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Trading Made Simple

  • #39,801
  • Jul 11, 2014 2:20pm Jul 11, 2014 2:20pm
Britpip7
Thanks for the insight on slowing down the RSI and TSL. I have been trading on the H4 so will be trying that out. When you say to try: RSI for 4 hour at 4 is that the RSI_Period that come standard at 13 or the RSI_Price_Line which comes standard at 2? Also refering to the TSL: your suggestion is to try 9 on the 4 hour and is that the Trade_Signal_Line which comes standard at 7 or the Trade_Signal_Line2 which comes standard at 18.

I'm new to this indicator and don't know how all the different inputs work, but you suggestion does make a lot of sense slowing the indicator down a bit.
Thanks so much
  • #39,802
  • Jul 11, 2014 3:18pm Jul 11, 2014 3:18pm
Quoting pivotpower
Britpip7 Thanks for the insight on slowing down the RSI and TSL. I have been trading on the H4 so will be trying that out. When you say to try: RSI for 4 hour at 4 is that the RSI_Period that come standard at 13 or the RSI_Price_Line which comes standard at 2? Also refering to the TSL: your suggestion is to try 9 on the 4 hour and is that the Trade_Signal_Line which comes standard at 7 or the Trade_Signal_Line2 which comes standard at 18. I'm new to this indicator and don't know how all the different inputs work, but you suggestion does make a lot...
pivot,

default is RSI 2 / TSL 7 - the changes I listed were experiments initially but smooth things out which can mean missing the first candle - just a heads up. the chart shows the RSI Price Line 2 and Trade Signal Line 7 - don't change anything else and see how it works out on demo.

Just remember - the higher the time frames, the less noise.

Happy pip hunting
Attached Image (click to enlarge)
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"To live with Passion, it takes Courage and Grace to survive"
  • #39,803
  • Jul 11, 2014 3:44pm Jul 11, 2014 3:44pm
Quoting pips29
{quote} A trade on the daily. Bearish engulfing candle, TDI rejected at 50 and moving down and had crossed slightly {image}
checked out at b/e. Daily forming a doji
the cautious seldom err....C
  • #39,804
  • Jul 11, 2014 5:30pm Jul 11, 2014 5:30pm
Quoting pivotpower
lIKICA Terrible results on 7/10 trading. 60% losers. TDI just jumping all around with false signals. I wonder what a person can do to avoid this kind of thing, because the signals on TDI and PA bars where there as recommended. Do you or any of the readers have any suggestions?
A TDI crossover trade will have a better chance of working out if you look for this sequence of colours. For a short trade: green over red over yellow with all three lines heading in the same direction i.e down. For a long trade vice-versa, green under red under yellow with all three pointing up. To further improve your chances just take green/red crosses that are in the direction of the prevailing trend and ignore counter-trend trades, and don't trade small timeframs like 15 min where there is much more 'noise.'That should go some way to help filter out some of the false signals and whiplash that can often occur and which you've been getting. It's probably a good idea too, to just trade demo or for very small amounts until you see how it's working out for you and for you to gain some consistency. Don't worry, we've all been there at some time or other. Good luck with your trading.
  • #39,805
  • Jul 11, 2014 11:55pm Jul 11, 2014 11:55pm
Quoting Tanglewood
{quote} A TDI crossover trade will have a better chance of working out if you look for this sequence of colours. For a short trade: green over red over yellow with all three lines heading in the same direction i.e down. For a long trade vice-versa, green under red under yellow with all three pointing up. To further improve your chances just take green/red crosses that are in the direction of the prevailing trend and ignore counter-trend trades, and don't trade small timeframs like 15 min where there is much more 'noise.'That should go some way to...
Would you kindly upload an example for the buy and the sell conditions , thanks
I Have Learned to Take Some Losses to Make Profits
  • #39,806
  • Jul 12, 2014 1:52am Jul 12, 2014 1:52am
Quoting TheScorpS
{quote} Would you kindly upload an example for the buy and the sell conditions , thanks
Big E did not use the MBL in his trading, just so you know.
If you are good at something, never do it for free--Joker
  • #39,807
  • Jul 12, 2014 2:36am Jul 12, 2014 2:36am
Quoting jmn5611
{quote} Big E did not use the MBL in his trading, just so you know.
Thanks for reminding me, I find MBL very powerful tool to, I use it since Phx62 uses that where in many cases he explained about it
I Have Learned to Take Some Losses to Make Profits
  • #39,808
  • Jul 12, 2014 2:49am Jul 12, 2014 2:49am
Started reading John Hayden RSI the Complete Guide and caught this to my understanding is very important and its one of the reasons why changing strategy isn't advised, cause time is needed to truly understand every little details about the thing that you do, changing makes us stay in a closed circle with the 95% of traders that want to get out but cant

John Hayden RSI the Complete Guide; 2004 ("If asked, many seasoned traders will tell a novice trader that it is important to
focus on truly mastering one indicator. It is essential to know when and why an indicator is about
to behave in a certain way. Once an indicator is truly mastered, the trader is able to apply his
own unique perceptions and rules to it. Many inexperienced traders want to believe that they have
mastered an indicator simply because they know its particular trading "rules" governing entries,
exits and stops. The reality is that they "know" no more than any other trading novice.
Consequently, they have no "edge" versus other traders when using a particular indicator, which is
one of the primary reasons that 99% of all new traders lose their money.")
I Have Learned to Take Some Losses to Make Profits
  • #39,809
  • Jul 12, 2014 5:09am Jul 12, 2014 5:09am
Quoting TheScorpS
{quote} Would you kindly upload an example for the buy and the sell conditions , thanks
Sure Scorps. First though a bit further explanation. Preferred colour sequence of green, red & yellow I mentioned is the sequence before the red/green cross. Obviously after the cross green would be under red on a short say. The other thing I suggested to 'pivotpower' was that he look for trades where the green, red and yellow were heading in the same direction. That in itself would rule out a lot of trades - some of which turn out to be good trades. Lots of times on a short say, green is over red and red over yellow but yellow is heading up whilst green has crossed down through red and green and red are now heading down. Not the A++ scenario I recommended to 'pivotpower'. The reason this trade might or might not work out is that green and red represent price and the yellow MBL represents market sentiment. Price often leads market sentiment and that's why yellow might still be going up whilst green and red are going down. If market sentiment prevails then this green/red cross may turn out to be a minor retracement. If price prevails and selling pressure continues then the yellow MBL, market sentiment line will turn down in the same direction as the green and red. ​When Price and Market Sentiment are in line with each other it's a powerful combination. That's the reason I mentioned that sort of scenario to 'pivotpower', not that it's the only way to trade the TDI but probably the safest.

I've attached the GBP/JPY to give examples. The three possible trades indicated by the red vertical lines. The first two trades pretty much meet the colour sequence green over red over yellow and the three starting to head in the same direction. The third example (the most recent) I include as it illustrates the scenario I mentioned above. Green crossed red but yellow was heading up. Price then faltered before continuing down and the yellow MBL then turned over and down with green and red for what Big E called a 'bounce trade'. Of course Big Eric, the originator of this thread didn't use either the blue volatility bands or the yellow MBL and had them turned off. He would just have taken the green/red crosses as they occurred either trend or counter-trend, so anyone trading exactly his method as he laid out in the early pages of this thread can safely ignore any reference to the direction or position of the yellow MBL.
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  • #39,810
  • Jul 12, 2014 5:53am Jul 12, 2014 5:53am
Quoting Tanglewood
{quote} Sure Scorps. First though a bit further explanation. Preferred colour sequence of green, red & yellow I mentioned is the sequence before the red/green cross. Obviously after the cross green would be under red on a short say. The other thing I suggested to 'pivotpower' was that he look for trades where the green, red and yellow were heading in the same direction. That in itself would rule out a lot of trades - some of which turn out to be good trades. Lots of times on a short say, green is over red and red over yellow but yellow is heading...
Nice explanation, Tanglewood. I have only one question. On your chart where you drew the vertical lines are those the time (UK 6am,10am) when big E might take a trade. thks
the cautious seldom err....C
  • #39,811
  • Jul 12, 2014 5:57am Jul 12, 2014 5:57am
Quoting TheScorpS
Started reading John Hayden RSI the Complete Guide and caught this to my understanding is very important and its one of the reasons why changing strategy isn't advised, cause time is needed to truly understand every little details about the thing that you do, changing makes us stay in a closed circle with the 95% of traders that want to get out but cant John Hayden RSI the Complete Guide; 2004 ("If asked, many seasoned traders will tell a novice trader that it is important to focus on truly mastering one indicator. It is essential to know when and...
Thanks for reminding. Love it when some think the only way to trade is to follow the rules .Ain't no such thing as the holy grail
the cautious seldom err....C
  • #39,812
  • Jul 12, 2014 6:15am Jul 12, 2014 6:15am
i have some question what is ADR

How to Use ADR

ThankYou

==Trythis==
  • #39,813
  • Jul 12, 2014 6:18am Jul 12, 2014 6:18am
Quoting jmn5611
My trades on the week, time stamped, with balance. Some one asked about trading on Friday. Don't do it. {image}
nothng seems to happen on friday except the news event with CAD. That day and monday a good day to take off. Pull your horns in on those days.
  • #39,814
  • Jul 12, 2014 6:33am Jul 12, 2014 6:33am
Quoting Tanglewood
{quote} Sure Scorps. First though a bit further explanation. Preferred colour sequence of green, red & yellow I mentioned is the sequence before the red/green cross. Obviously after the cross green would be under red on a short say. The other thing I suggested to 'pivotpower' was that he look for trades where the green, red and yellow were heading in the same direction. That in itself would rule out a lot of trades - some of which turn out to be good trades. Lots of times on a short say, green is over red and red over yellow but yellow is heading...
Lots of dense material to learn, is these information that can help in anyone trading career development, they show us the way behind curtains , really little details very tiny ones that can help us improve and wait for the correct time to enter the market into the move and avoid fakes or whipsaws

I sort of knew some of the information applied there, but your post now can really ease things down, thanks and much appreciate it
I Have Learned to Take Some Losses to Make Profits
  • #39,815
  • Jul 12, 2014 6:37am Jul 12, 2014 6:37am
Quoting pips29
{quote} Thanks for reminding. Love it when some think the only way to trade is to follow the rules .Ain't no such thing as the holy grail
Welcome Pips
I Have Learned to Take Some Losses to Make Profits
  • #39,816
  • Jul 12, 2014 6:50am Jul 12, 2014 6:50am
Quoting Trythis
i have some question what is ADR How to Use ADR ThankYou ==Trythis==
Average Daily Range. Bigger the Better.
Old good days gone anyway....
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #39,817
  • Jul 12, 2014 9:43am Jul 12, 2014 9:43am
Quoting TheScorpS
{quote} Thanks for reminding me, I find MBL very powerful tool to, I use it since Phx62 uses that where in many cases he explained about it
Good point Scorps

Big E / dcginc / Phx62 / Emmauel all use TDI but have adapted it to fit their trading styles. The most important thing for any trader to understand is how their chosen indicators work on a given time frame. That means pick a timeframe and study it, become an expert on that pair for that particular timeframe and how it interacts with the indicators. That is what will give you an edge. Remember, ALL indicators are lagging Price Action - they are all a combination of averages and don't ever predict - they just give an additional comfort level to us poor tortured souls that have yet to find Merlin's crystal ball.

Big E spent several years adapting from the Craig Haris / Dean Malone / Norwood approaches before settling on H4 / TDI and APB.

dcginc spends a lot of time teaching folks to look left for previous patterns / history and how PA interacts with Fib levels as well as MBL.

Phx62 focuses on H1 and uses S/R levels / channels and pull backs to judge his entries and will often enter before an H1 TDI signal is confirmed.

I prefer the Day charts which have less noise and I have slowed the RSI Price Line and TSL down a tad. Less trading time and higher probability on the trades taken and lower risk of overtrading.

Different horses for different courses :-) All variations on the same them though and nothing that really goes against BigE's teachings.
"To live with Passion, it takes Courage and Grace to survive"
  • #39,818
  • Jul 12, 2014 10:10am Jul 12, 2014 10:10am
Quoting Britpip7
{quote} Good point Scorps Big E / dcginc / Phx62 / Emmauel all use TDI but have adapted it to fit their trading styles. The most important thing for any trader to understand is how their chosen indicators work on a given time frame. That means pick a timeframe and study it, become an expert on that pair for that particular timeframe and how it interacts with the indicators. That is what will give you an edge. Remember, ALL indicators are lagging Price Action - they are all a combination of averages and don't ever predict - they just give an additional...

Thanks for an excellent summary of basics of TMS system(s).

Would love to see you post a little bit more frequently in your " TMS for Day Charts" Thread.

Warm regards.
  • #39,819
  • Jul 12, 2014 10:17am Jul 12, 2014 10:17am
Quoting pips29
{quote} Nice explanation, Tanglewood. I have only one question. On your chart where you drew the vertical lines are those the time (UK 6am,10am) when big E might take a trade. thks
Hi Pips, good question - and one to which I actually had no idea, I just trade the charts as I see them on my computer at the time. Nevertheless I thought I'd check it out by taking Big E's trading times, converting them to UK time and how the time of trades on the example I gave relate to that. Here's Big E's trading schedule as per the first page of this thread.

I only trade 1hr charts during the the 1st 3 hours of the USA OPEN and 4hr trades at night. I check for set ups at 10pm Pacific,2am and close all 4 hour trades by 6am Pacific....

Converted to UK time that's: Pacific Time 10pm, 2am, 6am... GMT 5am, 9am 1pm... BST 6am, 10am 2pm.

So I take it that as we're currently on British Summer Time Big E's trades UK time would have been taken at 6am, 10am and closed 4H trades at 2pm. Then at 2pm (BST) the New York session starts and he would have then traded 1 hour charts until 5pm - London having closed at 4.30pm after which things can often quieten down somewhat. The times of each trade on the example chart I showed are: 1st trade 11pm, 2nd trade 4pm and third trade 8am. However my charts seem to be an hour out on my computer. When London opens at 8am my chart says 9am, so you'd have to take an hour off: thus 1st trade 10pm; 2nd trade
3pm and 3rd trade 7am. So long answer to a short question is 'no' I don't see the times of these trades particularly relating to Big E's trading times. Hope what I've said is understandable and hasn't made things more confusing. Have a great trading day come Monday.
  • #39,820
  • Jul 12, 2014 10:52am Jul 12, 2014 10:52am
Quoting pips29
{quote} Thanks for reminding. Love it when some think the only way to trade is to follow the rules .Ain't no such thing as the holy grail
That's true. There is no such thing as the holy grail. But there is a such thing as winning consistently. Since Big E is not here to once again tell people to stop changing things in this unmoderated thread I suppose the experimentation will continue. Consistency will come some day.
If you are good at something, never do it for free--Joker
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