A-B-C-D Trade - page 326
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Further clarification.
We need to emphasize the the HAMA_T3 color is the subject for entry rule. Our original instruction was worded vaguely. The color of the regular candles is irrelevant.
The 2 entry options:
Cross-over HAMA_T3 candle + previous HAMA_T3 candle must be trend (trade) direction color.
Cross-over HAMA_T3 candle only must be trend (trade) direction color (more aggressive).
Hey everybody! I have read nearly all the comments in this thread, and i found them pretty useful. Thanks for sharing.
helooo, is there anybody here?
Most of the U.S is on a 4-day Thanksgiving holiday. Thank you for reading.
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Attached is a 4-hour chart of AAPL (Apple), with indicators HAMA_T3, ADX Crosses, and SQ9. All times are GMT + 3hours.
This CFD of Apple rallied from late July to print a top of 704.06 on Sept 21st. We used that as the SQ9 StartPrice, direction down. We removed the color for the 22.5-degree intervals, and only wanted to view the 90-degree intervals in yellow.
After the change in trend (CIT) at the top, we place a dotted vertical line pointing to the first pullback into the HAMA_T3 zone on Sept 27th 16:30. SELL entry at open of next candle period = 677.97
This happened before the first ADX cross arrow of Oct 4th 20:30. We spoke about using that first pullback in our initial posts regarding this technique many months ago. We'll call this trading the naked pullback.
The addition of the ADX crosses provide an alternative for those looking for another confirmation and momentum.
Price make a steady decline to the 180-degree, an important SQ9 ratio, on Oct 2nd 16:30. The bounce up was contained by the HAMA_T3, where it triggered an ADX cross signal arrow on the Oct 4th 20:30 period's close.
The next decline made it to the 270-degree of 626.29 on Oct 9th and bounced twice. The pullback on Oct 17th barely exceeded the HAMA_T3 high price. Therefore, if the trader used that to trial the S/L, it may have triggered.
Alternatively, we can use the SQ9 ratio just above that HAMA_T3 point for the S/L. In this case it was the 180-degree, which made sense since it was support for the aforementioned pivot low.
The balance of this massive decline remained below the HAMA_T3, and pivoted at the 720-degree (507.79) during the Nov 11th 16:30 period. The 720 ratio represents 2 cycles (360 X 2) and is also an important ratio.
In an effort to avoid joining a trend too late, a maximum number of pips can be used to determine entrance.
The attached chart is a downtrend of 4H EUR/USD with the indicators HAMA_T3 and ADX Cross.
We highlighted 3 pullbacks with yellow vertical lines, that conform to our rule that the regular candle body must not protrude outside the opposite side of the HAMA_T3 candle at the cross time.
The HAMA_T3 trend is labeled with a 0 (zero) at the regular candle's high and labeled with number of pips at the trend's maximum point prior to entry signal.
Cross Date/Candle Period Time ------ Trend Size
Oct 25th 08:00 ------ 139 pips
Nov 11th 20:00 --------54 pips
Nov 9th 04:00 -------- 98 pips
Depending on the currency pair, the trader can use a maximum HAMA trend to filter out potential bad signals. In this example with EUR/USD, a 200-pip max is reasonable.
Some pairs don't move as much, therefore you need to ascertain a different maximum for each pair or instrument.
***
So far for trading pullbacks, we've combined the HAMA_T3 with different entry triggers:
Naked Pullback (early or first pullbacks only)
GAB Pivot (RSI Divergence)
ADX Cross
The use of a small time-frame, such as the 1-hour, can also be used with the triggers. The concern of course is that you will see more chop.
Hi Jenni,
You will get a much better response if your post is moved to the proper section. I'll try to flag down the mod.
Meanwhile, I must say that market maker brokers have the ability to manipulate, although not everyone will do so. Have you tried brokers that are not MM?
We recently detailed how the the fib channel aspect of the Golden Rectangle indicator worked. You can flip back to that post for instructions.
The attached EUR/GBP 1-hour chart has spiral, arc, fan, and pitchfork removed.
The right fib channel ratio was set to 1.314. This was a ratio that allowed the peak of Nov 29th 10:00 to be aligned with a ratio, thus creating a trendline.
As mentioned, the indicator plots by using 2 dips. The 2nd dip is centered in the middle of the rectangle. The fib channel plot point is the low of the 2nd dip (Nov 29th 17:00) and:
fib plot from bottom of the rectangle to the low of the 2nd dip
The input ratio of 1.314 is marked with a green "X" on the right border of the rectangle. This level is the horizontal 1.314 extension of the distance from the bottom of the rectangle to the low of the 2nd dip.
Alternatively, we can turn on the fib fan. Change the default ratio of Fibo4 to .686. Now that green x will be at the same spot as the fan's 68.6.
The had to used a fib fan input of .686 to match the fib channel input of 1.314. This is due to the fan counting in a different direction.
The fan measures from the 2nd dip to the right corner for its 0 (zero) fan. The lower right corner is its 200%. Space in between are the ratios of course.
Therefore the fan's .686 is:
a distance of 31.4% above its 100%.
This matches the above: horizontal 1.314 extension of the bottom of the rectangle to the low of the 2nd dip.
The fan marks its ratio on the right border of the box, allowing the fib channel to align itself there for the channel plot.
If the indicator was set for left channel, the same would apply, but the channel would be aligned tot he left side of the rectangle. This would change the slope to the opposite direction.
***
This whole exercise is an attempt to create a trade set-up trendline. In this example, it was at the top.
After price made that 2nd dip, and the fib channel was satisfactory in creating that trendline at the top, we look for a bounce.
This occurred during the Nov 30th 09:00 period, which is marked by a green arrow.
The channels below that entry point are the support levels and act as exit options. In this case, the decline moved from the -261.8 to the -161.8 for a gain of about 20 pips.
For the stop-loss, we can add the next ratio above -261.8. Which ratios can you choose from?
-278.8
-288.6
-300
It takes a little getting used to, but we can clearly see which direction the channel is counting for its ratio inputs.
Since we can't simply add the ratio, we need to substitute one of the 11 existing inputs (Fibo1 through Fibo11). In this case, we chose to substitute .382 with 2.886.
That made the stop-loss 9 pips + cushion = 12 pips. Therefore, we have a handle on the approximate reward/risk prior to the trade. Obviously a larger rectangle will have larger R/R numbers.
Note: it is important that we duplicate the channels manually. The plot changes if there is a new swing identified by the indicator's zig-zag. However, if you lose the original plot, you should be able to figure out how to duplicate it with the fib channel tool from the MT4.
While there is a "save" function, our experience is that it does not function properly. We'll have to revisit that aspect, and so can you.
EUR/USD with strong top trendline resistance aligned to peaks of Apr 1st - Set 14th - Oct 17th.
Price is at revisit of this TL now. Can plot Bearish FCT, keeping in mind 10:00 GMT Euro data.
Split-screen with 1-hour on left and 4-hour on right.
The top trendline mentioned on last post Dec 4th produce resistance for small intra-day profit, prior to 10:00 GMT Euro Zone data.
Swing traders that held short position had S/L positioned just above Oct 17th high 1.3138.
Risk appetite saw revisit near Oct 17th high, at 7/8 MML (MurreyMath1.0).
S/L held as negative Euro Retail sales Dec 5th drove price back down.
The 1-hour shows price fall below HAMA_T3, which also contained subsequent pullbacks.
Today's high-impact Euro Zone data and verbiage 10:00-13:30. Day traders with small S/L would exit or stay on sidelines, unless trained to trade the news (data).
Current short position gain about +23 net pips.
Point C of FCT on 4-hour should be moved from plot displayed on attached chart to aforementioned high at 7/8th MML (1.3124).
Tomorrow U.S. Non-Farm Payrolls and Unemployment.
Same split-screen. Pair dove during 13:00 and continued. Our 4-hour chart on the right has adjusted Point C of Fib Channel Triangle (FCT). FCT in blue color and horizontal fibs in white.
This resulted in first exit level at the -68.6 of 1.2976, which was just touched. Many would close short here considering market often knee-jerk off data/verbiage, and considering tomorrow's U.S. NFP (mother of all data).
We can also see previous consolidation at this area during Nov 23-27th. Exiting here gained about +90 pips, and net 1.3:1 R/R.