Trading is as simple as ABCD

Also clive you mentioned the being stopped out by 1 tick senario if signal was good market was trapping to increase the move just renter at the original price

Hi cigarguy

All my indys etc are on page 80 heres the link, anything you can't find there give me a shout and I will upload for you...

http://www.forexfactory.com/showthre...29#post7757229

All the best Clive..

Here you go, Clive, an example of what I thought was a potentially challenging trading morning yesterday made straightforward by following my method precisely. This is NOT an attempt to explain how I trade, which is "my" variation of H4 Power (now moved to the FF Commercial section), but to show how a simple ruleset can be effective when applied exactly.



The only indicators I have on the chart are an EMA (21), the day's Open High & Low lines & vertical lines plotting on the hour from 0800 local (Frankfurt Open) to the NY Close. The FO line is blue, the LO line is yellow, but I change the LO colour to either red or green depending on my directional bias (not explained here !). My entry presets are 30 stop / 120 (4R) target : if a trade needs more than a 30 pip or tick stop, I pass. I may adjust my target according to market conditions and higher T/F Support / Resistance.

Yesterday was a sideways morning where it's easy to lose money. The specific rule I want to illustrate concerns "stop hold or fold ?" : my rule is "Hold to stop, unless there is a Close beyond Opening Range before that, in which case close on break of that bar". As you can see, I entered long early off the Open at 0905 (I do not normally enter before 0900 / LO) & my trade went immediately against me. It's very easy to start questioning oneself under these circumstances, but my rules are both clear & very simple.

I've drawn an orange rectangle of the Opening Range (I usually do) & it sure seemed like my stop would be hit. MANY times in the past I would have bailed to save myself 10 pips, but - just - the close of the 0930 bar was within the opening range, so no exit. The market went long, didn't get far, but my rules provided for 1R. 1R / day average can make anyone very comfortable : "You don't have to make a lot, to make a lot".

Two charts of the previous two days follow, showing both how to ruin a great Thursday morning by sheer idiocy and also a really easy EURAUD Wednesday morning - please forgive the ego gratification - which by luck happened to be a live double-size experiment with a 2 lot exit (which I am adding from Monday for all trades) : my point is to show how frequent these larger trades are.





Lastly, I know there is always a temptation to know all the details of other's trading decisions, but once you have a method - and you do, beautifully developed on this thread - it's no longer about "What to Do", but "How to Be".... and that is by far the most important thing I've written on this thread : the essential shift in attention, the true difference that makes the difference.

PS. Strong recommendation : don't mess around with Harenko.

If you want non-time based bars, use tick or range.

Thanks Jtrade for sharing, looks like a profitable strategy for sure..

Why ? Baring in mind that on MT4 all none standard Bar types, Tick, Range, Renko etc are created on Price Altered Offline charts, unlike Futures Platforms like Tradestation and Ninjatrader etc they are created using the same data that the standard candles are created with. And of course, in Forex ALL data presented by the brokers is price altered any way. Knowing that you really do not like Renkos I am curious as to why you would suggest Range Bars instead?

I use and love range bars though 3 tick bars are to small and you really cant respond quick enough. 13 to 18 range bars give a good piture of market conditions

dee50 - I just wrote a detailed reply, then pressed the wrong key to change one word and lost the whole darned post .... grrrrrr ... and now Man U have just kicked off against Tottenham at Old Trafford.... so going to watch ... sorry about that, as I felt you deserved a complete response.

Bottom line in my opinion is : Don't mess with non-time-based charts until you are consistently profitable with regular charts (& I've made over 200 Renko based trades in the last 18 months - 3 & 5 tick Renko on YM & NQ - but am no longer using them).

To be honest I do not understand the term "3 tick bars are too small and you really cant respond quick enough" price moves at the same speed what ever time frame or bar type you are looking at. All that looking at bigger bars does is it smooths out the noise, that goes for Range Renko Tick or standard bars.

The advantage, as seen by some traders, of Range and Renko bars is that they remove the noise so that swings are easier to identify in particular in the lower TFs (settings) which facilitates earlier entries and smaller stop losses they also "smooth" the indicators.

Since I started using Alternate Price Bars in December I have found my profitability has increased significantly as I am getting in to the moves much sooner and I have been able to reduce my risk, smaller stop losses.
What I have found is that you can not use the same bar setting for all pairs, also I can not use the same risk management in terms of moving to B/E and trailing as I do for the EU. Most of the other pairs definitely need alternate settings but then this is no different than when I was trading 82 & 512 Tick charts in the Futures Market, I needed different settings for the 6E (EU) than I used on the ES (emini SP) or the YM or the NQ or the TF.

No worries there is no rush, and I am always interested in hearing alternate experiences, some times forewarned is forearmed. Experiences differ so greatly that I sometimes wonder if we are all trading on the same planet never mind the same market.

May the best team win, I am assuming that is Man U.

Apparently dee you never saw a live 3 tick range bar in crude. In the twinkling of an eye 4 candle can show up thats what i mean about responding to something that moves like that

No I can honestly say that I have never seen a live 3 tick Range Bar chart in crude, but I have seen an 82 tick chart for the ES (emini SP), I traded it for about 2 years.

got in EU



edit for update: it was a quick winner

Well done; looks like you're getting in the swing of things very nicely now.

Another nice trade henry keep it going, good to see you're trading just after NYO which I think is key to catching the start of some good moves like you've done.

Just one word of warning I see you've got the TTindy and my CSM sitting on a daily chart, just be careful as my CSM will give you the strongest weakest of the timechart its sitting on so in this case the daily chart. Mind you mine doesn't agree with yours as mine on the daily chart has EUR bottom and USD top???

Anyways great trading....

Not really the right time of day but Sydney open not a mile away, however this is more a post news trade after the AUD news GBPAUD top of TTindy and GBP top of csm with AUD bottom so worth a quick punt. Gonna go to bed and leave this to run over night as its a news driven trade so could be a nice RR with a bit of luck....

This AUDUSD is another strong downtrender on the daily chart so gotta be worth a shot here, might not ever come back here for a very long time...

This is about the only way I can trade higher timeframes from my 1 minute chart by using the 120FSMA to identify the ABCD moves from the 15 min chart..

Heres the 1 minute chart showing the ABCD pattern formed by the 120FSMA and the last turn down C is a LH on the 15 min chart point B is the first LL from the 15 min chart therefore it makes sense to enter on 1 min taking the first 2 CCI signals after the slope change and hold it on the 120FSMA...

Heres the 1 min chart..



And heres the 15 min chart with the ABCD marked...B is the first LL and C the first LH so ideal to sell on 1 min chart...



So heres the theory, look for the 120FSMA turn downs that are lower then the last turn down eg 15min LH and then hold on the 120FSMA and vice versa for turn ups on the 120FSMA..

Well thats the theory but doing it in practice is another thing all together......but I'll try....

I caught that GBP/AUD run from 1.9366 down to 1.9326 for 40 pips. I've this thread to thank. Notice it on the TTindi, took a CCI signal on the 1min chart. I held with no worries cause I was looking at MACD 7,10, 5 which showed downward momentum the whole way. Trailed the price with my SL behind small retraces. Finally left SL behind a S2 from a pivot indi I have and it was eventually taken out there. I'm happy though. Why? This thread gave me the courage to watch 1min charts and the conviction that I could get into trades at that time frame. Also, this thread gave me the knowledge of what pair to look at, when to get in, and how long to hold.

Thanks guys.

Nice bapakjason, I got the next leg down at 54. At the time it was 4th on TT, GBP had 4 of 8 and gbpnzd was also moving down nicely. Don't know why but love it when ga and gn moving the same.