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  • #141
  • Feb 6, 2014 6:09am Feb 6, 2014 6:09am
Quoting Wolf_Wicked
{quote} oh man... Hope you have no plans for the W/E... BTY was meant to ask... Does "W" Days stand for "WEEK" days? http://www.youtube.com/watch?v=64ZGjhlOd7o
W stands for wonderful, as in wonderful days. Most places don't allow for such a long nickname, so I was forced to compress it a bit over time until it became WDays. Still not following though, about the spudfye thing

edit: OH OKAY, thanks Kelly lol
  • #142
  • Feb 6, 2014 6:09am Feb 6, 2014 6:09am
Quoting Wolf_Wicked
{quote} I think my favorite was the elastic stuff... Glad you liked it./. Personally I never got it REALLY going and moved on after a long while but I understood the theory. I just really hate basing my judgements on a piece of code (indicators). I've been that way a long while now. But the great thing about trading is that there's so many ways to eat a cat.
... yeah the elastic one is really good... especially once you've identified a trend
.... laughing all the way to the bank
  • #143
  • Feb 6, 2014 6:10am Feb 6, 2014 6:10am
Yeah I've stumbled upon that in the past, dismissed it as it contained the word "prediction"... Not too fond of predicting where the market will go. That's why I don't like harmonics much either, because there's at least a tiny bit of prediction involved... Then again I'm a simple guy and I probably have no clue what I'm saying regarding harmonics, because I never bothered to study it in much depth...
  • #144
  • Feb 6, 2014 6:10am Feb 6, 2014 6:10am
Quoting Wolf_Wicked
{quote} Just the tude in general =P, was only trying to HELP.. In the biggest way possible..
hmmm.... where I come from... thats not called helping....lol
.... laughing all the way to the bank
  • #145
  • Feb 6, 2014 6:12am Feb 6, 2014 6:12am
Quoting WDays
Yeah I've stumbled upon that in the past, dismissed it as it contained the word "prediction"... Not too fond of predicting where the market will go. That's why I don't like harmonics much either, because there's at least a tiny bit of prediction involved... Then again I'm a simple guy and I probably have no clue what I'm saying regarding harmonics, because I never bothered to study it in much depth...
spudfyre is all about stochastics ... really cool stuff
.... laughing all the way to the bank
  • #146
  • Feb 6, 2014 6:13am Feb 6, 2014 6:13am
Quoting itsallover
{quote} spudfyre is all about stochastics ... really cool stuff
Also not my first indicator choice.... I'm actually pretty fond of the Trader's dynamic index.... In terms of accuracy and earliness of the signal, I don't think it is yet surpassed.
  • #147
  • Feb 6, 2014 6:15am Feb 6, 2014 6:15am
Quoting Wolf_Wicked
{quote} That was full helping.. It's not helping to say "do this" do that.. Well that's what I'm like anyway. maybe you're different, sorry for being such a cock.
... don't have to apologise...we're used to you being that way. Its a case of being comfortable in my discomfort.
.... laughing all the way to the bank
  • #148
  • Feb 6, 2014 6:15am Feb 6, 2014 6:15am
Quoting WDays
{quote} Also not my first indicator choice.... I'm actually pretty fond of the Trader's dynamic index.... In terms of accuracy and earliness of the signal, I don't think it is yet surpassed.

can't argue with you there WD
.... laughing all the way to the bank
  • #149
  • Feb 6, 2014 6:20am Feb 6, 2014 6:20am
WD,
I'm now watching only two pairs. A friend suggested it so I'm trying it out. It means I'll have fewer trades but they will be quality ones.
.... laughing all the way to the bank
  • #150
  • Feb 6, 2014 6:31am Feb 6, 2014 6:31am
Quoting WDays
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...
Picking up where I left off...

I showed an example of a MTF executed trade, I will now go into the theoretical aspect of the method.

With the help of Lastingwell I have established a train of thought to follow in this next part. Let me remind you what LW said:

Quoting lastingwell
I had to login to wish wdays good luck with the new thread, a very good start, a friendly and relaxed place to post, very nice wdays I think your post about multi timeframe trades hit the nail on the head about the higher timeframes versus the lower. Many traders look at for example, the daily chart and see its going up so its an uptrend and thats that, today I'm buying. What a lot of them don't take into consideration is any clue that it could be about to turn. As you said, some days we can sell as equally as buy. I take candle patterns into account more than anything else on the higher timeframes. For example if I see a bearish engulfing candle on D1, then H4 puts in a bearish pattern, I would not go long on H1 or lower, equially though if I saw a bearish engulfing on D1, then h4 puts in a strong bullish pattern, then I would go for the long on H1 if it was good because d1 may well be going to retrace up that candle and it could be worth hundreds of pips. Anyway just the way I look at things, thought I would add it.
Here's what I'm about to cover:

  1. Why are the timeframes I suggested so far apart?
  2. Importance of the other timeframes and where they fit
  3. Timeframe theory
  4. The weight of PA on different timeframe levels
  5. how to confirm a breakout.

  • #151
  • Edited 7:27am Feb 6, 2014 6:31am | Edited 7:27am
It's going to be really hard for me to keep this short, but I will try. As such I may leave out details, so once again, if any questions arise feel free to interrupt me and I will try to answer... To keep it simple I will just title each section with the phrase I used in my previous post. Alright, here goes.

Why are the timeframes I suggested so far apart?

Starting off with something simple. Well simply put I feel that having a gap of just 1 TF between the three major TFs I use is redundant. I am seeing the same thing, but with a few more details, which doesn't help me much. For instance let's say I were to watch the M15, the Hourly and the H4 chart... First of all, I don't think H4 is a good point of reference for intraday trading. Can't really trade a range as small as a couple of H4 candles. I would never win by going countertrend because I'd always be too little too late. And the same thing goes for m15/H1. The gap is simply too small. I've tried it before and the entries are not at all better if even different. M5 on the other hands provides good entry opportunities for those sudden volatility pick ups, where a M5 candle would close much earlier than an M15 candle, and thus provide us with the best possible entry.
Keep in mind we're only going to the small timeframe when we spot our preferred setup on the main timeframe, so long as it's coherent with the point of reference timeframe.

Importance of the other timeframes and where they fit.

So if I refer to the D1, take my setups off the H1 and drop to M5 to pull the trigger, what of M15, H4, M1, W1, Monthly?

I almost never look at monthly, it's too longterm for my style. I like to check Weekly at evey candle close to know how it went - was there a new low? An inside bar? Pretty important stuff, because a break of a weekly inside bar would mean a trend the next week. I haven't opened a M1 chart in a very long while, I don't need such fast PA...
As far as H4 and M15 go... I keep a very close eye on those. Remember when I said it's not as simple and mechanical as checking tf #1, dropping to #2 and finally #3? You have to constantly go around timeframes. Since I take my setups on H1, I would like H4 to at least hint towards the direction I'm looking to go in. I also look out for PA/TDI divergences on that timeframe (as well as the hourly, obviously). So when I go to H1 and see my setup, I quickly glance at H4 to see how things are holding out there. When that's all good, I drop to M15 to gauge market conditions a little better. If for example the m15 candles prior to that moment have been horribad (such as long upper nad lower wicks all over the place, tiny bodies and so on and so forth) I may pass on the setup and never actually make it to m5. If it looks good there, I would then finally reach M5 and plan an entry.

Timeframe Theory

To put it bluntly, there is one price, but depending on the period we are looking at, we will be looking at different fragments of that price. I won't go in detail over the math (i.e a 4 hour candle is 4 60 minute candles is 4 15 minute candles is 3 5 minute candles and so on), but it's enough to know that in the 24 hours it takes for price to create a bullish daily candle, on the lesser timeframes we could be seeing a small bear run followed by a sideways move for some time and then a huge rally. That's because markets don't move in one direction even when trending. In fact, the market is a sequence of extreme conditions (overbought and oversold), easily explainable with human psychology. When a security is being bough, the demand for it pushes price up, until a point where some of the buyers deem it has risen enough and they can finally sell in order to turn profit. At which point more buyers are attracted, those who were too late for the initial party and were waiting for a better (lower) price to buy. Wave theory and all that crap, you know...
Well the beauty of this is that provided the range is large enough, a trader can take advantage of those pullbacks and trade in direction of the pullback for a good reward, without sticking his neck out with a huge stop on an ungaranteed countertrend trade.
I'm starting to digress a little so I'll just say how this affects my trading.... Knowing that in a D1 chart rally price will often pullback, I can drop to H1 and take a countertrend trade with much more confidence so long as several timeframes agree with it. Also, knowing that's how price moves, once I've seen my H1 setup I can drop to M5 and see if price doesn't happen to be going near extremes near a S/R level, so that I can wait for the pullback, instead of pulling the trigger right there and then and seeing price move against me for some time before eventually going back on its way...
A smaller timeframe entry also often allows for a smaller stop loss, while the target remains big...

The weight of PA on different timeframe levels

Often times I hear people say that the higher the timeframe, the more reliable a PA setup. That's not necessarily true. It's not a question of reliability in my humble opinion, it's more a matter of size of expectancy. If for instance I see a pinbar setup on M5, I will expect it to move my way... But I would expect it to move only a few pips as opposed to a such H1 setup, where price may go for hundreds of pips. The longer the timeframe the bigger the expectancy, obviously. It's all in proportion basically.

How to confirm a breakout

Now this is the part I said I am still trying to get the hang of.

Basically, knowing that the higher the timeframe the longer the move following a setup (this includes breakouts), I'm trying to establish a criteria to know when I can jump the gun if price breaks an hourly trendline.
Thus far what I have figured out, and it seems to work, albeit not backtested enough yet, is to take 2 consecutive M5 closes above or below a trendline or support SO LONG AS THE SECOND M5 CANDLE IS THE LAST 1/3 OF THE M15 CANDLE. I.E, I would like the second M5 candle to close with a break to coincide with one of the four quarters of the hour; 00, 15, 30, 45.

This last part is where I would like someone like LW, Bizzle or Imi to step in and input their 2 cents.
  • #152
  • Feb 6, 2014 6:41am Feb 6, 2014 6:41am
Quoting itsallover
{quote} ... don't have to apologise...
No I do not. G/L to you guys. You have a ways to go, and that is what's clear.

Sincerelly
Howlin' at the Moon on the Roof
  • #153
  • Feb 6, 2014 6:48am Feb 6, 2014 6:48am
Quoting WDays
{quote} Picking up where I left off... I showed an example of a MTF executed trade, I will now go into the theoretical aspect of the method. With the help of Lastingwell I have established a train of thought to follow in this next part. Let me remind you what LW said: {quote} Here's what I'm about to cover: Why are the timeframes I suggested so far apart? Importance of the other timeframes and where they fit Timeframe theory The weight of PA on different timeframe levels how to confirm a breakout.
Sorry but I am confused you said just the other day on this thread that you can't get the hang of the MTF trading and now your teaching it???

Don't think I am being rube, I not! but how can u teach something you can't get the hang of??
Give yourself a chance and trade it like it's layed out...
  • #154
  • Edited 7:03am Feb 6, 2014 6:51am | Edited 7:03am
Quoting Bizzzle
{quote} Sorry but I am confused you said just the other day on this thread that you can't get the hang of the MTF trading and now your teaching it??? Don't think I am being rube, I not! but how can u teach something you can't get the hang of??

....maybe he's just sharing what he has learnt. Sometimes its a good way to process things.
.... laughing all the way to the bank
  • #155
  • Feb 6, 2014 6:55am Feb 6, 2014 6:55am
Just changing the subject for a minute before I go again Anybody who is having problems with their indicators after their terminal upgraded to build 574 or 600 you need to remove all mq4 files from the new indicator folder, because when the new mt4 tries to compile those you are getting errors. To find out where the new indicator folder is go to your mt4 terminal and click on File -> Open Data Folder.

The safest way I found to do it was go to the old folder you used to use, where your indicators used to go, and copy all ex4 files into a new folder, then go to File -> Open Data Folder and delete all the indicators that are in there, then copy all the old ex4 files to that new folder and they should work. The only ones I've had a problem with since are the matrix indicators but they still work, they just come up with an error saying it can't find the indicators while they go on the chart but its not bothering me too much because I've compared them with another broker with the old build and they look the same so they are working.
  • #156
  • Feb 6, 2014 6:58am Feb 6, 2014 6:58am
Quoting Bizzzle
{quote} Sorry but I am confused you said just the other day on this thread that you can't get the hang of the MTF trading and now your teaching it??? Don't think I am being rube, I not! but how can u teach something you can't get the hang of??
I said I'm still trying to get the hang of it, in my latter posts I said I will just spew everything I know about it. I'm not teaching anything, just sharing whatever idea I built about it in my head I'm just sharing what goes through my head while taking a trade basically.

Not to mention I'm relying on the help of Lastingwell quite a bit... And like Kelly says, it enhances the learning process
  • #157
  • Feb 6, 2014 7:29am Feb 6, 2014 7:29am
Quoting WDays
It's going to be really hard for me to keep this short, but I will try. As such I may leave out details, so once again, if any questions arise feel free to interrupt me and I will try to answer... To keep it simple I will just title each section with the phrase I used in my previous post. Alright, here goes. Why are the timeframes I suggested so far apart? Starting off with something simple. Well simply put I feel that having a gap of just 1 TF between the three major TFs I use is redundant. I am seeing the same thing, but with a few more details,...
Alright, done with the next part. Tear me up with criticism so long as it's constructive.
  • #158
  • Feb 6, 2014 8:03am Feb 6, 2014 8:03am
So let's buy back in now// and see what eventuates here

Attached Image (click to enlarge)
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Stop under 90.40.. For now
Howlin' at the Moon on the Roof
  • #159
  • Feb 6, 2014 8:04am Feb 6, 2014 8:04am
Quoting WDays
How to confirm a breakout Now this is the part I said I am still trying to get the hang of. Basically, knowing that the higher the timeframe the longer the move following a setup (this includes breakouts), I'm trying to establish a criteria to know when I can jump the gun if price breaks an hourly trendline. Thus far what I have figured out, and it seems to work, albeit not backtested enough yet, is to take 2 consecutive M5 closes above or below a trendline or support SO LONG AS THE SECOND M5 CANDLE IS THE LAST 1/3 OF THE M15 CANDLE. I.E, I would...
People use trendlines in lots of different ways so my opinion may not be someone else's, but I don't think you can quantify it like that. In the case of a breakout of a trendline that is valid I call valid somewhere where I have drawn it, then its been tested and worked, so for instance I draw two points, it needs to touch the line a third time and reacted to it, then I know that its a valid trendline, then if it breaks the trendline after that most times I will wait for it to retest the breakout point, you can then go in if you see a good signal on M5 along that line, I say most times because if I see a really good setup on the breakout I will go in then.
  • #160
  • Feb 6, 2014 8:05am Feb 6, 2014 8:05am
Quoting WDays
{quote} Alright, done with the next part. Tear me up with criticism so long as it's constructive.
Constructive criticism is for pussies =P .. Go for the jugular

It'll put hairs on your chest
Howlin' at the Moon on the Roof
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