{quote} I wish all who pop bye here a very Happy Christmas and a Prosperous New Year
Islander and Medici trade the European open
- #5,042
- Dec 24, 2014 5:31am Dec 24, 2014 5:31am
- | Joined Sep 2009 | Status: Trader | 1,425 Posts
{quote} I wish all who pop bye here a very Happy Christmas and a Prosperous New Year
Same to you and above all, enjoy live and stay healthy
Happy Christmas and a Happy New Year to everyone.
- #5,045
- Dec 30, 2014 7:02am Dec 30, 2014 7:02am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Trading Levels with WRBs
- #5,047
- Dec 30, 2014 7:41am Dec 30, 2014 7:41am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Trading Levels with WRBs
- #5,049
- Dec 30, 2014 8:59am Dec 30, 2014 8:59am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Trading Levels with WRBs
- #5,050
- Dec 30, 2014 9:05am Dec 30, 2014 9:05am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
I prefer to work with Candlestick charts as IMO they provide more visual information, especially in the higher TFs. For those who wish to “filter out” some of the noise in the lower TFs, both Range Bar and Renko charts are price based rather than time based and there are several examples of Renko charts on the previous page.
My preferred filter is to use Moving Averages. This stems from one of the first threads that I read in FF - Philip Nel’s excellent 5Min Intraday thread that I followed back in 2007! Whilst I have adapted his ideas to suite my own more recent thoughts, his thread is well worth a visit.
So on to the “bells and whistles” Firstly, I use the colour changing AllAverages indicator which actually has 15 different ones available. I only use the EMA - MA_Method 1 and the LWMA - MA_Method 3 - the reason will become obvious….
Tim Ord - a very well known trader - has often commented that price always returns to a MA - to the fast ones, more often and to the slower ones, less often - think of the Daily 20 MA and 200 MA, both much loved by Investors in Stocks, rather than Traders in Futures.
In the interests of KISS charts (Keep It Simple Stupid) I now tend to only display only 2 MAs on a chart - a Fast MA and a Slow(er) MA. Exponents who wish to use multiple MAs should take a look a Daryl Guppy’s seminal work on this subject.
The choice of both period and type (EMA or LWMA) should be researched by the individual trader and it is not difficult to work out which I am using.
The Fast MA forms the trigger for my entries which follow the MAs reversal and the first close the “new” side of the MA - I’ve posted this MANY times.
As it is also important not to “chase” an entry, I often show a band around the Fast MA. To do this open a normal MA from the top tool bar and set it to your fast MA with the colour as “None” Then add +/- levels to form your chosen “entry band” and that will act as a visual reminder - should you need one!
A Slower MA is obtained by researching - testing out - different MAs to find one that is visited less frequently during the trading day and thus might be useful in strategies using multiple entries or in confirming the number of contracts to be entered off a Fast MA signal.
Having already stated that price always “returns to a MA” it also follows that when price moves a long way from a slower MA, there will be a greater probability of it being “pulled back” towards that MA. Thus outer bands off the Slow MA can be researched to high-light an extended price that may soon pull back. Reading up on Keltner Channels is helpful and the astute reader will have noticed my ADR settings
The only other indicator that I continue to use is William Bauer’s Trade Volume Index - another use of volume and price. Whilst this can be used alone in a set of Trading Rules, I use it as a Divergence Alert to remind me that a move is becoming exhausted. Again, see earlier posts.
Here’s some of this afternoon’s action…..plus the indicators….
My preferred filter is to use Moving Averages. This stems from one of the first threads that I read in FF - Philip Nel’s excellent 5Min Intraday thread that I followed back in 2007! Whilst I have adapted his ideas to suite my own more recent thoughts, his thread is well worth a visit.
So on to the “bells and whistles” Firstly, I use the colour changing AllAverages indicator which actually has 15 different ones available. I only use the EMA - MA_Method 1 and the LWMA - MA_Method 3 - the reason will become obvious….
Tim Ord - a very well known trader - has often commented that price always returns to a MA - to the fast ones, more often and to the slower ones, less often - think of the Daily 20 MA and 200 MA, both much loved by Investors in Stocks, rather than Traders in Futures.
In the interests of KISS charts (Keep It Simple Stupid) I now tend to only display only 2 MAs on a chart - a Fast MA and a Slow(er) MA. Exponents who wish to use multiple MAs should take a look a Daryl Guppy’s seminal work on this subject.
The choice of both period and type (EMA or LWMA) should be researched by the individual trader and it is not difficult to work out which I am using.
The Fast MA forms the trigger for my entries which follow the MAs reversal and the first close the “new” side of the MA - I’ve posted this MANY times.
As it is also important not to “chase” an entry, I often show a band around the Fast MA. To do this open a normal MA from the top tool bar and set it to your fast MA with the colour as “None” Then add +/- levels to form your chosen “entry band” and that will act as a visual reminder - should you need one!
A Slower MA is obtained by researching - testing out - different MAs to find one that is visited less frequently during the trading day and thus might be useful in strategies using multiple entries or in confirming the number of contracts to be entered off a Fast MA signal.
Having already stated that price always “returns to a MA” it also follows that when price moves a long way from a slower MA, there will be a greater probability of it being “pulled back” towards that MA. Thus outer bands off the Slow MA can be researched to high-light an extended price that may soon pull back. Reading up on Keltner Channels is helpful and the astute reader will have noticed my ADR settings
The only other indicator that I continue to use is William Bauer’s Trade Volume Index - another use of volume and price. Whilst this can be used alone in a set of Trading Rules, I use it as a Divergence Alert to remind me that a move is becoming exhausted. Again, see earlier posts.
Here’s some of this afternoon’s action…..plus the indicators….
Trading Levels with WRBs
- #5,052
- Edited 9:49am Dec 30, 2014 9:34am | Edited 9:49am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Trading Levels with WRBs
- #5,053
- Jan 2, 2015 3:18am Jan 2, 2015 3:18am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
I also keep a 15m chart open as its easy to see all of yesterday's action. Additionally, its great for pulling fibs and Magnetic Line targets. So far, this morning has provided a great start to 2015 
NB The "SR-8" text box is added manually to keep track of the number of S&R levels in use
NB The "SR-8" text box is added manually to keep track of the number of S&R levels in use
Trading Levels with WRBs
- #5,054
- Jan 2, 2015 3:43am Jan 2, 2015 3:43am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Trading Levels with WRBs
- #5,055
- Jan 2, 2015 4:13am Jan 2, 2015 4:13am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
OK, I think that's all that I need to post about what I use and its up to the individual trader to make up his / her own charts to suite their personal requirements - I will NOT be posting any templates.
Remember that it takes several THOUSAND HOURS of Real Time watching of the RIGHT HAND SIDE of the chart to start to "SEE" what is happening IN REAL TIME and take the correct action.
It is also VERY IMPORTANT to learn when NOT to trade, so do not expect to plug in this type of signal and expect an explorer / back-tester to show good results - you will be disappointed.
Good luck on your journey, with Concentration, Discipline, Patience and a Set of Trading Rules you may be able to join the ranks of those who are able produce consistent profits
Islander
Remember that it takes several THOUSAND HOURS of Real Time watching of the RIGHT HAND SIDE of the chart to start to "SEE" what is happening IN REAL TIME and take the correct action.
It is also VERY IMPORTANT to learn when NOT to trade, so do not expect to plug in this type of signal and expect an explorer / back-tester to show good results - you will be disappointed.
Good luck on your journey, with Concentration, Discipline, Patience and a Set of Trading Rules you may be able to join the ranks of those who are able produce consistent profits
Islander
Trading Levels with WRBs
- #5,056
- Jan 2, 2015 9:12am Jan 2, 2015 9:12am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
I forgot the coloured ribbon that some like to use.......another trade were Patience Paid .....as well as knowing when not to trade....
Trading Levels with WRBs
- #5,057
- Jan 2, 2015 2:06pm Jan 2, 2015 2:06pm
- Joined Mar 2012 | Status: turning probability into profit | 1,550 Posts
Hunting High and Low
- #5,058
- Jan 2, 2015 2:14pm Jan 2, 2015 2:14pm
- Joined Mar 2012 | Status: turning probability into profit | 1,550 Posts
Hunting High and Low
- #5,059
- Jan 2, 2015 2:27pm Jan 2, 2015 2:27pm
- Joined Mar 2012 | Status: turning probability into profit | 1,550 Posts
Hunting High and Low
- #5,060
- Jan 3, 2015 1:22am Jan 3, 2015 1:22am
- | Joined Sep 2009 | Status: Trader | 1,425 Posts
Islander, I have some questions to ask. 1/ Does the TVI indicator have the latest version, later than v.2? 2/ What are the Kiwi0z magnetic lines? How they work? Where can I find the indicator? 3/ Instead of Sonic VSA Volume indicator, VSAers prefer to use another one of Hidden Gap Volume Indicator V5. One can try it attached. Best, D.P. {file}
Thanks Islander, always a pleasure reading your posts
