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Swing trading with heiken ashi and stochs

  • #1,281
  • Edited May 21, 2012 10:03am May 20, 2012 5:33pm | Edited May 21, 2012 10:03am
Hi Hugh, I wanted to share with you one of my tweeks. I am developing this guided by your ideas and my need to have visuals that are "easy" on my eyes. This is the layout that I am using to try to portray trend. This chart is the H1 EURCAD chart from this afternoon, but you can see from the tabs that I use a MTF analysis(D1,H4,H1,M15,M5). While I trade off the H1 chart, I try to find my entries/exits on the M15 chart.

I like this picture a lot. It shows SMOOTH periodicity in price, stoc and HA over the last 5 days with a nice turn in trend. I wish that I had been trading it, but I am still massaging my charting - pretty much there, thank God.

Notes: 1) HA candles are smoothed, no wicks, with a 1 CANDLE offset. 2) the HA Heat Map at the bottom is the True candle color(not smoothed). 3) the Heat Map shows the current TF in the top 2 lines, then 1 TF up (H4) for 2 lines and finally the bottom line is the D1 trend line 4) the Keltner channel is set for 50 MVA and ATR=1. the colored blocks are daily time blocks, EST - Pink=12MN to 8AM, blue=8AM to 5PM and white=5PM to MN. Roughly corresponding to the major trading blocks around the world.

Notice how nicely the price action "conforms" or "respects" the Keltner cloud, a little bit like a poor man's Ichimoku Cloud but a lot smoother. In this example going with the H1 trend would have really paid off, with or without M15 input.

This pattern occurs surprisingly often. Just something else to look for.
Attached Image (click to enlarge)
Click to Enlarge Name: EURCAD 05-20-12 6PM EST.jpg Size: 115 KB
Do not dwell in the past, do not dream of the future, concentrate the mind.
  • #1,282
  • May 20, 2012 7:33pm May 20, 2012 7:33pm
AlbinaGrande, I love the look of this chart!! Maybe you could post you template. I'd like to check it out. Thank you in advance.
  • #1,283
  • May 20, 2012 10:03pm May 20, 2012 10:03pm
Quoting Crooner2
AlbinaGrande, I love the look of this chart!! Maybe you could post you template. I'd like to check it out. Thank you in advance.
Hi Crooner2, Glad you like it. Sorry, I tried to download the template file for you but was not successful. It is in .cht format which is not supported by FF for download. I use the TradeStation 2 platform from FXCM. You could set up a demo account and then from the detail provided I think that you could duplicate it. I could always answer questions, but I am not always available. Might take a bit of time.
Do not dwell in the past, do not dream of the future, concentrate the mind.
  • #1,284
  • May 20, 2012 10:06pm May 20, 2012 10:06pm
Quoting Crooner2
AlbinaGrande, I love the look of this chart!! Maybe you could post you template. I'd like to check it out. Thank you in advance.
agreed with u.can you help out me too.wanna have try out of it
  • #1,285
  • May 20, 2012 11:24pm May 20, 2012 11:24pm
Quoting AlbinaGrande
Hi Hugh, I wanted to share with you one of my tweeks. I am developing this guided by your ideas and my need to have visuals that are "easy" on my eyes. This is the layout that I am using to try to portray trend. This chart is the H1 EURCAD chart from this afternoon, but you can see from the tabs that I use a MTF analysis(D1,H4,H1,M15,M5). While I trade off the H1 chart, I try to find my entries/exits on the M15 chart.

I like this picture a lot. It shows SMOOTH periodicity in price, stoc and HA over the last 5 days with a nice turn in trend....
It looks very nice but in my experience HA smoothed can get you into a lot of trouble due to the lag. If it works for you then no problem.
  • #1,286
  • May 20, 2012 11:54pm May 20, 2012 11:54pm
Quoting Hugh Briss
Ok, I don't think that changing the lookback period of the stochs will make that much difference but try 25,3,3 ...
...
This thing can be improved.
'Morning, Hugh, & thanks for a clear, simple trading method.

I have traded fast intraday charts for over 10 years & am presently trying to transition to slower charts (H1 is nice & slow for me). I notice a natural tendency* within myself and others to constantly tinker with my trading methods. Sometimes this is good, but VERY often it just introduces change where change brings only difference and no true improvement, thereby forming part of the constant distraction that is one of the trader's worst enemies.

If you trade several pairs and can consistently produce apparently modest returns of one third winners, losers and break-evens (as per your recent EU D1 example) with a good R multiple on your winners, you will make far more money than 99% of people out there.

I'm not against a positive evolution, but I notice that the two best traders I know are trading in almost exactly the same way now that they were 10 years ago.

My 2 Monday morning pips to throw into the bucket...



J.

* on reflection, I wonder if it is a tendency or a compulsion
  • #1,287
  • May 21, 2012 4:18am May 21, 2012 4:18am
Quoting jtrade
'Morning, Hugh, & thanks for a clear, simple trading method.

I have traded fast intraday charts for over 10 years & am presently trying to transition to slower charts (H1 is nice & slow for me). I notice a natural tendency* within myself and others to constantly tinker with my trading methods. Sometimes this is good, but VERY often it just introduces change where change brings only difference and no true improvement, thereby forming part of the constant distraction that is one of the trader's worst enemies.

If you trade several...
Thanks for your post. Yes, changing the stochs isn't going to change much but the basic system is still the same. I think at some stage I have to decide whether I trade counter to the daily trend or not and I think there is nothing wrong with that because I am trading the trend on the hourly chart, not the daily. You make a really good point about changing working systems for change's sake which is definitely something I am trying not to do.
  • #1,288
  • May 21, 2012 4:57am May 21, 2012 4:57am
Quoting Hugh Briss
... decide whether I trade counter to the daily trend or not and I think there is nothing wrong with that because I am trading the trend on the hourly chart, not the daily.
Makes complete sense to me .

Having spent the morning setting up some "HB templates", I think I'm going to start trading "my" variation of your method on an all-in-one H4 chart. I've replaced the 100 SMA (nothing wrong with it, btw) with a triple ema combo which I am very familiar with and accustomed to using - I like the way it "frames" price - & I've added the D1 MTF Sto within the regular Sto panel (it's dotted, so might be hard to see in my screenshot). I've also sneaked in both the StochCrossing indi as I see it can send me email alerts and an invisible ATR (number visible in Sto panel) for stops and targets.

I think this whole set up could work well alongside a simple Supply & Demand model (which is useful to be aware of in all trading).
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd hb h4.gif Size: 30 KB
  • #1,289
  • Edited 6:10am May 21, 2012 5:55am | Edited 6:10am
Quoting Hugh Briss
It looks very nice but in my experience HA smoothed can get you into a lot of trouble due to the lag. If it works for you then no problem.
Sorry for any confusion, but I notice that I said 1 DAY offset for the HA smoothing, when really I meant one CANDLE offset. Never the less, you are absolutely correct about the lag, BUT the Heat Map is real time. I use this layout ONLY for trying to identify the central tendency of a pair - a bit like following a basketball players belly button rather than the razzle dazzle of his head, hands and feet when you are trying to guard him. He ain't going nowhere without it. Actually, I minimize this layout to create a master layout with 12 thumbnails to help scan the pairs that I am interested in. I can then follow the color changes in the Heat Map quicker and more clearly than the candles. Once I like a pair, I shift to a quite different trading layout, but that would get us off topic I fear. Very much a work in progress, tho I do love the challenge and your thread.
Do not dwell in the past, do not dream of the future, concentrate the mind.
  • #1,290
  • May 21, 2012 7:41am May 21, 2012 7:41am
Quoting AlbinaGrande

...Actually, I minimize this layout to create a master layout with 12 thumbnails to help scan the pairs that I am interested in. I can then follow the color changes in the Heat Map quicker and more clearly than the candles. Once I like a pair, I shift to a quite different trading layout, but that would get us off topic I fear. Very much a work in progress, tho I do love the challenge and your thread.
AlbinaGrande - I like your Heat Map idea. I have had a similar setup, but currently have a profile with 15 small charts to the screen - each uses a HA MTF indictor maximised to fill the individual screen - so at a glance you see red descending or green ascending. Using H4 charts you get sets of 6 bars or candles of each colour. Using D1 charts it looks more like a standard HA chart, just smaller. I don't use it all the time, but I often just scan it for ideas.
Attached Image (click to enlarge)
Click to Enlarge Name: Heat Map.PNG Size: 66 KB
Still learning - No guarantees...
  • #1,291
  • May 21, 2012 7:54am May 21, 2012 7:54am
Got a couple of trades on the AUDUSD at the moment & one on AUDJPY. Entered both without too much evaluation late in the Asian session. Have now written a note not to open trades on a Monday before at least 10 am London time.

I'm sure they will eventually go down as predicted, but I just wasted a few hours while the London traders decide to reverse everything just because they can... (No offense to the average London retail trader!) I've got a 25 pip TP on one AU trade & left the other & the AJ trade open for now. (Looking for a continuation of the trend on the hourly.)

Zoomed out H1 chart below:
Attached Image (click to enlarge)
Click to Enlarge Name: audusd-h1.PNG Size: 56 KB
Still learning - No guarantees...
  • #1,292
  • May 21, 2012 8:15am May 21, 2012 8:15am
Just wanted to add my AJ short as described above. They're both starting to come home now! Again, arrow shows roughly where I entered short just before London open. If I could remove that particulary frustating bit (and a few others), this would be EASY!

(that's tempting fate, I know..)
Attached Image (click to enlarge)
Click to Enlarge Name: audjpy-h1.PNG Size: 55 KB
Still learning - No guarantees...
  • #1,293
  • May 21, 2012 10:06am May 21, 2012 10:06am
Quoting Ozefex
Just wanted to add my AJ short as described above. They're both starting to come home now! Again, arrow shows roughly where I entered short just before London open. If I could remove that particulary frustating bit (and a few others), this would be EASY!

(that's tempting fate, I know..)
Nice one. I'm long eurusd, I'll post a chart when I can.
  • #1,294
  • May 21, 2012 1:34pm May 21, 2012 1:34pm
Quoting AlbinaGrande
Hi Hugh, I wanted to share with you one of my tweeks. I am developing this guided by your ideas and my need to have visuals that are "easy" on my eyes. This is the layout that I am using to try to portray trend. This chart is the H1 EURCAD chart from this afternoon, but you can see from the tabs that I use a MTF analysis(D1,H4,H1,M15,M5). While I trade off the H1 chart, I try to find my entries/exits on the M15 chart.
.............
Hi Hugh, Can we reach you via Twitter? I just found my post on Twitter under Tweet Dynamic @ZuluTrading? I am curious if you know how it might have ended up there? Twitter might be a useful adjunct to your thread.
Do not dwell in the past, do not dream of the future, concentrate the mind.
  • #1,295
  • May 21, 2012 1:48pm May 21, 2012 1:48pm
Hello fellow traders!

I am trading four pairs on a 4 TF HAS Bar strategy which I have created an EA out of. I took short trades 2 weeks ago but now lingering around not sure if she wants to change. But I am not too much of a fundamental trader; prefer letting my robot do the trick. Coz with my EA there are no emotions or whatsoever, but i'd love to know about how other traders are doing it.
Over leverge is the ultimate killer
  • #1,296
  • May 21, 2012 2:20pm May 21, 2012 2:20pm
Quoting Hugh Briss
Nice one. I'm long eurusd, I'll post a chart when I can.
AU & AJ are going backwards on me at the moment (up). Did you open the EU when it bounced of the 100 SMA?
Still learning - No guarantees...
  • #1,297
  • May 21, 2012 2:22pm May 21, 2012 2:22pm
Quoting AlbinaGrande
Hi Hugh, Can we reach you via Twitter? I just found my post on Twitter under Tweet Dynamic @ZuluTrading? I am curious if you know how it might have ended up there? Twitter might be a useful adjunct to your thread.
I have never used it and most likely won't start. I tend to only say something if it is worth saying and anything worth saying takes more than 140 chars.
  • #1,298
  • May 21, 2012 2:39pm May 21, 2012 2:39pm
Quoting Hugh Briss
Nice one. I'm long eurusd, I'll post a chart when I can.
Hi Hugh,

I am long EU as well. My Buy trade is at 1.2776 on Oanda and currently in profit at +34 pips. I have moved my SL to BE+1.

I love this system...thanks for sharing!

BC2
  • #1,299
  • May 21, 2012 3:19pm May 21, 2012 3:19pm
Quoting Ozefex
AU & AJ are going backwards on me at the moment (up). Did you open the EU when it bounced of the 100 SMA?
Well yes, I took some entries not according to the rules of this system to be honest. I was talking to a friend who is an awesome trader and he got me in just above the low of the swing down and again after the trendline break. The second trade corresponded more or less with the system. Anyway I am two trades long at the moment and going to try and get another long in the morning depending on how the overnight price action looks. My ultimate target is the 50% fib pullback of the last daily move down which is 1.2960 but I'll be trailing the stop along the way to lock in some profit.
  • #1,300
  • May 21, 2012 3:20pm May 21, 2012 3:20pm
Quoting Bobcat2
Hi Hugh,

I am long EU as well. My Buy trade is at 1.2776 on Oanda and currently in profit at +34 pips. I have moved my SL to BE+1.

I love this system...thanks for sharing!

BC2
No worries, glad you're making pips.
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