Trading is as simple as ABCD

I think it can be summed up quite simply by saying when the 1 min HMA turns in the same direction as the 5 min HMA then its worth trading and conversely when its in opposition leave well alone...



Changed the CCI to 14 here for clarity....

Clive, thank you for sharing the message from your father. Today has been a very rough day for me-- I signed my divorce papers this afternoon. I just happened across this thread and read the message that your father slipped into your hand, and it greatly encouraged me.

Coral,
really nice to see your chart and explanation of how you are using the strategy. Please keep us updated on what you are finding.
Jason

Clive,

From FxPro UK risk disclosure.

5. CAPITAL LOSS
5.1 CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all of your invested capital. However, it should be noted that FxPro operates on a ‘negative balance protection’ basis; this means that you cannot lose more than your initial investment.

After the carnage of the Swiss Bank be extra wary of where your trading money goes. It's a real stand up thing IMHO for brokers to be offering this to their clients considering how many of them walked away with loses (some huge) and some even had to close up shop like Excel Markets... FxPro lost money by the way, but is still offering the negative balance protection.

Protect yourselves the best you can.

A bit of a rocky week back and forth for me but still managed an 8% gain in my account.

The two HMA's look interesting. I tried the two CCI indicators but it brought my system to a crawl so have to abandon that set up.

HI Deklin

Sorry to hear your bad news and I'm glad my Dads message helped, it helped me too...The thing is life does have its ups and downs but we must focus on the good things that happen and not the bad or sad things.

One things for sure lifes too short to be sitting around moping about what has just happened as we can't change the past we can only plan an influence our future, so if we want a happy, succesful and enjoyable life thats what we have to plan for and think about all day long. Then hey presto it happens, but woe betide the guy that sits around fretting about the mistakes in his past and dreading the future because guess what he's going to get more of???

We become what we think about....

Your life is what you think about all day long....

Here's one of the best speeches I've ever heard which is totally awe inspiring describing "The Strangest Secret in the World"...

Listen,do what he says and change your life in just 30 days, absolutely amazing...



Good luck and have a wonderful life.....

Clive,
I can't find your trade explorer😭.

I already answered this. He doesn't have a trade explorer.

I know one of the things I struggle with is determining trend direction and which direction to trade for the day. Here is a quick and easy way to determine trend direction for the next day and draw support and resistance over the last week or so.

Go to a 15 M chart and superimpose the the daily candle on the chart, see attached indicator. Now reduce the chart so you see the last 5-10 days. Now go to the start of the last completed day, aqua line, and mark the high and low of the day, white lines. Now ask yourself this simple question...What color is the last days candle? In this case we have a red candle, so the first rule for the day would be to look for trades to the downside. Now on a down day if the high of the day is broken you would change trend direction and start to look for long trades. The opposite would apply for long days when the low is broken. Again, this is just a quick way to determine trend direction to keep you out of trouble. When your trading 1M charts its easy to get wrapped up in that chart and forget about the overall trend direction on a higher time frame chart and this has gotten me into some trouble in the past. Another reason I like this 15M chart is I can see the price movement within the day which helps in determining the support and resistance levels.

Now for a quick and easy way to draw in support and resistance levels. Look for swing highs and lows, green arrows, with the yellow lines. This will give you the major S&R over the last week so when you go down to the 1M chart you can see the interaction action at those points and how combining this with the trend direction for the day will increase your odds for a winning trade.

If I get a chance I will show some examples later.

Here is an example of how you would use the 15M chart set up to determine trades on the 1M chart.

So the day between the aqua lines on the 15 M chart is the last completed day and we will drop down to the 1M chart and see how the daily high low lines and support and resistance line help us with our trades. So the last completed day was a down day, so trades to the short side should be our first priority.

On the 1M chart we see the daily low has been broken and we get no less than 4 touches back to the daily low. In this case support has turned to resistance. Now if your trading long here you would be getting your head handed to you. Also note that I have the 120 HMA on this chart for the 1M and 5M time frames.

The next stop is the yellow support line. See how price reacts here. Price pulls back into the HMAs and gives us several entries to go short again. Now we see the next time when price revisits the yellow line it breaks to the upside without too much difficulty and where does price head too. Yep..you got it back to the daily low where there is another reaction and price goes down again.

This is just a quick over view of how one might use the 15M set up chart to assist them in trading the 1M chart. I hope this gets you thinking about the possibilities.

Very nice. I've got a pivot indi that shows yesterday's high/low, plus support and resistance levels. always a bit hesitant around these levels until they are broken. Then noting (like you mention) after broken the level will almost always be tested. Thanks for the charts Ozziedave.

Another example using the 15M and 1M charts.

Using calculated pivot points is good but no where near as good as looking at the chart and drawing in the S&R lines in my opinion. Daily highs and lows are very important as you can see. You can really complicate your trading and charts by drawing in weekly and monthly highs and lows but not sure if that is needed trading on a 1M chart,.

I'm sure there are indi's that do most of that for you. I'll look in my archive folder and if I can find them I'll post them here.

Agreed, nothing can take the place of looking at the chart and seeing the levels for yourself. good point.

i've just been looking back at a few good cci pullbacks. of course, this happens many many times over each day.

Bapakjason

I would suggest not to over complicate your charts, two ccis and 4 or 5 MAs, not really needed. I offered the daily candle set up on the 15M chart for those who struggle with trend direction and to help keep them outta trouble. Does it work everyday..no..but it does on most days and if you pay attention to the reversal days, taking out the daily high on a down day, you'll keep yourself outta big trouble.

Ur on the right track Bapakjason just keep it simple.

http://www.forexdyr.com/daily-high-low-indicator-lines/

Hi Ozziedave

Great to see you guys putting some great charts up and good to see we're thinking of ways to trade the 1 minute time frame using levels and signals from higher timeframes. Great stuff and I think I will add my 5 pence worth in a following post about how I'm going to be only trading in the same direction as the 5 minute strong trenders. Got some really exciting stuff to show you all.


But the biggest reason I quoted Ozziedave here is very simple, in fact extremely simple....

KEEP IT SIMPLE......

Trading is not complicated its only our minds that look for complicated solutions to a very simple question..

Is the chart going up or going down?? Am I a buyer or a seller???

Thats all we've got to decide then find a simple way to join the trend...buy bottoms of waves in an uptrend and sell tops of waves in downtrends, the proverbial "Sell peaks in a downtrend, Buy dips in an uptrend". For that we use our CCI to identify the tops and bottoms of our waves...

Simple, simple simple, notice my careful use of the word simple and I never use the word easy..

Simple yes, easy no!!!

Also Ozziedave I do like your use of 15 min support and resistance levels and like you I wouldn't look any higher than that just no point on a 1 minute timeframe..I'm always quickly going up to a 15min chart looking for those previous highs and lows to be very wary of when I'm in a trade and also on the lookout for a reversal setups on my 1 minute chart at those 15 min levels.

Heres an example of what I'm talking about...

Have a look at this 15min chart of GBPUSD and you can see a previous high as it came up to the BRN 1.58000, however we don't know its going to react to this level as many times we will see levels like this smashed especially in a strong 15 minute uptrend like this, we don't really want to sell into such a strong uptrend do we??



No of course not thats gambling in my book, no what we need to do is drop down to the 1 minute chart and see a reversal of the 1 minute trend from an uptrend to a downtrend. After all if the 15 min is going to reverse then the 1 min has got to reverse first..so lets drop down to our 1 minute chart and see if we can identify a low risk entry on our 1 min chart to trade this 15min CCI signal..The first vertical yellow dotted line represents the 15 min CCI signal candle from our 15min chart...



Now when we drop down we're looking for confirmation that the 15 min level is going to hold and cause a 15 min reversal so I'm looking for the 1 minute 120HMA to turn over and go red then I'm looking for the first CCI sell signal to enter and risk my 10 pips and see how it goes and if the 15 min reacts to the level.

Heres the same chart at end of the day and that one entry had gone about 64 pips well worth gambling our 10 pips for a nice 1:6.4 RR trade...



Yep Ozziedave thats another good way to trade our 1 minute charts....

Heres the one that I use guys marks the high and low of yesterday (yellow lines for me) and yesterdays close (green line for me) just remember in my chart its the Australian Day high low etc .

Note how that trade I just posted was also yesterdays high interestingly enough??




But like Ozzie dave I find the 15 min support and resistance the best for these trades..