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Swing trading with heiken ashi and stochs

  • #1,461
  • Jun 4, 2012 2:41am Jun 4, 2012 2:41am
Quoting drzeepfx
HB, When you get back a couple questions - cant quite visualize - I am going to set up a pair with these perimeters now... But,

So just S&R lines on the daily - any use for FIB or channels?
Are we looking for crosses on the 50,100 and 200 ?
Any analysis on the daily would be useful in terms of finding a turning point that could possibly lead to a good trend on the hourly chart. My initial observation was that when a good trend starts on the hourly it is often preceded by a clean trendline break which made me think we could use them as a heads up that it's time to start watching the hourly chart. Also I noticed that a trendline break on the daily often coincides witha break of the 200 sma on the hourly.

The ma's on the hourly chart are not for crosses but more as a guide to where to take trades and add on. I'm thinking the first break of the 200 sma could be the first trade with a small stop and then each pullback to the 50 sma is the place to add on. Generally in a good trend the price will stay below the 50. A pullback to the 100 signifies a weakening of the trend but a bounce from the 100 can be a good trade. A pullback to the 200 is a major pause in the trend and possible reversal but bounces from the 200 can be good trades too as you can often get in with quite a tight stop.

As the strategy is to add on and only close the pyramid position when a technical level such as an ma is broken then using these levels as add on points and getting to break even quickly seems like the way to go.

Take a look at any pair and identify a trendline break then go to the hourly and see how your strategy of trading the first cross of the 200 sma and adding on at each retrace would have worked out. I'm thinking of using the 100 sma as the initial stop but if the trend develops quickly then I would move the stops to behind the 50 sma so as not to give so much back on a retrace.
  • #1,462
  • Edited 6:20am Jun 4, 2012 5:53am | Edited 6:20am
Quoting drzeepfx
In short on H1 cross -

1.2406 initial SL 1.2453

Not certain how to weigh the bank holiday in the UK - Also I kinda am bending rules on this one - My logic is that the green we see on the D1 is due to an announcement spike so I am not dissuading it, but I am giving it lees weight than I might otherwise.

Hope to take a second position in 30 more PIPs
Hope you're okay on this one as it's heading back to 1.2450 at the moment. The UK bank holidays must be having some effect on the market due to reduced liquidity. I was wating for 1.2450 or 1.2500 for a short based on the 4H chart and have only just got back to the computer. I'm confident it will go down again, but it might take out your SL first.

I'm thinking the best short would be if the price retraces close to 1.25000 as this has been a strong support level (as per my previous chart). This would allow a (tight) SL around 1.2510 and the chance to catch a continuation of the downtrend.
Still learning - No guarantees...
  • #1,463
  • Jun 4, 2012 8:01am Jun 4, 2012 8:01am
Quoting Don M
Hi Drzeep,

Have you moved to B/E yet? I'm starting to think there might be a rally in the works. The monemtun from Friday is something to watch.

I could be wrong so just something to think about.

Well I was never in position to move to break even - and I am stating to think twice about rule bending - I am 30 PiPs down right now and there is a really nice resistance line just below my SL and we just had a nice down cross - so I will just let it ride at this point. (no use crying over spilled pips)

Also wondering if our chances for false moves are increased by the reduced volume and liq. of a major market holiday?
  • #1,464
  • Jun 4, 2012 8:15am Jun 4, 2012 8:15am
How about a long on Eur/Aud?

D1 Stochastics have crossed upwards and the last 3 candles are blue.

Moving to H1 Stochastics have just crossed up and the current HA is blue, should I wait for the HA candle to close blue before opening a position?
  • #1,465
  • Jun 4, 2012 8:18am Jun 4, 2012 8:18am
Quoting normtold
How about a long on Eur/Aud?

D1 Stochastics have crossed upwards and the last 3 candles are blue.

Moving to H1 Stochastics have just crossed up and the current HA is blue, should I wait for the HA candle to close blue before opening a position?
I'm waiting on that one too, I will wait for the next H1 to buy, but don't take my word for anything.
Don't ask me, I have no idea what's going on.
  • #1,466
  • Jun 4, 2012 8:37am Jun 4, 2012 8:37am
I'm not sure this pair is a good trade at the moment considering both currencies are weak against the "safe haven" USD, JPY, etc. You might get a short term (long) trade out of it but not sure if this will last. Just my initial thoughts as haven't really analysed other pairs fully. I'm looking for an entry into a longer term trade. (I admit the daily makes it look good though...)
Still learning - No guarantees...
  • #1,467
  • Jun 4, 2012 9:10am Jun 4, 2012 9:10am
Eur/Jpy D1 Stochastics have crossed up and HA turned blue, maybe best to wait for it to close blue before looking at H1 for long entries?
  • #1,468
  • Jun 4, 2012 9:59am Jun 4, 2012 9:59am
Got taken out by the SL- At the office now with no access to MT4, and that probably a good thing. No need for the PIP junky to be in a trade just to feed his fix.
I really think I will sideline it until the EUR bank holiday is over – just a hunch?
What do you all think? – Would love for the EUR to run the other way lots of room to gather PIPs – but still a lot of space between candlesticks and our 100 line….
I will get my PIPs this week !!!!
  • #1,469
  • Jun 4, 2012 10:09am Jun 4, 2012 10:09am
Just trying this method out on demo account.

Opened a buy in Eur/Aud with a 30 S/L with .1 Lot which equates to 1% of my equity, moved S/L to B/E once it was in profit by 20 pips and closed 1/3 of the position.

Not sure how best to manage the remaining 2/3, maybe move the S/L behind every closed H1 HA? It is 35 pips up at the moment, how do you manage your trades after B/E?
  • #1,470
  • Jun 4, 2012 10:31am Jun 4, 2012 10:31am
Quoting normtold
Just trying this method out on demo account.

Opened a buy in Eur/Aud with a 30 S/L with .1 Lot which equates to 1% of my equity, moved S/L to B/E once it was in profit by 20 pips and closed 1/3 of the position.

Not sure how best to manage the remaining 2/3, maybe move the S/L behind every closed H1 HA? It is 35 pips up at the moment, how do you manage your trades after B/E?
By far the best way I have found is to trail the stop behind a moving average. Which moving average you use depends on the length of time you want to hold the trade for. I use the 100 sma as the main trend but I am considering using the 50 sma when a fast trend develops. It depends also on how loosely you are willing to trail the stop.
  • #1,471
  • Jun 4, 2012 10:46am Jun 4, 2012 10:46am
Ok, here goes with a little test trade. Just bounced off the trendline and holding below 1.25. Stop loss at 1.2520.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusd daily 4th jun 2012.gif Size: 17 KB
Click to Enlarge Name: eurusd hourly 4th jun 2012.gif Size: 18 KB
  • #1,472
  • Jun 4, 2012 10:52am Jun 4, 2012 10:52am
That euraud looks like a good trade now doesn't it?! A bounce from the 200 sma as well.
  • #1,473
  • Jun 4, 2012 11:43am Jun 4, 2012 11:43am
Quoting Hugh Briss
That euraud looks like a good trade now doesn't it?! A bounce from the 200 sma as well.
It was a nice introduction to this method. I have 2/3 of the position still open.
I am really trying to change my ways of taking profit too early and would love to let some run where posssible but like everyone hate to see profit turn into B/E or a loss.

I opened a long on Eur/Gbp H1 this morning when Stochastics crossed up with a Blue HA, I panicked when I saw Stochastics cross down and HA turn Red (temporarily) and closed for a small profit only to see Stochastics and HA turn back positive again.
So I came to realise closing a position on that criteria was not a good idea.

So the 100SMA is at 1.27609 now, not sure how I would use it to trail my position on Eur/Aud.

I also have a long on Usd/Cad from 1.03992 because D1 HA has been blue for last 5 days, Stochastics positive, waited for Stochastic cross and HA blue on H1. At B/E now. Will probably close 1/3 and decide how to trail the rest.
  • #1,474
  • Jun 4, 2012 12:50pm Jun 4, 2012 12:50pm
Quoting normtold
It was a nice introduction to this method. I have 2/3 of the position still open.
I am really trying to change my ways of taking profit too early and would love to let some run where posssible but like everyone hate to see profit turn into B/E or a loss.

I opened a long on Eur/Gbp H1 this morning when Stochastics crossed up with a Blue HA, I panicked when I saw Stochastics cross down and HA turn Red (temporarily) and closed for a small profit only to see Stochastics and HA turn back positive again.
So I came to realise closing a position on that...
There are a few versions of an expert advisor on the thread that automatically trails your stop behind whichever ma you want to use.

Looking at euraud it has moved up so quickly that it is a long way away from any of the ma's at the moment. Presumably your entry was fairly near one of the ma's when you took the trade though. In this instance I would leave the stop at break even and trail behind the 100 sma once the 100 sma catches up with the price. If you get a pullback towards the 50 then add another trade and then just hold on for the ride. You risk being stopped at break even but if it continues then you will be holding a double position for quite a way. That's the key to this method, finding a trend, pyramiding like a loony and holding on with nerves of steel. I won't pretend it's easy.
  • #1,475
  • Jun 4, 2012 2:04pm Jun 4, 2012 2:04pm
Quoting Hugh Briss
There are a few versions of an expert advisor on the thread that automatically trails your stop behind whichever ma you want to use.

Looking at euraud it has moved up so quickly that it is a long way away from any of the ma's at the moment. Presumably your entry was fairly near one of the ma's when you took the trade though. In this instance I would leave the stop at break even and trail behind the 100 sma once the 100 sma catches up with the price. If you get a pullback towards the 50 then add another trade and then just hold on for the ride....
Thanks for your input, really learning a lot from this thread.

I know you have decided to trade of S&R and trendlines recently but I am going to stick to the D1 for direction from Stochastics and HA and then H1 for trading off as you seemed to do well from this method the last few weeks.

You were probably right in that I should have left the Eur/Aud at BE but I have been stopped out.

I was thinking perhaps I should watch D1 and wait until HA and Stochastics give me direction, then trade on H1 in that direction only, wait for HA and Stochastics to enter, S/L at 30 pips, move to B/E at 20 pips, take 1/3 off and leave the other 2/3 at B/E, do not trail or close even if H1 HA changes colour or Stochastics changes direction, only close if D1 HA or Stochastics changes direction.

That way I catch any big moves or B/E, and also add every time H1 Stochastics crosses back in my direction as long as D1 is in agreement.
  • #1,476
  • Jun 4, 2012 2:28pm Jun 4, 2012 2:28pm
Quoting normtold
Thanks for your input, really learning a lot from this thread.

I know you have decided to trade of S&R and trendlines recently but I am going to stick to the D1 for direction from Stochastics and HA and then H1 for trading off as you seemed to do well from this method the last few weeks.

You were probably right in that I should have left the Eur/Aud at BE but I have been stopped out.

I was thinking perhaps I should watch D1 and wait until HA and Stochastics give me direction, then trade on H1 in that direction only, wait for HA and Stochastics...
That's the basics of the system and will work well as long as you have the discipline to let the trade/s run and not close out when the numbers get big.
  • #1,477
  • Jun 5, 2012 12:52am Jun 5, 2012 12:52am
Stopped out on eurusd for a 25 pip loss. I'm considering going long if it pulls back and turns nicely at the top of the 1.25 level. This could be the start of the daily pullback. Won't cost much to have a go.
  • #1,478
  • Jun 5, 2012 1:31am Jun 5, 2012 1:31am
Long just above 1.25
  • #1,479
  • Jun 5, 2012 1:57am Jun 5, 2012 1:57am
Quoting Hugh Briss
Long just above 1.25
Sorry Hugh,

Did you say long on the EU, on the H1 ?

Cheers

SR
  • #1,480
  • Jun 5, 2012 2:11am Jun 5, 2012 2:11am
Quoting Sjr
Sorry Hugh,

Did you say long on the EU, on the H1 ?

Cheers

SR
Yes, just above 1.25. Going lower at the moment.
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