100-300 Pips Per Day Any Pair Any Timeframe Using 2 Indicators - page 24
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I tried your #1, but I really don't get the feel of it. Maybe I am not patient enough. Please comment the enclosed example.
On the first potential entry, MACD has already crossed 0 so I normally would not have taken the trade according to your rules. What is the best thing to do? The next MACD bar is jumping up and so does the price for many pips after.
On the second potential entry, the price crossed the support line, but MACD crossed 0 two bars later. When is the best moment to enter the trade? I think I would have taken it, but without being really sure.
The third example shows a similar situation. When MACD crosses 0, it's almost the end of the move so I suppose it is better to enter on the candle before but that little candle suggests tha price could go back down.
I think the fourth potential entry is the easiest of them all for me, price breaking through at the same time MACD crosses 0. But still, it is almost the end of the move.
What do you think? Do we absolutely have to wait for MACD crossing, or can we rely on the trend shown in MACD histogram? That's where I'm lost, I guess.
Thanks.
Chamane
chamane,
Number 1 Trade Set Up will not always line up with the Mac D goin through the 0.00 and crossing the S/R at the same time.
If they do it has the best possibility to make you some pips.
The reason we all have a hard time in Forex or anything in life is that we make it more difficult then it needs to be. If a professional baseball player gets into a batting slump he goes back to the basics the simple things. Every time he does he will get out of his slump.
Forex needs to be simple so lets start simple and then add just a couple things that might make it better for us but not overwhelming.
Lets say all we did right now was take a trade on the 5min chart when the Mac D hits 0.00. We can either wait tell it closes past 0.00 or we can see how strong the candle move is when it hits 0.00. Each of those has its risk. First one closing past 0.00 makes sure we now its going the opposite direction but the risk is we might have missed the whole movement all together. The second one waiting to see how strong the move is and not waiting for it to close but knowing it has hit 0.00 gives us a better chance for pips but could easily change go back the other directions and you could have lost pips.
So what can we do to keep it simple. Add something that might help us but not take away the our simple trading set up. So we add the S/R.
Lets talk about trade number one. If Mac D has already crossed the 0.00 that means it looks to go the opposite direction. So why use S/R. This will help keep you out of sideways movements. So you wait to see if will cross the S/R and it does so you take the trade. I would have taken that trade.
The second trade is almost reverse of the first. Meaning the S/R was crossed before the Mac D hits 0.00. So you can treat it the same way. I would have watched the candles and see how aggressive it was. the S/R was crosses so we can see it might have a bigger movement for that time frame. and you could have taken it in the middle of the candle even if it has not quit hit 0.00. You could have waited even tell it did and took the trade on the second candle.
The third trade option. In my opinion the crossing of the S/R on lower time frames holds more value then the candle itself. You would maybe pay more attention to a candle in the higher time frames but in lower pay more attention to the S/R. So the S/R was crossed and the Mac D closes past 0.00and a Good set up for a trade.
4th trade. Everything happened to happen at the same time. So good set up to take a trade.
Remember the example of baseball. If you have basics down to swing a bat at the plate does not mean the pitches are all going to go exactly the same every time. You have to have strick zone that allows you to swing the bat or you will never get on base. If it looks good based on a few close rules you will have to swing.
Hope this was helpfull.
JS
chamane,
Number 1 Trade Set Up will not always line up with the Mac D goin through the 0.00 and crossing the S/R at the same time.
If they do it has the best possibility to make you some pips.
The reason we all have a hard time in Forex or anything in life is that we make it more difficult then it needs to be. If a professional baseball player gets into a batting slump he goes back to the basics the simple things. Every time he does he will get out of his slump.
Forex needs to be simple so lets start simple and then add just a couple things that might make it better for us but not overwhelming.
Lets say all we did right now was take a trade on the 5min chart when the Mac D hits 0.00. We can either wait tell it closes past 0.00 or we can see how strong the candle move is when it hits 0.00. Each of those has its risk. First one closing past 0.00 makes sure we now its going the opposite direction but the risk is we might have missed the whole movement all together. The second one waiting to see how strong the move is and not waiting for it to close but knowing it has hit 0.00 gives us a better chance for pips but could easily change go back the other directions and you could have lost pips.
So what can we do to keep it simple. Add something that might help us but not take away the our simple trading set up. So we add the S/R.
Lets talk about trade number one. If Mac D has already crossed the 0.00 that means it looks to go the opposite direction. So why use S/R. This will help keep you out of sideways movements. So you wait to see if will cross the S/R and it does so you take the trade. I would have taken that trade.
The second trade is almost reverse of the first. Meaning the S/R was crossed before the Mac D hits 0.00. So you can treat it the same way. I would have watched the candles and see how aggressive it was. the S/R was crosses so we can see it might have a bigger movement for that time frame. and you could have taken it in the middle of the candle even if it has not quit hit 0.00. You could have waited even tell it did and took the trade on the second candle.
The third trade option. In my opinion the crossing of the S/R on lower time frames holds more value then the candle itself. You would maybe pay more attention to a candle in the higher time frames but in lower pay more attention to the S/R. So the S/R was crossed and the Mac D closes past 0.00and a Good set up for a trade.
4th trade. Everything happened to happen at the same time. So good set up to take a trade.
Remember the example of baseball. If you have basics down to swing a bat at the plate does not mean the pitches are all going to go exactly the same every time. You have to have strick zone that allows you to swing the bat or you will never get on base. If it looks good based on a few close rules you will have to swing.
Hope this was helpfull.
JSWell said Joe, just my 2 cents I like to put pending orders 2 pips above or below when macd and s & p looks like they are going to make a move together. I just follow the slope of macd. you can put in you pending order and your take profit sit back and wait for your postion to be hit. If not remove and look for the next setup
Thx, Joe. I am beginning to see the picture better. I am going to practice this one for a while.
Thx also krock for nice template. Makes it easy to follow.
Chamane
To keep you updated. Here is another trade setup.
On the far left, I entered the trade (system #1) as the price went through support level and MACD was showing downwards movement. Then all of a sudden, price retraced, support kind of repainted and price stopped me out (1ATR) so I lost the trade. I suppose it is some kind of divergence.
On the second frame to the left, price just barely crossed support, so I entered the trade but shortly after price started to climb. I got a bit discouraged by the first frame and closed the trade even though MACD was still showing a downwards move. I am still following this one to check if a reverse is still possible.
I know for both frames price can reverse down again and I will continue to monitor what's going on. A higher stop loss could be more appropriate, like the level of the last swing high/low that would give more room for whipsaws.
I added RSI (5) in order to make sure price goes to overbought/oversold areas before the entry signal for system #2. On the fourth frame, that is what happened although we could figure it from the high peak of MACD. It won't be that obvious all the time. I'm up by 9 pips so far on that one.
Chamane
To keep you updated. Here is another trade setup. Chamane
Hi Chamane,
Can you please post a template...thank you.
Xard777
Hi Chamane,
Can you please post a template...thank you.
Xard777There it is. This one is a modification from krock's template. You will need the indicator I sent on post #100 and all krock's indicators.
Here is a pic of the situation after a while. I guess I should have stayed in the race. I cashed in about 40 pips on two trades (system #1) this morning. If I would have made it with these three trades on the pic, it would be close to 100 pips for the day. I'm getting there. Still have to work on stop losses.
Chamane
This technique is awesome, thanks Joe, i made about 100 pips yesterday just using this simple technique. However, my concern is that how do you avoid false breakout. If there's an indicator to confirm that breakout is valid, we can make a lot of pips.
Avoiding False Breakouts
Just an idea,
Instead of adding more oscillators which will just confirm the same thing... Try something that plays bounces or the opposite of a breakout.
Here is a simple Murray Math indicator which is based of off the square of 64, and shows all time frames.
sell 7/8 8/8
buy 1/8 0/8
You also have the TTE entry by Joe Ross, where you take the 1-2-3 pattern inside the S/P and when you confirm the HL/HH S/P breakout point, track point three by individual candles, or confirm the LH/LL S/P
First blood!
Please may I know which is the more profitable system of the 2 (or more)?
Is the second system also capable of 100-300 pips (or more)?