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Trading Made Simple

  • #24,761
  • Sep 8, 2013 3:24am Sep 8, 2013 3:24am
Quoting reddarichest
When we trade using TDI on timeframe H4, how much TP and SL we have to apply?

This is simple to answer:

SL = -1R

TP1 = +1R

TP2 = + 2R

TP3 = +3R

... and so on

Attached Image (click to enlarge)
Click to Enlarge Name: EP SL TP.png Size: 30 KB


Trade with Line Chart is simple and easy
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,762
  • Sep 8, 2013 3:36am Sep 8, 2013 3:36am
hi. i am here learn. many traders are very good. phx62 is very good. almost too good to be true...
  • #24,763
  • Sep 8, 2013 3:41am Sep 8, 2013 3:41am
Quoting munirpt
{quote} Hi emmanuel I found this video very interesting. I do agree that its important to adapt your strategy with the market type. i just never thought of having an analytical way to define the market type.... thanks for sharing. regarding the SQN, i saw in Van Tharp newsletter that we are at the moment in a Neutral and quiet market (the worst one to trade in my opinion....) also is important to have in mind that the market might be neutral or sideways for position traders, but very interesting for 5 minute traders.... My question is : since that...
Hi munirpt,

S&P500 is a market index of 500 US based companies. IMO, doing SQN using SP500 do not reflect the world forex market.
SQN is an interesting study but can be adopted for different markets indices.
If we apply SQN on the UDX US-dollar index, it can be useful to study the basket of currencies used in the UDX calculation.

But my main point in bring up the market type is to get traders attention here that they should know why some of their trades will fail when they simply trade TDI crosses.

TMS is trend trading method and when I trade 4H swing trading, this will fail when market goes in narrow range sideways.
There are basically two market type where TMS 4H will work well.
1) Trending market - both bull and bear markets, and can be narrow range trending or wide range trending.
2) Sideways - Wide Ranging.

When market goes into a narrow range sideways consolidation after a strong trend, this is where TMS 4H will not work out.

The challenge here is for TMS traders to identify the market type and adapt their trading on an everyday basis. This is why I posted that video of Van Tharp talking about knowing the market types and how he identify the market type using his SQN. But we don't have to use any SQN to trade TMS.

I am open to discussion here but it is far lacking interest as I see the number of post responses.

Thank for your post and input which I find valuable and shows that you have in-depth knowledge and experience with TMS.

regards,
EMMANUEL




.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,764
  • Sep 8, 2013 3:49am Sep 8, 2013 3:49am
Quoting heispark
{quote} How about the idea using ADX to identify the market types? There is a book named "High Probability Trading" written by Marcel Link. I read this book because a well known, another great trader in FF strongly recommended this book. Personally, I didn't enjoy this book that much; it was kinda boring and nothing more useful than baby pips. Anyway, in this book, the author valued ADX when identifying trendy or choppy markets. I have read so many negative articles about ADX, and I am skeptical and wondering if ADX can really be useful. Any idea...

Hi heispark,

ADX is a good trend indicator and there are many systems build using the ADX.
The ADX does show the strength of the running trend but it not indicate when market range volatility.

What I am interest is to see on the charts how the market traded and to see the potential of the 4H trade setups. Market structure using wave study analysis is one approach which I see is good when we are trading with the use of the TDI.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,765
  • Sep 8, 2013 3:55am Sep 8, 2013 3:55am
Quoting henkipips
{quote} I guess not volatile bearish/bullish markets...

Hi henipips,

We should be trading both bearish and bullish markets so long as there is wide range for us to take profits. Volatility makes trade management difficult.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,766
  • Sep 8, 2013 4:01am Sep 8, 2013 4:01am
Quoting gsbharaj
can we regard this as a head and shoulder pattern? {image}

gsbharaj,

Do a simple exercise using that same NZDUSD H4 chart,

Get rid of the indicator on your price chart. Just keep the TDI below in the sub-window.

Then switch your chart to show the price as Line Chart.

Now you will see the price structure much easier when the Line Chart show only the Close price.

Forget about looking for Head and Shoulders chart patterns, there are rare these days on H4 chart timeframe. Learn to look for market consolidation and then spot the breakouts or look for reversals and confirmation. Do not try to pick tops and bottoms. Leave that to later times when you have more experience trading this forex market. Let the professional traders turn the market then we join in their run.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,767
  • Sep 8, 2013 4:17am Sep 8, 2013 4:17am
Hi Emmanuel

Would you enter on Tweezers tops or bottoms and Outside bullish or bearish engulfing bars at the NEWS release

Example on EUR/JPY tweezers tops at the news release

Another example on Gold even though I don't trade gold nor do I have the experience
Attached Image(s) (click to enlarge)
Click to Enlarge Name: tp.jpg Size: 180 KB
Click to Enlarge Name: g.jpg Size: 188 KB
I Have Learned to Take Some Losses to Make Profits
  • #24,768
  • Sep 8, 2013 4:29am Sep 8, 2013 4:29am
Quoting TheScorpS
Hi Emmanuel Would you enter on Tweezers tops or bottoms and Outside bullish or bearish engulfing bars at the NEWS release Example on EUR/JPY tweezers tops at the news release {image}
My 4H trading is simple:

In an established trend, I look for continuation setups to jump into the market or add-on more positions.

Tweezers is just fanciful names some book authors gave to differentiate themselves from others.

I look for Double Bars High Lower Close and Double Bars Low and Higher Close and to see if they occur at a market high of market low. When they occur in the middle of an established trend, ... in the middle of nowhere but just after a few candle consolidation, I read that as increase interests of the market participants, can be seller or can be buyers. Increase and decrease of interest of the market participants is relative, so we must look at previous price bars/candles to see where the buyers and sellers interest were before.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,769
  • Edited 8:06am Sep 8, 2013 5:06am | Edited 8:06am
MTF TDI with blue lines set to no color based on a version of the TDI that updates in real time.
The previous version is here:
http://www.forexfactory.com/showthre...32#post4160332
Attached Image (click to enlarge)
Click to Enlarge Name: tdi-mtf.png Size: 16 KB
Attached File(s)
File Type: mq4 TDI_RT.mq4   9 KB | 672 downloads
File Type: mq4 TDI-MTF v1.03.mq4   8 KB | 792 downloads
  • #24,770
  • Sep 8, 2013 5:15am Sep 8, 2013 5:15am
Thank you, thank you Xaphod
  • #24,771
  • Sep 8, 2013 6:15am Sep 8, 2013 6:15am
About the head and shoulders pattern earlyer, Yes there is a lot of ways you can confirm the pattern, divergence is one of them, just about any ocilllator will do, TDI is one of them, but also RSI Stoch Cci Bb can be used, the best confirmation is volume, you should have lower volume on the right shoulder, but volume dont work on forex ofcourse so dont use it if you trade fx.
Bulls are stupid Animals!especially when Im short!
  • #24,772
  • Sep 8, 2013 6:25am Sep 8, 2013 6:25am
Quoting emmanuel7788
{quote} Hi munirpt, S&P500 is a market index of 500 US based companies. IMO, doing SQN using SP500 do not reflect the world forex market. SQN is an interesting study but can be adopted for different markets indices. If we apply SQN on the UDX US-dollar index, it can be useful to study the basket of currencies used in the UDX calculation. But my main point in bring up the market type is to get traders attention here that they should know why some of their trades will fail when they simply trade TDI crosses. TMS is trend trading method and when I...

Hi emmanuel

Thank you very much for your explanation.
I would be interested in discussing ways for us to define each market conditions.
Im not sure how much my current knowledge can contribute to the discussion, but im definitely interested in hearing ideas and participate.
You got me very interested in Van tharp material. im reading the "Trading Beyond the Matrix" book at the moment and finding it very interesting.

Thanks
  • #24,773
  • Sep 8, 2013 8:20am Sep 8, 2013 8:20am
Quoting TheScorpS
In the early morning hours, get relaxed before trading Zen Breakfast - Karunesh http://www.youtube.com/watch?v=72dMxT2eMC8 Hope you enjoy it
TheScorpS,

Very nice indeed.
I took my time and listened to the full 56 plus minutes.
Relaxing for me as it just after my dinner, it can help with my digestion feeling fully relax and contented.

Thanks a lot.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,774
  • Sep 8, 2013 8:23am Sep 8, 2013 8:23am
Quoting Xaphod
MTF TDI with blue lines set to no color based on a version of the TDI that updates in real time. The previous version is here: http://www.forexfactory.com/showthre...32#post4160332 {image} {file} {file}
Thank you again!
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #24,775
  • Sep 8, 2013 8:25am Sep 8, 2013 8:25am
Head and Shoulders chart pattern:

H&S chart pattern on H4 is quite rare these days.
Usually, we only look out for H&S after a huge market move like a recent bullish rally in EURNZD whuich hit a recent significant high.
There is market psychology when market rallied and hitting that recent High. See chart below.

Attached Image (click to enlarge)
Click to Enlarge Name: EURNZD Head Shoulders market psychology.png Size: 57 KB


Looking at the EURNZD chart above, what do you think is the psychology behind the buyers and sellers forming that Left Shoulder and then forming the Head?
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,776
  • Sep 8, 2013 8:25am Sep 8, 2013 8:25am
Quoting TheScorpS
In the early morning hours, get relaxed before trading Zen Breakfast - Karunesh http://www.youtube.com/watch?v=72dMxT2eMC8 Hope you enjoy it
Thank you. Lovely music which can help me stay calm during the stressful trading......
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #24,777
  • Sep 8, 2013 8:28am Sep 8, 2013 8:28am
Hi traders,

When trading TDI on the 4H TF.. Why do we drop down to the 1HR for entry? On some occasions is this to wait for the current hour to close??

And again if trading the Daily with the TDI... Droping down to the 4H TF is this to entry when the current 4H candle closes??


I mite be confusing myself but i ask this because
I saw a setup on the 4H TF and attched a vertical line dropped down to the 1H TF and the vertical line showed the exact same TDI setup

And wondered why we needed the drop in the first place


happy pipping
  • #24,778
  • Sep 8, 2013 8:28am Sep 8, 2013 8:28am
Quoting Xaphod
MTF TDI with blue lines set to no color based on a version of the TDI that updates in real time. The previous version is here: http://www.forexfactory.com/showthre...32#post4160332 {image} {file} {file}

Hi maestro Xaphod,

Great work and sharing here.

I like the Auto-TF code very much.

Thanks for posting this here. Will be looking forward to market open and running this.

regards,
EMMANUEL
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,779
  • Sep 8, 2013 8:35am Sep 8, 2013 8:35am
Quoting Armin2Forex
Hi traders, When trading TDI on the 4H TF.. Why do we drop down to the 1HR for entry? On some occasions is this to wait for the current hour to close?? And again if trading the Daily with the TDI... Droping down to the 4H TF is this to entry when the current 4H candle closes?? I mite be confusing myself but i ask this because I saw a setup on the 4H TF and attched a vertical line dropped down to the 1H TF and the vertical line showed the exact same TDI setup And wondered why we needed the drop in the first place happy pipping

Good questions:


Attached Image


The concept pic above may help you understand why 4H traders like me use lower timeframe LTF like H1 for better time and better price entry,

LTF entry will allow you to enter on the retracement of the H4 setup candle. This allows you better entry price, and also smaller initial Stop Loss which can improve your trade position sizing.
Smaller initial SL means small R and the R-Multiple of profits become much easier within expectations if the price swing.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,780
  • Edited 11:15am Sep 8, 2013 9:40am | Edited 11:15am
Hi traders

wont be trading next week due to business travels, but just wanted to share some views of the market for the longer term perspective.
Any comments are welcome and highly appreaciated.

EUR JPY
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 179 KB
Click to Enlarge Name: Screenshot2.png Size: 135 KB
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