Third Screen Strategy - Dr. Alexander Elder | Page 78 | Forex Factory

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Third Screen Strategy - Dr. Alexander Elder

  • #1,541
  • Edited 6:06pm Jun 13, 2013 5:54pm | Edited 6:06pm
Quoting rexio
Hi guys, The trades that Shum took, bring to me another thought : In the last few weeks we had a donwtrend in the Yen pairs. This will not last forever.At a certain moment , there will come a reversal. In the last few days, a lot was discussed about a reversal in the AUD. This is happening right now. But could it be possible that we are facing a reversal also at this moment in the Yen pairs? What I mean to say is : Are the Yen pairs like USDJPY etcetera going to rise again right now ? I am not sure of it, but it could very well be possible. What...

You need to stop speculating with no basis.

You have no idea where the market is going. The Yen pairs COULD very well continue going in the trend they are currently in.

Wait until you have a valid reason to suspect a reversal (Candlestick formations). THEN you can speculate.

At the moment, you're just gambling.

EDIT:


Some of the Yen pairs are showing hammers last close. NOW it is safe to assume a reversal may be occurring based on this.
  • #1,542
  • Jun 13, 2013 10:16pm Jun 13, 2013 10:16pm
Quoting shum
{quote} no I desable other pairs

What MKFX is suggesting is that you are too exposed to the JPY with that many pairs open. But did anyone see that 8pm EST candle?!! Man that thing made a major comeback.
  • #1,543
  • Jun 13, 2013 10:59pm Jun 13, 2013 10:59pm
AUD/USD looks good for a buy signal
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"To live with Passion, it takes Courage and Grace to survive"
  • #1,544
  • Jun 13, 2013 11:07pm Jun 13, 2013 11:07pm
Quoting Britpip7
AUD/USD looks good for a buy signal {image} {image}
Agreed. Just opened up my second position on this
  • #1,545
  • Jun 13, 2013 11:25pm Jun 13, 2013 11:25pm
Quoting Britpip7
AUD/USD looks good for a buy signal
You mean for manual entry? The EA trades as soon as the W%R lines or values are met

Very glary charts, and why have the MACD on the 1 Hour caher, you only read it on the Daily?

Here is a how a Third Screen chart should look

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It takes a lot for me to IGNORE you, but you can try.
  • #1,546
  • Jun 13, 2013 11:40pm Jun 13, 2013 11:40pm
Quoting Erebus
{quote} You mean for manual entry? The EA trades as soon as the W%R lines or values are met Very glary charts, and why have the MACD on the 1 Hour caher, you only read it on the Daily? Here is a how a Third Screen chart should look {image}
yup - manual entry.

Glad you like the colours - nice and subtle I thought

I have the screen set up to initially view on day and then drop to H1, so williams is on both - the profile charts are set up differently. I do have other systems built into my charts as I am still manually trading - haven't done a final clean up yet!
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"To live with Passion, it takes Courage and Grace to survive"
  • #1,547
  • Jun 14, 2013 3:18am Jun 14, 2013 3:18am
Quoting shum
{quote} no I desable other pairs
Why would you disable all other pairs and have only Yen pairs trading? You are over leveraged on Yen pairs dude. Feast or famine.
  • #1,548
  • Jun 14, 2013 7:19am Jun 14, 2013 7:19am
100pips, just curious how you are already short Gbp/Aud, another strategy?


On Pepperstone platform12,24,9 MACD adjustable on D1 is still blue + 00.43 and Iamfx platform + 00.15


I am short from anothger strategy but not from the third screen entry criteria.
  • #1,549
  • Jun 14, 2013 7:25am Jun 14, 2013 7:25am
I am bit confused.

Trade Explorer on top of the page shows Short trades taken yesterday on GBP/AUD as well as EUR/AUD.

Somehow, Third Screen Strategy system on my chart shows only "Long" trades for both of these pairs during that time period.

Could someone please enlighten me about the apparent mistake in my interpretation ?

Thanks in advance.
  • #1,550
  • Jun 14, 2013 7:28am Jun 14, 2013 7:28am
IT'S NO MISTAKE !!!

Chart shows LONG . Is no mistake

What you see at 100Pips is because he took that trade manually . That's why positions don't have TP and SL -> took them manually .
Make choices and don't look back !
  • #1,551
  • Jun 14, 2013 7:33am Jun 14, 2013 7:33am
Quoting normtold
100pips, just curious how you are already short Gbp/Aud, another strategy? On Pepperstone platform12,24,9 MACD adjustable on D1 is still blue + 00.43 and Iamfx platform + 00.15 I am short from anothger strategy but not from the third screen entry criteria.
It may be in fact that it depends on your broker feed. For example my E/A daily chart has already flipped over to short. That's what I'm thinking.
  • #1,552
  • Edited 8:51am Jun 14, 2013 7:57am | Edited 8:51am
In trading of this system, I have found that using Stochastics instead of WPR gives me better entries and limits the amount of draw down and numerous unnecessary opened positions. It is described in Dr Elder's system how to use stochs, which an excerpt is posted in the 1st post, that Stochastics can also be used on the hourly TF. I have used this method and it has helped me from getting into positions so early as William %R is accustomed to signaling. You guys may want to test it side by side with another MT4 platform as I have done, to see if it may be a better filter then WRP. Just wanted to share my thoughts. This system is definitely profitable, but I would like to look in lowering some of the draw down if I can. My setting for Stoch is 14,3,3.

If it does indeed brings value to the system, then maybe we can set up a new EA to represent Stochs usage instead of WPR to run side by side to compare results.
  • #1,553
  • Edited 8:24am Jun 14, 2013 8:05am | Edited 8:24am
Quoting MKFXTrader
In trading of this system, I have found that using Stochastics instead of WPR gives me better entries and limits the amount of draw down and numerous unnecessary opened positions. It is described in Dr Elder's system, which an excerpt is posted in the 1st post, that Stochastics can also be used on the hourly TF. I have used this method and it has helped me from getting into positions so early as William %R is accustomed to signaling. You guys may want to test it side by side with another MT4 platform as WI have done, to see if it may be a better...

Hi MKF,

Maybe those stochs are a good idea. Could you give us a screenshot. Also, in connection with the question of whether GBPAUD is in the blue or in the red at the moment on the macd daily. On my daily charts, GBPAUD still has an upward trend with macd in blue.
Regards.

Screenshot : GBPAUD, Timeframe D1, macd_adjustible
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  • #1,554
  • Jun 14, 2013 8:19am Jun 14, 2013 8:19am
Quoting Purec
IT'S NO MISTAKE !!! Chart shows LONG . Is no mistake What you see at 100Pips is because he took that trade manually . That's why positions don't have TP and SL -> took them manually .

Thanks, Purec.
  • #1,555
  • Jun 14, 2013 8:21am Jun 14, 2013 8:21am
Quoting rexio
{quote} Hi MKF, Maybe those stochs are a good idea. Could you give us a screenshot. Also, in connection with the question of whether GBPAUD is in the blue or in the red at the moment on the macd daily. On my daily charts, GBPAUD still has an upward trend with macd is blue. Regards. {image}
Sure rexio. Here's a chart of G/U. As you know some times WPR will stretch itself further live as PA moves and often times it touches OB/OS territory and triggers a trade while retracting back down and moving yet further into OB/OS territory. What I have observe is Stochs doesn't behave this way and gives a better representation of when PA is in OB/OS territory. In the G/U example, let's just assume that G/U is actually in a downtrend instead of what it is now, which is an uptrend, and we are waiting to enter short at OB/OS, look where WPR is in relations to Stochastics. Look how far it has stretched, and as I now look it has retracted a bit. Imagine if it were closer to the desired OB territory, it would've triggered perhaps an entry while stochastics hasn't even gotten there yet. If PA continues to move higher, you would automatically already be in drawdown. This is what I have encountered trading using WPR instead of Stochastics. maybe you can take it for a test drive to see if you see any difference or value. I have a stoch indie that has an alarm on it as well, just like the WPR w/alarm I posted for you guys a few months back. I'll post it only if it's ok with 100pip as it is out of respect to his thread. IMO, stochs is smoother then WPR.
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  • #1,556
  • Jun 14, 2013 8:26am Jun 14, 2013 8:26am
Quoting MKFXTrader
In trading of this system, I have found that using Stochastics instead of WPR gives me better entries and limits the amount of draw down and numerous unnecessary opened positions...
Just a side note: the WPR is just a non smoothed Stochastic. Compare WPR 14 with Stoch 14,1,1 - they look the same.
So with Stochastics you get a smoothed slightly delayed WPR.
  • #1,557
  • Jun 14, 2013 8:28am Jun 14, 2013 8:28am
Quoting chjungen
{quote} Just a side note: the WPR is just a non smoothed Stochastic. Compare WPR 14 with Stoch 14,1,1 - they look the same. So with Stochastics you get a smoothed slightly delayed WPR.
I'm not sure about that. You may in fact be correct. Maybe that's why I think Stochastics may work better by giving better entries. It's slightly delayed and much smoother and prevents getting in so early when PA is still moving against the position. Just what I found to work better then WPR.
  • #1,558
  • Jun 14, 2013 8:35am Jun 14, 2013 8:35am
Quoting MKFXTrader
{quote} Sure rexio. Here's a chart of G/U. As you know some times WPR will stretch itself further live as PA moves and often times it touches OB/OS territory and triggers a trade while retracting back down and moving yet further into OB/OS territory. What I have observe is Stochs doesn't behave this way and gives a better representation of when PA is in OB/OS territory. In the G/U example, let's just assume that G/U is actually in a downtrend instead of what it is now, which is an uptrend, and we are waiting to enter short at OB/OS, look where WPR...

Hi MKF,

This is an interesting story of yours. It certainly has some merit.
How are your trading tactics with this stochastic indicator ? Do you take a trade immediateley on price entry into the overbought area or do you wait till the stoch leaves the overbought area ( getting smaller than 80 in this case) ?
  • #1,559
  • Jun 14, 2013 8:42am Jun 14, 2013 8:42am
Quoting rexio
{quote} Hi MKF, This is an interesting story of yours. It certainly has some merit. How are your trading tactics with this stochastic indicator ? Do you take a trade immediateley on price entry into the overbought area or do you wait till the stoch leaves the overbought area ( getting smaller than 80 in this case) ?
I specifically wait until both lines enter OB/OS territory because as Dr Elder describes, when both stoch lines move in the same direction it supports that the short term trend is strong. So I wait until both lines have entered OB/OS territory and goes flat. I'll then access PA movement in relations to the behaviour of Stochs. If everything is flat then I will enter in direction of the daily MACD signal because to me as my interpretation is that PA is indeed in OB/OS territory and not continuing with it's current short term trend. I will add another position if both lines cross each other and is heading out of OB/OS levels, OR if it makes another move against me and flats out again.

This style helps me to lower draw down, and prevents unnecessary opened positions by WPR rules. Hope this makes sense.
  • #1,560
  • Jun 14, 2013 9:12am Jun 14, 2013 9:12am
Quoting rexio
{quote} Hi MKF, This is an interesting story of yours. It certainly has some merit. How are your trading tactics with this stochastic indicator ? Do you take a trade immediateley on price entry into the overbought area or do you wait till the stoch leaves the overbought area ( getting smaller than 80 in this case) ?
Here's another example rexio. WPR has already been in OB territory on N/J for a couple of candles now while both lines in stochastics is still pointing up and has barely touched O/B area. Both lines moving in the same direction is confirmation of a strong short term trend per Dr. Elder. As you can see PA is still moving North and WPR has already opened a position and you are going in draw down immediately while WPR is still moving almost to it's extreme. Look at your live chart and you can see N/J is still moving North and I'm currently 30 pips in draw down with that particular new position. Not much but who knows how much further PA is going to move North as Stochastics still shows a strong short term uptrend and not even in O/B territory while WPR has shown O/B for a few candles already..

Why not wait til both stoch lines enter OB area, and see how PA behaves b4 opening a position? Does it cross each other or goes flat? Those would be the criteria for entering a position or adding to a position IMO. It really would help lower draw down.
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