A-B-C-D Trade - page 230

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Attached is a 30-min chart with MurreyMath_1.0

ABC plot

A = 9-30 07:30 high 82.80

B = 9-30 13:30 low 80.05

C = 9-30 14:00 high 81.53

Break of Point B occurred 9-30 18:00 candle period. Entry 79.95

Stop-loss above 3/8th MML 80.55

Point D = FE 100 78.78 which is location of APF's middle fork per previous post.

After spread and cushion, take-profit (TP) target = 79.06 (hit 18:00 candle)

R/R = 1.4:1

***

The chart shows a precise hit to the FE 100 by 19:30 candle. The wick probe was due to traders using the other option for the ABC's High, which is 9-30 05:30.

That was the next pivot up from Swing A listed here. The wick low therefore was a precise hit to that plot's FE 100.

Files:
USOIL.jpg  88 kb
 
fxbaja:
Please transfer your question on indicators to the indicator section. We have a thread there entitled "Gann Is The Man". If you apply the Gann_SQ9 indicators on a chart, it will answer your question about which direction to set the SQ9(Price).The SQ9(Price) can indeed be used for stop-loss levels when used in opposite direction of move.If viewers will apply some effort before presenting questions, it will be appreciated. Unfortunately, we do not offer free hand holding/mentoring for beginners. You must read extensively. We will not often repeat, on request, what is already in this thread. Once again, conduct a search and the answers are there.Thank you

Sorry about that mate! I'm not a newbie! I'm just trying to get a better understanding of this indicator.

 
MOONRAKER TRADE

  • On 1-hour or 30-min chart, plot Moon and Mars at 90-degree intervals (angles). Input for Moon is 1, which is default. Planet 1 = 1 The rest of the Planets should have inputs of minus 1 (-1).

  • Inputs for Angle are 0, 90, 180, and 270 for each Moon line inserted.

  • Input for Mars is 4. Planet 1 = 4. The rest of the Planets should have inputs of minus 4 (-4). Insert a Mars line for each of the above 4 angles.

  • Number of digits is 5, when using charts with 5 digits such as EUR/USD, GBP/USD, etc. If price falls below 1.0000, input for number of digits must be changed to 4. You should have 4 Moon lines and 4 Mars lines.

Alternatively, when a particular currency pair is fluctuating above/below 1.0000, you can program both 4 and 5 digits for each Mars and Moon. That will produce 8 Moon lines and 8 Mars lines.

For other currency pairs and CFDs, settings for number of digits and multiplier are posted on page 159, post # 1582.

  • It takes a little time for charts to refresh when loading or changing time-frame. Saving settings as a template is wise and saves time.

  • Moon lines are distinctly diagonal is slope, while Mars lines are almost horizontal. The Moon lines will be slightly offset with each new week. All planetary lines will plot into the future, one week in advance.

  • When MT4 platform is first launched, or idle for long periods, charts likely will have to be refreshed as the lines might be crooked. This can be accomplished by changing time-frame and switching back.

  • Trade set-up. At start of each week, from Sunday, look for the first hit to a Moon line. The trade would be a bounce off that Moon line. Allow cushion of 7-10 pips in front of Moon line for manual or automatic entry.

  • Use fib channel tool and align with 2 Moon lines to produce a 31.4% (extension) stop-loss (S/L) level. Add cushion beyond that for final S/L. The initial S/L would always be a similar amount of pips from Moon line.

Since channel is diagonal, required S/L amount (based on maintaining the 31.4 diagonal extension) may change as time and price progresses. See paragraph 16 for alert tool. If a Mars line is nearby, can use that for S/L, plus cushion.

BUY trades, with price movement in upward channel direction will have a decreasing amount of pips for S/L. SELL trades will have increasing S/L, since the channels will always be sloped upwards. This may influence selection of opportunities to BUYs only.

Reducing your normal risk percentage at the start of SELL trades, will allow for increase later. Alternatively, a horizontal S/L can be used.

  • Scale number of lots to trade based on number of pips at risk from entry price to S/L price. If your maximum risk is 2% per trade, each trade should not lose more than 2% if stopped-out.

  • Target take-profit (TP) using S&R, at fib extension level(s), Mars line, next Moon line, or other technique. Reward/Risk ratio should be at least 1:1.

  • Formulate rule on when to move stop-loss to break-even. Examples would be when profit is equal to half of risk amount, or at pivot/fib areas..

  • Use your money management rules to further manage trade and trail stop.

  • These trades can take hours. Use of a script or EA to trail stop is an option.

  • Another tool to use is one that alerts when price approaches a trend line (Moon). One such indicator is the Chin Breakout.Alert.

There are scripts or EAs that applies Entry and/or S/L based on diagonal trend lines, which would be ideal.

To make this semi-automatic, can use EAs that rigger on trend lines:

For 4-digit brokers: Linexcutors or Linexcutors_alert

TrendMeLeaveMe works with 5-digit, but is deemed unstable.

iDraw_FV (free version) and iDraw 1.4 ($150) was developed by a poster here. Link for free version:

https://www.mql5.com/go?link=http://www.pipinvestment.com/software/idraw

Obviously, use at your own risk. Direct questions pertaining to indicators, scripts, or EAs to original developer(s).

You should understand that to keep an EA active, you must keep your computer on, or use a VPS (virtual private server).

We’ll soon (finally) post a thread in the indicator section that focuses on EAs and scripts for exit and trade management.

 

Attached is 1-hour MOONRAKER.

Yellow vertical line is start of week on Sunday Sept 18th. The 2 diagonal lines are Moon 0 and Moon 270-degree. The horizontal is Mars 270.

The first hit of the week to a Moon line was during the Sept 19th 13:00 candle period. This is a BUY opportunity.

Below that Moon 270 is the dotted white diagonal line labeled 31.4%, (stop-loss) derived from fib channel plot pulled from Moon 0 down to Moon 270.

We also plotted FC going upward, by aligning to Moon 180, pulling up to Moon 270. Mousing over Moon lines will show labels with degrees.

Price hit the 31.4 to the upside and bounced. This is typically a TP1 level. Alternatively, TP can be at next significant resistance, the Mars 270.

T/P = 1.57285

Entry = 1.56716

S/L = 1.56257

R/R = 1.2:1

****

Alternative entry

Entry after price moves below 1st hit to Moon line, AND resurfaces. S/L placed just below established low. In this example, S/L amount is reduced and leverage and R/R thereby increased through scaling.

Partial exit at 31.4% is optional. Using horizontal fib extensions, etc. for TP is always an option as pointed out in rules.

This examples was choppy and for a relatively small R/R. Many opportunities can capture larger moves. However, we can't always count on the market making those large moves, so we need to have techniques that work on choppy markets too.

Files:
GDP-USD_MOONRAKER.jpg  124 kb
 

As you research the MOOKRAKER trade, you'll be plotting a lot of fib channels. To make things easier, we've attached a script that will delete all objects at once.... the ObjectsDeleteAll

Save in path broker>experts>script

then compile

In the Navigator side menu, click scripts and it will show up there. Click on it while you have the particular chart on, and all objects will magically disappear.

 

Here's a MOONRAKER on 9-5 hit to the Moon 90.

Fib channel downward. Pink horizontal fib: High = 1.62534 Low = 1.16358

As per rule, S/L at 31.4 (to upside and not shown).

TP1 = at FC 61.8% expansion is about R/R of 2:1

TP2 = at FC 100% = R/R about 3:1

TP3 at FC 161.8 and TP4 at FC 200.

Sept 6th spike up back to Moon 90 takes out tight S/L. That's what can happen, but don't let that get you down. The fundamentals are still very sound.

Spike likely related to data/news event. We've gone over that aspect. You always have the option to move to the sidelines, by concluding your trade.

Files:
GBP-USD_9-5_MOONRAKER.jpg  166 kb
 

Add ratio to FC:

Level = minus .314 (-.314)

Description = -31.4

This allows user to plot FC in direction of TP, AND have S/L of -31.4% with one plot.

 

Eventually, after study and practice, traders can add their own accessories. However, keeping it simple is alright too.

Here's a stretch of 4 weeks with initial hits to the Moon from start of each week.These were all BUYs.

The diagonal lines are Moon lines and the horizontal are Mars lines.

We overlaid the indicator Ichimoku onto the 1-hour chart. All 4 examples have price above the Ichimoku clouds, which denote trend direction.

The 4th example had price start out right at the Moon line, with price fibulating there. This example therefore had trader ignore that instance and trade off the next hit to a Moon line, bouncing to the upside.

Those proficient with plotting horizontal fibs will incorporate that into overall trade analysis.

The entry rules were developed to avoid indecision and provide a set of circumstances in which to trade. Obviously, the PSQ9 lines can be used in conjunction with other tools.

Chart 2 - NOT MOONRAKER Rules

The following few days saw GBP/USD in a very strong down trend. There were several instances where pullbacks met Moon or Mars line near or at cloud borders, acting as resistance. These are SELL entries.

****

These are examples for those that want to only trade with the trend, as denoted by the Ichimoku.

 

1-Hour chart attached, 2nd candle at 22:00 candle came within 5 pips of Moon 180, marking 120.337 high.

S/L just above -31.4 = 120.75 + spread & cushion = 120.800. Risk = 47 pips

Price is now at the 61.8% fib channel expansion (FC61.8) of 119.779 = 43 net pips at this TP1 level.

Testing below 61.8.

If you apply Ichimoku, this area is bottom of clouds.

Files:
GBP-JPY_MOONRAKER.jpg  112 kb
 

EUR/JPY 30-Min PSQ9 & Gann_SQ9

When the 2 indicators are used for cluster S&R, we saw 2 pivot lows last week:

1) 103.877

Sept 29th 18:00 had Moon 270 and Mars 0, as well as the horizontal Gann_SQ9 90-degree.

This level was also the 61.8 retrace (not shown) from:

Low = Sept 29th 00:30 103.299 High = Sept 29th 14:30 104.914

The bounce up was about 61.8% retrace and near Gann_SQ9 45-degree, marking high of 104.485. That is a gross 60-pip retrace up.

2) 103.017

Sept 30th 13:30 where Moon 180-degree and Gann_SQ9 90-degree met.

That pivot low was a 138.2 extension of B-C swing (not shown):

Low Sept 20th 07:00 103.605 High = Sept 30th 09:00 104.101

Price bounced up to this plot's 61.8 of 103.824, for 82 gross pips.

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