Well this thread on trend trading is now here as promised. Indeed it has had a long gestation period. I have prepared many charts beforehand from last year especially for this thread.
I take this opportunity to thank all those posters who have welcomed me and defended this new thread. I suspect there is power in this thread – it it being attacked before it even starts!!
I am an old man and have everything I need in life.
If this thread helps someone become a better trader then I will be satisfied and have achieved my aim.
This thread is an answer to some of the criticisms of my candlestick trading PDF.
For that you had to wait until a candlestick pattern actually appeared and that meant continuous monitoring of the computer screen.
Further the method is a knife edge method. If you did not get the analysis correct beforehand, you could potentially make substantial losses.
This thread hope to address those matters………..
All can post here and all ideas are welcome. However, it will be a strictly practical thread. Philosophical posts will only contribute to a waste of time and are not exactly welcome – those who know me and know my style will already understand this.
This thread is written with new traders in mind.
I will try to keep matters simple.
That is not to say that experienced traders will not benefit from the material herein. Experienced traders can bring great ideas to bear so that appropriate modifications can be made to the ideas already presented.
Apart from the first few introductory posts, this thread will be entirely pictorial, that is, all explanations are by way of using charts and diagrams.
As a retired school teacher, I know that this is the best way to learn.
Please note that this is a guided thread.
The answers are mostly already worked out beforehand by me.
But modifications are still possible – there are great brains on this forum!!
All relevant discussion and useful ideas/modifications are welcome.
However, understand that if there is an argument between two posters and the matter gets right off the track, then I will have to pull the thread back into line.
After all, there is a potential syllabus.
There has to be.
Otherwise, with a thread like this, we could even end up talking about such things as telekinesis!!
The only people not welcome on this thread are trolls, scammers selling something and dreamboat philosophers.
I ask that all posts be practical and relevant.
This thread will produce a definite method of trend trading at the end of it.
In compiling the material for this thread and devising the trend trading method outlined herein, I have made use of the ideas taught in the following books (although not everything, of course, is from those books)……….
Trend Trading by Daryl Guppy, Wrightbooks 2004, John Wiley and Sons Australia.
Chart Trading by Daryl Guppy, Wrightbooks 1999, John Wiley and Sons Australia.
The NEXT STEP to Share Trading Success by Leon Wilson, Wrightbooks 2005, John Wiley and Sons Australia.
Dynamic Technical Analysis by Philippe Cahen, 2001, John Wiley and Sons.
Bollinger on Bollinger Bands by John Bollinger, 2002 McGraw-Hill.
TECHNICAL ANALYSIS Power Tools for Active Investors by Gerald Appel, 2005 Financial Times Prentice Hall.
Getting Started in CURRENCY TRADING by Michael D Archer and Jim L Bickford, 2005 John Wiley and Sons.
FX Trading by Alex Douglas, Peter Pontikis, Larry Lovrencic, Wrightbooks 2006, John Wiley and Sons Australia.
The Secret of Candlestick Charting by Louise Bedford, Wrightbooks 2000, John Wiley and Sons Australia.
Active Investing by Alan Hull, Wrightbooks 2001, John Wiley and Sons Australia.
Technical Analysis from A to Z by Steven B Achelis, 2001 McGraw-Hill.
In addition I have done much searching on the internet and much personal testing of everything that has been found useful.
I wish, therefore, to point out that this thread is a properly researched work and not a junk thread.
All my charting is taken from my demo program of GFT, which is my broker.
My live program chart remains secret and unaffected for safety.
I will be listing quite a bit of computer programming language which is used in the GFT program.
This programming was done by me last year.
I will immediately thereafter ask that someone, if possible, translate the programming into MT4 language.
Throughout this thread I will be using different coloured candles, such as green/red…….yellow/blue……yellow/dark grey……light grey/red…..and so forth.
This is done to allow for flexible thinking.
The mind tends to get into a rut and suffer from reduced competency if we only use one set of colours.
Individual colors allow posters to customise their input by having a particular colour combination that is a characteristic of their posts.
In each case I will use the darker colour to indicate a down candle and a lighter colour for the up candle. (recommended).
The thread has been divided into topics.
Each topic is a section of subject matter.
When that matter is brought to conclusion, a new topic will start.
The begin of this thread will (hopefully) be very interesting and attract many posters.
However, quite deliberately, I have made the middle of this thread rather boring and unattractive.
Because this is a powerful method explained herein and I want only those who are truly dedicated to it to continue on in this thread. The final research done here will consist of the work of every contributing poster.
All the dreamers, philosophers, greedy people after quick riches, impractical and vague people need to be removed before the end of the thread.
This thread is not for them, they will not understand it, nor find it useful…………
Towards the end of the thread comes the climax. The material will be simplified and great surprises will occur. But this is only for the dedicated and those determined to succeed.
How long will this thread last?
With the material I have prepared alone, we could be looking at least at some 75/100 pages (allowing for charts). Now with everyone else on the bandwagon, well……………??
There is, however, a definite trend trading method at the end, and a PDF showing how to use the trend trading method is in the making!!
It will be my 2nd PDF.
Lets start by looking at our previous chart first.
Lets look closely at a section of it
Using the instant magnification selection tool of GFT I selected the right hand section of the previous chart >>>
The original trend is shown in the original blue (double blue line).
But looking more closely, we see a whole new picture – a host of little trends.
The down ones are shown in pink, the up ones in green.
What are we to make of this?
Can we trade the main trend in blue?
Or must we first see and trade the pink and green trends?
How do we know how many pink/green trends make up the blue trend?
What about different time frames?
Are we just looking in hindsight and not realising that this may not be possible in real live trading?
We need to get clear answers to these and more questions.