Re collapsing tunnel. On the daily this tends to happen at 24 hour change to knew candle and is bad on Sunday and further compounded with Sunday/Monday new candle. Thats why when trading off the daily tf its only good for Tuesday-Friday. The weekly is much better re tunnel spacing.
The high HA and low Ha 2:1 on my set up doesn’t have the middle band just upper & lower. The 2 LWMA HA high & low is a better fit than a center 2:1 boll band.
Ok when in an uptrend you will find PA hits the lower 2:1 boll (upper band) and bounces across the tunnel and very often pierces the higher 2:1 boll (lower band) and carries on up to the higher band and beyond. Same in a down trending PA but in reverse. San PA will much more often follow these rules than hit the 2 HA LWMA. The 2 HA LWMA is only hit on the trending side of a move across the tunnel Rarely on the contra side to trend.
Been one my whole life. Built about everything imaginable in construction.
I wish I had been a trader…
Be cool to see some pics of what you are doing. Over here, I’m usually copying European style of some sort. Us damn Americans seem to want to live in a new house that looks like the old world. Usually a 5 bedroom 6 bath monstrosity built on a hillside. Ahhh luxury.
Gimme a condo, or apartment in the city where I don’t need a car. And preferably close to the ocean. Doesn’t have to be right on it, but a view of it would be nice;)
I am closing out the week with a 6.1% gain on my balance. Based on a lose following of RCarter’s strat I tried letting trades run overnight I messed it up with lot size and to tight a stop. :rolleyes:
I went back to scalping multiple entries in the same direction as someone who is trading RC’s daily/weekly or MMTT would be going. Its very eyes on and has a higher risk than what most of you guys are doing but it works for me. The higher risk is acceptable to me considering the size of my account and the amount of trades I have made with this method and MM. I am trading a real account now not a $10 practice account its probably not big to some of you guys but thats all relative. I recovered my losses and then some from the few bad trades I made earlier in the week trying new things.
In the last 2 days I made 12 trades won 12 trades for 165 pips total:D I can’t trade on Friday due to work so thats it for me this week. Feels good to end the week on a winning streak.
And don’t be apologetic for using what works for you.
It’s odd to try to wear someone else’s shoes in the trading game. Some things fit, some things don’t. At the end of the day, this is a lot like golf.
Hmm… I can plough a field at golf… lost a box of balls by the 9th and got kicked off the green… no hope for me then. Now if were talking slice… when I can hit the dam thing… I’m a pro.
Good for you Shr1K! Your in the hot seat no one else and if your getting consistant results your a 5%'er. Friday is usually low volume in any event… good call!
But with a 2 average the 2:1 whether linked to the actual candle or the HA candle is always going to be directly attached to the high/low?
When looked at in hindsight on the weekly or other it appears like the candle just bounced off the line to the pip but. As per posts with TalonD, you can see if you switch to a 5min chart that the bolls, on a new candle open, immediately flip to the high/low of the candle regardless of where it is inside the LWMA tunnel.
initially on candle open as price starts moving it pushes the tunnel open. At some point when you think the tunnel is open enough, lets say average width?, then when price is near one edge of the tunnel you are betting that it will move back into the tunnel and not push it wider. But here’s an idea, price usually makes a daily high or low within the first few hours of London session, say first 5 hours. then heads the other way. So wait for and look for that high or low which should be near a tunnel edge and trade it back in. What do you think?
I’m mainly focusing on the application, waiting for a tunnel to widen, retrace, go back to the boll and then take a trade just doesn’t compute - especially when trading a weekly timeframe. Even if the boll is applied to the HA candles, it’s just the HA high and low unless something drastic out of the 68% PA happens.
Ah now I see what you mean. Yes thats true the lower 2:1 high band and higher 2:1 low band will always be attached to either end of a candle/ bar. But thats the point, its indicating the hi/lo of the price range over ‘X’ number of tf candles/bars.
If one places a trade on a trending pair at the counter edge of the trend i.e. a trending long pair, bull coloured candle and at the 2:1 HA lower boll (high band) theres a high probability that this will become a winning trade.
PA might go against the trade awhile, even to the lower low band but ‘normal’ range will by definition be within the 2:1 high/low bolls.
The price range is 2 in this case and because of the averaging, I’m still not sure how the 2:1 actually offers any help.
I can’t see how the 2:1 boll offers any guidance on a normal [B]price candle[/B] because although it marks the range, the range widens.
For example, we have an uptrend and the LWMA tunnel states the range is 1.0400 to 1.0100 for the current week. So, we are looking to get a buy entry in at the lows somewhere around 1.0100. The weekly candle opens at 1.0300 nowhere near where we want to enter. The 2:1 boll applied to low price at the time of opening is also 1.0300. As price moves lower, the 2:1 just moves down with it.
So, instead you apply the 2:1 bolls to the [B]HA candles[/B] but for the most part it’s going to be the low/high of the HA candle (with the exception of a few pairs this week like AUDJPY and NZDJPY) so why not just use the low/high of the HA candle as the entry price?
You could do San. But you will find the 2 LWMA hi/lo is in the middle of the 2:1 high low and as weve talked about PA will very often not reach the 2 low LWMA when trending up but will reach the lower end of the candle/ lower 2:1 boll (upper band). And the lower 2:1 (lower band) in this case is an ideal indication of where to place a SL just outside.
Edit: I currently have a long taken at the low HA 2:1 (upper band) on E/A at 1.443 which is -73 after PA continued on down but not yet at the lower 2:1 (lower band). But I am not concerned as the range from my entry across the tunnel is 514 points… plenty of room for the trade to move into plus figures.
but will reach the lower end of the candle/ lower 2:1 boll (upper band). And the lower 2:1 (lower band) in this case is an ideal indication of where to place a SL just outside.
I had to read this second bit a couple times before I got it. All this upper lower stuff can get confusing! Reminds me of the ‘I can’t believe it’s not butter’ routine. Anyone want me to post it? It’s good for a laugh!
Ok…ignore the LWMA for the moment…just to strip it down
Assume we are in an uptrend, ie we want to buy somewhere, and all you have on the chart is:
2:1 attached to highs
2:1 attached to lows
Price opens on the next candle near the highs
The 2:1 just moves with the price not really offering a guide to entry point.
If you want you can follow it on a 1min chart pretending that they are weekly candles just sped up.
Yep its no good on a new candle, nor is LWMA hi/lo. Thats why I use it on daily or weekly across the current candle and not the new one… every indicator has its limitations.
But it’s the same difference, new candle on any chart is just a new candle.
For the 2:1 to be useful, price would first have to move to the lows, retrace away, then come back to the lows for your entry.
Sorry to be pedantic but I just can’t see the use of it in live data. In hindsight it looks perfect because the high /low of the week hits the 2:1 to the pip - no indicator is that perfect
The LWMA does not attach itself directly to the high/low of the candle - must be something to do with the 1SD of bolls.
By the candle setting it’s range (although the HA will probably already give you defined ranges) it will have to have already hit a low and high for the week and then you take your entry. I would imagine that couldn’t be done even on the first 2 or 3 days of the week sometimes…
I’ll run it through a weekly candle on a video just to display it…
assume an uptrend in progress. so you are getting close to the end of a candle. The channel is wide open and price is either near the upper edge, lower edge or somewhere inbetween. New candle opens, channel snaps shut. If price is near the bottom of previous candle then go long. if price is in the middle or near the top of previous candle then wait for channel to open up some. Wait a day for example if you are watching the weekly tf. And in that case wait for price to be near the bottom to enter a buy. Use the lower 1dev line of the bottom boll as a stop loss. Use the center channel as tp1 and the lower 1dev line of the upper boll as tp2
