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Trading Made Simple

  • #57,341
  • May 26, 2015 7:30pm May 26, 2015 7:30pm
Quoting shay14
{quote} daily open line was just in the way of the price, so can you explain why you took the trade? I had the signal too, but because i trade away from DOL, i stayed away from it

Hi shay,

My Day Open is Sydney open which is GMT2100.
On H1, my trade was open above the Day Open.

But when I trade H4, I look at the Weekly candle. This week's open is actually Monday' open.

This is how we look at CONTINUATION trading using the previous Day close or previous Week close candles.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,342
  • May 26, 2015 7:44pm May 26, 2015 7:44pm
Quoting hishamzz
{quote} Big Emm - How tall (pips) a candle would be to have it considered a wide range bar? Or is it an instinct which you would get by eyeballing the previous candles and their moves? I know it would be timeframe dependent IF there is a definite number... Assume that we are trading on H1 and its EURUSD. Also, a question in my previous post, does the mention of LO within the thread include the Frankie Open? The reason for my question is I have read numerous posts regarding the fake outs within the Frankie session. Thanks for your insight sir! Zz...

Hi Zz,

Wide Range Bar is the largest price bar when compared to the last 3 to 5 bars before it. They are not defined in number of pips.


FO is the Frankfurt open H1 candle.
LO is the London open H1 candle.
Note that Frankfurt opens one hour before London market.

What are 'fake outs'? I really don't have any definition for such a term.

What we should do is to pay attention to the reading the price bars/Japanese candlestick and interpret the the buying and selling activities. we must also know that the is liquidity flow between the various markets and these has impact on what happens when a new market session opens and closes.
But TMS 5-Method traders are technical traders, we trade following technical rules and when we trade intraday H1, we must learn to avoid certain times of the day when not to trade. this is one reason why I prefer and do more trades on H4 and D1 to avoid the market 'noise' in lower timeframes.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,343
  • May 26, 2015 7:46pm May 26, 2015 7:46pm
Quoting Andyvix833
{quote}I am a huge advocate of trading out of consolidation, i.e Tokyo has a tight range and on the LO candle you get a decent size candle that "pops" and maybe some confluence with TDI cross over etc, those are the A++ easy pip smoke shows.. makes life a little easier as well regarding entry... phx62 is a master at trading Los I highly recommend his pdfs among a lot of other posters here. Best of Luck
Hi Andy,

Thanks for the advice, appreciate it!

LO is midnight my time, means more coffee to stay up for it; small sacrifice to pay.

Yes, phx62 is one of the Masters here. I search the paperclip for phx62 pdfs' you recommended, couldn't find a single one on trading the LO.

Once again, thank you Andy.
  • #57,344
  • May 26, 2015 7:59pm May 26, 2015 7:59pm
Quoting Karado58
{quote} Hi Andy, Thanks for the advice, appreciate it! LO is midnight my time, means more coffee to stay up for it; small sacrifice to pay. Yes, phx62 is one of the Masters here. I search the paperclip for phx62 pdfs' you recommended, couldn't find a single one on trading the LO. Once again, thank you Andy.
There is no pdf exclusively on LO trading by Phx62. He trades only LO and his insights in his posts are how to trade LO ... you can find the PDF's in paper clip ...
Hope it helps ...
  • #57,345
  • May 26, 2015 8:03pm May 26, 2015 8:03pm
Quoting Karado58
Big Emm: Do you use MA's for CONFLUENCY? If so, which ones, types and what do you combine them with to establish confluency? Thanks Emmanuel.

Hi Karado,

Sorry that I missed your post earlier. Too busy and now I have to back track reading the older posts.

On the use of Moving Averages, there are a few common use MAs - 20, 50, 100 and 200 periods.
What many traders here use is the 50 and 200 periods EMAs.

It will not make a lot of difference whether we use the Simple or Exponential MA. What we do is to look at the price behaviour around these MAs and make our trading decisions.

TMS 5-Method uses the 5EMA, ( set to Typical price, Shift+3 ) to see the price direction.

The Synergy_Pro_APB has its own built-in PAC is based on a 9EMA calibrated with price volatility to form a price channel.

When we look at support and resistance, we are actually looking at the previous price behaviour or the market' buying and selling activities around certain price levels.
CONFLUENCE is where several commonly used support and resistance methods, price Open,High, Low and Close OHLC, and Round Number RN 00 and 50 levels are in close proximity.
When we trade H1, we simply use the previous Day OHLC, previous Week' OHLC , recent key swing highs and swing lows seen with the APB candles with colour change and the RN. These are sufficient and not to make our chart too cluttered with horizontal lines.

regards,

Edit:

a few old post here:
High Probability Trading using Moving Average: Post#42,728
Comparing Synergy PAC and Synergy_Pro PAC: Post# 54,119
Add 20-day MA to the TDI: Post#50,752
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,346
  • May 26, 2015 8:23pm May 26, 2015 8:23pm
EURAUD 26May H1 trades:

Attached Image (click to enlarge)
Click to Enlarge Name: EURAUD week 22 26 May H1 trades.png Size: 50 KB


Took these trades at LO yesterday.
Trade entry was when price broker above the LO candle high after consolidation was seen with the H1 WRB around the BRN 1.4000.
Take note of how the market reacted at the 200EMA and Historical Support&Resistance 1.4067 (RN1.4050).
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,347
  • May 26, 2015 8:23pm May 26, 2015 8:23pm
Hi Nik-Nyc:

Quoting Nik-Nyc
1. From where you opened the trade there was a strong support level (25pips away) at round number 133.50 (confluence) 2. This means your R:R was probably not favorable. If you used the previous high then it would have been 1:3.
I had the Stop at about 30 pips away outside PAC. BUT you are right the "strong support" being 25pips away (I totally missed that) and I had my TP about 25pips beyond that.

Quote
3. I avoid taking most trades when cross occurs on the wrong side of MBL. Only short crosses below the MBL, and longs when crosses occur above MBL. If you back text i think you will notice less trades but better movements.
Duly noted, and I will add that to my pre-entry mind map.

Quote
4. Personally i also use the 800ema, and with that line on the chart you would have seen price was between 200 and 800 emas which is a red flag. This is also true on the H4 and D1 charts 5.MBL was sloping upwards and below the 50 line at time of trade.
Another piece of the puzzle made clear.

Quote
6.You were trading into the DOL line.
I have seen numerous references to the DOL line, and I just have been to embarrassed to ask what it is, represents! So please, can you explain it?

Quote
7. You took trade on 4th red candle after color change, not advisable
The reason I took it on the 4th candle of the color change, was because I was waiting for it to close outside the PAC, to get that extra bit of momentum. I ended up taking the trade prior to the candle close anyway.

Quote
Most important though, dont get discouraged. Loses happen, even at the best of times. Learn from it, tweak your rules after additional backtesting and keep grinding away on demo. Eventually you will gain an edge.
This piece of advice, I appreciate above all else!!

Thank you very much, Nik-Nyc.
  • #57,348
  • May 26, 2015 8:33pm May 26, 2015 8:33pm
Quoting Karado58
{quote} Hi Andy, Thanks for the advice, appreciate it! LO is midnight my time, means more coffee to stay up for it; small sacrifice to pay. Yes, phx62 is one of the Masters here. I search the paperclip for phx62 pdfs' you recommended, couldn't find a single one on trading the LO. Once again, thank you Andy.

Don't lose sleep because of H1 trading.
You have to consider trading all timeframes.... H1 Intraday, H4 Swing Trading and D1 Position trading.
Trade H1 intraday only when you are available and if that fits your lifestyle.

H4 and D1 are the more profitable business and you need to money management strategy to go along and generate the supplement income you want. (What you want may not be what you need).

The game is how we manage our risks R.
R and R-Multiple with Position Sizing strategy is one of the way to make it happen and achieve financial freedom with your hard earned money.

Post#52,347 using TMS 5-Method develop 3 systems...SMART objectives
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,349
  • May 26, 2015 8:40pm May 26, 2015 8:40pm
Quoting Karado58
Hi Nik-Nyc: {quote} I have seen numerous references to the DOL line, and I just have been to embarrassed to ask what it is, represents! So please, can you explain it?
DOL: Daily Open Line . . . the DOL depends on your brokers server time, so it is not universal. When learning TMS, trading into the DOL line should make you think twice, it can be done, but many other factors need to line up.

Best,
N
  • #57,350
  • May 26, 2015 8:45pm May 26, 2015 8:45pm
Quoting emmanuel7788
{quote} Hi Karado, Well, you did almost everything possible but you forgot the TIMING ( one of the ten things) . When we trade H1 intraday, we must pay attention to the timing of the market session closing hour. In your cases, it was just after London Close, and often wee see the price will pull back just as the London session is about to close and can continue to retrace o 1 to 2 hours. After that, it will be the US market which will be in action and usually very small range except on days when there are news/events in the afternoon of NY. Best...
Hello Mr. Emmanuel,

Aaaaha, now I know what you mean when you refer to "Timing" in your "List Of 10"!!

Thank you Big Emm!!
  • #57,351
  • May 26, 2015 8:47pm May 26, 2015 8:47pm
Quoting Dimi.A
Going long on AUD only small lots 50c per pip. Using the 12 to 2 tool that was posted in this thread a few hundred pages back. Just align it with your TDI to see if it's a legit buy or a sell See attached. {image} {image}

You want to trade against the previous Day big red candle.
That is dangerous during the Tokyo session when there is unfavourable domestic data release.

Better combine the TDI with price action using the APB, and when trading the lower TF H1 and M15, use the TDI in Active or Moderate mode

Attached Image


Attached Image (click to enlarge)
Click to Enlarge Name: TDI trading style.png Size: 143 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,352
  • May 26, 2015 8:53pm May 26, 2015 8:53pm
Quoting Nik-Nyc
{quote} DOL: Daily Open Line . . . the DOL depends on your brokers server time, so it is not universal. When learning TMS, trading into the DOL line should make you think twice, it can be done, but many other factors need to line up. Best, N
My brokers is ATC and is at GMT +3

Is there an indi that will plot it automatically?
  • #57,353
  • May 26, 2015 9:02pm May 26, 2015 9:02pm
Quoting Karado58
{quote} My brokers is ATC and is at GMT +3 Is there an indi that will plot it automatically?
I use the following indicator which is available also in the paperclip, but you will have to adjust the time offset . . . i forget off the top of my head, but google is your friend
:-)

N.
Attached File(s)
File Type: ex4 Daily_Open Line.ex4   8 KB | 393 downloads
  • #57,354
  • May 26, 2015 10:32pm May 26, 2015 10:32pm
Hi,everyone,
Could you tell me about the GBPUSD W1 BEIVB right or wrong?
Regards!
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD W1 BEIVB.png Size: 26 KB
  • #57,355
  • May 26, 2015 11:13pm May 26, 2015 11:13pm
Quoting emmanuel7788
{quote} Don't lose sleep because of H1 trading. You have to consider trading all timeframes.... H1 Intraday, H4 Swing Trading and D1 Position trading. Trade H1 intraday only when you are available and if that fits your lifestyle. H4 and D1 are the more profitable business and you need to money management strategy to go along and generate the supplement income you want. (What you want may not be what you need). The game is how we manage our risks R. R and R-Multiple with Position Sizing strategy is one of the way to make it happen and achieve financial...
Thanks I like this concept, trade H1 during London. H4 swing can be done anytime
Dailies are out of my reach though, unless I use super micro lots lol

From my observation Big E initially developed TMS 5 Method for H4 only and it seems to have a high accuracy in that timeframe by just following 5EMA Shift 3 and avoiding price consolidations
  • #57,356
  • May 27, 2015 12:03am May 27, 2015 12:03am
Quoting emmanuel7788
{quote} You want to trade against the previous Day big red candle. That is dangerous during the Tokyo session when there is unfavourable domestic data release. Better combine the TDI with price action using the APB, and when trading the lower TF H1 and M15, use the TDI in Active or Moderate mode {image} {image}
Dear Emanuel
According from the picture, For Scalping, Active and Moderate. Could you please more clarify about that ? Cos i'm not a native and not good in English but I tried hard to understand. Does Scalping means about 10-20 pips, Active means more than Scalping and Moderate is a bit longer term than Active ? Am I right?
  • #57,357
  • May 27, 2015 12:18am May 27, 2015 12:18am
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD_27May_m30_25p.png Size: 171 KB
  • #57,358
  • May 27, 2015 1:10am May 27, 2015 1:10am
Quoting arize
{quote} Thanks I like this concept, trade H1 during London. H4 swing can be done anytime Dailies are out of my reach though, unless I use super micro lots lol From my observation Big E initially developed TMS 5 Method for H4 only and it seems to have a high accuracy in that timeframe by just following 5EMA Shift 3 and avoiding price consolidations
You can trade TMS 5-Method in all timeframes. In fact Big E started trading the M15 then moved to the H4. he shared two methods in the old thread before he moved to this TMS thread in April 2011 where he want us to discuss the 5-Method only.

5-Method and 21/233 Method Post#3018, Post#4104,

Big E wanted us to build this TMS thread together... Post#4,432
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,359
  • May 27, 2015 1:13am May 27, 2015 1:13am
Quoting Vnp
{image}

A divergence is not confirmed until that swing low is confirmed with both the APB and TDI confirming the swing low points.

Buying on a red candle?
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #57,360
  • May 27, 2015 1:17am May 27, 2015 1:17am
Quoting bigcakex
Hi,everyone, Could you tell me about the GBPUSD W1 BEIVB right or wrong? Regards! {image}

Yes, that is a Weekly Inside Bar.
But pay attention to the Mother Bar of that Inside Bar.
Also look to the left of your W1 chart, there is a swing level support seen.

What do Monthly chart showing us?
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
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