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Trading Made Simple

  • #24,021
  • Aug 25, 2013 2:35am Aug 25, 2013 2:35am
Quoting emmanuel7788
{quote} TheScorpS, It is good exercise to do this post mortem review and learn from it. However, please not that some indicators only work with realtime chart data and do not work in back-testing mode. When market goes into narrow range, trading H1 becomes more difficult. The L-H, HH - HL or H-L>LH -LL become less distinct. This is where going down to LTF like M15 will be help. Price and TDI divergence in M15 is common way to get some good entries, plus when PA show price pulls away from the RN 00, 25, 50 and 75 levels supported by H1 and H4 candlestick...
Thanks Emmanuel

I just finished for the second times post trading analysis of wave theory and structure which I really like to do in order to have an eye opens and not just blindly trades the market, I need a lot of back testing for so many fundamental formation and PA structure to build rules based trading, tweak here and there till things becomes stable
I Have Learned to Take Some Losses to Make Profits
  • #24,022
  • Aug 25, 2013 2:42am Aug 25, 2013 2:42am
Quoting emmanuel7788
{quote} Hi Jimmy, A fresh idea always get me into my thinking cap. If 50 people here post and tell me that this is good and explain how this will help them with good entry and exits, I will invest some time and study this and work to code this into a dashboard. We shall see. regards, EMMANUEL
I found this dashboard from other FF thread, which exactly looks like the dashboard which am looking for, I think also others members would benefit from this indi, since I see that a lot of TMS users are using the 10EMA Dashboard

I still though don't know how to use it, in what way and how can we incorporate it

or Is it possible to re code the 10EMA dashboard and makes it look like the one below, to show trend from 1 minutes to monthly to use with TMS
Attached Image
I Have Learned to Take Some Losses to Make Profits
  • #24,023
  • Aug 25, 2013 6:31am Aug 25, 2013 6:31am
Quoting TheScorpS
{quote} I found this dashboard from other FF thread, which exactly looks like the dashboard which am looking for, I think also others members would benefit from this indi, since I see that a lot of TMS users are using the 10EMA Dashboard I still though don't know how to use it, in what way and how can we incorporate it or Is it possible to re code the 10EMA dashboard and makes it look like the one below, to show trend from 1 minutes to monthly to use with TMS {image}
The 10EMA Dashboard is useful for TMS.
10EMA is also the median line of the PAC.

You can see more when you use the Triple Screen concept when you trade and reconcile the PA in 3 differenr timeframes.
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Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,024
  • Aug 25, 2013 10:16am Aug 25, 2013 10:16am
Hi emmanuel

I read BigE's posts and found that he is primarily trading the TDI green cross red - entry, exit and re-entry.Apart from TDI he talks about major support/Resistance close by. That is pretty simple and easy to trade in H4. But my question is the latter part of the thread is emphasising more on price action and the TDI is a lagging indi. That is bit confusing. Is that ok if we trade only based on TDI and S/R?

One more question, What is the candle #1 ? Is it the candle where green crossing red shown in blue or the next candle shown in red?. Only at the close of candle #1 the green cross red is confirmed. Then we have to enter at the opening of the next candle. Is my understanding correct?

The next question, if we have to wait for the candle to close, then market moves considerably in H4. What should we do?

I know you must have answered these questions before. However, please explain once again or give me the reference thread where I can find the answers.

FxOptimu$
Attached Image
  • #24,025
  • Aug 25, 2013 10:27am Aug 25, 2013 10:27am
Hi,

Has anyone tried or studied ADX in this system? I cannot find any search result using keyword "ADX" or "Average Directional Index" in 'Search This Thread' box....

Thanks
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #24,026
  • Aug 25, 2013 10:50am Aug 25, 2013 10:50am
Quoting Fx-optimus
Hi emmanuel I read BigE's posts and found that he is primarily trading the TDI green cross red - entry, exit and re-entry.Apart from TDI he talks about major support/Resistance close by. That is pretty simple and easy to trade in H4. But my question is the latter part of the thread is emphasising more on price action and the TDI is a lagging indi. That is bit confusing. Is that ok if we trade only based on TDI and S/R? One more question, What is the candle #1 ? Is it the candle where green crossing red shown in blue or the next candle shown in red?....
These are the exact question I had in my mind. Excellent
Come tomorrow, I'll wake up new
  • #24,027
  • Aug 25, 2013 12:01pm Aug 25, 2013 12:01pm
Quoting gsbharaj
{quote} These are the exact question I had in my mind. Excellent
Candle #1 refers to the first candle to change color......
  • #24,028
  • Aug 25, 2013 12:08pm Aug 25, 2013 12:08pm
Quoting Fx-optimus
Hi emmanuel I read BigE's posts and found that he is primarily trading the TDI green cross red - entry, exit and re-entry.Apart from TDI he talks about major support/Resistance close by. That is pretty simple and easy to trade in H4. But my question is the latter part of the thread is emphasising more on price action and the TDI is a lagging indi. That is bit confusing. Is that ok if we trade only based on TDI and S/R? One more question, What is the candle #1 ? Is it the candle where green crossing red shown in blue or the next candle shown in red?....

  1. Post# 954

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  • #24,029
  • Aug 25, 2013 1:45pm Aug 25, 2013 1:45pm
Actually, I would really appreciate a confirmation on this as well. I understand the concept of the first and second candle. Further I have read that one should only enter at the opening of the candle. Now, in the example above I believe the TDI has not made a cross at the close of the 1st candle so how can one enter on the opening of the second candle if you risk that by the close of the second candle the TDI will have repainted, and not have a cross at all if the price reverses? As I understand the rules, the TDI has to confirm a cross at the end of a candle in order to be able to enter at the open of the second. But this is not how i understand the example in the previous chart. What am I misunderstanding here?

V/r

haff
  • #24,030
  • Aug 25, 2013 2:40pm Aug 25, 2013 2:40pm
Quoting emmanuel7788
{quote} Hi Jimmy, A fresh idea always get me into my thinking cap. If 50 people here post and tell me that this is good and explain how this will help them with good entry and exits, I will invest some time and study this and work to code this into a dashboard. We shall see. regards, EMMANUEL
Cool, thanks.
The best trade I ever made was my SIN for Jesus' RIGHTEOUSNESS.
  • #24,031
  • Aug 25, 2013 5:23pm Aug 25, 2013 5:23pm
Quoting haff
Actually, I would really appreciate a confirmation on this as well. I understand the concept of the first and second candle. Further I have read that one should only enter at the opening of the candle. Now, in the example above I believe the TDI has not made a cross at the close of the 1st candle so how can one enter on the opening of the second candle if you risk that by the close of the second candle the TDI will have repainted, and not have a cross at all if the price reverses? As I understand the rules, the TDI has to confirm a cross at the...
Not to get into semantics here but the close of the 1st candle is also the open of the 2nd candle and if you look at the red line on the chart above, the green has crossed over the red at the open of the 2nd candle at an angle of 2 o clock.....therefore that would be a proper TMS entry per Big E's rules. The TDI that I use (and the one that Big E started with) only changes and makes the crossover at the opening of each candle.....it does not repaint or move much between the open and close of each candle. Others use one that moves with every tick of the chart, showing crosses while a candle is forming. Either one is fine but in the beginning stages of developing this system, Big E based his entries on those crossovers at the beginning of the 1st or 2nd candle. Just for information purposes.....not trying to tell anyone how to trade crossovers.
  • #24,032
  • Aug 25, 2013 6:13pm Aug 25, 2013 6:13pm
Quoting Phx62
{quote} ... TDI that I use (and the one that Big E started with) only changes and makes the crossover at the opening of each candle.....it does not repaint or move much between the open and close of each candle. ..
Thanks Phx62. Would that be TDI Red Green that you use?

Thanks
  • #24,033
  • Aug 25, 2013 7:02pm Aug 25, 2013 7:02pm
Quoting Fx-optimus
Hi emmanuel I read BigE's posts and found that he is primarily trading the TDI green cross red - entry, exit and re-entry.Apart from TDI he talks about major support/Resistance close by. That is pretty simple and easy to trade in H4. But my question is the latter part of the thread is emphasising more on price action and the TDI is a lagging indi. That is bit confusing. Is that ok if we trade only based on TDI and S/R? One more question, What is the candle #1 ? Is it the candle where green crossing red shown in blue or the next candle shown in red?....
Good question by Fx-optimus.
But I will write this reply openly to all TMS wannabe traders,

Big E always mentioned PA and Supp/Res. But you find very few posts with details what he meant by these. Post#261 is a good summary of what this TMS method is about.
For all my 4H swing trading:
I use this as my core trading method and I put a lot weight on the use of Price Action especially on the use of price bars/candlestick patterns and on how I view historical market swing points as my support and resistance and the CONFLUENCE of several Support and Resistance especially the common ones used by most traders like Prev W Fibo levels, Prev W OHLC.

There are more traders here who want to trade lower TF like H1, so there is more emphasis on Price Action.

The question you all have to ask yourself is whether have you fully understood the trading style of our late eelfranz and how he trade using this simple entry and exit rule on H4. To be honest, I read many posts and I have the same conclusion that many have not fully understood his trading style, his lifestyle and money management. Copy and following his trading hours will not work for you until you work on your own trading plan and that must include money management.

Another question you need to ask yourself is your own experience level in trading and whether you want to be an aggressive or a conservative trader.
Big E has an aggressive trading style and he has the experience to enter into trade on candle#1. But bear in mind he know exactly when he has to cut the position when he does not see it going his way.
If you are conservative, then you must wait for the candle#1 and/or candle#2 to close to make sure you have a confirmed TDI crossed.
Or you can use the 5SSMA Price Action Channel PAC in lower TF like M15 to get into the market.

So what if candle#1 and /or candle#2 closes very far away?
Basic rule is DO NOT chase after the long candles. Wait for a retracement of the candle #1 or candle#2. This retracement entry at Fib38/50 levels are common. But if that do not happen, then you do not have a trade entry to join the market. This should not be a big deal because to miss an entry. Why?
because, if the market starts to trend, there will be consolidation pause period where the will be opportunity for you to enter and join in the market trend.

In reversal situations, it is better to wait for candle#2... , why?

In continuation, entry can be in candle #1.... , why?

It is all about Entry and Exits.

Every trade has one(1) Entry point and two(2) Exit points ... why two Exit points? Can someone tell me why please?


regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,034
  • Aug 25, 2013 7:13pm Aug 25, 2013 7:13pm
Quoting haff
Actually, I would really appreciate a confirmation on this as well. I understand the concept of the first and second candle. Further I have read that one should only enter at the opening of the candle. Now, in the example above I believe the TDI has not made a cross at the close of the 1st candle so how can one enter on the opening of the second candle if you risk that by the close of the second candle the TDI will have repainted, and not have a cross at all if the price reverses? As I understand the rules, the TDI has to confirm a cross at the...
haff,

Yes, you pointed out a common scenario where after candle#1 show a TDI cross and candle#2 reverses the cross.

The TDI is based on the last 13 period RSI data and using moving averages to provide the smooth PL Green and TSL Red and also the MBL Yellow.
Situation occur often when the previous candles are small and then come a slightly longer candle which creates the HA candle #1, following that, then comes the next candle open and close opposite to that candle#1, this will cause the TDI Green to change and how much this change depends on the OHLC of the previous and current candles.

So about TDI 're-paint' is not a problem. as it show exactly how the price had moved in the chart data above.

In such kind of situation when the previous candles are small ones, it is time to be conservative and wait for candle#2 to close. Then look for a good entry price. You have 4-hours in between to wait, think, plan and do other things. Wait for the market to make its move then we join in.

Look at GU H4 now, it show small candles and TDI cross up.... Wait.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,035
  • Aug 25, 2013 7:55pm Aug 25, 2013 7:55pm
Emmanuel- 2 Exits (1) Stoploss, (2) Take profit
  • #24,036
  • Edited 8:46pm Aug 25, 2013 8:23pm | Edited 8:46pm
Quoting emmanuel7788
{quote} haff, Yes, you pointed out a common scenario where after candle#1 show a TDI cross and candle#2 reverses the cross. The TDI is based on the last 13 period RSI data and using moving averages to provide the smooth PL Green and TSL Red and also the MBL Yellow. Situation occur often when the previous candles are small and then come a slightly longer candle which creates the HA candle #1, following that, then comes the next candle open and close opposite to that candle#1, this will cause the TDI Green to change and how much this change depends...
Very good advice, IMHO. Two inds. that I find useful in judging candles: Keltner Bands, and Atr&CandelLength. Given below... The latter will identify long/short candles. The Keltners sharpen the perspective, meaning, that at times candles of normal length, other than showing indecision, are no more informative than short candles...think Doji! So, if the HA body closes within Keltners, I take no action... Just wait for next candle. I trade D1, TDI crosses, judging candles closely... Don't use much else except location of price within Fibo range, and slope of TDI. Have been satisfied with results, but only trading this for a few months. On D1, not yet a great deal of trade history... The attached inds. have my settings. Experiment...You may find better... 1) TDI Sell signal, but HA close within Keltners-no action taken. 2)HA close outside Keltners to the downside, TDI still signalling Sell-a Short entry is taken. 3)TDI Buy signal, but HA closes within Keltners-no action taken. Also, TDI slope is down. 4) TDI Buy signal, TDI slope has turned up, and HA has closed outside of Keltners to the upside-a Long entry is taken... Hope this is of some use... Pippo
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Attached File(s)
File Type: ex4 Atr&CandleLength.ex4   4 KB | 370 downloads
File Type: mq4 Atr&CandleLength.mq4   4 KB | 413 downloads
File Type: ex4 KeltnerChannel_v1.ex4   5 KB | 368 downloads
File Type: mq4 KeltnerChannel_v1.mq4   3 KB | 438 downloads
Vincit qui se vincit.
  • #24,037
  • Aug 25, 2013 9:32pm Aug 25, 2013 9:32pm
Quoting Phx62
{quote} Not to get into semantics here but the close of the 1st candle is also the open of the 2nd candle and if you look at the red line on the chart above, the green has crossed over the red at the open of the 2nd candle at an angle of 2 o clock.....therefore that would be a proper TMS entry per Big E's rules. The TDI that I use (and the one that Big E started with) only changes and makes the crossover at the opening of each candle.....it does not repaint or move much between the open and close of each candle. Others use one that moves with every...

As has been discussed prevoiously, candle 1 / candle 2 is ok for entry - candle 3 is late in the game.

Eelfranz would often take the 1st or 2nd candle and then close out early the next day.
"To live with Passion, it takes Courage and Grace to survive"
  • #24,038
  • Aug 25, 2013 10:05pm Aug 25, 2013 10:05pm
going to take this trade..long nzd/chf.


resons for entry
1) TDI cross candle #1
2) Stochs confirm
3) At a solid resistance point
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Come tomorrow, I'll wake up new
  • #24,039
  • Aug 25, 2013 10:10pm Aug 25, 2013 10:10pm
Quoting MidnightRun
{quote} Thanks Phx62. Would that be TDI Red Green that you use? Thanks
I use the original Traders Dynamic Index found in the Craig Harris thread also started by Big E: http://www.forexfactory.com/attachme...9&d=1262991971
  • #24,040
  • Aug 25, 2013 10:35pm Aug 25, 2013 10:35pm
Quoting emmanuel7788
{quote} Good question by Fx-optimus. But I will write this reply openly to all TMS wannabe traders, Big E always mentioned PA and Supp/Res. But you find very few posts with details what he meant by these. Post#261 is a good summary of what this TMS method is about. For all my 4H swing trading... EMMANUEL
That was enlightening reply on TMS. Thanks.

In reversal situations, it is better to wait for candle#2... , why?

Trend reversals usually takes time to consolidate. After candlle #2 the market may continue to move in the original direction some more. Again we wait for candle#2 to confirm other entry rules.

In continuation, entry can be in candle #1.... , why?

When the market is trending obviously we can enter on candle#1 itself.

It is all about Entry and Exits. Every trade has one(1) Entry point and two(2) Exit points ... why two Exit points?

Any market move follows Fibo retracement pattern. So the exit#1 is at crossing of 0.38 and the second exit is at crossing of 0.50.

FxOptimu$
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