Hi Cookie,
You want to know where the daily trend is by using the colour and always keep in mind, ok we are only looking for longs, if the 4hr changes to a short trend we would ignore it unless the daily also changed to short..
That being said we thus wait for 4hr to return to the daily trend for a long setup.
Testing this weekend ive decided to only go into trades with strong indication.. and also only chase 10 pips
A strong indication is when the red and green on the TDI are above the yellow. Because we are waiting so late the pair could have moved 100 pips already so to try and get 20+ is a big ask. By aiming for 10 pips we can increase our trade size and still stay with many pairs. So hopefully 1 trade per pair per week = 200 pips
I have yet to find a loss in testing when the criteria is met and only going for 10 pips. Of course testing takes months so there is still alot more to be done. But its a pretty good start.
Current example: CADCHF
Daily has been in a long trend, so we were waiting for a strong signal on H4 (green and red to be above yellow on TDI)
You want to know where the daily trend is by using the colour and always keep in mind, ok we are only looking for longs, if the 4hr changes to a short trend we would ignore it unless the daily also changed to short..
That being said we thus wait for 4hr to return to the daily trend for a long setup.
Testing this weekend ive decided to only go into trades with strong indication.. and also only chase 10 pips
A strong indication is when the red and green on the TDI are above the yellow. Because we are waiting so late the pair could have moved 100 pips already so to try and get 20+ is a big ask. By aiming for 10 pips we can increase our trade size and still stay with many pairs. So hopefully 1 trade per pair per week = 200 pips
I have yet to find a loss in testing when the criteria is met and only going for 10 pips. Of course testing takes months so there is still alot more to be done. But its a pretty good start.
Current example: CADCHF
Daily has been in a long trend, so we were waiting for a strong signal on H4 (green and red to be above yellow on TDI)