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Monitor for 'Trading Made Simple' system 565 replies

Trading Made Simple the right way, and other trading lessons 334 replies

Indicators for the 'Trading Made Simple' system 343 replies

MTF Indicators for the 'Trading Made Simple' system 241 replies

Trading Made Simple system follower - Thanks to eelfranz 9 replies

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Trading Made Simple

  • #57,021
  • May 17, 2015 6:31am May 17, 2015 6:31am
Quoting shay14
{quote} awesome, never even thought about Fib levels, will incorporate them for exits from tommorow. My entries are getting alot better so now mainly working on exits and take profits. Boring sunday so I'll be backtesting thanks alot
Don't forget to share your backtesting results - if you're doing other than EA/GA.
Best regards, Zef
  • #57,022
  • May 17, 2015 7:32am May 17, 2015 7:32am
Quoting Karado58
Hello, Big Emm, I have decided to initially start reading the thread beginning from your famous newbie post, Post 55,982. I HIGHLY recommend all newbies go back at least to that post and read forward slowly! I just can't believe the treasure of knowledge you and other pros sprinkled everywhere along the way. Early on, you analyzed a post by Phx62, Post 56,039 and you turned it around and asked,...
Quoting Karado58
ZeF: WOW, stevepatt is indeed a very knowledgeable trader! His posts are full of "show and tell" instructional charts!! Sad, but I believe he no longer posts here?! vayzardos: Thank you for your thoughts on the chart. LastSAMURAI: Thank you for enlightening me on the existence of WRB pdf posted by, non other then...Big EMM. Links below to the info I found: WRB post by Big Emm MC post by farhad10...
Hi Karado,

Sorry that I missed this one and did not follow up.
Thanks to Zef, vayzardos and LastSUMARAI for their input which are very good.

Now back to that post where I asked Phx62 and he already replied that post. But for the benefit to all interested members following my posts here and to answer Karado58 post, here is my response.

The same chart posted and now I wrote my comments on those two setups which did not run well. Some of you who read my posts on wide range bar have learned some basics of reading price action and applied them to TMS trading. This is good and you will progress on with better trades and results.
Attached Image (click to enlarge)
Click to Enlarge Name: H1 WRB examples.png Size: 248 KB


In the next chart below, I show the historical levels which are seen as support and resistance. But remember when we trade in lower TF like H1. M30, M15 and also M5, the round number price levels 00 and 50 are also seen as support and resistance and we must always look for CONFLUENCE with other commonly use support and resistance like Moving Averages, Pivots, Fibonacci levels, etc. What is very important is to look at the price bar/candles to look at some common price bar patterns or some prefer Japanese candlesticks patterns. I use price bars because I follow TMS 5-Method as my core technical trading method and the APB is an important indicator together with the TDI.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUD H1 10April 2015 POMO.png Size: 94 KB


When we studied eelfranz aka Big E posts and his trading charts, we initially did not understand what he meant by big candles and small candles. The terms big and small can be subjective and to different traders, they can be very different. So we decided on the use of price bars to help us identify and define what big candles and small candles are.
The other things which Big E mentioned in his posts is consolidation - look at if we are in or near to consolidation. How do we identify market consolidation and to avoid trading in market consolidation.
Again, with Price Bar pattern / Japanese CandleSticks pattern study, traders can use improve their trading and find trades in certain market conditions.
Our conclusion is the identification of Wide Range Bar WRB in our TMS trading chart timeframes and use the WRB as an early warning of potential market consolidation and to avoid trading in that chart TF where the WRB occur.

What is a WRB?
We keep that simple as TMS 5-Method is a simple trading method but it is not an easy trading method as some member believe. Trading requires different set of skills and TMS 5-Method is no different. You need to have different skills to be a proficient TMS trader.
A WRB is a price bar which has a wide range its high-low range must be the highest when compared to the past 3 to 5 bars. Not all WRBs will result in market consolidation for example when there is a breakout, a WRB can follow with another WRB. But WRB which occur at Support and Resistance are high probability of a market consolidation to follow.
Master Candle this type of price bar pattern has been around since the creation of Japanese candlestick charting. The Master Candle pattern is based on a 6-candles, i.e. the first candle must engulfed the next 5 candles for the first candle to be the Master Candle.
But when we trade TMS, we use the Master Candle which engulfs the next 3 consecutive candles. For short name, lets just name this MC[3].
Why do we define MC[3]?
This is because this type of MC[3] occurs most frequently in all chart TFs and it is the earliest confirm pattern before a MC[4] and a MC[5].
Many WRBs also become MC[3]. Hence WRBs are early warning because it is the first candle to appear before it is confirmed as a MC.
But not all MCs are WRBs.

Hope this explains.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,023
  • May 17, 2015 7:39am May 17, 2015 7:39am
Quoting emmanuel7788
{quote} {image} Now price stall around 1.9400 which has a also H4 200EMA. (W1 10EMA) I see possible target this week 1.932 and 1.928 region.

Hi,

I got a few PMs about this post above and why I see possible target for this week sell at 1.932 and 1.928.

the answer is on the two charts below.
Chart 1 below, we saw that H4 WRB just after the UK elections results on 8May.
That H4 WRB is an exceptional one and has 'hidden gems', I did mention that in another post.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUD H4 WRB with hidden gap.png Size: 55 KB


In the M15 naked chart below, you will see the price gap but you did not see this in H1 and H4.
That gap was what a few traders were looking to take profit last week. Well some members may say this has nothing to do with TMS but in our concluded WRB analysis, study we also look for hidden gap in WRBs.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUD price gap UK elections.png Size: 30 KB


regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,024
  • May 17, 2015 8:33am May 17, 2015 8:33am
Quoting adikashyap
Big Emm, You do top down analysis / Big picture planning) ... very Religiously ... every week ... Your thoughts / advice's / explanations please ... Thanks. {file}

Hi adikashyap,

thanks for your Trade Plan Development.
Its good to do this top down from Monthly, Weekly, Daily,H4.
What you need is to identify on MN and W1 the support and resistance levels which we will use for trading D1 and H4.

Below my GBPAUD and EURAUD charts with comments.

regards,
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPAUD W1 week 21 BPP.png Size: 57 KB
Click to Enlarge Name: GBPAUD D1 week 21 BPP.png Size: 75 KB
Click to Enlarge Name: EURAUD D1 Week 21 BPP.png Size: 91 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,025
  • May 17, 2015 9:02am May 17, 2015 9:02am
Hi BigEmm,

please explain me:

-how you determine LO Fake?

First candle after LO (when it closed) breakout Tokyo channel in Long way. PA shows Uptrend, TDI confirms (green/red) Long signal.

How do you know is that breakout candle is Fake or not Fake? Thanks
  • #57,026
  • May 17, 2015 10:13am May 17, 2015 10:13am
Quoting fxray
I see there a few new traders to TMS asking about various current indicators being used. The paper clip (top right of this page) has a range of different ones. Below is my chart and attached are the indicators I use which I understand many of the more experienced traders use. Hopefully this is helpfull.... If you are using APB's and wish to add the 'Yellow'Brick Road' add two moving averages as EMA 5 hi & low shift 1 or 2. alternatively the Synergy Pro APB indicator in the file below has these incorporated with the candles. Guppies are a series...
Hi fxray, very nice template!! Can you share your template file ?
Thanks in advance.
There is no place for wimps
  • #57,027
  • Edited 11:46am May 17, 2015 10:26am | Edited 11:46am
Quoting emmanuel7788
{quote} Hi, You did not mention which timeframe you trade. What you need to know is the volatility of the currency pair. When you trade H1 intraday, you need to know the price volatility of the hours during the day and the range of the day. Here is a good website where you can learn about volatility of most currency pairs. https://www.mataf.net/en/tools/02-01-volatility Below is an example of the EURUSD for the past 52-weeks. {image} This information should be useful to decide what your initial SL should be and comparing the price action...
well could you explain to me what you could have done this past week in eurusd
that well be reel great please and i only trade on h1 and on mt4 android and thank you for your concern
  • #57,028
  • May 17, 2015 10:42am May 17, 2015 10:42am
Quoting emmanuel7788
{quote} Hi adikashyap, thanks for your Trade Plan Development. Its good to do this top down from Monthly, Weekly, Daily,H4. What you need is to identify on MN and W1 the support and resistance levels which we will use for trading D1 and H4. Below my GBPAUD and EURAUD charts with comments. regards, {image} {image} {image}
Dear emmanuel, i've noticed that your TDI settings are different than default.., can you share your current template/indi for TMS 5 method ?
Thanks in advance.
There is no place for wimps
  • #57,029
  • May 17, 2015 12:43pm May 17, 2015 12:43pm
Quoting ZeF
{quote} Shay14, Here is what works for me (when I decide to let the trade move past 50pips): I modified my fibs and added some extra levels, those can be found on your MT4 platform. Whenever I enter a TMS setup (I almost exclusively wait for a breakout of range), then IF I decide to enter the trade, I place my fibs on the swing high BEFORE the breakout, and at the END of the candle which is my SETUP candle. I did a lot of backtesting (over 150 sample size) and what I noticed is that in 70% of cases, the breakout will not go past the 161.8 Fib level....
Fibs are awesome, keep up the good work, with normal momentum following the completion of ABCD u can go for 127.2 - 141 ranges, if momentum picks in this stage, gaps, etc, definitely go for 161.8 and even 200% extension
I Have Learned to Take Some Losses to Make Profits
  • #57,030
  • May 17, 2015 3:45pm May 17, 2015 3:45pm
can someone enter in the second candle after green crosses red because sometimes i wake up and find that crossing happened in the previous hour on eurusd
  • #57,031
  • May 17, 2015 6:06pm May 17, 2015 6:06pm
Quoting ZeF
{quote} Shay14, Here is what works for me (when I decide to let the trade move past 50pips): I modified my fibs and added some extra levels, those can be found on your MT4 platform. Whenever I enter a TMS setup (I almost exclusively wait for a breakout of range), then IF I decide to enter the trade, I place my fibs on the swing high BEFORE the breakout, and at the END of the candle which is my SETUP candle. I did a lot of backtesting (over 150 sample size) and what I noticed is that in 70% of cases, the breakout will not go past the 161.8 Fib level....
Thanks for this info
  • #57,032
  • May 17, 2015 7:26pm May 17, 2015 7:26pm
Ballistical, I've been following your posts with great interest and kudos to you for sticking to your trade plan.

Could you please share some insight on how you approach your trading on a psychological level. Especially last week where you had two losers on Monday and Tuesday. Does it effect your trade execution behaviour or do you always have your emotions in check? Do you get nervous or hesitate?

Thank you!
Repetition is the Mother of Skill
  • #57,033
  • May 17, 2015 8:06pm May 17, 2015 8:06pm
GBP/USD Short

-TDI Below 50

-Red/Blue Crossed

-Patience
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 31 KB
Take what the market gives you.
  • #57,034
  • May 17, 2015 10:44pm May 17, 2015 10:44pm
Quoting BraunTrade
{quote} Dear emmanuel, i've noticed that your TDI settings are different than default.., can you share your current template/indi for TMS 5 method ? Thanks in advance.

Hi BraunTrade,

The two indicators currently used are :
the Synergy_Pro_APB which has the Price Action Channel build-in
the Synergy_Pro_TDI, an updated version which work in realtime market
these are found in the package Synergy_Pro zip : Post#50,241
use that Synergy_Pro_TDI default setting which is set to 10-period. Nothing to change.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,035
  • May 17, 2015 10:46pm May 17, 2015 10:46pm
Quoting donrogoo
can someone enter in the second candle after green crosses red because sometimes i wake up and find that crossing happened in the previous hour on eurusd

TMS 5-Method Basic Rules: Post#53,842
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,036
  • May 18, 2015 4:01am May 18, 2015 4:01am
hi guys anyone trade the e/u or g/u short today?
the reason i took this trade is the trend on GU is sideway
and both of them trade away from the DOL
the entry on EU is the lower low of the FO candle so if the LO reversed i will not get faked by FO
and the entry on GU is the previous daily low
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 61 KB
  • #57,037
  • May 18, 2015 5:18am May 18, 2015 5:18am
Quoting Pipsta972
Ballistical, I've been following your posts with great interest and kudos to you for sticking to your trade plan. Could you please share some insight on how you approach your trading on a psychological level. Especially last week where you had two losers on Monday and Tuesday. Does it effect your trade execution behaviour or do you always have your emotions in check? Do you get nervous or hesitate? Thank you!
Hi Pipsta,

Thanks for the comments. Much appreciated.

Its a good question and an area that often gets overlooked. In response, yes, I absolutely still get nervous and hesitate on occasions, when placing trades. Last week was a good example of this since, as you stated, I suffered losses on Monday and Tuesday which certainly knocked my confidence slightly. Fortunately, this was followed by a strong setup on Wednesday. I've put a few different points below that I use, which help me stay on track psychologically, and control the emotions when making the decision to enter a trade.

Strategy:

Typically, I enter one trade per day, usually around LO, in an attempt to catch the move of the day. I'll risk 2% of my total account value per trade. This way, I begin each week in the knowledge that the most I stand to lose is 10%. Limiting yourself to a maximum of one trade per day helps avoid "revenge trading" and is a good way of developing discipline. If you can't develop any form of discipline, then the truth is, trading probably isn't for you.

Set & Forget:

With the exception of news trades, which I have trialled recently, the majority of my trades are now set and forget. I place my order, SL, TP and walk away, occasionally monitoring every 30 mins to 1 hour. Tempting as it is, watching every tick of the chart on the H1 will drive you crazy and only force you to make changes you'll probably regret. Keep yourself busy!

Pips/ Percent/ Pounds:

You'll notice from my weekly summaries, I prefer to work in terms of % account value/ ROI. Many traders in FF work in overall pips, which is fine if it works for them, but I've always found %-return a little more useful. Whichever you choose though, its always best to avoid working directly in monetary terms. As tough as it is, you need to disconnect yourself as much as possible from the money involved. I actually pay little attention to my total account value these days.

Weekly Targets:

This is an interesting topic and again, one that most likely changes depending on how far through your Forex "journey" you are. My view is, its impossible for me set a target for a given week, when I cannot predict how the market will behave. That being said, whilst I can accept losing trades, I certainly don't like to finish a week in the red. If I'm sitting at break-even on a Thursday, I'm usually tempted not to trade Friday and start from fresh on Monday. Again, just something which helps me.

In terms of stopping trading having reached a certain weekly target, this might be something I look at in the future when I'm trading a larger account, but for now, whilst I am very much in the learning and development stages, my aim is to expose myself to as much London price action as possible. If for example, I hit a hypothetical target on a Monday, that then leaves me on the sidelines for the rest of the week which will seriously hinder the amount of practice I get.

Repetition & Building Belief:

Without a doubt, the best way to build discipline and belief in your system is through back-testing initially, followed by demo, and then live trading on a small account. This process is, in my opinion, a must, for anyone looking to go into live trading. Follow this thoroughly and you'll minimise the hesitation and emotion when you spot a potential setup, since you'll know that your approach is profitable in the long term. I'd recommend reading the first 10 pages of the James16 chart thread in the commercial section which gives a useful account on realistic expectations and a thorough learning process.


Tools & Rules:

Of course there are always mechanical systems and rules that can help with discipline. However, as with many EA's, mechanical systems have to adapt to different market types. I have always been more keen to build a robust skill-set and trading plan as a discretionary trader. That being said, I have explored the possibility of implementing score-trading before which ties numbers to each element of your chart, giving you a Go/No-Go "action" at the open of each candle. Not something I currently use, but might look into it in the future. I have some more resources on this, so if you're interested PM me and I can share these.


One last thing. My trading is primarily based around the concepts taught by Phx62. He has repeated a statement which helps him psychologically, and I've also found it useful. When looking at a potential setup it helps to look for reasons TO enter. There will always be reasons NOT TO enter. You will hear strong setup's labelled as "perfect" or "A+++", but the reality is, there are always reasons not to enter a trade.

Apologies for the essay, I realise that's probably more than you asked for but what can I say... once I get going, I can't stop . I hope there is something of value in there somewhere.

All the best

Ballistical
Focus on the process and the profits will follow
  • #57,038
  • May 18, 2015 5:48am May 18, 2015 5:48am
Quoting Ballistical
{quote} Hi Pipsta, Thanks for the comments. Much appreciated. Its a good question and an area that often gets overlooked. In response, yes, I absolutely still get nervous and hesitate on occasions, when placing trades. Last week was a good example of this since, as you stated, I suffered losses on Monday and Tuesday which certainly knocked my confidence slightly. Fortunately, this was followed by a strong setup on Wednesday. I've put a few different points below that I use, which help me stay on track psychologically, and control the emotions when...
Here Hear Hear ...
Amazing Buddy ... Take a bow ...
  • #57,039
  • May 18, 2015 5:54am May 18, 2015 5:54am
Quoting emmanuel7788
{quote} Hi BraunTrade, The two indicators currently used are : the Synergy_Pro_APB which has the Price Action Channel build-in the Synergy_Pro_TDI, an updated version which work in realtime market these are found in the package Synergy_Pro zip : Post#50,241 use that Synergy_Pro_TDI default setting which is set to 10-period. Nothing to change. regards,
Thanks emmanuel
There is no place for wimps
  • #57,040
  • May 18, 2015 6:08am May 18, 2015 6:08am
Quoting Ballistical
{quote} Hi Pipsta, Thanks for the comments. Much appreciated. Its a good question and an area that often gets overlooked. In response, yes, I absolutely still get nervous and hesitate on occasions, when placing trades. Last week was a good example of this since, as you stated, I suffered losses on Monday and Tuesday which certainly All the best Ballistical
Thanks for sharing that !!!

I have been having a losing streak for two weeks now ... had some good trades but in general more losses than profits ... I have a cash flow deadline ahead and fell into the over trading trap .. ai ja jaai ...just took too many signals that I should not have even considered. Normally I back off from live trading after a 2nd of 3rd loss in a row just to check my basics and get some old chart practice to get my confidence and focus right, but this time I was too clever for that and paid some decent school fees in the process. It is just amazing how outside pressure can warp one's mind and make you see things that does not exist.

I will be spending the next couple of days with my nose in old charts and re-reading all my basics stuff about forex and the TMS way.

To all the people trading so well and sharing their wisdom and experience here .. I salute you ... let it be said that to trade really well takes more practice and discipline than most people are willing to give.
Never give up !!!
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