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Third Screen Strategy - Dr. Alexander Elder

  • #181
  • Mar 27, 2013 7:27am Mar 27, 2013 7:27am
Quoting 100PipsADay
Hi Khaled,

I personally wouldn't buy GBP/USD at this time even though D1 MACD is showing "uptrend" because we are in a strong weekly and even monthly down trend now. I also still have one sell position open from a few weeks back so I won't touch GBP/USD until either SL or TP target is reached.

Also, GBP/USD is one of the harder pairs to trade as it is a volatile pair, I actually use a 260 pip SL and a 320 pip TP with GBP/USD as well as most other GBP cross pairs.

when you look at the daily trend, do you just look at the ma crossovers on the MACD or the MACD bars as well ? for example, if the MACD bars are above zero indicating a buy, but the ma's have crossed and pointing downwards, - the white line has crossed the red line and going down indicating a downmove. would this still be a buy as the MACD bars are above zero and 'up' even though the ma's have crossed downwards. how would you interpret this ?
  • #182
  • Mar 27, 2013 7:32am Mar 27, 2013 7:32am
Quoting whatfx
when you look at the daily trend, do you just look at the ma crossovers on the MACD or the MACD bars as well ? for example, if the MACD bars are above zero indicating a buy, but the ma's have crossed and pointing downwards, - the white line has crossed the red line and going down indicating a downmove. would this still be a buy as the MACD bars are above zero and 'up' even though the ma's have crossed downwards. how would you interpret this ?
I personally look at the bars. Red / Blue bar dictates the trend, but it really doesn't matter as we are trading off of the Daily time frame so it allows one to be flexible with their entries.

Cross over of MA's or looking at the bars, it doesn't matter. All depends on personal preference.
  • #183
  • Mar 27, 2013 7:34am Mar 27, 2013 7:34am
also, what if the MACD bars are above zero and going up, but both the ma's on the macd are below zero near the bottom (as shown in this chart example where the red vertical line is)



Attached Image (click to enlarge)
Click to Enlarge Name: dow.gif Size: 83 KB
  • #184
  • Mar 27, 2013 7:38am Mar 27, 2013 7:38am
Quoting whatfx
also, what if the MACD bars are above zero and going up, but both the ma's on the macd are below zero near the bottom (as shown in this chart example where the red vertical line is)



Attachment
If it is easier just keep an eye on the bars.

Blue = Buy
Red = Sell

**Either way that trade was a BUY and ended up being profitable regardless if the trader waited for the MA's to cross over or if they bought because of the blue bar.
  • #185
  • Mar 27, 2013 7:47am Mar 27, 2013 7:47am
So I understand that while D1 MACD green bar and H1 %R move upward from below -80 then enter Long. While D1 MACD red bar with H1 %R cross below -20 then it is Short entry. Am I right?
KISS - Keep It Simple Smart !!!!
  • #186
  • Mar 27, 2013 7:56am Mar 27, 2013 7:56am
Let's take EUR/JPY for example back early February 2013.

The D1 MACD moving averages crossed over on February 7. However, the first "RED" bar on the D1 MACD appeared on February 8. Either way it would have been a sell trade and a trader would then need to drop down to the H1 time frame and wait for "over bought" conditions using the Williams % indicator.

Whether a trader wants to use the MA cross over or wait for the first red/blue bar it doesn't matter.
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPY_-_D1_MACD_(example).png Size: 130 KB
  • #187
  • Mar 27, 2013 8:15am Mar 27, 2013 8:15am
Quoting 100PipsADay
If it is easier just keep an eye on the bars.

Blue = Buy
Red = Sell

**Either way that trade was a BUY and ended up being profitable regardless if the trader waited for the MA's to cross over or if they bought because of the blue bar.
So can I take short USD/CHF?
KISS - Keep It Simple Smart !!!!
  • #188
  • Mar 27, 2013 8:18am Mar 27, 2013 8:18am
Quoting khaled_ctg
So can I take short USD/CHF?
I wouldn't. I don't trade USD/CHF but when looking at EUR/USD we have a strong Weekly down trend and the D1 MACD has just crossed over to the downside again so I would be looking to sell EUR/USD OR buy USD/CHF.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD_-_D1_MACD_(3-27).png Size: 106 KB
  • #189
  • Mar 27, 2013 8:23am Mar 27, 2013 8:23am
AUD/CAD

It looks as though we may see a Bearish Engulfing candle from a Weekly perspective. Still have a few days left but this would be a good sign of trend reversal using price action. D1 MACD has just crossed over to the downside. All we need to do now is wait for H1 Williams % indicator to show "over bought" conditions.

Weekly - Potential Bearish Engulfing Candle

Daily - MACD has just crossed over to the down side.

H1 - Waiting for Williams % indicator to show "over bought" conditions then SELL

I don't like trading AUD/CAD very often but the signal doesn't get much better than this. Wait for H1 Williams % to show over bought then sell. Place 160 pip SL and a 280 pip TP then wait.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: AUDCAD_-_Weekly_BEEB_(3-27).png Size: 90 KB
Click to Enlarge Name: AUDCAD_-_D1_MACD_(3-27).png Size: 107 KB
Click to Enlarge Name: AUDCAD_-_H1_Williams_(3-27).png Size: 102 KB
  • #190
  • Mar 27, 2013 8:31am Mar 27, 2013 8:31am
Quoting 100PipsADay
AUD/CAD

It looks as though we may see a Bearish Engulfing candle from a Weekly perspective. Still have a few days left but this would be a good sign of trend reversal using price action. D1 MACD has just crossed over to the downside. All we need to do now is wait for H1 Williams % indicator to show "over bought" conditions.

Weekly - Potential Bearish Engulfing Candle

Daily - MACD has just crossed over to the down side.

H1 - Waiting for Williams % indicator to show "over bought" conditions...

i have been keeping an eye on this one since yesterday. but unless my broker reduces its spread, i will not touch it. if spread becomes around 2 pips at least then i will look at taking a trade. will keep an eye on the spread during the day tomorrow.
  • #191
  • Mar 27, 2013 8:46am Mar 27, 2013 8:46am
just before i go. audjpy is a prime one to sell. just waiting for williams 1 hr to turn o/b. then will short. will possibly happen tomorrow.

good trading.
  • #192
  • Mar 27, 2013 8:47am Mar 27, 2013 8:47am
Quoting whatfx
i have been keeping an eye on this one since yesterday. but unless my broker reduces its spread, i will not touch it. if spread becomes around 2 pips at least then i will look at taking a trade. will keep an eye on the spread during the day tomorrow.
If we are targeting 280 pips per trade what is a few pips extra for spread?
  • #193
  • Mar 27, 2013 8:48am Mar 27, 2013 8:48am
Quoting whatfx
just before i go. audjpy is a prime one to sell. just waiting for williams 1 hr to turn o/b. then will short. will possibly happen tomorrow.

good trading.
Yep! All of the JPY Cross pairs as well as USD/JPY are currently telling me to sell.
  • #194
  • Mar 27, 2013 9:37am Mar 27, 2013 9:37am
Quoting 100PipsADay
AUD/CAD

It looks as though we may see a Bearish Engulfing candle from a Weekly perspective. Still have a few days left but this would be a good sign of trend reversal using price action. D1 MACD has just crossed over to the downside. All we need to do now is wait for H1 Williams % indicator to show "over bought" conditions.

Weekly - Potential Bearish Engulfing Candle

Daily - MACD has just crossed over to the down side.

H1 - Waiting for Williams % indicator to show "over bought" conditions...
So I understand that while D1 MACD green bar and H1 %R move upward from below -80 then enter Long. While D1 MACD red bar with H1 %R cross below -20 then it is Short entry. Am I right?
KISS - Keep It Simple Smart !!!!
  • #195
  • Mar 27, 2013 10:54am Mar 27, 2013 10:54am
Quoting 100PipsADay
If we are targeting 280 pips per trade what is a few pips extra for spread?
audjpy is prime sell because daily is a sell with good mopmentum. both monthly and weekly are overbought on williams. so, audjpy sell is stronger than the other pairs. thats why i mentioned it.

i dont like greedy brokers. why should i give money away to these people for no valid reason ? i sometimes trade £100 per point and more. with a 6 pip spread thats £600 gone instantly. i would rather give it away to charity......

not saying i will be trading £100 a point on audjpy, but even with £20 per point which iam looking to trade on this pair, thats £120 gone in spread instantly to greedy brokers. max, iam willing to risk is a 2 pip spread.


khaled

yes, you are right. you know the rules now.
  • #196
  • Mar 27, 2013 11:05am Mar 27, 2013 11:05am
Quoting khaled_ctg
So I understand that while D1 MACD green bar and H1 %R move upward from below -80 then enter Long. While D1 MACD red bar with H1 %R cross below -20 then it is Short entry. Am I right?
Yes. I think he's covered that almost everyday. How many different ways do you want 100pips to describe the system?
  • #197
  • Mar 27, 2013 11:07am Mar 27, 2013 11:07am
Quoting whatfx
audjpy is prime sell because daily is a sell with good mopmentum. both monthly and weekly are overbought on williams. so, audjpy sell is stronger than the other pairs. thats why i mentioned it.

i dont like greedy brokers. why should i give money away to these people for no valid reason ? i sometimes trade £100 per point and more. with a 6 pip spread thats £600 gone instantly. i would rather give it away to charity......

not saying i will be trading £100 a point on audjpy, but even with £20 per point which iam looking to trade on this pair,...
Thank you Sir.

My broker takes 10 pips for AUD/JPY !!!!!!!!!
KISS - Keep It Simple Smart !!!!
  • #198
  • Mar 27, 2013 11:16am Mar 27, 2013 11:16am
Quoting MKFXTrader
Yes. I think he's covered that almost everyday. How many different ways do you want 100pips to describe the system?
But still not clear about ATR. Can any one please help me?
KISS - Keep It Simple Smart !!!!
  • #199
  • Mar 27, 2013 11:22am Mar 27, 2013 11:22am
Quoting khaled_ctg
But still not clear about ATR. Can any one please help me?
http://www.dailyfx.com/forex/educati...rue_Range.html
  • #200
  • Mar 27, 2013 11:42am Mar 27, 2013 11:42am
Quoting MKFXTrader
http://www.dailyfx.com/forex/educati...rue_Range.html
Thanks for the link.

Now I understand that while opening a position I should put my SL D1 ATR(5) pips away. Is it correct?
KISS - Keep It Simple Smart !!!!
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