Animal Farm (Renko system)

I wish I could this all the time:

A nice down trend.

The LBF (2.5 pip chart) tests the Alligator at 1 2 3 .

Pending order where a new down trend would resume. ( I placed it at the bottom of the reversal brick at -23.

Go off and do other things. (Nice bike ride in the fall sunshine.)

Pending order filled.

Half profit taken and trade locked in.

LOC trails the stop fractal by fractal.



I missed over half of that run but still got 56 pips.

As I said - I wish I could do that every time.

Hi Wab

Where was your initial SL? I think it was more than 8 pips. Perhaps the last LH?

The closest I can come to a magic place for a stop is on the HH HL LL LH structure.

Use the HH HL LL LH fractals as that is where the stop actually should be - recent LH for a bull or HL for a bear - plus a pip and spread.

On these 2.5 pip bricks I set it to 8 pips on LOC. That generally does the job.

A volatile market requires being flexible. If the stop is above the Alligator that is generally safe enough.

However, I will move it to just past the previous Fractal if I feel the 8 pips can be hit. If it breaks that
you have a reversal anyway.

If you have LOC set to an 8 pip stop, you can just drag the stop to where you want it and LOC
doesn't try to put it back at the 8 pip level.

I think being flexible is required, at the risk of second guessing ourselves. A fixed stop allows you to have a
pre-calculated trade size based on a percentage, but it is not always the best stop to use.

It would be good if some one could integrate the settings of the degree indicator in the road map Indicator.

Can you post the code for us to look at Eurix? Maybe we can figure out a match up between us.

I pretty much wasted a bunch of time and effort on a Renko ea this week. So back to what I know works (for me anyway.)
E line, Saddle point, trade away from the Alligator, use LOC to manage the trade.

I don't really believe a robot can trade for me, although one can manage a trade after I pull the trigger.

I am working on a sound alert for the reversal bricks.

Why fix it if it ain't broke?



I took a chance and added a second trade on at this recent bearish reversal bar.
The first trade has 16 pips locked in now.

Here is a live example of how the 10 pip and 2.5 pip bricks compliment each other.



A bullish divergent brick forms on the 10 pip chart at 2.
Boss Fib has pulled back to 50%.
An Alligator Squeeze (saddle point) occurs on the 2.5 pip chart.
A green E line occurs on the 2.5 pip chart.
AO is above zero - good for a long trade.

I Used the signal from the 10 pip brick reversal to enter on the 2.5 pip chart with a pending order.
Price moves up, trade opens, LOC locks in a profit on part of my position and the stop is moved to lock in a pip.
Can't lose now.
LOC waits the next pull back to place a stop below the down fractal that will form there.
Price is up 18.8 pips and I can go and do other things while LOC handles this.

Market looks very strong as the Alligator opens wide.
Maybe it will break above 1 on the 10 pip chart and head for a Boss Fib target.

I will update how it turns out.

Update on that EURUSD trade:

The trade survived the weekend (barely) and went on to have a second rally. The stop stayed the same as the fractal pullback on Sunday formed just above the stop level at 8 pips profit. Then it pulled back a second time and hit the stop.



Here comes the shoulda, woulda, coulda...

If I woulda re-entered on the next bullish divergence brick I coulda had a nice trade trailing stops along the fractals right up to the ideal target stop at X. Or I shoulda taken profits on the second rally on Sunday.

Trading is like that, perfect hindsight every time.

At any rate, I did make 8 pips on half and the other half locked in 9 pips so, no loss and that is the important part.

I also traded this live. If you aren't showing the live trades, warts and all, on a thread than it is a dubious thread in my opinion.

Now, I am back experimenting with an ea that works on these principals. I don't really like eas but the challenge of developing a good one is always there.

Have a good week everyone, with good trades. I will post as I get the chance.

Caught a tiger by the tail.

I had a short open order and a second pending one. I was using a lips (green line) trailing stop. Wild ride.

It dropped so fast the trailing stop was not even hit until a second retrace into the Alligator!

My new candle alert sounded like a fire truck.





We live in interesting times.

It has been quiet her for a week or two so I thought I would freshen things up a bit by going back to basics. Road Map is a great tool, but the best tool is always your own analysis. By using the higher degree of HH HL LL LH we can set up some very nice areas for trading in the dominant trend direction. Have a look at the current USDCAD chart that I have been working with. This is a five pip brick chart of the USDCAD.

First, a count of the larger wave structure and identification of the green E line.



Then, trades taken using the brick reversal bar, but only taken in the dominant direction of the trend above the dominant E line. The Alligator tells you which direction to trade in, as a back up to the green E line.

I used a strategy where I trailed a stop two bricks, plus a pip, back. I also take off a partial profit at five pips then move my stop up to lock in a pip on the second part of the trade lot when price has moved five pips. This results in lots of little profits and then the occasional ones that soar.

Here is a zoomed-in view of the area that I actively traded in:



And, the results of all this are attached in a Word Doc.

One trades is open as I write this.

I Used to teach chemistry and the class sat up and paid attention when you were about to make something go bang. Not too many people who try to teach price action and actually trade it live in front of you like this. In my opinion, if your teachers don't offer live action examples they really are not much use to you. Anyone can count Elliott Waves in hindsight is a maxim we often hear.

The key is understanding the universal HH HL LL LH structure of charts and being able to spot the E line in a reversal. Even with something as useful as Road Map and understanding some of the other indicators we have looked at (AO, AC, Alligator, MACD 5 34 5 ) you still need to be able to look at a bare chart and read that HH HL LL LH structure.

Once you can read the chart structure you can plan a variety of strategies to reap the harvest that the dominant trend offers. You can see the higher degree waves and the internal waves and pick off entries and exits without trying to unravel a spaghetti mess of indicators - half of which don't agree on anything.

I know it takes a while to get it but once you see it ...

Hi....this is a fantastic thread!
There are several individual variations of the HH HL LL LH strats inside here I think!
Would be great to have persons here to complete post template and indis they are using and brick size, rules for buy/sell and some picture examples!
I trade with the 123PatternsV6 Alerts.mq4 and it works great!

I have only just noticed that this thread is still alive. I already read up to page 26 and I found it to be one of the most enlightening threads that I came accros on FF. Can'twait to read the rest. Even if you don't trade this method it is still definatelty worth reading / studying.

Thanks for the compliments reteid2222. I looked at 123Patterns a while back and the method is similar in many respects.

Counting the HH HL LL LH and being able to spot the reversal and E line eliminates the problem with the " ideal patterns and distorted patterns" in the 123 method.

Last time I looked at the 123patterns V6 alerts. I couldn't get it to work. My MT4 froze. I assume that there is an updated indicator which I would appreciate you posting a link to it. I am always open to anything involving price action. Thanks.

wizlon, I hope that your reading/studying helps with your trading. Learn to identify the E line correctly and you will be way ahead of most people. It comes with practice and then you can't not see it.

From post 650 by Wab "The key is understanding the universal HH HL LL LH structure of charts and being able to spot the E line in a reversal. Even with something as useful as Road Map and understanding some of the other indicators we have looked at (AO, AC, Alligator, MACD 5 34 5 ) you still need to be able to look at a bare chart and read that HH HL LL LH structure. "

Absolutely true and fundamental to profitable trading. I've gone back to a simple line chart based on the close of the renko boxes. Structure is immediately apparent. Decisions are simple. KISS works best.

WAB - way back in the thread I remember you saying that one of your favourite indis (signal line) no longer worked after an mt4 upgrade. Just for info it does work with the current build although we have come a long way since and it may be superfluous to requirements now.

I have taken the last version I found .....it was no 7 I think...modified it for my personal use to show only minimal information on chart and removed everything that was not neccessary specially formated the code :


I u like it to have it I can post it here or as pm...but don t blame me cause I change the code in function and readability :-)

Thanks handy148. I prefer to use the reversal brick. A lot of the indicators mentioned in the thread are what I call hand holders. They verify what you can see on your own, but once you can see it they are not needed.

I will have a look at reteid2222 when she posts it (please.) It appears less intrusive than Road Map and may fit in with what we do here.

Here! Removed the zigzag file verification cause it doesn t work....and remove TP levels cause will need this space in the future development! And remove long not neccessary lines....and the option to show only X candles back the levels...to keep my chart clean....like my t-shirt :-)
And copyright is also missing...but it was not my intention cause I wanted only to use it privately!

This one I found....is also nice and shows only parts of breakouts where volume is high! I ll add this soon to the previous indi!

retied2222, I still have a problem with the 123 patterns indicators crashing my MT4.

Here is some 123 stuff by Joe Ross that I have looked over in the past. Really good stuff.
The reversal brick and the Ross Hook are often one and the same.

The show123 V2 seems to work without issues.

It is interesting how many times different people arrive at the same destination via different paths. Only so many things actually work and we ultimately end up drawing the same conclusions.