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Trading is as simple as ABCD

  • #6,221
  • May 24, 2015 12:48am May 24, 2015 12:48am
Quoting ozziedave
For those of you that seek to simplify your trading here's an idea that may help you. Again from last week I showed a 15M chart with daily candles potted on it. Here is how you can basically trade a daily chart using the 15 M chart or if you want to fine tune your entries uisng a 1M chart. Ok, the 15M chart has a 10EMA from the daily chart, aqua line. Trade long above the 10EMA and short below the EMA. This will generally keep you trading with the longer term trend. On this chart we see a higher high and lower high formed and we have a pullback...

Dave,

can u tell us a bit about the indi in top right hand corner of your chart? Is it based on HA, or open price ? How significant is it in your trades? Can u post it?
  • #6,222
  • Edited 2:18am May 24, 2015 2:01am | Edited 2:18am
Quoting bapakjason
{quote} Which MA is the fast red/blue in your chart?
That is the 120HMA. But the 120 HMA is secondary to 10EMA from the daily chart. The indicator on the top right side of the chart shows you the price direction based on the 10EMA on the time frame that is designated by the indicator, in this case 15M to 1 week. Just another handy tool for trend direction.

What I proposed here was a system that shows trend direction in an easily understandable way with different styles of entry on the, 15M vs 5 vs 1M charts. The main thing is it follows the daily time frame trend direction and keeps you outta of trouble for the most part. Patience and discipline are still required to trade this simple system.

With what I've shown here you will not be getting into a trade every time the 120 HMA changes colour and direction on the 1M chart. I believe the ideas I've put fourth combined with what Clive has done would make a very effective trading system.
Attached File(s)
File Type: ex4 ARJUN 10EMA Dashboard v1.00.ex4   10 KB | 347 downloads
  • #6,223
  • Edited 5:31am May 24, 2015 5:13am | Edited 5:31am
Just because I can. AllAverage Histo indi.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYM1.png Size: 79 KB
Attached File(s)
File Type: mq4 AllAverages_Histo_v3.5.mq4   24 KB | 294 downloads
  • #6,224
  • May 24, 2015 6:35am May 24, 2015 6:35am
Hello Bapakjason, I would like to know how you have the custom candle6 with color and no comments of high and low...Please advise..Thank you
Quoting bapakjason
i've just been looking back at a few good cci pullbacks. of course, this happens many many times over each day.{image}{image}{image}{image}{image}{image}
  • #6,225
  • May 24, 2015 6:45am May 24, 2015 6:45am
Here is another example of how simple you can make your trading. The last daily close is between the yellow lines. We are below the daily 10 EMA, aqua line, so we are looking for shorts. The structure is LH,LL,LH. We can set a pending order at entry 1 or entry 2 which is a bit more conservative. Both work and give you a nice trade.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADM15 example 24.5.15.png Size: 168 KB
  • #6,226
  • May 24, 2015 6:57am May 24, 2015 6:57am
Quoting chienung
Hello Bapakjason, I would like to know how you have the custom candle6 with color and no comments of high and low...Please advise..Thank you {quote}
here u go:
Attached File(s)
File Type: ex4 M-Candles.ex4   12 KB | 278 downloads
Attached File(s)
File Type: mq4 M-Candles.mq4   8 KB | 299 downloads


for 1hr candle just set to 60, i think the default is 1440
  • #6,227
  • May 24, 2015 6:59am May 24, 2015 6:59am
Just want to say a big thank you to Tsatsa for this new indy I think its gonna be great...

Of course it will still require traders discretion as to which arrows to trade but thats not a bad thing, just following an indicator blindly is not the way forward. Indicators give you the setup but then its price action that confirms the entry for me every time.

The thing about trading strong trenders is that the price action is fairly reliable as are the CCI signals..

However the thing we're looking for at market opens as the money comes to the table is which pair do we trade and how should our charts look when we're trading. Well look back through my trade posts and you will see a very common theme on them all, well the ones that work anyway..

But if you can't be bothered to look back heres a few I prepared earlier...

Look at these charts picture them in your head then try to find similar setups at each market open but in particular LO and NYO..

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Notice the similarity of the charts? Things like:

 

  1. Just after market opens LO and NYO.
  2. Moving averages moving same way and seperating/diverging from one another.
  3. I'll bet there was Mr V's strength/weakness in the currencies.
  4. Price under the moving averages.
  5. The arrow signals are all working very well, even without qualifying them a bit by looking at the levels, break and retests etc.
  6. Most of the moves start with a breakout of a range then retest it and go.
  7. They would of been on the TTindy 1 min and 5 min together.
  8. They would of been the strongest/weakest on my CSM.
  9. You could take these signals bank half and hold half until the HMA's crossover.


What I will say also about them all is they are easy to see after the fact....

But thats our job like all traders is to find them as they are happening and either trade each ABCD move on their own or bank half and run half on the cross of the HMA's...

So lets keep looking for them and the conditions that prevail when they happen..

We know when they are going to happen..
We know they will appear on our TTindy..
We know they will be on the CSM top and bottom..
We know what they look like...
We now have an indicator to give us our best entry signals...
We have two choices of exit, pick the one you want....
Takes just 2 hours in the morning and if you're a workaholic you can do another 2 hours in the afternoon...

Job done so what are you waiting for, thats all there is to it simple as ABCD....

PS I've even given you a free copy of Mark Douglas's "Trading in the Zone" which to my mind is the final piece of the Jig Saw, the right trading mindset....

Feel the Fear and do it anyway!!!
  • #6,228
  • May 24, 2015 7:00am May 24, 2015 7:00am
Quoting ozziedave
Here is another example of how simple you can make your trading. The last daily close is between the yellow lines. We are below the daily 10 EMA, aqua line, so we are looking for shorts. The structure is LH,LL,LH. We can set a pending order at entry 1 or entry 2 which is a bit more conservative. Both work and give you a nice trade. {image}
so, would you not trade a pair if it was below the daily 10ema and the day was a blue candle day moving up from the open? or would it depend on how far you are from the daily 10ema? would you simply trade another pair? what if the pair was the top pair on TTindi with high numbers?

just curious,
jason
  • #6,229
  • May 24, 2015 7:24am May 24, 2015 7:24am
Quoting bapakjason
{quote} so, would you not trade a pair if it was below the daily 10ema and the day was a blue candle day moving up from the open? or would it depend on how far you are from the daily 10ema? would you simply trade another pair? what if the pair was the top pair on TTindi with high numbers? just curious, jason
Jason

If the daily candle closes blue and the open and close of the candle is below the 10EMA I would only trade it in the short direction. These are very good trades when you get a pullback against the long term trend. Again we are trying to keep it simple. You will miss the first part of the trend reversals but for the most part these rules will keep you outta trouble as so many newbies get into. You can start to throw in things like divergence and mean reversions but then you over complicate the signals and system. I would rather win 8 out of every 10 trades and miss trading the top and bottom reversals. When price gets around the 10EMA you need to pay attention as price can go up, down or sideways.

Trading requires patience and discipline and with this system you may not get a set up everyday but if you can track 8-12 pairs you will have more than enough trades per week to keep you busy.
  • #6,230
  • May 24, 2015 9:59am May 24, 2015 9:59am
OzzieDave - which indi are you using for the daily 10 ema. I have several indi's that will do it but all show a stepped MA and not like yours.
  • #6,231
  • May 24, 2015 10:11am May 24, 2015 10:11am
It is a 960 EMA on a 15 M chart which is equal to a 10EMA on the daily chart.
  • #6,232
  • May 24, 2015 10:16am May 24, 2015 10:16am
So..

Where are all the latest/final indicators and Clive's final template?
Traders gain some knowledge, win, their emotions kick in, and they die.
  • #6,233
  • May 24, 2015 1:46pm May 24, 2015 1:46pm
Thanks ozziedave - that's what I was using anyway while waiting for your reply. Any particular reason why you are placing so much emphasis on the 10 ema or is it just related to arjun thread.
  • #6,234
  • May 24, 2015 1:46pm May 24, 2015 1:46pm
Quoting ozziedave
It is a 960 EMA on a 15 M chart which is equal to a 10EMA on the daily chart.
Oz : How many EMA's will be in 5 min chart ???
Txs in advance.
  • #6,235
  • May 24, 2015 5:08pm May 24, 2015 5:08pm
Thank you Bapakjason for your quick respond.....Really appreciated...Good luck for your Trading....
Quoting bapakjason
{quote} here u go: {file}{file} for 1hr candle just set to 60, i think the default is 1440
  • #6,236
  • May 24, 2015 6:59pm May 24, 2015 6:59pm
Quoting handy148
Thanks ozziedave - that's what I was using anyway while waiting for your reply. Any particular reason why you are placing so much emphasis on the 10 ema or is it just related to arjun thread.

I like the 10 EMA on the daily chart as it is very responsive to price charges especially if you going to drop down and trade using 15, 5 or 1M charts for entries. You could choose the 20 or 50 EMA on the daily but you will wait even longer to get into reversal trades. For example, with the 10EMA you can catch a pullback that goes from the short to the long side of the EMA on a smaller time frame and pick up a few pips. Even if the trend resumes back below the 10EMA it does give you some trading opportunities instead of sitting on your hands for days and days waiting for price to cross say the 50EMA on a daily chart.

My 1M and 5 M charts are set up very similar to Clive's chart with the 120 HMA. The real secret for the trend direction is the 10EMA on the 15M chart. Take your entries on the 15,5 or 1M chart inline with the daily trend and you will increase your chances of a successful trade.
  • #6,237
  • May 25, 2015 12:09am May 25, 2015 12:09am
Quoting ozziedave
{quote} I like the 10 EMA on the daily chart as it is very responsive to price charges especially if you going to drop down and trade using 15, 5 or 1M charts for entries. You could choose the 20 or 50 EMA on the daily but you will wait even longer to get into reversal trades. For example, with the 10EMA you can catch a pullback that goes from the short to the long side of the EMA on a smaller time frame and pick up a few pips. Even if the trend resumes back below the 10EMA it does give you some trading opportunities instead of sitting on your hands...
this makes a lot of sense. have you checked to see if the majority of these momentum pushes are corrections that are in line with the daily 10ema? what i mean is, lets say the gbp/nzd moves 150pips down in a single session and then begins to creep back up over the next 18hrs or so, does the fast momentum push down most often coincide with the daily 10ema?

just asking, perhaps you have already studied this in a number of pairs it would save me a bit of research. certainly is logical. thanks for sharing.
  • #6,238
  • May 25, 2015 12:32am May 25, 2015 12:32am
Hello file not open
Quoting clivepackham
Heres something interesting for you all. Been working with Tsatsa on developing an EA to help trade these one minute charts and he's come up with a neat little indicator that alerts us whenever a CCI signals as long as the 150HMA(or whatever you set it to) is green it will alert you to every CCI signal over the 100 levels or again whatever you set it too. What I love about it is it puts all the CCI signals on the chart as the candle forms so I have a chance to look at the signal and see if i like it or not.. This is very important not to just take...
  • #6,239
  • May 25, 2015 1:51am May 25, 2015 1:51am
This strategy is all about trading the strong trenders and today the strongest trender EURUSD is only a 30 on TTindy strength reading so just not worth it...

"If it ain't trending we ain't trading"

Attached Image (click to enlarge)
Click to Enlarge Name: if it ain't trending we ain't trading.png Size: 50 KB


But then its not surprising really when you loook at the Bank Holiday countries today.. France, Germany, Switzerland, Great Britain and this afternoon won't be much better with the good old US of A taking a break too....

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This strategy is all about following the money at market opens so if the moneys not there the trends or moves aren't going to be there, so lets all have a nice day off...

Might keep an eye on the strength readings and if something starts to get up to 50 then might be worth a glance,,,
Feel the Fear and do it anyway!!!
  • #6,240
  • May 25, 2015 3:59am May 25, 2015 3:59am
Its quite funny watching the markets drifting about today, its so obvious theres just no money about its ridiculous...

This is definitely a no trending, no trading day..

For get and go have fun with your family or whatever you do on days like this but trading is simply not one of them...
Feel the Fear and do it anyway!!!
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