MerchantPrince, I hope R.C. doesn’t get mad at me for saying this. It’s his original idea after all, but doesn’t it remind you a lot of the MMTT ? Except without looking down to the lower sub daily time frames. More of a daily / weekly. Also this is similar to the boll bounces. candle wick through the outer boll, change of color on the next one and trade towards center? Seems like several good trading ideas and they all have this in common.
Then I come up with the hi/low and do just the opposite!
RC,
Thanks so much for this.It is really appreciated.I have questions.Is this the same as the one you introduced sometimes ago about 2/4 Low,High LWMA
where you trade only on 4hr and up?
Also, i dont understand clearly what you meant by that bold statment,
Thanx in advance
Hedmaster.
Yeah, I noticed while reading RC’s reply that it sounded very much like the old price-wicking-outside-the-boll-bounce from much earlier in this now-legendary thread.
That it is so similar to what we are trying in MMTT that I also wonder how RC handles our ongoing problem with that particular strat: how can you tell when price has moved to it’s farthest point beyond the outer boll/LWMA/2-period MA/etc and is prepared to move back inward, towards that equilibrium?
Excellent!!!.This is all what i need for now.I like it when things are broken down to the simplest way.Maybe that is just the way my brain is wired. Now,when do you consider it ok to enter and exit trade on 4hr or Daily with this system?
Thanks for your help as always.Hope to learn many more from you in this thread and forum.
How
Greetings.
Headmaster.
As always, thank you for the wonderfully informative reply! It is much appreciated.
Have you noticed on your pair of choice, the EUR/USD, an average amount of pips that price often steps outside the 2/4 LWMAs? I mention this because I’m noticing in your chart examples (the first screen) that, should one place a trade outside the 2/4s back towards the channel, one would not need a stop loss much more than about 25-30 pips or so in almost all instances.
Has this been your experience? If so, a trader might simply act any time price moves outside the daily 2/4s, setting a stop-loss of 30 pips or so (in the example of this particular pair in the Daily TF). [I]This means that knowing the moment exactly when price changes direction back towards the channel would be irrelevant.[/I]
RC,
I figured out the answer by myself.And no need to answer this question anymore.This is really interesting.And thanks a lot.Truly, knowledge is POWER.
Headmaster.
The Support and Resistance lines can be manually drawn and there are many a discussion and writings on this subject. Today the Bollinger Bands, Linear Regression Channels and the like are considered Support and Resistance lines. The ones that people are using the most are the ones that work. The Fibs are another that has become popular so again they work because so many are buying and selling based on the subsequent lines they produce on a chart. If everybody uses them then they work. If they work eveybody wants to use them.
Everybody seems to have there own idea on the settings of the Bollingers and 20-2 is the most used. I use 9-2, 24-2, 36-2, 48-2 with the two most used being the 9 & 24. The 9 highlights the consolidation areas with the 24, 36, & 48 the outer limits of the price. The 48 will help to recognize reverses as the Bols-9 channel after days or weeks riding the bottom of the 48 channel moves up across the center to the top half of the 48 channel. The best way to view this is on the daily chart with all of them with thick lines and the centerlines as dotted or dashed lines. The difference between the 20 and 24 is very little and not enough to alter anything. So if you like 20, 30 and 50 then use them.
After watching this thingies for a long time it seems that the price hits the top bols line of the color it stayed with the most on the bottom. This also seems to be true with the centerlines but the angle of the bols can alter the final destination of the price and never hit any of the centerlines.
Reality is the price can and will go where the market takes it and the bols are just following along. They do tell a story however and it is wise to listen. I visually draw support and resistance lines off previous price positions as well as trendlines. I watch the fibs but not on my trade chart as I have enough lines and other indicators already. I use my own formulas to calculate where the high, median and low prices are heading and have an indicator with red yellow and blue dots showing them on my chart. They are 95% accurate and when the price hits or crosses one and also hits an SR, it is time to buy or sell. So the answer to your question is yes but just not a simple one.
How did everybody do on the GBP/USD today? I noticed all the so called experts giving advice on the pair saying it was going to 1.54 or higher. Although I look at their advice I don’t need it. Now that isn’t being arrogant as the fact is I just don’t care which direction the market ends up going.
The Market can go up, down or sideways and it really makes little difference in how I trade. The only plus is an up and down market like it was last night which was a gold mine. If you took the advice of the experts you lost your butt on the Daily. That’s why I have everything keyed to the daily as far as it’s general direction and I’m aware of where the daily S & Rs are located but my actual trades are done only on the lower TFs.
My initial trade is always from my analysis of the Daily but the fact that the price goes up and down and shows money on the table early it just always goes directly to my bank account. I then get in again in a counter trend direction if the chart shows that this is a prudent move otherwise I wait for a bounce with the trend.
Hi JohnnyBS,
Can you pls tell me if it will be adequate to use snake force mainly as a guide on the daily chart and then make an entry on the 4hr or 1hr?. Or would it be better to combine the snake and the channels.
And i truly wish you’ll continue posting those indicators.
strange some of your candles don’t look like mine on the 4h, difference in broker maybe. I’ve got Alpari demo at work. I can see why youre going short there. both daily and weekly at upper ma.
From your previous post, daily at the upper ma and weekly in the middle. What then? Still go with the daily right? It’s still going to move back into the tunnel.
I hope you are not referring to R. Carter or SanMiguel in your comment about “so called experts”.Most experienced traders here,including you,gave direction and advice to less experienced to know and learn about trading.The choice to trade a pair or not is up to individuals.
All we need and ask for is the help and direction in this trading.What makes PA behaves the way it does and how to track PA movement accurately,not criticism.
It is unfortunate that someone who used to give good advice and direction has turned to a unnecessary critic in this thread.
The experts as I referred too are the ones on the brokers sites. The message was don’t blindly follow somebody just because they get paid for giving advice. I disagree with them all the time but still read their advice. I just don’t take it. They are correct or at least partially correct more often then not but if I’m uneasy with their advice I go my own direction. I look at it like this, two heads are better than one. People ask for my advice all the time and then make their own decision. I would’nt want it any other way.
As far as SanMiguel or R Carter are concerned I respect both of these people and enjoy reading their posts and would never belittle their efforts. As far as I know neither has gone professional yet. I don’t think they would like the pay cut.LOL.
Here’s the skinny on indicators. I have at last count over 8000 indicators on file. The snake is an interesting one and interesting to look at but the simple truth is I don’t use it to make my trades. I use my own adjusted versions of the Stochastics and the CCI. I use the Bollinger Bands and the LRCs for support and resistance.
The snake is a good continuation of trend indicator but I advise using the bols and the LRCs as initial entry and exit guides and something like Robert’s method to make the final pull the trigger decision. As I’ve already posted before the daily is the king but trades should be done on the lower time frames. I make all trades on the M1 or M5. Don’t be staring at the Daily all day as it will make you go blind and possibly impotent. Besides watching cold tar on a roof in January is about as interesting and healthier as it’s outside in the fresh air.
Have multiple charts open like the H1, M15 and the M5 and watch the Price as it hits support and resistance. You only need to look at the daily occasionally to see how close to the price is to hitting a SR’s. As it approaches these S & R lines a reversal is likely. If it’s a support line then a bounce to resistance can be expected. The move will start at the lowest time frame and move up through each time frames one tic at a time. The move on the Daily is hardly noticeable until a few hundred pips have gone by the wayside.
Let me try to explain it another way. Put a tape in your VCR and tape today’s weather on your local news station. One week from now play the tape to see what the weather is going to be so you can go on a picnic. Does this make any sense to do this? Well trading off the last bar of the Daily chart is old news as the close is the only thing that the snake indicator uses to set the color of the bar on its histogram. The other bad news is the last two to three bars are able to change color and does quite often.
Indicators are all based on history which can be quite useful in foreseeing the probability of events in the near future. I look at the daily to read the probability of today’s events but I trade with the here and now which is no less than the M15 with an eye on the H1.
My advice is to quit focusing on the indicators and focus on the price action. You will never “SEE” the market and understand how it works by focusing on an indicator. Try this on any chart: Have only the Bols and the LRC on the chart and visually trade as the price moves from support to resistance and back again. Pretty simple to make a lot of hypothetical pips isn’t it? Why can even a moron do this on a historical chart and become a millionaire and a legend in his own mind?
The answer is simple and it is because you can still see the price action in front of it showing the direction the PA is taking and there is absolutely no stress. If the Price hits an Upperband of the bols you don’t mentally sell your long if you see the bols line flowing up with the price. You only mentally sell if the price moves down and away from the bols line. And lets face it the game is a whole lot more profitable playing it on the daily chart so this is where everybody plays this mind game of let’s be a forex millionaire.
The truth is playing this game just adds to a traders frustration when he can’t duplicate it on a live chart with real money. This frustration leads to a loading up of the charts with indicators that all do the same thing and tells you what beautiful weather it was today. The minute you walk out the door to get a little sunshine (make a trade)a cloud burst sends you running inside all cold and wet.:eek: Now we find you here looking for another indicator but really what you need is an umbrella because another indicator is just going to get you even wetter. A better idea is to just go outside stark freaking naked and then drying your clothes won’t be an issue when you get all wet again.:rolleyes:
Ok enough of my attempt at humor. Place the snake on an M15 chart with the bols and the channels and only trade on that chart. Look at the Daily and see if it’s getting close to a bols or channel. Next look at the H1 and do the same. Next move to the M15 and do the same. If either the daily or the H1 is close to an SR then making a trade on the M15 after hitting the same SR will provide a big bounce. For now just play the game in one direction which is with the H1 trend. As you get more confident you will see the countertrend moves and make money coming and going. Remember the price will likely reverse direction one hour from now so don’t lose track of the H1. The trend and countertrend will flip flop meaning the price is more likely to reach the SR and do it quicker. If you start playing this game and understanding it you will find the snake indicator is just taking up space on your chart and a stochastic and or CCI indicator does a much better job.
Now,when do you consider it ok to enter and exit trade on 4hr or Daily with this system?