Trading is as simple as ABCD

Some of the best trenders like gbpaud, euraud, gbpjpy and eurjpy have spreads (+comm's) not remotely close to 6. GBPNZD is a little higher but generally below 6.

Should we go the skype route in future I dare to say we'd likely want to reduce the number of pairs being discussed. Every so often gbpcad and eurcad will come to the top of the TT indi but the pairs mentioned (+ eurnzd) are generally featured most often and trend the best. The exotics are not coded on the TT and so would never come up for discussion in a group.

I'm sure you've all seen how 2 or 5 pip scalps is just not my style I really struggle to grab my little orphans, don't get me wrong nothing wrong with that strategy in fact I doubled my demo in a day here once doing just that, but the end goal here is a little different..I want to use tight 1 minute entries to develop several longer term strategies.

The London Breakout strategy is one such strategy where we try to identify the London breakout and trade it on the 1 minute chart..another is my pre and post news trading strategy..

But the one area I'd really like to develop with this method of 1 minute entries is to enter on the 1 minute timeframe with very small stops somewhere between 10 to 20 pips and hold for the higher timeframe trades eg 100's of pips...

A great example of this is the recent trade Mr V. took on his thread where he closed out for 323 pip profit.... Awesome trade in its own right of course but just imagine if he'd got in for a 10 to 20 pip stop and he'd moved to BE within minutes so all risk off the table very early in the trade??? Add to that if he'd quickly added another 2 trades in exactly the same way??? So triple the profit and initial risk not only small but off the table very quickly???

Could you imagine the RR's we're talking about here??? 900 odd pips and you only ever had 10 to 20 pips at risk at any one time??? Hard to believe its possible??? Don't believe its possible off of 1 minute charts???

Well have a look at my thread from post 2069 to post 2081 and you're see exactly how its done step by step blow by blow. I took 678 pips out of 1 min charts in just one London trading session. So it can be done......

Now that's got to be a trading goal worth working towards hasn't it????

Add to that, Mr V.'s vast experience with longer term charts and his ability to spot longer term trading opportunities with my 1 minute trading skills/strategy and I think you're agree its an awesome combination...

How we going to do it????

Well take Mr V.'s 323 pip trade for example, he identified a good daily level to trade off and took his entry accordingly hence the profit now lets have a look at that level again on the 1 minute chart???

Firstly we need to identify the level on a higher timeframe that you like the look of where you'd be expecting a positive response from. In the case of Mr V.'s trade an upward reaction.. Now wait for a strong move down to the level in question so we can expect a positive reaction when price gets there if it is a level where traders are waiting to buy... Now all we have to do is wait for the 1 minute 100lwma to turn back up and take a couple of our 1 minute CCI entries get them to BE and see what sticks...

In this example I think maybe 2 or 3 would stick bearing in mind that a week later price comes all the way back to 1.4275 before flying off again for Mr V's 323 pip trade...



Don't get me wrong I'm not saying its gonna be easy and I'm sure there will be numerous occasions,far too many to mention, where the winning trades will end up at BE or lose but the honest truth is you don't have to catch too many to have a positive outcome...

Add to that with some expert longer timeframe analysis we might get more than 323 pips and also why not add everytime the 1 min reverses back in the direction of the trend?? just add another half a dozen and see what sticks??? Gradually you're build bigger and bigger positions in the direction of the longer term trends with very limited risk...

Early days yet but at least you know where we're going with this, we might even end up taking half off on each momentum run and just leave the very first trades to run....seems a shame to let all that profit go for nothing...

If you'd like to help then by all means shout out any longer term levels that you believe are worth looking at and we're test them all out see how it stacks up....

You will see it all happen here as I will post our entries as we go in fact I will try to call them before hand so we can all take part but that might prove difficult once we go "Live" with real money... When that happens I might start doing London open webinars where I will trade our entries live calling them out as we go.... With Mr V. making a guest appearance whenever he's in the mood for a chat..

Well now you all know where we're going with this and it might all go horribly wrong of course but somehow with Mr V. along for the ride I don't think it will..

Clive -- thank you so much for sharing this information and all your indicators here and at Jaquemate's "More Simple is impossibe" thread. You've said several things I am still thinking though and wanting to test this week. Specifically, your comment "Buy HL's sell LH's -- use CCI if it helps" really got my attention when I see it on your charts. I'm a Renko guy -- but reading this thread to learn more about ABCD.

I have not read this entire thread, but plan to do so. Somewhere here or in Jaquemate's thread you mentioned that you forgot to turn on your Trade Manager (I don't recall where I saw that now). What Trade Manager are you using? The ones I have been testing are not working well for me.

Thank you again for your contribution here!

Pipcollector

Hi Pipcollector, yet another awesome name!!! I really must contact admin about changing mine to something exciting like "No Fear" , thats my motto for life and siuts my trading style too. "No Fear" of the one minute charts....

Glad to hear I'm making you think things through that is the only way we can conquer these forex charts, by constantly thinking about them... I like the Renko charts as they appear to show up the ABCD moves very clearly in strong trending pairs.. got to say thats the real answer to trading Forex well. Only trade strong trending charts... Then your Renko charts highlight some very good ABCD entries.

As for my trade manager its not really working that well right now as its moving to BE too quickly even for me but I have been using it by switching it on and off as I see fit that way it moves to BE exactly when I want it to without me fiddling about dragging stops around...

Have another EA that does everything enters by trailing a stop order into place and automatically moves to BE at say 3 pips , very good but again just getting me in a bit too quickly...so needs adjusting before I release it but I will when its ready...

As for reading this thread please fell free to especially the first page as its a memorial to my late Father but the useful strategy starts on post 1724 http://www.forexfactory.com/showthre...80#post7780780

Thanks for your comments

Lack lustre start to the day but caught this nice little GBPJPY move but the Dragon seems a little fierey this morning so not sure I will be able to hold onto his tail today???

Proceeding nicely...

GBPAUD looking good too...

Hi Clive

The earlier sideways rubbish perhaps the Monday morning drift that often happens.

Had a BE on EA when it went sideways but got this perfect system trade. GBP pairs that we watch pa above their ma's, LO move lower failed, strong AB move to top of range, perfect system higher low entry. Out for +23 and about 6%.

Hi Clive

Hope you are well

May I ask how do you use the indicator for top trenders with renko ( which setting ) any tips most welcome )

Well what a pigs ear I made of all that, tried to add to my GBPJPY trade and opened a GBPAUD trade at the same time,had 3 trades open and thats too many trades open at the same time, got myself in a mess and came out with nothing!!!!

In fact had a loser from my GBPJPY load as didn't get it to BE soon enough...cardinal sin there!!!!

Hard lesson learnt there , trade one at a time...... I'm good but not that good....won't be doing that again in a hurry.

Been looking into these Renko charts a bit more his morning and GBPAUD was a top trender all morning heres its chart with CCI set at 14...



Heres my settings for my TTindy too ...



Hmmm might have to try this out tomoz running it live but obviously on demo....

Hello Clive,

Nice thread you have here, excellent read I may say ! Thanks a lot!!
Still catching up but started trading this with a little Ichimoku twist.
In addition to your rules (the ones from page 109 are the valid ones?) I use the kijun cross and both the kumo and kijun are superb "trailers" and S/R as well...

Hi Go5

Nice trade, how much did you end up with?? The exits trickier than the entries half the time, never know when enough is enough. How did you exit??

Nice one Clive...

Somehow, in he end, its always about the exits, right? Normally, once in profit I trail the kijun although not agressively - trying to find a balance between kijun, fractals and cloud. In this trade would have got some more with just the ma alert...

Well its been a very interesting day today... I'm seriously looking at using Renko/Hieken Ashi charts as per our friend Jaquemate's new thread "More simple is impossible" very simply he says if price is going down sell it and if price is going up buy it. Now the difference is he uses Renko/Hieken Ashi charts rather than the normal price action candles.

Whats the difference?? Well quite simply Renko charts trade the price only and require a minimium price movement before they print a candle. You can set them for whatever you like say 3, 5 or 10 pips and higher. Say you set it to 3 then it only prints a candle when price has moved 3 pips.... Clever heh???

Now this has got me quite excited because when you add our little TTindy as a first filter then the renko charts start to look quite sweet, heres some examples from the top 4 5 minute Trenders today..










Don't look too difficult to trade do they??? certainly a bit easier than their 1 min counter parts thats for sure....

So how we going to trade them?? Well much the same as we've been doing really wait for it to appear on the top trenders , probably 5 min TTindy. Then wait for a CCI signal or a clear pullback.. you can see that practically any change of candle colour back with the trend appears to produce a winner... Don't even need to wait for the CCI to go oversold or bought, just look for a momentum swing back with the trend and the first trend candle put a pending order above it and see what happens.

I reckon we got about 8 winners here on EURCAD and maybe 1 loser. just the sort of odds I like....

The other thing to consider is that all trends do eventually come to an end so maybe limit ourselves to the first 2 or 3 trades only after the reversal of the 100lwma and hold until 100lwma changes back again.... Maybe put a filter in place like only CCI qualified signals over +/-100 levels or only tae signals within 10 pips of lwma??? Only trade BC moves with a strong AB move proceeding it again taking out the last HH or LL??

All things to consider as we go forward....

Well I'm going to give it a go tomoz and see how we go, nothing ventured nothing gained as they say....

Hmmm these Renko trades are OK... Need to practice the entries a bit, had a few mishaps to start with but seem to have caught this top trender quite nicely, as I've caught it just after its reversed might be worth holding, anyway I'm off to bed want to be up and at The LO tomoz bright and early.




This could be very interesting...

Note to self...never, ever anticipate the "C" pullback. Patiently wait for C to complete its pullback and paint a candle back in the profitable direction before entering. Glad I learned this lesson on a demo account.

Clive, thanks again. I did pretty well this morning during NYO. I'm on the west coast of the US, so it's difficult to trade LO (LO is at midnight my time). And I greatly appreciate your comments about your Dad. Mine passed away 8 years ago and I miss him greatly.

pipc

Snatched a quick 80 and now I'm definitely off to bed...

Thats a great quote for any would be trader, its so easy to get sucked in too early terrified that its going to go without us....

Little tip that might help, watch the CCI candles they will generally turn first if its going to turn and give you a warning so you can get ready to drag your order straight in...

Still do it to this day but getting better, one thing about these renkos it sort of makes you wait a bit better because until you've had that red close theres no point... Mind you need to have the sell stop ready to drag into place as when they go they go....

8 years and I bet you think about him most days don't you???

Yes, I do think about him most days -- and find myself quoting him to my kids almost as frequently. When I was in my teens, I thought he was pretty dumb -- but as I age, he is smarter to me every day.

What is your current Trend and Entry setting for CCI on Renko? At one point I saw you using 14 and 0 -- but somewhere else I think I saw 20 and 0. I am currently using 14 and 0.

pipc