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Trading Made Simple for Day Charts

  • #1,221
  • Jan 25, 2013 7:04pm Jan 25, 2013 7:04pm
Quoting Buttonjock
How do you do this?

It's a gift
"To live with Passion, it takes Courage and Grace to survive"
  • #1,222
  • Jan 25, 2013 7:40pm Jan 25, 2013 7:40pm
Just to show that my hindsight capabilities are not a fluke, More thoughts on Day charts and H4 on high pip movers such as EUR/JPY.

Looking at the day chart over the past 10 days, the Fractal Breaks were not producing much and by the time you see a TDI confirmation, the trading opportunity had long gone, so I have been running some back testing using the H4.

Bearing in mind I am reviewing charts at 8pm PDT, this equated to the H4 at 04:00, so I must be able to see the set-up on the 04:00 candle close or earlier.

Looking at the entry possibilities on the H4 during the same timeframe would have seen a total of around 800 / 900 pips running with the usual TP1 / TP 2 and ATR 7 approaches.

Worth considering if the Day entries are not confirming on pairs such as eur/jpy, gbp/jpy, eur/nzd, gbp/nzd

run some backtests and see if this will work for you.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur jpy day entry points tdi.gif Size: 32 KB
Click to Enlarge Name: eur jpy h4 entry points tdi.gif Size: 40 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,223
  • Jan 25, 2013 9:51pm Jan 25, 2013 9:51pm
Quoting Britpip7
It's a gift
  • #1,224
  • Jan 25, 2013 9:55pm Jan 25, 2013 9:55pm
Quoting Britpip7
Just to show that my hindsight capabilities are not a fluke, More thoughts on Day charts and H4 on high pip movers such as EUR/JPY.

Looking at the day chart over the past 10 days, the Fractal Breaks were not producing much and by the time you see a TDI confirmation, the trading opportunity had long gone, so I have been running some back testing using the H4.

Bearing in mind I am reviewing charts at 8pm PDT, this equated to the H4 at 04:00, so I must be able to see the set-up on the 04:00 candle close or earlier.

Looking at the entry possibilities...
The only problem is it's rare that I can make time to look at 4H charts ... the other half would not be very appreciative if I started doing this
  • #1,225
  • Jan 26, 2013 11:46am Jan 26, 2013 11:46am
Quoting Buttonjock
The only problem is it's rare that I can make time to look at 4H charts ... the other half would not be very appreciative if I started doing this
Understand - I've taken the approach that I only use the H4 if the Day is being stubborn but mostly on the high pip moving pairs - only really adds 5 or 10 extra minutes. I only check in once a day at 8pm for about 30 - 45 mins, so I don't check every H4 candle - I'd get addicted to chart watching again!!!
"To live with Passion, it takes Courage and Grace to survive"
  • #1,226
  • Jan 26, 2013 5:41pm Jan 26, 2013 5:41pm
Trading summary for the week

EUR/CHF - The entry was set off of the H4 for a TDI bounce lower and due to the pullback candle from the Friday session - lots of downward momentum. TP2 was set to BE after TP1 was hit and the SL was hit 2 days later.
TP1 closed for 81 pips
TP2 closed for 4 pips (BE)

AUD/USD - This was set as a sell stop for a Fractal Low break and it triggered 3 days later
TP1 closed for 50 pips
TP2 running with 20 pips protected - TS of 55pips set untill new entries are taken on the H4

Both trades were set up as pending trades after the Friday candle close during the early hours of Monday. I do not actively trade the Sunday/Monday times, I just set pending trades.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur chf closed trades 1-26-2013.gif Size: 30 KB
Click to Enlarge Name: eur chf h4 entry.gif Size: 32 KB
Click to Enlarge Name: aud usd current trade 1-26-2013.gif Size: 39 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,227
  • Jan 26, 2013 6:27pm Jan 26, 2013 6:27pm
Watch List for next week.
Lots of activity at the end of last week, so most pairs have got something happening. BOJ is still faffing around so no clear direction there. The UK financial outlook is not well if you listen to the talking heads - which when it comes to charts is fatal. The PA will tell you where it wants to go and PA doesn't listen to the talking heads!

As always with the charts, wait for the previous candle to close before making a trading decision. An APB colour change for the previous day with a TDI cross is a great place to start. Look for the stronger TDI crosses - less chance of a DrawDown.

I will be concentrating more on the 3 amigos this week and EUR/JPY on H4.

EU is now looking as though it is going to respect the Supply Zone, so now looking for a candle to head south and close below the Zone. I have manually drawn in the Support Zone in case the software deletes it this week,

GU is respecting a former level 1.5767 and is shaping up for a reverse, although the current UK news has not been good. If it keeps heading south it could test the lows from July 2012. Waiting for the Monday candle to see what PA will do. Don't let the talking heads get in your way - follow the PA.

AU continues its recent trend, watching on H4 for Add-Ons.

With the JPY pairs, I am watching these on the H4 as long as they have the current ranges in play.

EUR/AUD - nice move following the colour change on Thursday - will also watch this on H4.

GBP/AUD has a stronger move in play than the EUR/AUD - again, too late for the Day entry, so H4.

GBP/NZP - nice candle pattern for a reverse - watch PA to confirm the TDI cross.

GBP/CHF - Huge pull back candle on Friday - this should trigger a reversal.

AUD/CAD - Good candle pattern for reversal with TDI cross in place, look for APB to change colour

Happy Pip Hunting
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur usd day 1-26-2013.gif Size: 35 KB
Click to Enlarge Name: gbp usd day 1-26-2013.gif Size: 36 KB
Click to Enlarge Name: aud usd h4 1-26-2013.gif Size: 37 KB
Click to Enlarge Name: eur jpy h4 1-26-2013.gif Size: 36 KB
Click to Enlarge Name: gbp aud h4 1-26-2013.gif Size: 35 KB
Click to Enlarge Name: gbp chf day 1-26-2013.gif Size: 39 KB
Click to Enlarge Name: aud cad day 1-26-2013.gif Size: 35 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,228
  • Jan 27, 2013 4:09pm Jan 27, 2013 4:09pm
Quoting Britpip7
Understand - I've taken the approach that I only use the H4 if the Day is being stubborn but mostly on the high pip moving pairs - only really adds 5 or 10 extra minutes. I only check in once a day at 8pm for about 30 - 45 mins, so I don't check every H4 candle - I'd get addicted to chart watching again!!!
Oh yeh, I so know that feeling
  • #1,229
  • Jan 27, 2013 6:09pm Jan 27, 2013 6:09pm
Britpip, just checking. Your 5 MA is that an SMA with shift 1? I'm have an EMA shift 2
  • #1,230
  • Jan 27, 2013 9:41pm Jan 27, 2013 9:41pm
Quoting Buttonjock
Britpip, just checking. Your 5 MA is that an SMA with shift 1? I'm have an EMA shift 2
SMA Period 5 shift 1 - Apply to Close
"To live with Passion, it takes Courage and Grace to survive"
  • #1,231
  • Jan 28, 2013 9:12pm Jan 28, 2013 9:12pm
Hello,

Long time lurker here on this thread. Just want to say thanks very much Britpip. I am finally starting to

make some $.
  • #1,232
  • Jan 28, 2013 10:19pm Jan 28, 2013 10:19pm
Quoting echoman_1
Hello,

Long time lurker here on this thread. Just want to say thanks very much Britpip. I am finally starting to

make some $.
Great news - post some charts so we can see your trades
"To live with Passion, it takes Courage and Grace to survive"
  • #1,233
  • Jan 30, 2013 5:56am Jan 30, 2013 5:56am
Quoting Britpip7
Now that the II_SupDem has deleted the Supply Zone, does not mean that it is still not an applicable area of concern (it is just the way the software works for this indicator) - just manually insert it and watch for PA to either continue the trend on H4 which will generate a Fractal High Break AND give a new TDI Cross which will confirm the move.

OR, watch for the reversal signals.

This is where common sense and PA overrides an indicator. Software is only capable of so much, and PA doesn't care what the code says
Britpip,

Sorry I'm missing something. But could you explain more in depth how you could tell if a TDI cross is Weak or Strong ?
  • #1,234
  • Edited 10:57pm Jan 31, 2013 11:51am | Edited 10:57pm
Quoting effluvium
Britpip,

Sorry I'm missing something. But could you explain more in depth how you could tell if a TDI cross is Weak or Strong ?
A good example of a strong TDI cross would be the current day chart on GBP / USD

Strong angle on the TDI cross

Good candle pattern

Price action moving higher after the APB colour change and close from the Wednesday Candle
Attached Image (click to enlarge)
Click to Enlarge Name: strong tdi cross gbp usd.gif Size: 38 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,235
  • Jan 31, 2013 11:19pm Jan 31, 2013 11:19pm
Not had much time on the charts this week, so missed everything on Wednesday night!

Here is what I was talking about on last weekend's Watch List regarding watching the EUR/JPY for entries on the H4 as opposed to the day chart.

The Day chart would have coughed up 1 entry for 250pips which is pretty respectful.

However, the H4 would more than double this.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur jpy day 1-31-2013.gif Size: 30 KB
Click to Enlarge Name: eur jpy fractal entries on h4.gif Size: 40 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,236
  • Feb 2, 2013 9:43pm Feb 2, 2013 9:43pm
Has anyone tried this method on futures? I'm tinkering with the Interactive brokers demo. They don't have to many forex pairs though.
  • #1,237
  • Feb 2, 2013 10:51pm Feb 2, 2013 10:51pm
Looking at how the week closed out, there were plenty of pairs with strong trend runs. these are the ones to watch on the H4 charts and pick up Fractal Breaks.

Eur and JPY pairs continue doing their thing - lots of opportunities on the Day charts with Fractal Breaks

GBP had a complete reversal on Friday - ATR 1 ranging from 150 to 350 pips depending on the pair. Engulfing candles often signal a reversal.

Possibilities for reversals this week

NZD/USD is hitting the Supply Zone

EUR/NZD GBP/AUD APB Colour change - wait for Monday PA

GBP/NZD looking to continue trend run - although it has hit a Demand Zone and may well blow straight through.

AUD/CHF showing a pull back candle on Friday. PA has not managed to close below the fractal lows of 0.9443 and 0.9431 - watch for reversal candle pattern. Seems to be a theme with the CHF pairs.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: nzd usd day 2-2-2013.gif Size: 38 KB
Click to Enlarge Name: gbp aud day 2-2-2013.gif Size: 35 KB
Click to Enlarge Name: gbp nzd day 2-2-2013.gif Size: 35 KB
Click to Enlarge Name: aud chf day 2-2-2013.gif Size: 46 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #1,238
  • Feb 2, 2013 11:17pm Feb 2, 2013 11:17pm
Hi Britpip, do you change any of the settings when going from day charts to 4h ?
  • #1,239
  • Feb 3, 2013 10:50am Feb 3, 2013 10:50am
Quoting Britpip7
Looking at how the week closed out, there were plenty of pairs with strong trend runs. these are the ones to watch on the H4 charts and pick up Fractal Breaks.

Eur and JPY pairs continue doing their thing - lots of opportunities on the Day charts with Fractal Breaks

GBP had a complete reversal on Friday - ATR 1 ranging from 150 to 350 pips depending on the pair. Engulfing candles often signal a reversal.

Possibilities for reversals this week

NZD/USD is hitting the Supply Zone

EUR/NZD GBP/AUD APB Colour change - wait for Monday PA

GBP/NZD...
What do you mean when you say supply zone?
  • #1,240
  • Feb 3, 2013 11:48am Feb 3, 2013 11:48am
Quoting echoman_1
Hi Britpip, do you change any of the settings when going from day charts to 4h ?
Echoman,

Nothing changes on the settings with one exception - when using H4 you need to make a decision for your Take Profit Settings. If you are purely using H4 as an Add-On strategy, I will leave the TP open and manually manage. SL will usually be to an H4 swing high/low.

On the indicators, I generally have it Il_SupDem switched off on H4 and then I will run off of Fractals once the trend is established.
"To live with Passion, it takes Courage and Grace to survive"
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