Trading on the Right Side of the Market (Hopefully)

On Demo I trust

Golden Nugget #4

Scaling In

Scaling in is the process of either buying in to a falling market or selling in to a rising market and is best done in line with current trend. There are of course no guarantees that the trade will succeed but by scaling in a trader is going to risk a smaller % of their equity if the trade does not work out.

Step 1 - Identify the current trend.
Step 2 - Identify a pullback.
Step 3 - Work out total volume required, i.e 0.5 lots, and start buying or selling in incriments, i.e 0.1 lots x5 as the market continues to pullback. Personally I don't start buying/selling until I think the market might be about to turn,but the point is that more often than not it does not turn right at that point.
Step 4 - Identify trade invalidation point and set SL below that level. (Trend Line, Fib level, Round Number, S/R level, recent swing high/low etc).
Step 5 - Once the total trade volume is reached, sit back and relax - you have achieved the desired trade volume with less risk and with greater profit potential than if you traded the whole volume at the point that you entered the 1st trade.
Step 6 - Move SL to lock in profits as price goes in the desired direction.

If you were referring to my Nikkei trade, yeah it is only demo.

Template (with added evolution slope indicator) applied to Mean Renko Chart next to a normal M15 Candlestick chart for reference.

USDZAR H4

Pulled back as expected. Pin bar looks promising. Demo trade.

Using Mean Renko For Entries.

Below left is a H1 chart of WTI Crude. The area between the yellow line shows an area where it turned bearish according to my template.
Below right is a Mean Renko chart (10 point box) of WTI Crude with yellow lines showing roughly the same period of time as the chart on the left.
Red arrows show possible short entry points, after short term bullish pullbacks followed by a new bearish brick.

My screen setup

I have split my watchlist in to various profiles. Each profile displays 4 different securitries and there is 2 charts of each security (so 8 charts in all). The top row of charts are candlestick charts and the bottom row are the Mean Renko equivelant.
Profiles can be configured by using the Profiles option in the File menu.

Here is an example of one of my profiles.

Worked out well. Took 3 long entries. Can't lose now so Im going to let them run. I expect a fair bit of draw down but hopefully the SL won't be hit.

Edit: 2 positions closed at H4 200 EMA. 1 position left.

USDCAD retraced to the 50% Fib. If it drops further I will consider adding to my position.

EURGBP opportunities today

Gold H1 and Mean Renko (50 point brick) - Demo Trade

EURUSD H1 and 50 point Mean Renko - No trade taken but I love the potential.

A couple of changes to the template.

1. I have removed the MA cross over arrow indicator.
2. I have added the an 8 SMA (red line).
3. I have added a 5 EMA (yelow line).

The River and path still show the overall bias. The 8 SMA and 5 EMA show the immediate or lower TF trend direction (yellow below red = short, Yellow above red = long).
When all conditions are met for either short or long trades on the candlestick chart, the Renko will provide appropriate entry opportunities.

Here is an H1 EURGBP chart. The red circle highlights a period when all short conditions were NOT met (5 EMA above 8 SMA). Once the 5 EMA crossed below the 8 SMA all conditions were met for short entries. Then it's over to the Renko chart to watch for entry opportunities (possible entries indicated by the red arrows).

USDCAD H1 possible pennant and new HL. HL is not confirmed until HH is broken.

Counter Trend Renko Entry Trades

Left chart is EURNZD H1. Right chart is EURNZD Mean Renko (50 point brick).

Green circle on left chart shows retrace (yellow line cross above red line). Green vertical lines on Renko chart show roughly the same period.

Green arrows on Renko chart show possible entries.

As this is a counter trend move it may be best to scalp, possibly by using a trailing stop.

USDZAR

Maybe time for a pull back.

Excellent stuff Wizlon32, do you have any trouble keeping up with the trade opportunities as you have quite a few pairs you are following / trading?

Hi Philhosk. No not really. I find that the template gives me a very quick bias - it just takes a glance. Then by splitting my watch list in to profiles I only have 4 pairs to look at at any one time so there is not too much going on and I don't get too distracted.

As well as using different profiles I also have 4 mt4 platforms open at the same time (by downloading and saving to a folder with a different name you can have as many mt4 platforms open for the same account as you need).

So by clicking through my different platforms I can get a very quick look at my favourite 16 pairs. If nothing catches my eye I swith profile to try to find something that does.

Hope that makes sense.

That worked well.

Edit: Short trade closed. Holding on to the Long.

WTI H1

A break of the flag and then below the pink horizontal support should see USDCAD push higher.