Analysis for dummies, by dummies

Closed the other half position for +95pips.
H4 looks really good with PCRF and tdi cross,
but time of the day is not, will see if I can get back on later when more volume picks up.

.. for my homie

Very well done, I didn't have the patience, and patience is greatly rewarded in this business...

))

Holy crap, have any of you seen the russian women's olympic team? Think I'll be following the winter olympics very closely this year
http://fishki.net/1240300-sostav-oli...oj-rossii.html

Phew! Babes R Us indeed. They could easily be models.

Yes, I even think some of them are lmao. Well here's me finding a hidden passion for curling

yes I note you've taken a vigorous interest in sports now

... one last trade before I go to bed.....

EA 1Hr Daily

GJ - 100 pips nice pullback candle right after news release!

Hit my Target for that pair for the day so didn't got long...

Nice job here I thought that you would have caught the same move Imi and myself did...

What's with the pivot-like indi on your chart though? I've been meaning to ask for some time now.

... nice one Bizzle... I missed that

Starting tomorrow I'll be starting a small project, of discussing MTF entries (with the help of seasoned traders, eventually) and starting next week, I will be starting a larger project which I will or will not share with the public, depending on how it goes for me

edit: on second thought, Asia doesn't look like it's going to be any fun, so may as well start the first project now... to come : an overview of the method.

Introduction to MTF

I will start this first post in the series of MTF studies, in the spirit of a good samaritan, by explaining really basic stuff. I will probably bore most of you, but bare with me please. I'm still unsure of what level our readers are at. Now this is not a system in itself, so I don't feel it requires a whole new thread under the right section; it's just me being bored on a wednesday evening and trying to share what knowledge (as little as it may be) I have of trading, the instruments required and the cosmos... I do not claim this is a 100% success rate method, it's pretty experimental thus far, hasn't caught on as much as you'd think (yeah cus I'm hipster like that). I also do not think my methodology (because I bet my train of thought differs from other MTF users) is 100% good and the only right way to do things.

Let's get started shall we? Get something to drink, something to snack on, whatever gets you into the right mood... Ready? Here goes.

What is MTF? MTF stands for Multiple timeframes. Ever since we all began this fabulous journey, we were taught to always keep in mind the bigger picture. In fact I remember when I was reading all that on babypips, and couldn't make sense of it back then, but I digress. The idea is that price trends differently on different timeframes. There is a short-term trend, an intermediate trend and a longterm trend. You will find attached below a picture illustrating this (often reposted by emmanuel7788 in the TMS thread, among others).
This is a concept developped by one Alexander Elder in his triple screen method. In fact he has named the three types of trends metaphorically a ripple, a wave and a tide respectively. If you want to know more about this, you can google, it's free
However this is where my understanding of the market differs from aforementioned concepts. As I've mentioned before, I am an intraday trader. In being just that, I refer to the daily trend as my "main trend". It is my point of reference when I claim to be going with the trend or against it. Then there's the hourly, H1 (in lieu of the H4, if we were to follow the original triple screen method). This is my preferred timeframe, on which I look for a setup that fulfills the criteria I have established for myself. Once I've spotted one, I drop further down, to M5 (again, 2-3 timeframes lower than what should be if I were to use the original method), where I snipe an entry and pull the trigger. The idea is to avoid drawdown as much as possible, i.e by not entering while M5 is retracing because it was previously too close to one of the myriad historical levels that play the role of support or resistance.

A few words on TMS. The system I (and other posters in here) use in itself is called Trading Made Simple and can be found under the trading systems section. It's a great system that deviated a bit from Dean Malone's S.Y.N.E.R.G.Y method. The heart of TMS is the trader's dynamic index (referred to as TDI from here on), which as you all may have noticed myself and many of the other posters on here use. That's right, we all come from the same place. The idea is to watch price action and to confirm eventual setups with a TDI cross. This increases the probability of a trade exponentially, as I have personally experienced. I will not go in too much detail, because the thread is there, waiting to be studied by anyone who wishes. The MTF version of this system has been popularised by a trader named Lastingwell, a brilliant trader who was kind enough to give me a green light to post all this. A few of us liked the idea and began to study the concept more indepth. With the help of the indicators coded by Xaphod, it's really shaping up to be a pretty good deviation from the original TMS.

The indicators used by me personally are the TDI, APB (average price bars), an ADR indicator, a 200EMA and a 10EMA and can be found in the TMS thread, here. That's my H1 setup. On M5 I use roughly the same setup, with pivots a daily/weekly/monthly indicator (kindly posted by Imi and can also be found in the link above) and most importantly the MTF TDI, created by Xaphod (thank you very much for that by the way) found here.

In the posts to follow, I will elaborate on the MTF-TMS trading method. I will then distance myself from TMS and attempt to speak more generally about it. I will go over my thought process and will post charts to illustrate. Hopefully, others using MTF will join me and this little project will become a nice little learning experience for all of us.

You can stop me at any time if it doesn't interest anyone, or if you think I'm full of you know what, or if you just have a question regarding anything I've said and will say...

Thank you for reading me

P.S: I will try to wrap this up by Sunday...

One more thing I forgot to say in the last post was that since I am not trying to put together an entire system, there won't be any specific rules, conditions to entering or exiting trades.

I will try to keep this as abstract as possible so that you can generalize it well enough and apply it to your own trading. I will however need to base myself on my own strategy for the purpose of illustrating what I'm saying with examples.

I also realize that in my description of "MTF" in the first section of my introduction, I give the impression that this is a systematic process, but it's not, in that it's a matter of constantly moving around timeframes so that we are informed as best as possible what exactly is happening at this time. At one point, when we know what we are looking for exactly, it becomes more or less systematic. But until then it may seem pretty chaotic to some. It's not as simple as it sounds and may not suit many of you.

Alright, all that being said I will continue tomorrow. Nighty night forex world....

Hello WDays,



Re:- Introduction to MTF


Well done my man, That was a very good post and good outline of what you are trying to achieve. I am really interested in your process and happy to contribute to this tread as it continues its journey. All the best in your quest to find a pathway to better things.

Mark up

P.S.
(Big "A")

Hi WDays,

MTF trading

I find it very interesting and will follow with interest.

Regards

Sounds interesting, I'm in

Thank you guys for the positive feedback.

Okay this following part, I believe is called "top down" analysis. It consists in going from a higher timeframe to a lower one and seeing clearly what's going on.

Let's use GJ for the purpose of this example. Lately, the trend was down. We can see however, on the 04.02 day candle, that price made a lower low and pulled back to close higher. The next day (i.e yesterday), price could be doing one of two things... Either reversing for a rally, by breaking the high of our 04.02 candle or simply consolidate around these levels - scenario #2 happened. In this case it is very safe to take countertrend setups, because well essentially, the trend is shifting a bit. This explains Bizzle taking the short in the morning and Imi and myself taking a long in the afternoon; remember the triple top on H1? - it was not unthinkable to buy at that point, because simply put bears weren't that much in control. That's the beauty of the lower timeframes - a daily consolidation candle is worth hundred(s) of pip(s), which can be harvested as safely as can be by switching to a smaller timeframe.

Now, the TDI has not yet descended far into oversold territory, and I am reassured that this bear run may continue. However when we're looking at the daily trend, we have to keep in mind fundamentals play a much bigger role. Simply put, you have to think investors. Investors don't rely on TA as much as we do, because well simply because they are market movers. As far as my knowledge goes, the bear run started when there were reports of a strengthening yen and Abenomics actually working out.

For me personally, the periods of transition from uptrend to downtrend or vice versa are the hardest to trade... Which is why I like to look for an already moving market.

Okay, think of all this as a prelude to what's to come.

You're doing a great job WD.... and you're learning in the process. Can't wait for the next episode

Best turnout of events would be that, lol.... To do a great job and learn while trying to teach I'm still trying to structure things in my own head before I can post away all the information that's running in a turmoil in my mind right now...

RE: thread title... You shouldn't put yourself down like that... Self fulfilling prophecy, labeling theory etc..
Title will haunt your bad trades... Something more egotistical would push you after bad trades.. Think about it..

What about the "Really useless thread", what a useless piece of sh*t that turned out to be... Ironical? There's no such place



But live here if you must. Will be watching