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Swing trading with heiken ashi and stochs

  • #881
  • Apr 21, 2012 4:23am Apr 21, 2012 4:23am
Quoting drzeepfx
I am really new to this system - and I am totally all in on what I have seen, love the idea of trading the 4H time frame as it allows to trade in a more flexible range of hours.. Not that I don't love getting up at 4 am. Thank you for your input - I will continue to watch and wait on this pair, I still have a hunch that Monday or Tuesday we may see it slip below SMA and get us some pips... (Will post up a chart when the conditions are a go, if that's cool)

I look forward to becoming an active member of this thread/

Thank you again for the advice...
No worries. As far as gbpusd goes you are better off watching other pairs that are setting up than concentrating on one that might set up or might not at some time in the future.
  • #882
  • Apr 21, 2012 12:17pm Apr 21, 2012 12:17pm
I now understand just how very newbie be my first round of questions and comments were.... Thank you for giving me somethings to think about GBP/USD is a long way off yet - the current conditions of USD/JPY are closer to the mark...... Will be interested to see what happens at first bell....
  • #883
  • Apr 21, 2012 12:45pm Apr 21, 2012 12:45pm
Quoting drzeepfx
I now understand just how very newbie be my first round of questions and comments were.... Thank you for giving me somethings to think about GBP/USD is a long way off yet - the current conditions of USD/JPY are closer to the mark...... Will be interested to see what happens at first bell....
No problem, keep asking, you'll learn quicker that way. There's nothing wrong with looking at a lower timeframe if nothings setting up on 4 hour. In fact I'm in the process of looking into trading this on 5 min charts exclusively but only when a valid signal has occured on the 4 hour charts. That way you can expect a 5 min trend to occur which is usually nice and easily tradeable with this system. I'll post more once I've tested more.
  • #884
  • Apr 21, 2012 8:58pm Apr 21, 2012 8:58pm
Hi guys, great topic. Spent some time to read it.

I have a question though, about T/P and S/L:
I understood TP is 50pips.

But I have issues to understand how you set up S/L and BreakEven points.

Ex: from text:
au sell @ 1.0571 --> tp hit +50pip.
nu sell @ 0.8237... sl+1.
I understand: TP was hit @50pip, trade closed auto.

What means SL+1? And how you manage the SL?

Tnx in advance
  • #885
  • Apr 21, 2012 9:02pm Apr 21, 2012 9:02pm
Quoting Baiazid
Hi guys, great topic. Spent some time to read it.

I have a question though, about T/P and S/L:
I understood TP is 50pips.

But I have issues to understand how you set up S/L and BreakEven points.

Ex: from text:
au sell @ 1.0571 --> tp hit +50pip.
nu sell @ 0.8237... sl+1.
I understand: TP was hit @50pip, trade closed auto.

What means SL+1? And how you manage the SL?

Tnx in advance
Here are the suggested trade management techniques:

Quoting Hugh Briss
Money Management, stops and targets

As mentioned above there is some debate over the best stop loss and target combination to use to capture the most profit from these signals.

There are 3 basic methods that I believe are worth testing.

1) Enter the trade with a 50 pip stop loss. Hold the trade open until the HA candles turn back against the trend moving the stop loss behind the trade as it moves.

2) Enter the trade with a 50 pip stop loss and a 50 pip take profit moving the stop loss to +1 pip after +25 pips...

Strategy #2 involves moving SL+1, which is moving your stop loss level to 1 pip profit. Long +1 pip, Short -1 pip. As in, worst case scenario your trade goes against you, you still profit 1 pip.

I think it's an excellent technique for profit protection and enabling you to increase exposure as your trades essentially become risk-free once the SL has been moved to +1.
  • #886
  • Apr 22, 2012 12:23am Apr 22, 2012 12:23am
Quoting neuron
Here are the suggested trade management techniques:




Strategy #2 involves moving SL+1, which is moving your stop loss level to 1 pip profit. Long +1 pip, Short -1 pip. As in, worst case scenario your trade goes against you, you still profit 1 pip.

I think it's an excellent technique for profit protection and enabling you to increase exposure as your trades essentially become risk-free once the SL has been moved to +1.
Thank you. I got it now
  • #887
  • Apr 22, 2012 6:12am Apr 22, 2012 6:12am

I understood the playground:
4HR
100SMA
HA Candles
Stochastics 8/3/3

Some questions about Entry conditions:

 

  1. Stoch cross anywhere or stoch cross in [0-20] or [80-100]?
  2. HA must change color and entry is after first candle that changed?
  3. What is the relationship with 100SMA?

  1. A. Acts as trend indicator Ex: if is down, we take only short positions?
  2. B. HA candles must be for Example below SMA100 to take only short positions?

  • #888
  • Apr 22, 2012 7:01am Apr 22, 2012 7:01am
Quoting Baiazid
I understood the playground:
4HR
100SMA
HA Candles
Stochastics 8/3/3

Some questions about Entry conditions:

 

  1. Stoch cross anywhere or stoch cross in [0-20] or [80-100]?
  2. HA must change color and entry is after first candle that changed?
  3. What is the relationship with 100SMA?

  1. A. Acts as trend indicator Ex: if is down, we take only short positions?
  2. B. HA candles must be for Example below SMA100 to take only short positions?

In answer to your previous question the take profit criteria is open to your own personal choice. A few people take profit at +50 pips but letting the trade run can often yield more, but of course can also give some back.

Your next questions... I like the stoch cross to occur in the OB or OS areas but just below is fine too. Entry is on the close of the first HA candle that closes with a change of colour. The 100 sma is merely a guide to the trend. In general only trade long when the HA candles are above and short when below.
  • #889
  • Apr 22, 2012 4:49pm Apr 22, 2012 4:49pm
Quoting Hugh Briss
Your next questions... I like the stoch cross to occur in the OB or OS areas but just below is fine too. Entry is on the close of the first HA candle that closes with a change of colour. The 100 sma is merely a guide to the trend. In general only trade long when the HA candles are above and short when below.
Thank you. I will start to see how can I apply this system and I will post my trades here for open discussion
  • #890
  • Apr 23, 2012 2:41am Apr 23, 2012 2:41am
Because on 4h chart, broker server time matters, do you recommend a timezone?

Ex:

GO markets - GMT+2
Attached Image (click to enlarge)
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OANDA - GMT-5
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  • #891
  • Apr 23, 2012 3:20am Apr 23, 2012 3:20am
Quoting Baiazid
Because on 4h chart, broker server time matters, do you recommend a timezone?
I don't recommend a particular timeframe, just trade the chart you have. Although you would take different trades to a trader with a different broker it will all work out in the end.
  • #892
  • Edited 4:33am Apr 23, 2012 4:29am | Edited 4:33am
Thanks to DmittFX for the Swing template with Pipware-charts & SupDem indies and to Ati Baia for the SupDem source code. I've since followed up on the author of Pipware-chart author (Stratman) and obtained his full version of the pipware-charts indie.

Suggest a look at "pipware" website (you can guess the address) - register for free for the indicator and very professional manual. There's a lot more in it than shown here (ie. the mini Stochastic charts below). You can use mini-candle charts, MACD's, linear HA's, and others I haven't investigated.

Thanks also to Neuron for mentioning the impending setup for USDJPY last week. Entered a sell just below the close of the first H4 HA candle from the Sydney open.

Sold at 81.405 with SL above Friday's high (about 35 pips). Set TP at top of SupDem support zone. SL now trailing at 35 pips (about 1.5 times H4 average range seemed good). All reasonably consistent with Hugh's method (thanks Hugh). So far I've survived the London open, will see what the NY open brings. Hopefully I haven't been too greedy with the ~85 pip TP target.
For Baiazid's benefit, I'm also using GoMarkets at +2 GMT (my timezone is Sydney). It does affect the H4 and daily candles, but I'm still deciding if it makes any difference. In theory, a broker with a NY timeframe would be best so you actually open and close "with the market".

If anyone is interested, I'll post my template with all indicators.
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Still learning - No guarantees...
  • #893
  • Apr 23, 2012 4:32am Apr 23, 2012 4:32am
I would be more than interested in your templates alongwith your indies Thanks in advance

Quoting Ozefex
Thanks to DmittFX for the Swing template with Pipware-charts & SupDem indies and to Ati Baia for the SupDem source code. I've since followed up on the author of Pipware-chart author (Stratman) and obtained his full version of the pipware-charts indie.

Suggest a look at "pipware-charts" website (you can guess the address) - register for free for the indicator and very professional manual. There's a lot more in it than shown here (ie. the mini Stochastic charts below). You can use mini-candle charts, MACD's, linear HA's, and others...
Raza
  • #894
  • Apr 23, 2012 4:49am Apr 23, 2012 4:49am
Quoting Ozefex
Thanks to DmittFX for the Swing template with Pipware-charts & SupDem indies and to Ati Baia for the SupDem source code. I've since followed up on the author of Pipware-chart author (Stratman) and obtained his full version of the pipware-charts indie.

Suggest a look at "pipware" website (you can guess the address) - register for free for the indicator and very professional manual. There's a lot more in it than shown here (ie. the mini Stochastic charts below). You can use mini-candle charts, MACD's, linear HA's, and others I haven't...
Good post, thank you. Feel free to post any charts or indies here. Glad you like the system and good call with the yen today, all yen pairs weak.
  • #895
  • Apr 23, 2012 5:06am Apr 23, 2012 5:06am
Quoting Baiazid
Because on 4h chart, broker server time matters, do you recommend a timezone?

Ex:

GO markets - GMT+2
Attachment

OANDA - GMT-5
Attachment
For me +2 GMT brokers are the best now.
Everything is possible!!! Step by Step...
  • #896
  • Apr 23, 2012 5:12am Apr 23, 2012 5:12am
Quoting Ozefex
Thanks to DmittFX for the Swing template with Pipware-charts & SupDem indies and to Ati Baia for the SupDem source code. I've since followed up on the author of Pipware-chart author (Stratman) and obtained his full version of the pipware-charts indie.

Suggest a look at "pipware" website (you can guess the address) - register for free for the indicator and very professional manual. There's a lot more in it than shown here (ie. the mini Stochastic charts below). You can use mini-candle charts, MACD's, linear HA's, and others I...
Please tell me what for H1 stoch and other (spread, times, prices..).
Everything is possible!!! Step by Step...
  • #897
  • Edited 8:17am Apr 23, 2012 7:30am | Edited 8:17am
Templates & indies from my previous post are attached. Feel free to explore, use or modify as you wish. I'm essentially using a triple time frame for analysis, centred around the H4 but with reference to D1 to check overall trends and to lower TF's such as H1 or less for entries. All the other indicators on the template are just for reference - I find them useful, but you might not. I've used this particular template for about 12 hours so the only thing that is certain is that I'll probably change it....!

The trading strategy is essentially the same as Hugh's (see Post #1).

I think I've covered everything below & have checked the template on another laptop - so it does work.


Template:

  1. Swing_HA_SupDem_Stochx3.tpl

Indies:

  1. Bid_Ask_BDv8_12_31
  2. HeikenAshiAlert (you can set an alert when HA changes colour [end of bar] - default is False).
  3. P4L Clock (you need to set your broker's time zone - currently at GMT+2)
  4. pipware-charts (from Stratman's pipware website - very versatile indie, so check it out)
  5. Spread-V2
  6. SupDem (still exploring how this works & what is says - basically Suport & Resistance)

Installation:

  1. Copy the *.tpl file to your Metatrader "../templates" folder and the rest to your "../experts/indicators" folder.
  2. Close Metatrader (if open) or open (if closed)
  3. Edit the P4L Clock indie to set your broker time (ie. 2 = +2 GMT)
  4. Resave the template so you don't need to edit it for new charts

Notes:

  1. The H4 100 period SMA (in Lime) is replicated to the H1, M30 & M15 TF's.
  2. The D1 200 period SMA (ie. the 200 Day SMA - in Blue) is shown on the D1 and W1 TF's (the 200 Day SMA is a common reference).
  3. All indies include the source code (*.mt4 files) except for the pipwere-charts indie. You can do basic edits without the source code but if you really want to get into the indie, you need to open it in MetaEditor (which opens the*.mt4 file). Just keep an original in case it all goes wrong.
  4. If something doesn't show up as expected (eg. the mini-stoch charts or another indicator), change the TF then change back to refresh the chart. This usually works. If not, check you have installed everything in the correct folders & try again.
  5. Apart from the pipware indie, I haven't listed the authors. Other indies have been around a while & modified. You can see this info if you open them in MetaEditor.

Now, if USDJPY would continue it's downtrend I'll have a good day...
Still learning,
Ozefex

Attached File(s)
File Type: zip OzefexTPL-1.zip   167 KB | 870 downloads
Still learning - No guarantees...
  • #898
  • Apr 23, 2012 1:50pm Apr 23, 2012 1:50pm
Quoting Ozefex
Thanks also to Neuron for mentioning the impending setup for USDJPY last week. Entered a sell just below the close of the first H4 HA candle from the Sydney open.

Sold at 81.405 with SL above Friday's high (about 35 pips). Set TP at top of SupDem support zone. SL now trailing at 35 pips (about 1.5 times H4 average range seemed good). All reasonably consistent with Hugh's method (thanks Hugh). So far I've survived the London open, will see what the NY open brings. Hopefully I haven't been too greedy with the ~85 pip TP target.
For...
I'm glad you caught some pips!


Quoting Hugh Briss
I don't recommend a particular timeframe, just trade the chart you have. Although you would take different trades to a trader with a different broker it will all work out in the end.

I guess this is sort of a similar question, but a little different...

What do you think about the validity of signals that are received during levels of low liquidity (i.e. end of NY, before Tokyo/London) ? Or do you treat every signal equally?
  • #899
  • Apr 23, 2012 2:43pm Apr 23, 2012 2:43pm
took this trade on audnzd h4, weekly stoch is coming up from 20.

i'm wondering about sl, ive been using daily ATR (5),
any opinions is it ok to use ATR or shall i stick to 50 pips?
thx
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  • #900
  • Apr 23, 2012 2:56pm Apr 23, 2012 2:56pm
Quoting neuron
I guess this is sort of a similar question, but a little different...

What do you think about the validity of signals that are received during levels of low liquidity (i.e. end of NY, before Tokyo/London) ? Or do you treat every signal equally?
On higher timeframes it doesn't matter so much but anything below 4 hour I would be careful.
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