- May 19, 2019
- Posted by: Forex Wiki Team
- Category: Forex Trading System
Trading Made Simple(r)
I've named this thread as such as a result of I realized a lot from "Large E's" thread "Trading Made Simple" and I included in a few of the concepts he used, and a few of how he used them. Moreover, I want to dedicate this thread to him, and should he relaxation in peace.
Though my templates don't embrace his principal indicator which was the TDI, they do embrace different indicators that I discover simpler to learn than the TDI. For instance, Large E (Eric) would discuss when the TDI began to bend, or arch, or flatten out, and so on. as exit alerts which I discovered to be method too subjective for me, so I finally dropped it. And, he talked about that he may drop it additionally as a result of he might nonetheless commerce very efficiently with out it. In different phrases, he did not actually need it both.
He additionally appeared to principally like buying and selling the 4 hour charts one of the best, and the each day charts to a lessor extent. He virtually begged individuals to cease buying and selling the decrease time frames since you get whipsawed a lot. I fully agree with him and recommend that you just do the identical. Nevertheless, when you MUST day commerce, I'd recommend solely day buying and selling the 15 minute charts. However what you do is on you. These templates work simply the identical on any time-frame.
For these of you who haven't learn Eric's thread "Trading Made Simple", I recommend you learn it in case you have not already.
Eric really began speaking about his technique to an incredible extent in a single thread, after which ultimately created his personal thread. Right here they each are if you're :
Craig Harris Stochastics Technique
https://www.forexfactory.com/showthread.php?t=211188
Trading Made Simple
https://www.forexfactory.com/showthread.php?t=291622
*Different merchants made some pdf's comprising of most of the vital issues he stated in these threads. I'll connect them sooner or later if anyone needs to learn them.
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Transferring On...
I'm creating this thread as a method of hopefully giving one thing again to this buying and selling group, and to the various merchants on this discussion board which have unselfishly given me the chance to be taught a lot from them. EVERY customized indicator I take advantage of (so far as I do know), I downloaded at no cost from this discussion board.
The 2 templates that I'm offering have advanced over the course of greater than a decade. And, they could proceed to evolve much more over time if we discover helpful issues so as to add or change. Nothing right here is about in stone, EXCEPT my method means at all times buying and selling with the pattern, and which means: firstly of what seems to be a brand new pattern, or the resumption of a earlier pattern.
Now, what's UNUSUAL about my templates is that there's not only one, or simply two and even 10 methods to commerce them. There are MANY, and I'm certain that there are extra that I've not even uncovered but.
Presently, I take advantage of 7 indicators to indicate me issues like: the place and when to enter and exit, the place to put my stops, and generally the place to put my revenue goal, market route, turning factors, pattern, convergence, divergence, and so on.
I'll begin off for now by explaining simply two of the ways in which I commerce utilizing the templates, however I think that over time different merchants right here will expose a few of the different methods they uncover, as will I additionally.
What you need to perceive is that what's offered, because it's offered, is NOT a buying and selling system. A system has concrete guidelines with no variables. Strategies do not. What I'm presenting are buying and selling strategies, suggestions, and strategies. A number of buying and selling strategies about methods to enter and exit trades (with others more likely to observe). The one concrete guidelines there are, are those that you just determine to make and observe.
I've connected a zipper file containing each templates and all indicators
I'm certain that I've forgotten to say or clarify tons issues and so I am going to add, appropriate, or make clear them as we go alongside.
And take note, there is no such thing as a Holy Grail buying and selling system, and there's no profitable with out some dropping.
At this level, I do not go to this discussion board on daily basis. I commerce, I personal a enterprise, and I journey fairly a bit. I've finished all 3 for greater than 20 years and so I'm typically unavailable or too busy doing different issues to be on the discussion board. You probably have any questions for me, and you do not hear from me, I will probably be again as time permits.
My hope is that different merchants will acknowledge the ability of those templates and contribute much more methods to commerce them, hopefully in methods much more efficient than I've offered, and that they assist merchants make much more cash buying and selling the Foreign exchange.
- RobinHood
P.S. In my profile, that is not likely an image of me, I simply do not like having it clean in my profile, and I do not like utilizing my very own.
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Templates:
# 1
# 2
* The one distinction between the 2 templates is that template # 2 features a market Open and Shut instances indicator, which might primarily be used for intraday buying and selling. Mine are preset with the London Open and Shut instances and the U.S. Open and Shut instances (based mostly on Japanese Normal Time). They'll simply be edited to fit your preferences and time zone. I like with the ability to visually see when totally different markets open and shut.
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Templates and Indicators
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Template # 1
Indicators Used
Higher Window:
Yellow Line = 5 EMA, Shift + 2, Shut
HMA Line (Hull Transferring Common) = Interval: 12, Technique: 3, Worth: 0 - Colours Lime Inexperienced and Deep Pink
Heiken Ashi - Blue and Maroon
Synergy_APB - Doger Blue and Pink
Bar Clock - DimGray
Magnified Market Worth
Decrease Window:
RSI 14 - Sienna/Brown
Stochastic - 8,3,3 - SlateGray (Thinner Line), Lime, Gold
Stochastic - 14,3,3 - SlateGray (Thicker Line), Blue, Pink
50 Line - BlueViolet (I check with it as Purple)
Template # 2 (Solely Used for Intraday Trading or Chart Watching on decrease Time Frames)
It's precisely the identical as Template # 1 however it additionally consists of an indicator known as: JF_TradingTimes that reveals you when specific markets open and shut.
Notice: None of those indicators repaint after the bar has closed.
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Two Primary Commerce Entry Strategies Defined
Please Notice: At first, it is going to appear to be there are quite a lot of indicators and issues to recollect utilizing these templates, however I can guarantee you that after you perceive how every indicator works, and what the colours are telling you, all of it turns into VERY easy. I'll submit some charts displaying examples of every, and present some ways in which I take advantage of them.
Indicator Colours
> Inexperienced and Blue Colours At all times Imply "UP"
> Reddish and Orange Colours At all times Imply "Down"
> Not one of the Different Colours Used Have Any That means
1. Crossover Trades
2. Continuation Trades
Crossover Trades:
1. The HMA Line is Lime Inexperienced and crosses above the Yellow Line for lengthy trades OR the HMA Line and is Deep Pink and crosses under the Yellow Line for brief trades.
2. The candles should have simply modified from Dodger Blue/Blue to Pink/Orange for brief trades or from Pink/Orange to Dodger Blue/Blue for lengthy trades.
3. After each # 1 and # 2 above have occurred, ideally, you wish to provoke a commerce after the first bar has closed on the identical aspect of the Yellow Line because the route of the commerce or on the 2nd or third candle. Coming into any later than that's extra dangerous.
4. The commerce set-up bar is the first candle to cross over the Yellow Line AND is the alternative colours of the earlier candles. Each bars should both be: Pink/Orange or Dodger Blue/Blue. Pink/Orange for brief trades or Dodger Blue/Blue for lengthy trades. The set-up candle should shut earlier than you enter a commerce.
5. The 2 Stochastic Traces have to be above, or crossing above the Purple 50 Line for longs OR under for shorts.
6. The RSI Line (Brown) have to be on the identical aspect of the Purple 50 line because the route of the commerce on the time of entry.
Continuation Trades:
A Continuation Commerce is when there has already been a commerce in that route, however you had been stopped out OR received out for another cause and you then get one other sign to enter in the identical route.
You possibly can go lengthy once more if a bar turns again to Dodger Blue/Blue after being Pink/Maroon or Pink/Blue AND the Dodger Blue/Blue bar's shut is above the Yellow Line and all different indicators agree.
You possibly can go quick once more if a bar turns again to Pink/Maroon after being Dodger Blue/Blue or Pink/Blue AND the Dodger Pink/Maroon bar's shut is under the Yellow Line and all different indicators agree.
Variation(s):
If all indicators indicate lengthy, and the RSI 8,3,3 (the skinny SlateGray Line) retreats under the Purple 50 Line, then it crosses again above the Purple 50 Line and all indicators nonetheless indicate lengthy, you possibly can enter lengthy.
If all indicators indicate quick, and the RSI 8,3,3 (the skinny SlateGray Line) retreats above the Purple 50 Line, then it crosses again under the Purple 50 Line and all indicators nonetheless indicate quick, you possibly can enter quick.
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Exit Strategies
Simply a few of the attainable methods...
1. Candles change to the alternative colour(s)
2. RSI crosses the Purple 50 Line in the wrong way
3. HMA Line turns the alternative colour
4. A candle closes on the alternative aspect of the Yellow Line
5. One or each Stochastics cross the Purple 50 Line in the wrong way
6. The HMA Line and the Yellow Line cross to the wrong way
7. Cease Loss will get hit
8. Revenue Goal is reached
9. The market stalls, or slows right down to a crawl, or will get uneven
10. The pattern modifications route
11. Plus many others, resembling: Fibonacci spots, help and resistance areas, retracements, time of day, holidays, weekends, and so on.
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Cease Placement Strategies
Lengthy Trades: Just under the low of the 2nd bar again behind to the bar you entered on
Quick Trades: Simply above the excessive of the 2nd bar again behind to the bar you entered on
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Charts
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Trading Suggestions:
When utilizing the Crossover or Continuation strategies for entries, it's best to enter on the first, 2nd, or third candle after the HMA Line crosses the Yellow Line. In any other case, it's normally higher to attend for the subsequent commerce set-up. It is because, as Large E used to evangelise, most frequently candles solely run the identical colours for 3-8 bars.
When utilizing the Crossover or Continuation strategies for entries, ideally, you need to solely enter if BOTH Stochastic have crossed the Purple 50 Line (within the route you might be buying and selling), or if one has crossed and the opposite may be very near crossing the 50.
You MUST look forward to the set-up candle to shut earlier than you enter OR exit a commerce.
It is typically should riskier to enter a brand new commerce instantly after an exceptionally giant bar. So it isn't recommended that you just do it.
Everytime you enter a commerce, guarantee that the final bar has closed on the identical aspect of the Yellow Line because the route you might be buying and selling in.
When the 2 Stochastics cross in unison (or very shut collectively), it is normally a greater than common commerce set-up. However, you additionally want the opposite indicators to agree earlier than you enter.
At all times enter a cease loss instantly whenever you place a commerce.
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Foreign exchange Pairs I (Presently) Wish to Commerce Most:
GBPJPY - 4 Hour
USDTRY - Day by day
Trade Entry Examples
I want make clear the perfect entries for the two types of trades I discussed in my opening post. They are a Crossover Trade and a Continuation Trade.
Reference the chart below.
Crossover Trades (Example of a Long Trade)
1. The HMA Line crosses above the Yellow Line
2. The candles turn from Red to Dodger Blue/Blue
3. The bar closes above the Yellow Line
4. Both Stochastics (lower window) are above (or are crossing above) the Purple 50 Line
5. RSI (lower window) is above (or is crossing above) the Purple 50 Line
Continuation Trade (Example of a Long Trade)
At some point during a Crossover Trade you may get stopped out or have exited for some reason. For example, the candles may have changed to the opposite color or a bar closed below the Yellow Line, etc.
Here's how a Continuation Trade works:
1. A long Crossover Trade was just recently in effect
2. One or more candles changed from Dodger Blue/Blue to Red (or Red/Blue)
3. The HMA Line never crossed below the Yellow Line
4. The RSI remained above the Purple 50 Line
5. The 14, 3, 3 Stochastic remained above the Purple 50 Line
6. One or more candles change back to Dodger Blue/Blue
7. The 8, 3, 3 Stochastic dips below the Purple 50 Line and comes back up through it. That is the final signal to enter. * Refer to the chart shown below, in the lower window. Notice the Orange boxes. They show the 8, 3, 3 Stochastic and what I just described.
In Conclusion...
This may occasionally sound harsh, however I actually consider that when you can't ultimately be taught to earn cash buying and selling the Foreign exchange utilizing these templates, then you need to in all probability simply surrender buying and selling the Foreign exchange.
