Swing trading with heiken ashi and stochs | Page 98 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Trading with Heiken Ashi and Heiken Ashi smoothed - Hybrid 362 replies

Heiken Ashi and Heiken Ashi Smoothed EA needed for Renko 11 replies

Trendlines with Heiken Ashi and Stochs System 367 replies

Trading the heiken-ashi megapips system. 2 replies

EA for Heiken Ashi + Heiken Ashi Smoothed 4 replies

Attachments: Swing trading with heiken ashi and stochs
Exit Attachments

Swing trading with heiken ashi and stochs

  • #1,941
  • Jul 1, 2012 5:38pm Jul 1, 2012 5:38pm
Just came across this thread n found it useful. On this particular post, I sincerely believe u hv really nailed it down to what a trader must accept n apply for long term application n consistency n really hope that most fxfcty members can read this post.
Congrats n keep up the good work!
Quoting Hugh Briss
A little bit about systems, probability and expectations...

A very good reason why new traders fail to make any money, and indeed lose money, is the search for the so called holy grail, that elusive system that never loses and always wins. I used to do it myself all the time, try out a system and after 2 wins, 2 break evens and 3 losses I would determine that it was no good and go on to the next one. Experienced traders of course know that if your system is expected to give you a 40% strike rate at 2:1 risk/reward that is sufficient to make money....
  • #1,942
  • Jul 2, 2012 12:41am Jul 2, 2012 12:41am
Quoting eralinks
Just came across this thread n found it useful. On this particular post, I sincerely believe u hv really nailed it down to what a trader must accept n apply for long term application n consistency n really hope that most fxfcty members can read this post.
Congrats n keep up the good work!
Thanks
  • #1,943
  • Edited 11:31am Jul 2, 2012 11:20am | Edited 11:31am
Bought EURGBP on 100 sma pullback @0.80308 S/L 0.80018.
  • #1,944
  • Jul 2, 2012 11:23am Jul 2, 2012 11:23am
HB,

Since a D1 HA color change tends to correspond with a H1 cross of the 100 sma (as you pointed out about 30 or so pages ago), what do you think of the idea of waiting for an HA doji on the D1, then dropping to the H1 and placing a pending order just above/below the 100 sma? Perhaps this could allow us to catch the trend a little closer to its beginning.

Any thoughts?
  • #1,945
  • Jul 2, 2012 11:26am Jul 2, 2012 11:26am
Just curious what timeframe you trade this method on.

I see D1 Usd/Cad stochastics crossed down and HA candle red for the last 3 days, looks like it is setting up for a short on H1.
  • #1,946
  • Jul 2, 2012 11:28am Jul 2, 2012 11:28am
Quoting Traderbry
HB,

Since a D1 HA color change tends to correspond with a H1 cross of the 100 sma (as you pointed out about 30 or so pages ago), what do you think of the idea of waiting for an HA doji on the D1, then dropping to the H1 and placing a pending order just above/below the 100 sma? Perhaps this could allow us to catch the trend a little closer to its beginning.

Any thoughts?
This idea worked out great for me on the first week I started trading this method.
  • #1,947
  • Jul 2, 2012 11:32am Jul 2, 2012 11:32am
Quoting normtold
Just curious what timeframe you trade this method on.

I see D1 Usd/Cad stochastics crossed down and HA candle red for the last 3 days, looks like it is setting up for a short on H1.
my bad, I was writing on a phone and wrote USDCAD instead. I bought EURGBP!
  • #1,948
  • Jul 2, 2012 12:23pm Jul 2, 2012 12:23pm
Quoting Traderbry
HB,

Since a D1 HA color change tends to correspond with a H1 cross of the 100 sma (as you pointed out about 30 or so pages ago), what do you think of the idea of waiting for an HA doji on the D1, then dropping to the H1 and placing a pending order just above/below the 100 sma? Perhaps this could allow us to catch the trend a little closer to its beginning.

Any thoughts?
Do you wait for D1 HA doji to develop and placing a pending order in the end of the day or right away when trend just starting to develop (doji haven't fully developed yet)?
  • #1,949
  • Jul 2, 2012 1:05pm Jul 2, 2012 1:05pm
Quoting Igorman
Do you wait for D1 HA doji to develop and placing a pending order in the end of the day or right away when trend just starting to develop (doji haven't fully developed yet)?
It would be at the completion of the doji. HB mentioned in a prior posting that when the D1 HA color changes, the price has crossed the 100 sma on the H1 chart. So if that D1 HA color change was preceeded by a doji, which HB also talked about as alerting to a possible change of direction, maybe a better entry into the new trend could be had (and also maybe a smaller SL) by placing a pending order ahead of the sma cross on the H1.

It's just a thought/theory; I'm curious to read HB's thoughts on this...
  • #1,950
  • Jul 2, 2012 1:24pm Jul 2, 2012 1:24pm
Quoting Traderbry
It would be at the completion of the doji. HB mentioned in a prior posting that when the D1 HA color changes, the price has crossed the 100 sma on the H1 chart. So if that D1 HA color change was preceeded by a doji, which HB also talked about as alerting to a possible change of direction, maybe a better entry into the new trend could be had (and also maybe a smaller SL) by placing a pending order ahead of the sma cross on the H1.

It's just a thought/theory; I'm curious to read HB's thoughts on this...
Jumping the gun a little but if you're happy with the risk the it's ok. If you want to enter the trend a little earlier then it would be possible to trade the break of the 100 sma on the hourly chart. Watch the daily, when the daily looks at a good place to turn and is in the process of turning you will notice the price floating around the 100 sma on the hourly. You should be able to enter if it closes the other side of the 100 sma and use a very small stop loss. If the price then finds support/resistance at the 100 sma your small stop will be safe. Of course this method does get stopped out more often than waiting for a break and retest of the 100 sma but the potential reward is usually enough to make it worthwhile if you are happy with the extra risk/stress.
  • #1,951
  • Jul 2, 2012 3:21pm Jul 2, 2012 3:21pm
Don't know about the Daily/H1 traders but the Weekly/H4 looks to be setting up well on the JPY pairs. Just sayin.
  • #1,952
  • Jul 2, 2012 6:44pm Jul 2, 2012 6:44pm
Quoting spyderman
Don't know about the Daily/H1 traders but the Weekly/H4 looks to be setting up well on the JPY pairs. Just sayin.
What do you think about EURJPY? Seems like a nice set up D1/H1 and on WK/H4. Just took a position: buy @99.93 SL:99.52
  • #1,953
  • Jul 2, 2012 6:55pm Jul 2, 2012 6:55pm
Quoting Igorman
What do you think about EURJPY? Seems like a nice set up D1/H1 and on WK/H4. Just took a position: buy @99.93 SL:99.52
Definitely setting up nice on the WK/H4. Just have to wait for the HA candle change and the stoch cross.

Seems like it might be a little on the H1. The stoch cross happened about a week ago.
  • #1,954
  • Jul 2, 2012 8:02pm Jul 2, 2012 8:02pm
Just got a new H4 candle and the JPY's are definitely trying to turn back up to the weekly trend. I'll probably get a bunch of entry signals while I'm asleep tonight. Things never were out right for us US based traders...
  • #1,955
  • Jul 2, 2012 9:03pm Jul 2, 2012 9:03pm
Dang, just got an entry signal on U/J on the H4. Candle green and stoch just crossed up. Problem is that I'm 1 hr into the 4 hour candle. Supposed to wait for the candle to close. That will be midnight my time, and no, I'm not waiting up for it.

I may wait till I hit the sack and pull the trigger if it still looks good.
  • #1,956
  • Jul 3, 2012 7:17am Jul 3, 2012 7:17am
So here's my trade I took last night. Up slightly. And sure enough, the JPY pairs triggered while I was slumbering. I'll see if I can still get in any of those.
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy.jpg Size: 118 KB
  • #1,957
  • Jul 3, 2012 7:31am Jul 3, 2012 7:31am
Hugh,

What do you think...too late to the party on these.

And before you say anything...I know...I know. Correlated pairs. Wasn't thinking clearly.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: audjpy.jpg Size: 130 KB
Click to Enlarge Name: eurjpy.jpg Size: 126 KB
  • #1,958
  • Jul 3, 2012 8:46am Jul 3, 2012 8:46am
Quoting spyderman
Hugh,

What do you think...too late to the party on these.

And before you say anything...I know...I know. Correlated pairs. Wasn't thinking clearly.
They looks ok to me but have moved already. Extra risk, that's all.
  • #1,959
  • Edited 9:09am Jul 3, 2012 9:06am | Edited 9:09am
Hi Hugh,

Thanks for introducing this system..

Have a few queries and hope you can help with it:-

1. Assuming we are on an uptrend. We look for a retrace and a doji candle with stochs crossing around 20 for an entry right? so we take the trade at the break of the newly formed candle above the high of the doji?

2. Is it advisable to trade during specific times only perhaps London, US open etc.

Thanks for your reply!

Leon
  • #1,960
  • Jul 3, 2012 11:01am Jul 3, 2012 11:01am
Quoting leodlaure
Hi Hugh,

Thanks for introducing this system..

Have a few queries and hope you can help with it:-

1. Assuming we are on an uptrend. We look for a retrace and a doji candle with stochs crossing around 20 for an entry right? so we take the trade at the break of the newly formed candle above the high of the doji?

2. Is it advisable to trade during specific times only perhaps London, US open etc.

Thanks for your reply!

Leon
Hugh may weigh in different, but I don't think the entry criteria was simply a color change on the HA in line with the daily trend accompanied by a "smooth" stoch cross (not necessarily at any particular level)

Here's a quote from Hugh's pdf:

The initial trade
Our first trade will be the first valid system signal on the hourly chart.
Remember, a valid signal is a smooth pullback, stoch cross and heiken
ashi change away from the 100 sma. Quite often after a cross of the 100
sma you will see the price come back and actually bounce from the 100
sma. This is usually an excellent trade opportunity.
8 traders viewing now