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Trading Made Simple for Day Charts

  • #2,121
  • Jan 23, 2015 11:54pm Jan 23, 2015 11:54pm
Quoting Helanka
{quote} Dear Britpip 7, Thanks for your reply about Risk / Money Management. regarding your GBPAUD 1st buy trade you have entered was against the trend.W1 TDI cross to down side & W1 ABP color is red.when you enter it not break previous day high so how you enter that trade in that point?because some time i missed trade when thinking above things. Also pls tell me Your blue moving average setting(EMA5 SHIFT 2 apply closed or another setting)
This maybe where you have too much data.

Also depends how you judge the trend on the weekly charts - see attached

Day entry was based on the day PA with the 1/20 candle bounce off of 200ema
Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUDWeekly 1-23-2015.png Size: 46 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,122
  • Jan 23, 2015 11:57pm Jan 23, 2015 11:57pm
Quoting Helanka
{quote} Dear Britpip 7, Thanks for your reply about Risk / Money Management. regarding your GBPAUD 1st buy trade you have entered was against the trend.W1 TDI cross to down side & W1 ABP color is red.when you enter it not break previous day high so how you enter that trade in that point?because some time i missed trade when thinking above things. Also pls tell me Your blue moving average setting(EMA5 SHIFT 2 apply closed or another setting)
here is what I have on the day MA
Attached Image (click to enlarge)
Click to Enlarge Name: Day moving average.gif Size: 29 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,123
  • Jan 24, 2015 12:11am Jan 24, 2015 12:11am
Quoting Britpip7
{quote} here is what I have on the day MA {image}
Thank you Britpip 7
Helanka
  • #2,124
  • Jan 25, 2015 12:04am Jan 25, 2015 12:04am
i downloaded the indicators and template and here how it looks my set up which i think few things are missing

so please can u upload all indicators needed for me ,and i believe u should do that on the first post as well

the candles are normal ones not the one in the setup in first post + i cant find the atr of the candles
Attached Image (click to enlarge)
Click to Enlarge Name: trade made simple for days.png Size: 94 KB
  • #2,125
  • Jan 25, 2015 11:43am Jan 25, 2015 11:43am
Quoting rehanovich
i downloaded the indicators and template and here how it looks my set up which i think few things are missing so please can u upload all indicators needed for me ,and i believe u should do that on the first post as well the candles are normal ones not the one in the setup in first post + i cant find the atr of the candles {image}
Welcome - From what I see on your chart you have the ATR loaded - it's in the top left of your screen. Use your Data Window to see the values.

You have TDI loaded, you can disable the dotted/bolinger lines and just run the TSL / RSI / Market Base Line

You do not show the Synergy APB candles. Check to see if it is installed for the chart.

You have the Fractals loaded - so it looks like you are almost there.

The Il_supdem zones are optional

From post#1

Indicators for Chart (Day)
Synergy_APB_[C]
ATR Pips UL Corner – color to none - periods 1 – multiplier 1 - this will give you the ATR for a single candle
ATR Pips UL Corner – color to none - periods 7 – multiplier 1 (read dcginc posts for using this and setting SL and TP)
EMA 200 – blue dotted – Price Typical
EMA 100 – aqua dotted – Price Typical
Fractals (Bill Williams)
Supply and Demand indicator II_SupDem - optional

Indicator Window 1
TMSTDI Watchdog – all settings at defaults – Set the alarms that you do not want to false and adjust the font sizes accordingly for your set-up. Colors are personal preference for the TDI lines - I do not use the "Bollinger" lines, so I stick with TSL / RSI and MBL
Overlay the RSI set to 10 with no color – just a personal preference – higher probability trades when RSI(10) is above 51 for longs and below 49 for shorts. Again – another one for the Data Window.

Fully read Post #1 and follow the links to referenced posts - also read the last two or thee pages - it takes time but will be worth the time spent.
Attached Image (click to enlarge)
Click to Enlarge Name: chart set up tdi.gif Size: 81 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,126
  • Jan 26, 2015 12:17am Jan 26, 2015 12:17am
Quoting Britpip7
{quote} Weekly charts take a while to reverse and generate a TDI cross, the weekly will typically lag the day chart by a few days. For reversals, you could wait for the APB/HA bar to change colour before verifying on the Day chart, but you will miss out on the earlier day chart entries. I prefer to operate mainly on the day charts and use these to judge the trend - you can still take the weekly charts for setting the S/R levels and these often provide a good signal for reversals. If you have a strong weekly trend, then a day reversal is often a...
Dear Britpip 7,

When I check your attached image i found some entry point you mentioned by vertical line has not consider RSI 10.I have marked those point on below image.
and also when i back test i found there are good TDI crosses but RSI 10 not above or below 50 but trade go well.but if I wait & enter after RSI 10 go above or below 50 some time missed the T/P 1 also because it was a Late trade.
But sometime if we wait to RSI 10 to go above or below 50, we can escape from TDI false signal also.

SO Pls advise...should we consider RSI 10 as a must or not?
Attached Image (click to enlarge)
Click to Enlarge Name: TDI - RSI and TSL moves.png Size: 58 KB
Helanka
  • #2,127
  • Jan 26, 2015 1:43am Jan 26, 2015 1:43am
Quoting Britpip7
AUD/CAD Worth putting on a watch list after market open Thought about running a pending sell stop to catch PA as it fell below the 200EMA, but had too many open trades with $ at risk. Now that the trades are closed or are now set to BE, this is now worth seriously reviewing. TDI coming out of overbought region PA reversing and closed below 200EMA and engulfed 1/21 candle HA change to red Day fractal is at 0.9772 - set entry below this level? {image}

Dear Britpip 7,

I have below question regarding AUDCAD chart.
As you mentioned Day fractal is at 0.9772 and it also near the 50% retrenchment of previous move.RSI 10 around 57 area.
Shouldn't we wait to PA break & closed below the DAY Fractal & fib 50% level?

So could you pls advise me do you consider those things before you set pending Sell stop or not?(because when we set pending order RSI 10 not below 50)

Some time i missed lot of trade opportunities when thinking above things.But after few days later when you reply your on going trades you picked some trades which I missed even I found that trade from the beginning.
Attached Image (click to enlarge)
Click to Enlarge Name: audcad-d1-forextime-ltd.png Size: 41 KB
Helanka
  • #2,128
  • Jan 26, 2015 5:04pm Jan 26, 2015 5:04pm
Quoting Helanka
{quote} Dear Britpip 7, When I check your attached image i found some entry point you mentioned by vertical line has not consider RSI 10.I have marked those point on below image. and also when i back test i found there are good TDI crosses but RSI 10 not above or below 50 but trade go well.but if I wait & enter after RSI 10 go above or below 50 some time missed the T/P 1 also because it was a Late trade. But sometime if we wait to RSI 10 to go above or below 50, we can escape from TDI false signal also. SO Pls advise...should we consider RSI 10...
RSI10 is not the deal killer on taking a trade - more nice to have really
"To live with Passion, it takes Courage and Grace to survive"
  • #2,129
  • Jan 26, 2015 5:24pm Jan 26, 2015 5:24pm
Quoting Helanka
{quote} Dear Britpip 7, I have below question regarding AUDCAD chart. As you mentioned Day fractal is at 0.9772 and it also near the 50% retrenchment of previous move.RSI 10 around 57 area. Shouldn't we wait to PA break & closed below the DAY Fractal & fib 50% level? So could you pls advise me do you consider those things before you set pending Sell stop or not?(because when we set pending order RSI 10 not below 50) Some time i missed lot of trade opportunities when thinking above things.But after few days later when you reply your on going trades...
First point - I never use the Fib levels fro trade entries - tried it but it just added another thing to worry about / create doubt.

Withe regards to Fractal breaks - it is safer to wait for a close, however, that is more of a personal preference and can also be dependent upon how strong the move is. On the day charts I will set entry points 30 pips below a Fractal Low with a pending short sell.

AUD/CAD did not get there - TDI looks good, but no confirmation from PA! Looks more like consolidation right now.
"To live with Passion, it takes Courage and Grace to survive"
  • #2,130
  • Jan 27, 2015 1:03am Jan 27, 2015 1:03am
Quoting Britpip7
{quote} First point - I never use the Fib levels fro trade entries - tried it but it just added another thing to worry about / create doubt. Withe regards to Fractal breaks - it is safer to wait for a close, however, that is more of a personal preference and can also be dependent upon how strong the move is. On the day charts I will set entry points 30 pips below a Fractal Low with a pending short sell. AUD/CAD did not get there - TDI looks good, but no confirmation from PA! Looks more like consolidation right now.
Dear Britpip7Thank you very mutch for your reply.
Helanka
  • #2,131
  • Jan 27, 2015 1:04pm Jan 27, 2015 1:04pm
Dear britpip,
Sorry for a newbie question, is it a TDI an indicator?, I know it has to cross the candle(s), but how to show in the chart?. Thanks
  • #2,132
  • Jan 28, 2015 8:35pm Jan 28, 2015 8:35pm
Quoting Miche09
Dear britpip, Sorry for a newbie question, is it a TDI an indicator?, I know it has to cross the candle(s), but how to show in the chart?. Thanks
You can see the TDI indicator in the bottom window of the graph on Britpip7's post #2127: http://www.forexfactory.com/showthre...32#post8021932

I suggest you go read the beginning of the Trading Made Simple thread for introductory information on the indicators and methodology used here.
  • #2,133
  • Jan 29, 2015 8:28am Jan 29, 2015 8:28am
Hi everyone! I've decided after flailing around trying to figure out my own trading strategies using bollinger bands, ichimoku, candlestick patterns etc, that what I need to get me started is a solid framework with others following the same system. What could be more perfect than trading made SIMPLE?

I've read a hundred or so pages between this and the original thread by Big E. I've got my basic indicators set up and I'm excited to be joining what seems to be a really great community. Thank you all so much for your contributions of time and energy so far.

Inevitably I have some questions, I'll stick to just a few pertinent ones and pray some kind soul will help me:

1) Big E said that he would wait for the formation of the next APB (4h / daily) to form, then if it's the colour he was expecting after the RSI/TSL cross, he'd enter the trade. However, I've just entered a demo trade and now the candle has changed colour lol. What is the protocol here?

2) How do you use fractals?

3) If the RSI line crossed the TSL a bar or two back and now looks like it's beginning to flatten out, is this a bad sign?

4) If a signal is telling me to go in one direction but there is a big area of resistance nearby in that direction e.g. a monthly high, should I disregard the signal and look for another opportunity?

Thank you!
"Never Take a Trade You Don't Understand!" - Pres78
  • #2,134
  • Jan 29, 2015 9:10am Jan 29, 2015 9:10am
ZeeDeveel, I am probably just a matter of weeks ahead of you on the TMS methodology, but I will provide my comments and am open to correction.
Quoting ZeeDeveel
1) Big E said that he would wait for the formation of the next APB (4h / daily) to form, then if it's the colour he was expecting after the RSI/TSL cross, he'd enter the trade. However, I've just entered a demo trade and now the candle has changed colour lol. What is the protocol here?
I believe BigE would say the bar needs to close before the color change is known. Variants on this are waiting until the bar has almost closed (so close that it would be near-impossible for the price to move enough to change the bar color) or the price action (PA) moves so aggressively that the color is not likely to change.
Quoting ZeeDeveel
2) How do you use fractals?
There are two ways fractals are mentioned. The first references HH/LL and usually associated with trailing stops. The second is about support resistance and is usually based on Bill Williams Fractals (SupDemII perhaps being an example).
Quoting ZeeDeveel
3) If the RSI line crossed the TSL a bar or two back and now looks like it's beginning to flatten out, is this a bad sign?
I believe BigE would get out (again, on close). Others will use a TDI cross only for the entry, and something else to determine exit.
Quoting ZeeDeveel
4) If a signal is telling me to go in one direction but there is a big area of resistance nearby in that direction e.g. a monthly high, should I disregard the signal and look for another opportunity?
You must asses the balance between the strength of entry vs. the obstacles the movement may encounter. There is always another opportunity.

You may want to pick up the TMS thread reading from October. Many questions are asked/answered in that span.
  • #2,135
  • Jan 29, 2015 9:27am Jan 29, 2015 9:27am
Thanks very much Randy.

So with regards to the APB candles.. I don't look for a brand new candle. I want a candle that is nearing completion? My only concern with this is.. If we're waiting for a candle to complete or near completion and buy short if it's red, long if it's blue (if confirmed by TDI) - doesn't this mean we're essentially buying at a peak in price? Could we move to a lower timeframe and wait for price to pullback in the opposite direction of the candle's colour for a more precise entry?

I will continue to plough through the TMS thread.
"Never Take a Trade You Don't Understand!" - Pres78
  • #2,136
  • Jan 29, 2015 10:41am Jan 29, 2015 10:41am
Quoting ZeeDeveel
So with regards to the APB candles. I don't look for a brand new candle. I want a candle that is nearing completion?
I may take a trade on a candle where the color has not set. This is in the area of preferences and judgments.
Quoting ZeeDeveel
My only concern with this is.. If we're waiting for a candle to complete or near completion and buy short if it's red, long if it's blue (if confirmed by TDI) - doesn't this mean we're essentially buying at a peak in price?
This is another area where you have to weigh your choices (strong confirmation vs. missed opportunity). You have both the pieces right here: You took the demo trade based on initial candle color, then it changed and went against you. If you wait for confirmation by color on close, you will have missed some pips.

I view TDI cross (or imminent cross) as the foundational trigger. Then the bar color and close outside of PAC as (main) confirmations. Note that PAC is not part of the core methodology in this D thread...I am trying to adapt.

I think it is accurate to say that the TMS expert view is that price action comes first, then TDI. But then you have the discussion about what is good PA which is where some go to candle stick (PA) methods, some to other analysis.
Quoting ZeeDeveel
Could we move to a lower timeframe and wait for price to pullback in the opposite direction of the candle's colour for a more precise entry?
Generally, the TMS method is to know the price direction on the next higher timeframe. So if the Weekly TDI Price Line is pointing up, it limits Daily entries to long trades. To fine tune, many look at the next lower TF for a more-precise entry.

It is easy to over-complicate things, so I try to remember that this is Trading Made Simple, not Trading Made Complex.
  • #2,137
  • Jan 29, 2015 11:17am Jan 29, 2015 11:17am
Quoting ZeeDeveel
...doesn't this mean we're essentially buying at a peak in price?
One more thing, if the entry decision is correct and the market behaves "normally", we expect 3-8 more candles of favorable direction. So if you are using a D chart, 3-8 days of desirable price movement after the close of the decision candle.
  • #2,138
  • Jan 29, 2015 11:36am Jan 29, 2015 11:36am
So with 3-8 days of movement in our favour, I suppose precise entry points are not so important.
"Never Take a Trade You Don't Understand!" - Pres78
  • #2,139
  • Edited 2:03pm Jan 29, 2015 12:18pm | Edited 2:03pm
Quoting ZeeDeveel
So with 3-8 days of movement in our favour, I suppose precise entry points are not so important.
I have seen people trade with random entry points, but their trade management skills make the overall return favorable. However, I don't know that I am comfortable saying precise entry points are not important. Rather, the more precise your entry method is, the better you can evaluate your results and improve. Same for trade exits.

The way I manage my trades, I may have my stop at BE by the third candle after entry.

The expert traders know that there will be some portion of losses with the best system. So if you enter a trade and take a loss, the evaluation becomes "did I follow my system rules which produce 70% wins over time? If so, (1) nothing was 'wrong' with the trade or (2) there is a possible improvement to my method to increase the winning ratio."

A 70% winning system will have a long string of losses at some point, so you must keep a long-term view.
  • #2,140
  • Jan 30, 2015 12:23pm Jan 30, 2015 12:23pm
Quoting steadyrandy
{quote} I have seen people trade with random entry points, but their trade management skills make the overall return favorable. However, I don't know that I am comfortable saying precise entry points are not important. Rather, the more precise your entry method is, the better you can evaluate your results and improve. Same for trade exits. The way I manage my trades, I may have my stop at BE by the third candle after entry. The expert traders know that there will be some portion of losses with the best system. So if you enter a trade and take a...
Just remember that when you are calculating / determining a winning strategy, a 70% win rate may look great, however, it is the the win/loss ratio that is the most important metric.
"To live with Passion, it takes Courage and Grace to survive"
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