I always hear people say determine your trade bias on the higher time frame then scale in to look for the right and best entry possible
But that has been harder than i ever expected
Please i need help or advice on determining my bias on the higher TF
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Hi Kerry5. Here’s one way to determine bias.
Drop in 2 Weighted Moving Averages (WMA) on your daily chart. Both WMAs will be set at the same period. I’ve set them to 9 periods in the example shown below for the CAD daily chart. One WMA will be of the “close” while the other will be of the “open”. My “close” WMA is in blue and my “open” WMA is orange. You can play around with the WMA period to suit your needs.
When the “close” WMA (blue) crosses above the “open” WMA (orange) you want to be a buyer.
When the “close” WMA (blue) crosses below the “open” WMA (orange) you want to be a seller.
Note that when the averages stack, i.e. the space between them increases, it indicates a strong trend. When the stacking decreases and the averages seem to be slicing through the middle of the price bars it indicates that the market is ranging.
Let me know if you have any questions.
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Man this strategy will whip you around until you blow your account. Do you use this setup? If so, how? Because if you buy when above or sell when below in ranges itll just keep stopping you out.
What makes you think I’ve outlined a strategy? Please read the title of the post and my response again.
Edit:
I see why you are confused. You’re taking the phrases “you want to be a buyer” and “you want to be a seller” to mean “enter long” and “enter short”. That is not what they mean.
“You want to be a buyer” means that you should take long positions when your strategy provides a signal. And vice versa for “you want to be a seller”.
Having said that, I have previously posted a swing strategy utilizing these WMAs along with a filter to keep from being whipsawed. See the linked post below.
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In this thread you advised using wma 9 open and close. In the thread you have linked above at the beginning you advise wma 8 open and close. Then for your example you use wma 7 open and close. Why do you keep changing your mind? That’s why I asked are you using what you are advising? The example you so clearly explained is from 2016. Did you not think someone would notice?
Also your demand zone is not right looking at the supply demand video you posted. It should be lower to the origin of the move to mark the distal and proximal lines. You’ve fit the zone for the chart looking in hindsight. I’m only learning about these zones so I watched the video, maybe you know more. But it’s all very inconsistent. Which begs the question how do you decide to use one method over another for any trade?
I personally never use multiple timeframes - but I rarely trade intra day
I do believe though there is enough info on any one timeframe to give you a good heads up as to what is happening - even intra day.
IMO multiple timeframe analysis is no different than indicatoritis. That is it makes us comfortable but doesn’t actually add to our bottom line.
Don’t ever be afraid to go against the general consensus when developing a trading plan. Whatever approach you use must feel right with you
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@Rickster99, I don’t know whether or not you are aware that you have a tendency to rub people the wrong way. If you’re not aware of that as yet, now you are.
You also don’t read posts very well and then you go off the deep end with questions that you should already have the answers to.
I had half a mind to ignore you but I’m going to answer your questions more for the benefit of the newbies than for you.
Let me point out what I said in my earlier post in this very thread.
The settings that you use can vary depending upon the pair you’re trading or your trading style or just what feels right to you at the time. There is no prescribed setting that you need to adhere to. Take note of the concept, not the exact settings!
You should know by now, since we’ve butted heads often enough, that I’m a pure price action trader. I know that you are a fundamental trader so why the sudden interest in technical trading? I don’t use indicators at all. I trade the naked chart.
Here’s what I said in the linked thread outlining the strategy:
What are you talking about? Forgot to take your meds again? I wanted to draw everyones attention to the date. I said the following and I’ve bolded the relevant line so your mentally challenged mind can read it this time:
Does that look like I’m trying to hide the date, which clearly shows in the attached charts? The concepts are more important than the period the example was drawn from.
Why don’t you show us how its done? Pull up that same chart at the same location and you mark up the demand zone.
You ask a lot of questions in a very abrasive manner but I have never seen any strategies from you or any other helpful posts or responses at all. Show us your trading strategies if you have any. Until then, talk to the hand! I’m done answering your rude questions.
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You must use instagram as this is a common reply when traders are questioned. If you use what you are advising then you would have no problem clearly answering questions. If you feel my questions are abrasive (and I definitely dont mean to be) its probably because you’re going on the defensive. And theres no need to be if you’re being completely transparent.
This is not helpful. It’s like me saying you can use the 50 moving average or use any moving average that feels right to you at the time.
Also giving a recent example would be more helpful to show that it is repeatable. A trade from years ago doesnt really shout out reliable to me. This is just my opinion though.
I trade fundamentals but I’m moving away from it because it takes too much time to keep reading news and articles. My weekends are all used up looking at economic data and press releases. It’s not something I can do long term so I’m trying to learn a technical strategy maybe mix the two so here I am on a thread where you’re advising something.
I dont need to, it’s very clearly shown in the video that you posted. Only you’re not following it. That’s why I questioned it. You’re posting a lot of different things but then not following it. It makes me question how reliable it all is if you’ve modified it. This is pretty logical though, not a personal attack. It could be anyone posting this, my questions would be the same. If you post one thing but use another: why. It may be coming across wrong by text but I’m genuinely just asking.
I never use instagram. If you believe that my posts are unhelpful or the information is incorrect then I invite you to ignore them. Don’t read them, don’t comment on them and certainly don’t ask me any questions for I’m not going to answer them any more. So, stop harassing me!
@Rickster99, @QuadPip, using the Daily TF and some basic risk management this could easily be traded. Have a good look at the turning points… simpler to see the start of trends than the usual MA-X.
While using the WMA9 gives early sentiment… try a Time Series 9MA… it’s practically predictive…
Always… think outside the Box…
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Am I right in saying on this chart for the last month you wouldnt have traded it as price is just crossing the ‘channel’. Also where do you get time series wma. My broker doesnt have that indicator. Is there a particular broker you use?
@Rickster99, QuadPip wasn’t suggesting to trade his chart… He was suggesting to use the the 2 x WMA9 (Open and Close) on the D1 chart as Bias / Sentiment … for the lower TF’s
ie: if the Blue is above the Red… OP should be looking to only open long positions… Red above the Blue, OP looking for shorting opportunities…
The OP asked for a system to help determine the longer TF Bias… So he can trade on the lower TF’s.
Time Series MA… Should come with your platform… See Below…
@Rickster99, Also known as the moving linear regression indicator or the regression oscillator, the Time Series Forecast indicator illustrates the statistical trend of a security’s price over a given time period. The trend is based on linear regression analysis. The Time Series Forecast plots the last point of multiple linear regression trendlines. The Time Series Forecast does not exhibit as much delay as a Moving Average when adjusting to price changes.
I am shocked… there is so little information on this indicator… comes standard with Ctrader Platform…
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And theres the red flag. For someone who gives answers with so much authority you really dont like being questioned on them. It’s hard to ignore comments that dont make sense. If they’re for beginners, then I would worry even more so that they dont get led down the garden path. The whole point of this community is to save people time to not make the same mistakes we did. Not make them backtest every variation of a moving average. I hope you think before you post next time.
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You’re talking to the hand, specifically, to my raised middle finger!
Thanks for having a look. I use ig or mt4.
Yeah I only questioned whether the advice hes giving is something he uses as it’s not consistent. Looking at how defensive he got worries me. I pointed it out, that’s all.
I think purple trading has ctrader. I’ll try a demo.
Has a free Demo version… MT4. It eliminates some of the lagging of normal MA’s…
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Wheres the demo I can download. I might even try ctrader.
Trends, while this is certainly a good indicator, it does overshoot price quite a bit. The gold standard of MAs is the Jurik Moving Average (JMA). It’s a proprietary commercial product but I found the code for it on Trading View. Code it up on CTrader if you’re inclined to do so. Another very good MA is the T3 Tilson MA, which I think is probably the best free ma out there. I’ve programmed it in my system.
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JMA and T3 Tilson indicators were the basis (code) for the XLV4 Indicator on my Befuddled thread…
I have the developed the Time Series Forecasting into a far more accurate and predictive strategy than displayed in the chart above… It will never see the light of day in any forum…