When Price is UP, buy; when Price is Down, sell short...

update on Amazon & Walmart weekly signals from last sundays comment.

no major reversal signals was produced on the other shares so i am only drawing attention to what i perceive as a major reversal signal on the weekly tf of Amazon in particular, less so Walmart that has again produced a weaker signal compared to amazon.

firstly, to put things in perspective, this is what i wrote a week ago, last sunday:


now that reversal bar has actually happened, i present the chart below. see the highlighted arrow.

lets do some fx pairs trading analysis as well as oil...to see if there are any new Dly signals and also to see if any prior signals are still in effect.

first up; the USDCAD & OIL.
today we may as well checkout the other CAD pairs too, like GBPCAD & EURCAD & CADJPY. what do u traders say ?

ok, here we go

please checkout the marked signals on the charts of the USDCAD & CrudeOil as well as the comments for a better understanding of my strategy.

1. all is not plain sailing because on both charts one can see evidence of losses. those losses came about after i entered trades based off the LSH buy signal in the Loonie and the short sell signal off the LSL sell signal on the Crude Oil.
2. ​those trades that resulted in a loss were valid trades according to our strategy.
3. on the Oil chart a buy trade was entered after that short trade failed...this buy trade was closed for gain, this trade was closed after that TT candle formed.
4. this TT [topping tail] bar was also the signal for my next trade which was to go short, the red trade arrow i visible at he bottom of this bar and this trade is still open.
5. mistake1: the SL on this short trade should have been brought down to breakeven plus a tiny buffer.
6. mistake2: the SL on the buy trade on USDCAD should have been moved up to lock in 160 pips.
7. mistake3: a short on Oil & buy on USDCAD should have been entered.
8. note what happens when a fm signal fails.
9. green arrows in Dly means that the signal is in tune with M+D combo... failure of these {green arrow} signals are very potent reversals...excellent for trade entry.

and some more CAD pairs. clean charts to show what i perceive as consolidation, also known as sideways movement.

1. CADJPY &GBPCAD & EURCAD... daily timeframes.

...for Dly swing trades i recommend to stand aside until price reveals its intention,
...if u must trade it, then trade it intraday, or use the weekly tf by itself to enter and exit trades.

Great thread there Sunshine =))

I am trying to understand this now and apply on intraday trading...

I have a question and its on the chart below

Here is Weekly chart

hello duy and thank you

please checkout my answer to trader nobacot last year on page 27 & 28...the Weekly timeframe we use together with the 4hr tf.
i took a screenshot of that answer as i think u will find it useful, the answer plus image.

 

1. When trading the 4hrs we look at how last week closed, see the green arrow on the Wkly chart please...so i group them together as combination, such as Weekly+4hrs.
2. now, if last week closed up we will be looking for buys this week. a buy can be any bullish reversal bar [+brb] in the 4hrs...see the purple arrows on the 4hr chart.
3. we may also trade against the Wkly close, i.e. countertrend... that happens when we have our trading chart open which is the 4hrs ...when price in 4hrs close below its LSL then we may enter short and stay short until: (1) a +brb forms or (2) as price drops we will lower our SL to a few pips above the last completed 4hr high, so if price reverse and resumes its weekly uptrend we will be stopped out, either for a profit or a loss, or (3) we may enter a PT equal to our SL... the choice is yours.

​

here is another intraday explanation together with the different combo's.

Please NOTE: if u want to trade the hourly chart than we take our trade direction from yesterdays Daily close NOT the Weekly...DLY+1hr combo.

duy, should anything still be unclear then i apologise...please feel free to ask.

Thank you very much for you patience to take time to explain everything. I think I got the Weekly+4H setup, In my picture I posted, I would have been whipsawed for couple trades because It closed below LSL then went back up =). About Intra day, I was pointing to 1H+M15 trade. But as you can see on the picture Lo Open and I would have Shorted there because it made LSL, but would be stopped out. Can you do an example for Intra day chart with 1H+M15? Maybe it's not so good because it whipsaws a lot? How is your experience with intraday trading?

ok duy but i think u are confusing trading the Weekly and trading the 4hrs, let me explain... i am using your Wkly chart.

1. please note the blue horizontal lines are showing u where to draw the LSL & LSH's... i.e. we take the nearest LSH & LSL.
2. most importantly as i pointed out, we only take the direction of the Wkly close...that now gives us our trading bias for next week. meaning,
3. we drop down to the 4hrs and take our entry signals there...we do not trade the Wkly as in your example, that is why u are referring to whipsaws... whipsaws we will get BUT in the 4hr timeframe not in the Wkly..
4. ​the Weekly bar is one bar that give our trading direction, but the 4hrs have approximately 30 bars to trade, some of them will be our signal bars to enter in line with the Wkly bias,
5. and others will be signal bars to trade against the Wkly bias should price close above a 4hr LSH for longs and below a 4hr LSL for shorts., got it ?

​

ok, i will try and do a 1hr+15min example.

here is an intraday 30min+5min combo example on the GBPUSD of today. the white arrows indicate entries.

main thing to remember when trading intraday...is to stick to your entry chart for exits as well, i mean..if u entered on a 5min signal then take your exit off a 5min signal also.

hi Faker,

 

1. if u want to catch the Weekly trend then trade the 4hr tf
2. if u want to catch the Monthly trend then excellent entries will present themselves in the Dly timeframe... just go back a few few pages and u will see what i mean.
3. if u want to catch and ride the Dly trend then enter on the 1hr tf.

Thank you for detailed answer =) About intraday trade, why did you exit up there but not where you saw first inverted hammer?

About Weekly+H4 I am posting a chart and see if I understood it correctly

i did not close there because there is only one TT [topping tail] or inverted hammer not 2 as u say.

next time u post a 4hr chart please make sure u have the "show period separators" ticked in mt4, that way i can better help u with 4hr entries bcz i will be able to see on the 4hr chart where one week ends and another begins...telling me which week closed up or down.
​because i didn't have that info i drew LSl's & LSH's allover. please checkout the chart.

hello traders,

for those of u that use the Dly+1hr combo please check how the following pairs close in the 1hr chart. still about 20mins left before the 1hr bar close.

 

1. EURUSD, GBPUSD, EURJPY & GBPJPY
2. all buy setups should the 1hr buy entry materialise.
3. i m currently in intraday buys in the GBPAUD, mainly to get a 1hr+15min example for trader duy as he requested...he really hopes it plays out otherwise it could be really embarrassing.

​this is how the charts currently looks like...i really do not like that consolidation with the TT inside the box on the 15min chart. my last 2 long trades may be stopped out.
i already have a previous buy there and i have moved its SL up to lock-in +90 pips.

ok, got stopped out, but watch the next 1hr bar close of GBPAUD, if it does close up that means buys rule bcz the previous TT bar is only a ruse.

this is what i mean
...note the 1hr bar...i went long already bz i can't wait and have to leave my trading station now.
still more than 30mins before that hourly bar close so in essence my entries are pre-mature, too early.
....i tried several times this morning to load the chart but somehow could not, so let me try again....

ok, i closed out those 2 buys of this morning for profit, but since i came late to my trading station i missed the usual exit signals, however, for the purpose of illustration and learning i marked them on the charts.
the numbers 1 & 2 on the 15mins shows the normal exits...number 3 shows where price closes below its own LSL and thus telegraphs the final close signal and permission to short.
...the 2 losses of this morning is a combined 26pip (5+21pips)
...the profits on the winning trades is a 66+57= 123 pips
there are 2 examples illustrated here:

1. the 1st one is the 1hr+15min combo and the
2. 2nd example is the Dly+1hr combo...the +brb in 1hr served as entry buy signal for both combo's
3. can anyone see what i'm referring to ?

​

Simple, Beautiful thank you sunshine =) It really fits you forum name, great personality, generous and patient like a master =)

Do you mind explaining how do you stack orders/pyramid? Because if adding orders it will cause a DD so have to be careful with this technique, correct? I want to learn proper way to do it