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Trading Made Simple

  • #55,621
  • Apr 7, 2015 11:55am Apr 7, 2015 11:55am
Hi all,

I had read all of Big E's teaching and life story from his post. He has joined FF on year 2008 as new newbie, but probably traded a bit of forex earlier than that. Since then his has been trading across various strategies before finally teaches us his own refined method Trading Made Simple. Even though he has passed away, his teaching continues to benefit many of us and probably for many years to come.

I also get to know that Emmanuel becomes the new thread master after Big E and continues to guide new traders coming on board. Truly appreciate your effort!

I learnt all the rules taught by Big E on entries and exit using TDI and HA candles on H4 candles. However there is a missing link for me after Big E departed from this thread. After 4 years of gap, I wonder if the method taught by Big E is still up to date? I have been demo trading and it works very well, however reading new chart updates from you guys there seem to be changes in indicators/setting.

If any kind soul that can tip me on where move forward from this point I will truly appreciate!

Clive
  • #55,622
  • Edited 12:25pm Apr 7, 2015 12:07pm | Edited 12:25pm
Quoting arize
Hey all If I use daily candle as my following day support and resistance, do I use the closing price, or wicks as S&R? {image}
The wicks marks the highest and lowest point of the candle .
So in that case you mark the top/bottom of the wicks .

But a advanced situation is " a constrainment " , when the price crosses the highs / lows , but always closes below the high or above the the low.
If this happens a few candles in a row , becareful !!
Its an excellent sign for a reversal !
I ll add a clean H1 chart to explain .

Hope I could answer your question .
Guido
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDcH1.png reversal 7.4..png Size: 27 KB
Risiko birgt immer auch die Chance.
  • #55,623
  • Apr 7, 2015 12:30pm Apr 7, 2015 12:30pm
Attached Image (click to enlarge)
Click to Enlarge Name: Unbenannt.png Size: 71 KB


Hi TMS'ers,

EA/GA collapsed today, and I threw up there on the chart a bunch of indies which I use in my weekly analysis, and it was hitting:

200 EMA;
RN 1.45;
March High;
Last Weekly High;

So as a Price Action driven trader, one should see this collapse coming, for sure aided by the news last night.

If we'd monitor it closely, it was also at the upper edge of a pattern on D1, for those who follow such angles as well.

Sure enough it collapsed 300 pips and not showing any sign of stopping.
Best regards, Zef
  • #55,624
  • Apr 7, 2015 12:41pm Apr 7, 2015 12:41pm
Quoting arize
Hey all If I use daily candle as my following day support and resistance, do I use the closing price, or wicks as S&R? {image}

Good question. If this helps, a professional trader I know who sold his method/system to a multi-million dollar hedge fund some years ago and who just uses levels (no indicators at all) to plot out the areas where he wants to go short (top edge) or long (bottom edge) specifically uses the close and not the wick to plot his s/r levels.
  • #55,625
  • Apr 7, 2015 3:52pm Apr 7, 2015 3:52pm
Two trades so far this week on EU H1. Trade 1 entered on price action only....no TDI confirmation. Trade 2 entered on a break below the Frankfurt candle and a break below yesterday's low. The LO candle set the session high for the day giving a price action entry signal, as well. Asian session price bounced off the resistance line. TDI green had already crossed red.
Attached Image (click to enlarge)
Click to Enlarge Name: 2015.4.7.EU.H1.png Size: 78 KB
  • #55,626
  • Apr 7, 2015 5:15pm Apr 7, 2015 5:15pm
Quoting BurnhamPark
{quote} Andy, Just learned the multi entry with the use of "3lots-pending orders' recently from Big Emm, so I just tried and very fruitful. Just to make sure I protected my capital, I immediately moved my SL's to BE when it hit my first TP1:25pips and just watch the price to hit my TP2:50pips. But I noticed the price lost momentum so i decided to close TP3 at 40pips manually to take a total of +115pips.. {image}

very nice profits overall!

But in such a situation, you could have simply set your 3rd pos at BE and let the market decide the last TP3 100pips.
Usually, I move my trades to BE after market move +50pips. This is the exit strategy of this 3-lot entry technique.
The 1st lot exit TP1 +25pips is to reduce the overall risk of the trades and the TP1 usually comes in 1 to 2 candles when you enter on a candle with momentum.
TP2 can take 3 to 5 candles reach and TP3 is to fight into the next market session.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,627
  • Apr 7, 2015 5:17pm Apr 7, 2015 5:17pm
Quoting Tanglewood
{quote} Good question. If this helps, a professional trader I know who sold his method/system to a multi-million dollar hedge fund some years ago and who just uses levels (no indicators at all) to plot out the areas where he wants to go short (top edge) or long (bottom edge) specifically uses the close and not the wick to plot his s/r levels.

Good point.
Without the Japanese candlesticks, we trade using Line Chart and it is based on Close price of the day. That work great and still work.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,628
  • Apr 7, 2015 5:41pm Apr 7, 2015 5:41pm
Quoting Clivethien
Hi all, I had read all of Big E's teaching and life story from his post. He has joined FF on year 2008 as new newbie, but probably traded a bit of forex earlier than that. Since then his has been trading across various strategies before finally teaches us his own refined method Trading Made Simple. Even though he has passed away, his teaching continues to benefit many of us and probably for many years to come. I also get to know that Emmanuel becomes the new thread master after Big E and continues to guide new traders coming on board. Truly appreciate...
Hi Clive,

First thing, I am not the master of this thread. There are many traders who were with Big E when he started out here in FF. Some of these pioneer members of the 5-Method are still reading this thread.

The core of the 5-Method has not changed. The only two indciators we use are the APB/HA and the TDI.
The 'issue' was with the TDI versions available in the public domain. Big E traded with the original version which he named TDI Red Green. It was known after a while that this TDI version re-paints several bars in the history but that did not stop Big E from using it. He simply traded what he saw with that TDI and he also made clear that he did not re-fresh his charts when he was trading.
There was another version posted back in 2009 which made the TDI updates in realtime but Big E did not use this realtime version.
Below is a H4 chart which shows both the TDI Red Green and the TDI Red Green (Realtime).
Look at the TDI cross and TDI bounce I label [1] and [2], compare both the TDIs.

Attached Image (click to enlarge)
Click to Enlarge Name: EU H4 TDI compare.png Size: 50 KB

Will Big E take those two trades using the TDI Red Green? His entry and exit rules are based on the TDI Red Green.

Over the past years since Big E passed away, the TDI has continue to evolve with the market conditions.
Synergy_Pro_TDI
The current version which many of us use is the Synergy_Pro_TDI which have different set of parameters hidden from the users. It is based on 10-period and not the previous 13-period. Also the price type and moving average type to calculate the TDI Price Line Green, Trade Signal Line Red, .. have been changed.

When you decide to use TMS 5-Method as your core technical trading method, you first need to test and compare which TDI version you want to use and develop your rules based on this.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,629
  • Edited 6:28pm Apr 7, 2015 5:54pm | Edited 6:28pm
Here is a test of your trading skills and how well you understood Big E's post#647.

Using the same EU H4 chart, would you have taken those two trades [1] and [2] marked?
There was TDI cross and TDI bounce.
If you did not take those two trades, what was the one reason for your trading decision.
Attached Image (click to enlarge)
Click to Enlarge Name: EU H4 TDI compare.png Size: 50 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,630
  • Apr 7, 2015 6:06pm Apr 7, 2015 6:06pm
Quoting bigcakex
Today ,i found that when i am out of trading ,there are still a lot of APB patterns full of my brain. over and over again .maybe i am a newbie,so this is a normal phenomenon。 And suddenly ,i remember a word is that :If you want to do something ,you must believe it first . I believe all of you in this thread ,believe the TMS trading way .so i will keep studying ,and hope myself becoming a super trader in one day . The one who working with his（her）heart ,will be a winner. Believe yourselves,believe the big ones in this thread...
Hi bigcakex,

1. Do not be overwhelmed by the large amount of information in this thread. You must decide when to stop reading and prevent an overload.

2. You touch on the Psychology of Trading, a very important part to become a successful in trading and finally become a super trader.

"You do not trade the markets. You can only trade your beliefs about the markets." -
by Dr Van Tharp
3 recommended books to read:
Trading Beyond the Matrix
Super Trader,
Trade Your Way to Financial Freedom
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,631
  • Apr 7, 2015 6:12pm Apr 7, 2015 6:12pm
Quoting ZeF
{image} Hi TMS'ers, EA/GA collapsed today, and I threw up there on the chart a bunch of indies which I use in my weekly analysis, and it was hitting: 200 EMA; RN 1.45; March High; Last Weekly High; So as a Price Action driven trader, one should see this collapse coming, for sure aided by the news last night. If we'd monitor it closely, it was also at the upper edge of a pattern on D1, for those who follow such angles as well. Sure enough it collapsed 300 pips and not showing any sign of stopping.

What moves the currency market?

When both the fundamentals and technicals are in confluence, that is what happens.

Ignore what experts economic analysts write in their reports.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,632
  • Apr 7, 2015 6:23pm Apr 7, 2015 6:23pm
Quoting arize
Hey all If I use daily candle as my following day support and resistance, do I use the closing price, or wicks as S&R? {image}
http://www.forexfactory.com/attachme...1&d=1428422178

Hi Arize,

Good question.
The Close price is what both buyers and sellers agreed. It is that important to know.
I use the complete OHLC as potential support and resistance.
But your chart show only 4 candles, it does not tell the complete story.

You also need to look at the range of the candles, the high and low. The candle body shows the momentum of the price move. If the pull back (seen using the wick) is much larger than the body, then it says a lot more than support and resistance.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,633
  • Apr 7, 2015 6:46pm Apr 7, 2015 6:46pm
Quoting emmanuel7788
Here is a test of your trading skills and how well you understood Big E's post#647. Using the same EU H4 chart, would you have taken those two trades [1] and [2] marked? There was TDI cross and TDI bounce. If you did not take those two trades, what was the one reason for your trading decision. {image}
Hi Emmanuel,

I'm not an H4 trader, but the main reasons not to trade the two signals in your example chart are:

1) Signals occurred below the 50 on both TDI's. (Personally i prefer long signals above 50 and short signals under 50)
2) Past three days had seen downtrend with shallow retraces up only lasting 1 or 2 candles. Signal 1 was against daily candle and therefore countertrend, RSI was also flat.
3) Signal 2 had previous two candles with wicks on both sides, signs on indecision, consolidation, and/or chop
4) Signals occurred on 1st day of month, i'm always trading lower timeframes, m5 or m15, not scientific but my observation has been 1st day of the month can be a bit choppy.

I'm sure their is plenty more, but this is my quick analysis just from you pic without pulling up the actual chart.

Best,
N.
  • #55,634
  • Apr 7, 2015 6:55pm Apr 7, 2015 6:55pm
Quoting Nik-Nyc
{quote} Hi Emmanuel, I'm not an H4 trader, but the main reasons not to trade the two signals in your example chart are: 1) Signals occurred below the 50 on both TDI's. (Personally i prefer long signals above 50 and short signals under 50) 2) Past three days had seen downtrend with shallow retraces up only lasting 1 or 2 candles. Signal 1 was against daily candle and therefore countertrend, RSI was also flat. 3) Signal 2 had previous two candles with wicks on both sides, signs on indecision, consolidation, and/or chop 4) Signals occurred on 1st day...

Good effort Nik.

I will give more people a chance this week to try this one. PM your my answer.

I will post my answer only I have seen more people attempt this simple test.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,635
  • Apr 7, 2015 7:00pm Apr 7, 2015 7:00pm
GBPNZD follow up discussion this week.

Look at the Weekly chart below. Following the weekly bias, i should be selling but ealry this week, we saw a bullish move from the low of week 14.
Today, we shall be seeing if this will continue or market will reverse back down to the 'Support' of Week 13 and week 14 close.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPNZD Week 15 8 Apr update.png Size: 101 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #55,636
  • Apr 7, 2015 7:04pm Apr 7, 2015 7:04pm
Quoting Nik-Nyc
{quote} Hi Emmanuel, I'm not an H4 trader, but the main reasons not to trade the two signals in your example chart are: 1) Signals occurred below the 50 on both TDI's. (Personally i prefer long signals above 50 and short signals under 50) 2) Past three days had seen downtrend with shallow retraces up only lasting 1 or 2 candles. Signal 1 was against daily candle and therefore countertrend, RSI was also flat. 3) Signal 2 had previous two candles with wicks on both sides, signs on indecision, consolidation, and/or chop 4) Signals occurred on 1st day...
Hi! Nik..do you not know Emmanuel like trading master candle breakout ? There was consolidation within this candle and when price broke this range, the tdi crossed the 50 line too which would be a good entry
the cautious seldom err....C
  • #55,637
  • Apr 7, 2015 7:11pm Apr 7, 2015 7:11pm
Quoting emmanuel7788
Here is a test of your trading skills and how well you understood Big E's post#647. Using the same EU H4 chart, would you have taken those two trades [1] and [2] marked? There was TDI cross and TDI bounce. If you did not take those two trades, what was the one reason for your trading decision. {image}


Your "A" marked candle is a wide range bar which engulfes those setup candles, meaning consolidation..
and I like to trade off of round numbers

April 2nd had a nice breakout
TDI confirms and price closed right above 1.08 giving it enough room

But I wouldnt trade this pair at all at the moment due to the huge wrb on march 18
Too choppy for me

Im not good enough for those market types yet
  • #55,638
  • Apr 7, 2015 7:48pm Apr 7, 2015 7:48pm
Quoting pips29
{quote} Hi! Nik..do you not know Emmanuel like trading master candle breakout ? There was consolidation within this candle and when price broke this range, the tdi crossed the 50 line too which would be a good entry
Yes, indeed i missed the MC . . . i knew i missed something :-)

@Emmanuel, thanks for the PM with answer. Next test i will PM you my answer to avoid spoilers on the thread. Love these quizzes.

Best,
N

PS I recommend all who want to learn more about TMS search for "candlestick patterns in tms.pdf" within the paperclip. It covers MC and many additional patterns. Incredibly useful and compiled by Emmanuel from FF, TMS, and James16 thread.
  • #55,639
  • Apr 7, 2015 9:03pm Apr 7, 2015 9:03pm
Is it ONLY me? I just find forex trading really really really challenging.

I just finally concluded my -20% loss and blew my 1st practice account. It doesn't seem right......

I have been staring at GN, but I just cant see the entries because it is really so fickle and I am going
  • #55,640
  • Apr 7, 2015 9:24pm Apr 7, 2015 9:24pm
Quoting emmanuel7788
Here is a test of your trading skills and how well you understood Big E's post#647. Using the same EU H4 chart, would you have taken those two trades [1] and [2] marked? There was TDI cross and TDI bounce. If you did not take those two trades, what was the one reason for your trading decision. {image}
I think I may have taken the first trade and took a loss :s

Pros
- Nice TDI angle
- Good candle size
- Close above 5EMA

Risks
- counter trend (trading towards 200EMA & 50EMA)
- within master candle range
- price may go into consolidation after huge move down
- below MBL and close to 32 area

Would not take the second bounce trade as there is too much risk
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Omega12