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Trading Made Simple for Day Charts

  • #1,081
  • Edited 12:36pm Dec 22, 2012 10:53am | Edited 12:36pm
Greetings all

Been pre-occupied on other stuff but am getting back to trading again in the new year.

Implemented a few tweaks to the overall approach looking at overlaying Supply & Demand - main issue is keeping the charts clean, so very conscious of adding stuff that does not add value.

I have been running with a revision on the TP and SL settings but am still keeping with placing two trades at entry, only now TP1 = 1xATR7 and TP2 = 3xATR7.

Once TP1 is hit, move TP2 to BE and then manage the SL manually. You also have the option of moving to the H4 to pick up on the Add-Ons as per the training charts.

SL for both trades is 1.5xATR7 OR the previous Fractal, which ever is the lowest value, so if 1.5xATR7 = 150pips and the nearest Fractal is 100pips away from the entry position, then set to a few pips above the Fractal if high, or a few pips lower than the Fractal if low.

I have been manually drawing these for a while now and have found an indicator that does the job well.

Here's the revised template and the new Supply / Demand indicator.

With the new indicator, watch for the PA as it enters a S/D zone - usually it'll lose momentum and then reverse - unless it blows through and breaks the zone! As it exits a zone, look for an entry point. Wait for the day candle to close before entering!
Attached File(s)
File Type: tpl # 002 britpip7 day with s-d.tpl   39 KB | 791 downloads
File Type: mq4 II_SupDem.mq4   29 KB | 884 downloads
File Type: ex4 II_SupDem.ex4   36 KB | 725 downloads
"To live with Passion, it takes Courage and Grace to survive"
  • #1,082
  • Dec 22, 2012 3:36pm Dec 22, 2012 3:36pm
Quoting Britpip7
Greetings all

Been pre-occupied on other stuff but am getting back to trading again in the new year.

Implemented a few tweaks to the overall approach looking at overlaying Supply & Demand - main issue is keeping the charts clean, so very conscious of adding stuff that does not add value.

I have been running with a revision on the TP and SL settings but am still keeping with placing two trades at entry, only now TP1 = 1xATR7 and TP2 = 3xATR7.

Once TP1 is hit, move TP2 to BE and then manage the SL manually. You also have the option of moving...
Britpip7,
I thought you are not going to use the TDI Watchdog. And, you are going to use the RSI10 and ATR7 cross. Am I right?
Keep learning while you are alive!
  • #1,083
  • Dec 22, 2012 3:59pm Dec 22, 2012 3:59pm
he TDI in this instance would have crossed as the PA moved down and broke the Fractal Low, however, as the candle pulled back, the TDI RSI would have moved with the retrace and any TDI cross that would have been indicated would no longer exist.
  • #1,084
  • Dec 22, 2012 9:48pm Dec 22, 2012 9:48pm
Quoting exiao
Britpip7,
I thought you are not going to use the TDI Watchdog. And, you are going to use the RSI10 and ATR7 cross. Am I right?
Hi Exiao,

You can add the RSI 10 to the TDI with "no color" and watch the value in the Data Window.

There is no cross of the RSI 10 and the ATR7. Stronger entries are when the RSI is >50 for long entries and <50 for short entries.
"To live with Passion, it takes Courage and Grace to survive"
  • #1,085
  • Dec 22, 2012 9:49pm Dec 22, 2012 9:49pm
Quoting sagr althaga
he TDI in this instance would have crossed as the PA moved down and broke the Fractal Low, however, as the candle pulled back, the TDI RSI would have moved with the retrace and any TDI cross that would have been indicated would no longer exist.
Please post a chart so we can see what is being discussed
"To live with Passion, it takes Courage and Grace to survive"
  • #1,086
  • Dec 22, 2012 10:38pm Dec 22, 2012 10:38pm
Well the progress for this week is as follows

closed trades

eurgbp 6/12 short @ .8154, 17/12 stopped out at a loss

xauusd 10/12 long @ 1712.6, 18/12 stopped out at a loss

eurusd 12/12 long @ 1.3074 . closed at profit 19/12 @ 1.3277 and 20/12 @1.4030

usdchf 12/12 short @ .9262. closed at profit 18/12 @.9136 and 20/12 @.9117

eurcad 13/12 long @ 1.2700. closed at profit 19/12 @ 1.3061 and 20/12 @1.3074

New trades

eurnzd 17/12 long @1.5593, S1 profit close 19/12 @ 1.5756, S2 in with stop @ 1.5722

audnzd 18/12 long @1.2509, S1 profit close 21/12 @ 1.2616, S2 in with stop @ 1.2399

gbpaud 18/12 long @ 1.5435 both in profit. S1 missed target by 13 pips

usdcad 19/12 long @ .9877, S1 profit close 19/12 @ .9946, S2 in with stop @ 0.9804

nzdusd 19/12 short @ .8362, S1 profit close 19/12 @ .8240, S2 in with stop @ 0.8482


I forgot to add a few updates from the initial week posted. Lets just say they're better forgotten, however overall the position is still looking good.
  • #1,087
  • Edited 11:57am Dec 23, 2012 8:22am | Edited 11:57am
Template revised with RSI 10 as an overlay on TDI - watch the values in the data window

Check out Post # 1
"To live with Passion, it takes Courage and Grace to survive"
  • #1,088
  • Dec 23, 2012 8:48am Dec 23, 2012 8:48am
Quoting kingclarence
These are the four trades i took today
Hi King,

Nice to see you hanging in there - looks like some nice trades
"To live with Passion, it takes Courage and Grace to survive"
  • #1,089
  • Dec 23, 2012 8:51am Dec 23, 2012 8:51am
Quoting fiepmupke
@ all

Everyone has private issues once in a while. Stupid car accident or a family incident with some impact. Even Grand Poopah Eelfranz is not seen anymore around here. Posting is not an obligation of any kind, let us remember. I have sent Britpip7 a request to come in here again. Thought it was the right thing to do.

move on. if you despair, move on desperately but move on

Caring, Jos
sometimes other things take over your life!

EelFranz was battling a serious health issue and could no longer post but his trading styles and beliefs live on through the various TMS threads
"To live with Passion, it takes Courage and Grace to survive"
  • #1,090
  • Dec 23, 2012 8:54am Dec 23, 2012 8:54am
Quoting Buttonjock
Hi Britpip and fellow traders,

Been paper trading your system for a couple of weeks now with some interesting results. Whilst I haven't read the entire thread, looking at your ideal setup on page 1, there's one requirement I don't understand.

'PA moves with ATR(1) at 75% or higher of ATR(7)'

PA of course is price action, however I haven't been able to figure out how to interpret its relationship with the ATR, so would appreciate some enlightenment in this area.

As an aside, you mention other time frames. Being very visual, I've found...
ATR1 tracks the current Bar - the idea here is that if the current move has a small body comparable to the ATR7, or has a low ATR value, then this is telling you that PA is losing its momentum - Always judge the strength if PA before entering.
"To live with Passion, it takes Courage and Grace to survive"
  • #1,091
  • Dec 23, 2012 8:59am Dec 23, 2012 8:59am
Quoting Esosa
Please give your thought on this chart, is it a perfect long trade set up?
Looking at this trade, I am wondering what your thought process was for entering.

The move that is in play has been running for many candles, so unless you have a Fractal High that was broken, I would not take it.

Best entries are after the APB colour change and the TDI cross. enter after you have confirmation, - preferably during the first couple of candles after the TDI cross
"To live with Passion, it takes Courage and Grace to survive"
  • #1,092
  • Dec 23, 2012 9:44am Dec 23, 2012 9:44am
Some thoughts on PA leaving Supply / Demand zones and matching these to TDI crosses.
Attached Image (click to enlarge)
Click to Enlarge Name: s-d plus tdi crosses day training chart.gif Size: 49 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,093
  • Edited 12:02pm Dec 23, 2012 11:48am | Edited 12:02pm
Post # 1 updated with template and indicators and the full screenshot

Check out the attachments
"To live with Passion, it takes Courage and Grace to survive"
  • #1,094
  • Dec 23, 2012 1:00pm Dec 23, 2012 1:00pm
Quoting Britpip7
Hi King,

Nice to see you hanging in there - looks like some nice trades
Yeah i dont plan on quiting ever really.Gone keep going until i get it down.Forex is tough but if you can master being consistent its so many benefits.I probably demo trade for another year or so before i go live again
  • #1,095
  • Dec 26, 2012 2:03pm Dec 26, 2012 2:03pm
Quoting Britpip7
ATR1 tracks the current Bar - the idea here is that if the current move has a small body comparable to the ATR7, or has a low ATR value, then this is telling you that PA is losing its momentum - Always judge the strength if PA before entering.
Thank Britpip, thanks for replying. There seems to be a significant delay in postings being made and when they appear on screen. Lots of comments here I've not seen before :o)

Could you point me to the pages which discuss the Supply / Demand indicator please. I've put it on a chart but don't understand how to use it.

Cheers all
  • #1,096
  • Dec 26, 2012 4:13pm Dec 26, 2012 4:13pm
Quoting Buttonjock
Thank Britpip, thanks for replying. There seems to be a significant delay in postings being made and when they appear on screen. Lots of comments here I've not seen before :o)

Could you point me to the pages which discuss the Supply / Demand indicator please. I've put it on a chart but don't understand how to use it.

Cheers all
Hi,

I haven't written anything about the indicator to date - there are a few threads on FF that concentrate on the approach and I'll include these as reference.

here's a quote from Trading Supply & Demand Zones


Sam Seiden (this is a commercial trader, so beware of subscriptions - I do not use his system, but I do credit him with this quote) wrote:

"Noted economist Adam Smith suggested hundreds of years ago that when supply exceeds demand at a price level, prices will decline and vice-versa. Noted physicist Isaac Newton suggested in his three laws of motion that an object will remain in motion until it is met with an equal or greater force. These two simple, yet brilliant principles have stood the test of time and are directly responsible for the movement of price in the markets we trade today. There is no doubt in my mind that the two of them would have made excellent traders."

The general definitions are:

Demand
A price at which someone is willing and able to buy something.
Demand = (Support) = where to buy.

Supply
The price at which someone is willing and able to sell something.
Supply = (Resistance) = where to sell.

Just like any market, the financial markets are a function of supply & demand and good trading opportunities present themselves when this equation is out of balance.

Think of Supply and Demand as the housing market. When house prices have been running up for some time and reach a certain price point in a geographic area, the prices will often stick there and folks will not pay higher prices, so there is saturation in the housing market and eventually, prices naturally fall. the supply is exhausted and it becomes a seller's market. Conversely, when the bottom falls out of the housing market, prices will find a natural low point and it generates demand due to the low prices and it then becomes a buyer's market.

Basic rules are to look for trades entering a zone and wait for the PA to exit the Zone - These will usually coincide with a TDI cross, but this is just another confirmation tool and will help you spot Supply & Demand Zones that are not obvious on your screen without zooming out. If the Supply / Demand Zone is strong, the end result will be a price reversal. Weaker Zones will cause the price to stall before resuming its original trend.

Do not enter trades as the PA approaches a Zone - Wait for the bounce / reversal to be confirmed with TDI & PA.

This is a supplemental approach for what I am currently using - I was drawing these boxes anyway, so it is nice to have some software that will do the job reliably.

PhAnTi' has also written some ebooks on the subject - worth a read - chrome://newtabhttp//www.forexfactory.com/showthread.php?t=352479
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Supply and Demand.gif Size: 29 KB
Click to Enlarge Name: supply & demand with tdi.gif Size: 48 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,097
  • Dec 26, 2012 4:55pm Dec 26, 2012 4:55pm
Possible set up on aud jpy as we head into the New Year.
Attached Image (click to enlarge)
Click to Enlarge Name: aud jpy day 12-26-2012.gif Size: 42 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,098
  • Dec 26, 2012 5:00pm Dec 26, 2012 5:00pm
Colour Settings for the Supply / Demand Zones in the II_SupDem indicator
Attached Image (click to enlarge)
Click to Enlarge Name: II_SupDem colours.jpg Size: 184 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,099
  • Dec 26, 2012 5:07pm Dec 26, 2012 5:07pm
EUR/AUD possible set up for reveral

TDI > 68 and above TDI Up Zone

PA approaching strong Support Zones

Waiting for APB to change colour and strong TDI cross
Attached Image (click to enlarge)
Click to Enlarge Name: eur aud day 12-26-2012.gif Size: 39 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,100
  • Dec 28, 2012 9:58pm Dec 28, 2012 9:58pm
[quote=Britpip7;6322703]Hi,

I haven't written anything about the indicator to date - there are a few threads on FF that concentrate on the approach and I'll include these as reference.

here's a quote from Trading Supply & Demand Zones


Thanks Britpip, very interesting. Will add this to my charts.


Time for a weekly position check

eurnzd 17/12 long @1.5593, S2 profit close 28/12 @ 1.6023; +430

audnzd 18/12 long @1.2509, S2 profit close 28/12 @ 1.2635; +144

gbpaud 18/12 long @ 1.5435 S1 & S2 profit close 24/12 @ 1.5540; +210

usdcad 19/12 long @ .9877, S2 profit close 28/12 @ 0.9945; +68

nzdusd 19/12 short @ .8362, S2 profit close 28/12 @ 0.8221; +141


Whilst this is still a demo account, overall, the month was a profit despite the early bad trades. This is very pleasing and encouraging.

Happy new year to everyone. looking forward to a year of trading success
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