once you complete the review let me know, and tell me if its easy to you to notice the both divergence between the rsi and the price.
have you sold the eur/usd as i told you?
Go check Forexmike thread on Donchian Channel trading. Thats the system Im currently working on. Simple to learn. A lifetime to master. As individual as each trader there. Buy high sell higher.
swing trade is so easy i can done it with rsi alone,
but i think people here, specially newbies are very sensitive about those who use indicators they think they are very ugly with big hairy noses lol.
price action is poor alone.
Hi davenz,
Dun worryā¦ i will optimize your strategy for you when i m off from workā¦ i will send you some screen shots laterā¦
From your strategy description, i know your problemā¦ you probably got the S/R wrong.
I can optimize any strategy and make it work
Davenz
Right now i am workingā¦
Cant type muchā¦
I want you to think about what is meant by 30ema on daily chartā¦ what it representā¦ do you know?
Price action is one of the simplest systems out there and if you use it like the Japanese rice traders did 400 years ago with Candle stick reversal signals youāll be using one of the oldest and simplest time tested systems on the planetā¦ If it was no good it would have been forgotten 399 years agoā¦
totally agreeā¦ the problem is when it does that lovely candle those days the end of that candle will mostly touch the targetā¦ specially for those who do it on h4 chart,
you need to know the swing start before that ugly candle. otherwise you will have two good signal per month and one of them will be a fake brake, reverse.
anyway best wishes
Truthfully, I do root for people like yourself and everyone here. The question posed had to do with ābest teacher or mentorā I stand by my post here, that the information ICT shares is outstanding with regard to getting someone to understand how price moves. I donāt need to make more pips than you. If I can average making 50-100 per week every week 45-48 weeks per year then Iām good. Iāve traded tick charts, range bars, harmonics, supply and demand, price action as defined by several different people, but the least amount of stress I feel when I trade comes from my understanding of institutional order flow. Iām not criticizing your trading at all. I am criticizing your criticism of the teachings of ICT. I donāt think you understand these principles well enough to be telling people they are not helpful. Again, Iām not dissing your trading at all. But right now, I like having a good idea of what the market is going to do the next day, so Iām not looking to change my approach. This forum should not be about whoās betterā¦ It should be about how we share ideas that help us all to be better than we were yesterday, and that is why I post what I do.
30ema on a daily chart
Represent 30 candlestick
It represent average of 30 DAYS!
(Exp. M.a.)
Its roughly a month. If price is trading above the 30ema line. Trend is deem as bullish, and bearish if price is trading below 30ema line.
30ma on a daily chart can be considered as trend determination for " so called 30 days trend " imo
Now for example, say 10ema cross 30ema on a daily chart and price is trading below both ema line. Trend is bearish.
Immediate resistance is taken as the price just above the 30ema lineā¦ and MAIN resistance for the 30ema line is a peak of a candle stick going above and closing under the 30ema. Sometime this peak can be pretty far awayā¦ thus your MAIN resistance level is damn far using a 30ema on a daily chart imo.
You are basically trading intra months!!
Phew!! Too longā¦ your capital must be big and lot sizing must be small enough so that you can have adequate margin for drawdown or averaging.
For entry according to your description,
You use 1hr chartā¦ do you still use 10 cross over 30?
On 1hr chart, 30 ema represent 30hours and 10ema =10hrs.
Ma is always laggingā¦ price is fasterā¦ now your immediate immediate resistance is the peak above 30ema and closing under for 1hr chartā¦ your secondary resistance is the above the 30ema on 1day chartā¦ and main resistance is the peak above 30ema on 1day chartā¦ which means your resistance determination is pretty farā¦ and not forgetting revisiting of price levelsā¦ is also a way to determine S/R. Your need to combine both.
So as to get an accurate S/R
Your S/R determination ia probably inaccurateā¦ thats why u always get stop outā¦
Personally I wouldnāt use this system cause I trade candle sticks and PA but Iāve been through the beginners cycle quiet a few times and am pretty good at learning new systems. Iām having trouble understanding what your talking about could you post some pics of what you mean?
Hi Mlaford,
I m currently posting with my android phone. Cant post picturesā¦ anyway, the 30ema is davenzās strategyā¦ he uses that strategyā¦ he should be able to understand what meant
I trade Price action on a daily chart.
- I always trade in the general direction of the trend
- Price must have broken a relevant S&R area then retrace back and retest the same S&R area
- once the S&R level is broken then holds in the opposite direction I will enter a trade after a candle stick reversal forms
There is a little more to it than that but that is the skeleton of the system I use. Iām like davenz I donāt have all day and night everyday to watch the markets and trade intraday. I also find Daily charts have less noise in them than hourly and smaller TFās which makes my stops more able to weather the news reports that create short term volatility. My charts are clean and simple and instead of sticking to learning one pair I simply put analysis on all the majors all the comdolls all the crosses, oil, gold and silver. Most days I donāt get good setups so I simply wait.
Thanks for your in-depth reply! I just got home so apologies for not replying sooner.
Would you suggest the use of smaller EMAs? Such as 5 and 10? Also, I tend to draw my S/R using the previous swing high and lows and have just been using the EMAs to identify the direction of the trend primarily.
Hi MLAlford,
Interestingā¦ Iāve heard of this type of strategy many times but have never had success with it. As you said āthere is a little more to it than thatā, maybe you could explain the āfinerā details to me? Possible show some examples? Iām intrigued as Iāve read and heard of people having great success using this method.
I also note that you said āmost days you donāt get good setups so you waitā ā¦ maybe thatās where I went wrong when testing that strategy? Possibly forcing tradesā¦ this could be my āah hah!ā moment I thinkā¦
Yeah davenz. Here is one trade I took this morning I didnāt wait for close confirmation on the candle and I really shouldnāt have been trading on Monday. If you forget that I broke my no trading Monday and always wait for the candle to close rules it is a classical set up in this picture.
Price breaks S&R(lime green lines) retraces back to find support then forms a Bullish engulfing candle stick reversal signal.
You can see where I entered the trade and price has fallen back from it since then which is confirmation that I should always follow my rules. Will see where this trade ends up but the chances are itāll fail which will reinforce the fact that I broke my rules and I should never break my rules Punches self in face.
Repeat after me.
I will never break my rules, if I break my rules I will never become profitable.
I will never break my rules, if I break my rules I will never become profitable.
I will never break my rules, if I break my rules I will never become profitable.
If you need any further clarification hit me up.
Mark.
I might add that I have no problem showing you everything I have done from size of lot to TP and SL placement. Although these things will also need a bit more explaining so you can understand the thinking behind them.
I keep telling new traders that the market is the best mentor and the only mentor with answers to all your questions.
Hi davenz,
What ma to use depends on how long you intend to WAIT for your trade to be RIPE.
Reallys boils down to how much time you can afford to spend on the chartā¦
You have to customise it accordingly to your schedule
Good luck
Hi MLalford,
I see your methodology nowā¦
Your strategy have lots of room for improvement.
Define your support resistance properly. Please go thru babypips school on S/R again. Digest it properly. I think your S/R determination is not good enough.
Forex Support and Resistance
You can also try adding a simple moving average line of 5 and 20 on a daily candle stick chart to help you too.
However SMA fails terribly when market is rangingā¦
Godspeed and many green pips ahead