entries.
"To live with Passion, it takes Courage and Grace to survive"
  • #506
  • Jan 18, 2012 1:56pm Jan 18, 2012 1:56pm
which moving average do you traders find most reliable for determining the direction of trend
  • #507
  • Jan 18, 2012 2:28pm Jan 18, 2012 2:28pm
Quoting tayclabay
which moving average do you traders find most reliable for determining the direction of trend
5 & 10 EMA but I use them on the time frame above.

Say I was trading the daily I would judge the trend on the weekly with the EMA's.
  • #508
  • Jan 18, 2012 2:38pm Jan 18, 2012 2:38pm
Promising
A nice trend following short appears to be developing on AUDNZD.

Doubtful
Longs are developing on EURUSD, EURHKD, EURCAD and EURJPY.
However they're all countertrend and therefore quite risky IMO.

Same applies to GBPUSD.

USDCHF and USDSGD appear to go down, but PA is resting right at support and the move is countertrend.
Financial independence is what I live for
  • #509
  • Jan 18, 2012 3:27pm Jan 18, 2012 3:27pm
[quote=smatthew;5307045]Promising
A nice trend following short appears to be developing on AUDNZD.

I agree looking to short this pair on the candle close.
Let it turn and find your entry.
  • #510
  • Jan 18, 2012 3:46pm Jan 18, 2012 3:46pm
Quoting Britpip7
When there is nothing much happening, continue to back test and look for trade entry patterns.

The more back testing you do, the better armed you are for picking up on the entry patterns.

Here's another hindsight chart for training purposes - Trade 1 is a reversal trades - Trade 2 is more of a continuation trade.

The two trade entries on the charts follow strong signal candles (Entries would have been on the 1st or 2nd candle following the signal / TDI cross), with a 5ema cross and higher highs. These are following the higher EMA lines and the...





Classic stuff Britpip7, TDI crosses cannot be missed on higher Tfs just that it seems the trading cycle is taking too long to gather momentum for me, think we need that thread for patience and psychology training?

I'm in it for the long haul though.
Thanks for the invaluable 411
Let it turn and find your entry.
  • #511
  • Jan 18, 2012 4:28pm Jan 18, 2012 4:28pm
Quoting smatthew
Promising
A nice trend following short appears to be developing on AUDNZD.

Doubtful
Longs are developing on EURUSD, EURHKD, EURCAD and EURJPY.
However they're all countertrend and therefore quite risky IMO.

Same applies to GBPUSD.

USDCHF and USDSGD appear to go down, but PA is resting right at support and the move is countertrend.
AUDNZD's setup candle retracted almost to doji state.
Time for bed!
Financial independence is what I live for
  • #512
  • Jan 19, 2012 9:51am Jan 19, 2012 9:51am
Hi all.
Great thread please keep up the good work. I wanted to inquire as to an indicator or ea that will place a pending order with predetermined parameters. IDEALLY you could drag a line to the entry level on the chart and them SL and TP could be changed if needed.

Thanks in advanace for your help

BD
  • #513
  • Jan 19, 2012 10:04am Jan 19, 2012 10:04am
Quoting backdoc
Hi all.
Great thread please keep up the good work. I wanted to inquire as to an indicator or ea that will place a pending order with predetermined parameters. IDEALLY you could drag a line to the entry level on the chart and them SL and TP could be changed if needed.

Thanks in advanace for your help

BD
There is an EA called Magic Stick that does just this, PM me your email address and I will send it to you.

Mitch
  • #514
  • Jan 19, 2012 6:37pm Jan 19, 2012 6:37pm
Since the beginning of New Year, I was in the waiting mode as the market was ranging (atleast from my viewpoint), this week I took the following trades, which are doing good so far.

Both trades on BE with pending order to add positions if price go beyond FTA.
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Forex is boring but profitable with patience and discipline
  • #515
  • Jan 19, 2012 6:59pm Jan 19, 2012 6:59pm
Quoting prftablefool
Since the beginning of New Year, I was in the waiting mode as the market was ranging (atleast from my viewpoint), this week I took the following trades, which are doing good so far.

Both trades on BE with pending order to add positions if price go beyond FTA.
You have chosen well with those pairs, EUR and CHF Currency Index are getting STRONG while the CAD Index is starting to weaken.

I suggest you watch similar pairs with AUD as it is ready to weaken, looks like CAD chart

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It takes a lot for me to IGNORE you, but you can try.
  • #516
  • Jan 19, 2012 7:11pm Jan 19, 2012 7:11pm
Quoting mitchp
There is an EA called Magic Stick that does just this, PM me your email address and I will send it to you.

Mitch
Very generous of you to share
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It takes a lot for me to IGNORE you, but you can try.
  • #517
  • Jan 19, 2012 7:21pm Jan 19, 2012 7:21pm
Quoting Erebus
You have chosen well with those pairs, EUR and CHF Currency Index are getting STRONG while the CAD Index is starting to weaken.

I suggest you watch similar pairs with AUD as it is ready to weaken, looks like CAD chart

Thanks for the suggestion. I don't make life complicated while trading under this system.

However, in addition to looking left I also concentrate on other factors while trading another method which considered to be agressive. Under that method I don't care the color/size of the candle or any other indicator whatsoever but only concentrate where price will turn around in order to be ahead of the crowd.

Trade well.
Forex is boring but profitable with patience and discipline
  • #518
  • Jan 20, 2012 3:57am Jan 20, 2012 3:57am
Quoting prftablefool
Thanks for the suggestion. I don't make life complicated while trading under this system.

However, in addition to looking left I also concentrate on other factors while trading another method which considered to be agressive. Under that method I don't care the color/size of the candle or any other indicator whatsoever but only concentrate where price will turn around in order to be ahead of the crowd.

Trade well.
You've gone long on EURCAD which is on BE right now.
What makes you think that the move up will persist?
In other words, are we looking at an actual trend reversal or just a pullback?
Zooming out I've noticed that TDI crosses from below 32 appear to result in uptrends.

Multiple EUR/xxx pairs currently show the same pattern:
Downtrends reversing. I'm just wondering how one can be sure that these are actual reversals.

Same applies to your CADCHF short. Although zooming out on this pair shows a long term resistance level which appears to be excellent to go short on.

What's your point of view?
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Financial independence is what I live for
  • #519
  • Jan 20, 2012 1:45pm Jan 20, 2012 1:45pm
Quoting smatthew
You've gone long on EURCAD which is on BE right now.
What makes you think that the move up will persist?
In other words, are we looking at an actual trend reversal or just a pullback?
Zooming out I've noticed that TDI crosses from below 32 appear to result in uptrends.

Multiple EUR/xxx pairs currently show the same pattern:
Downtrends reversing. I'm just wondering how one can be sure that these are actual reversals.

Same applies to your CADCHF short. Although zooming out on this pair shows a long term resistance level which appears to...
I don't know yet that is it going to be a trend reversal or pull back.

Now the question is then why I took these trades when I knew nothing about it.

I simply played support and resistance (you have already noticed that) - please see the horizontal lines on my charts defining the zones. Currently both these pairs are testing these lines on the reverse side.

EURCAD - When the price reacted in the same fashion twice before when it reached around 1.2890 and also based on what had happened so far I knew that the chances are very high that this time price will go atleast another 100 pips before any further retracement. This expected 100 pip run will allow me to BE and once I am at BE I don't care what happend to the price. Normally I don't take trades just to make to BE but keeping in view the current status of EUR I thought it is worth testing the waters.

CADCHF - The same story but on a flip side.

Going against the major trend is like catching a falling knife unless one learns how to catch the knife and throw it back. If you look closely at any chart without any single indicator you will notice most of time trend changes when it reach either support or resistance. I am sure you have also noticed that TDI keep on dragging below 32 or above 50 till the price reach either support or resistance.

In a nutshell a trader should keep an eye on support and resistance - the indicators due to its lagging nature simply gives a confirmation after the price moved atleast 100 pips depending on the pair and TF. Now, it boils down to the trader's style whether he wants to be 100 pips before the crowd or wait for the confirmation - it is a matter of choice.

P.S. Sorry Britpip if the post if off the topic of your thread.
Forex is boring but profitable with patience and discipline
  • #520
  • Jan 21, 2012 7:28am Jan 21, 2012 7:28am
Quoting prftablefool
I don't know yet that is it going to be a trend reversal or pull back.

Now the question is then why I took these trades when I knew nothing about it.

I simply played support and resistance (you have already noticed that) - please see the horizontal lines on my charts defining the zones. Currently both these pairs are testing these lines on the reverse side.

EURCAD - When the price reacted in the same fashion twice before when it reached around 1.2890 and also based on what had happened so far I knew that the chances are very high that...
"Get your basic 4X in order" BigE often said. Support and resistance are definitely part of that. I like the idea of getting in early with S/R increasing your odds. Less nerve wracking drawdown!
Both your early entries were backed up by TDI bounces and as such comply with BigE's basic TMS principle of getting in at crosses and bounces.
Financial independence is what I live for
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