I can’t mistake that Engulfing candles don’t need to be
full range engulfing, two examples here where full range
is not engulfed but body engulfed and with very
profitable results!
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Four TDI trades today, each entered green over red. Two reversed
on me whereas the other two did better
The two that lost had this in common:- a good decisive angle of
cross over red but green was pointing up when red was
pointing down!!!
Trade in direction of RED! when green crosses red on first
candle colour change
EU at 18 month high but I have a compelling sell
set up. red is down on H4 and green crossing
sharply down
entered on second candle.
The EU trade worked well for 50 pips.
Knoxville Divergence, recent missed weekly pivot,
red turned over and sharp green cross angle down
I used Todd’s guide of TP 50% toward missed pivot.
worked perfectly this time
a surprisingly good day
a second set up lost badly because it wasn’t a set up
- perfect divergence, missed pivots, cross of TDI but
ignored the fact that candle had no body
so it immediately reversed!
but three trades won, all at or just after CAD news
so I will monitor trading at news time with this system
in conjunction with Eelfranz’s approach, only seeking
around 15 pips. This non greedy approach actually
seems to work - on the H4 it does usually move 15 pips
at least before retracing at all.
even a SL of 10 pips should see most win with a
positive RR ratio.
Also looking at M15 to watch for cross of 5. -
a close here may result in BE or no more
than -5 pips.
I know Eelfranz was very cautious about not giving
his initial gains back
so better than 3% today minus the non set up trade
which was careless stupidity. Even 2% not bad
Although this journal is just precisely that, a record of things
that seem to work and things that don’t, nevertheless I note
others are looking in. I’m not recommending anything but
some of my references might not make sense.
I am looking at an Engulfing candle system but also
trialing a system found both here and originally on FF.
If you are interested you can get more information
and pdfs from the thread entitled ‘Big E Trading’
In the short time I have been trading this simple system
I have been very impressed. Many thanks to Johnny Kanoo
and Big E. Very many traders have been helped.
Just watched a TDI youtube video for Binary Options
He recommends that Green first touch upper or lower
blue channel lines on TDI
Why not? so I’ve reinstated them and opened three
trades. Unfortunately my broker platform has crashed,
my second broker has 20 pips spreads around 11pm GMT.
so I’m just using horizontal lines to represent entry at open of
candle, SL under candle ( we’ll see if it was hit ) and TP 15 pips.
what I notice already is two of the trades are starting to move
and one isn’t
any clues?
yes! the two that are moving, both red and yellow are bending
round to new direction
the one that isn’t moving, red is bending round but yellow looks
more like its not for turning, and candle isn’t crossing it
maybe a rule that candle must cross yellow convincingly and
yellow and red must be bending round - but we’ll see
Last night’s three trades failed. EU came to 1 pip
of TP but the other two did nothing. but plenty of
opportunity to get out at BE.
I think trading graveyard shift responsible here
but backtesting sharp angle is key. and only
skimming 15 pips. you can often get 100 and more
but then many reverse after 15 - 20 pip start
Today I’m looking for 15 pips on EA
Also noticed that when green is outside of blue
channel lines and crosses through blue and red
at a sharp angle, it always proceeds to centre line.
not always straight away in which case it might end
up with a small loss, but most of the time you will
get your 15 pips quite easily.
as we can see, it’s better to come in from the outside
than to start around the centre area
Finally I might have cracked it! and if I haven’t the
fault still lies with me and not the system.
I think this morning’s trade might just be a perfect
model for me to stick to
Trade ONLY London and NY session! Today
was London session that Big E recommends.
- The market needs to be moving
and once again there was GBP News -
invariably News causes some movement
and we see a perfect example of green going
right outside of everything, below 32, below
lower blue channel, then crossing up through
32, lower blue and finally crossing red -
Nothing much to say about the HA candles except
that I waited to enter until there was SUBSTANCE
to the actual body.
I only looked for about 15 pips, I didn’t measure
exactly as I saw the tight consolidation around
that area - it was actually 18 pips which was
more than I expected - Its been an hour since
the TP was hit and it only ever went 10 pips
above TP and has now returned to around
the TP mark - obviously I don’t know where it
will go later, but again, looking for small gains
might be the right approach, or at least taking
most off the table when you reach around the
15 pip region and leaving a very small position
to carry on if it wishes.
at the moment I am happy if I can just get the
15 pips consistently.
Today’s trade was just like the two circled examples
in the post above although I notice immediately after
the second circle green went just out of blue and crossed
red and price reversed for a loss!
REASON: Green never went below 32 or even anywhere
near it!
Its the old ‘rubber band’ analogy, unless the ‘elastic’ is
really stretched it won’t catapult price in the opposite
direction -
so whatever happens anywhere central in the
window will be, and has been far less reliable.
I also note that Big E might only cherry pick
two trades a week.
That means passing over literally dozens of
trades that must surely qualify, or come near
to qualifying
This system works - unquestionably!
Knowing exactly what set ups to cherry pick,
and having the discipline to walk away from
everything else is the difference between
winning and losing.
Engulfing Candles:
Just noticed two set ups that both were
profitable on H4 but only for 50 pips and
40 pips respectively. Both were counter trend
Trading against trend is tricky but there may be
opportunities if you just aims for 30 pips then
switch to M5 and take your cue from price
action and get out at first sign of price reverting
to the original H4 trend direction
It actually sounds like quite a smart approach
to my original strategy in the first posts of this
thread - will monitor
Similar formula to the EURGBP winner earlier
on the EURCAD
green right out before crossing everything
decisively
TP at 20 pips which is nearest resistance that
has already been hit by last two candles.
It may exceed that this time or go into
consolidation, but the hope is it will
at least hit my 20 pip TP
Two winners today and I think I’m getting nearer to nailing it.
average RR is 1:1
this is scalping pure and simple
on this trade like the last, price barely went passed TP
Looking at H4 can be misleading. you can see that TP and
SL were both hit by the same candle.
so supposing SL was hit first?
I checked what actually happened on M1 below
price easily hit TP but only went 6 pips beyond. on
the earlier trade same thing - price only went 10
pips beyond. so just a quick scalp.
on this trade price reversed beyond SL level
but to see the chart pattern on M1 is encouraging.
price went quite a while after hitting TP before
forming a double top and reversing to SL
at some point after any TP is hit, price will
always eventually hit SL level
of course I must ensure that SL isn’t usually
hit first - I think Big E already checked that.
Ideal trade/ as today’s two winners but nice
candle count with candle bodies diminishing
in size as bullish/bearish power on the wane
and hitting S/R zone as green crosses red
if candle changes colour and there is
substance to it’s body as green travels
from right outside decisively up through
red -
there should be 15 pips at least, and possibly
more if no near S/R zone nearby, but don’t get
greedy-
if present at computer. when price hits 15 pips
switch to M5 and get out at first sign of reversal
even if it proves to be a false alarm.
try to save the 15 pips but hang on for more if
price action dictates.
the most profitable system I ever traded was a
strange divergence system that waits for divergence
to occur then you trade in the direction of missed
weekly pivots after a break of trendline.
it wins around 75% of the time providing you don’t
have a stop. so you can go 300 pips the wrong way!
to compensate for this you wait for divergence to
occur the next time and increase lot size x 10
but set a much more achievable TP
I never liked the sound of that
apparently the trick is to trade ultra small so a
-300 pip loss wouldn’t be a problem and your
x 10 rescue trade still only risks 1%
I never did a rescue trade.
Today was first time
Miraculously, the rescue trade almost never loses!
I still find this hard to believe.
Presumably if it ever did lose you wouldn’t rescue the
rescue trade with lot size x10 x10!!!
I guess you just take the 1% loss, although next time
there is divergence I’m assured it absolutely will
not lose, so you could go in again risking 1%
I still see no real reason to go so mad with the x 10
lot size
I would prefer a stepper plan whereby first trade
might be risking 0.5%
rescue trade risks 1%
and with 0.5 increments the third stepper would
be 1.5% risk
a total risk of 3% but with several assurances
one of the three trades will always win.
well today saw the first rescue trade win
the first trade lost for just -85 pips
rescue trade seeking only 40 pips but equivalent
of 400 pips at x 10 lot size
I might well go for the x10 rescue strategy if I
gain confidence with the system on demo.
Back to TDI system, I didn’t want to deviate from
my plan but I saw a great looking Bounce set up.
Not a cross but a bounce off red.
it seems to work well
Big E didn’t usually bother with Stop if he was around.
I didn’t with this one. Price only retraced 6 pips before
hitting my 15 pip TP just as Big E says
I was mainly attracted to the PA, it looked like it was moving
up after a brief consolidation.
not a new trend, but some move up at least
I only need 15 pips
another divergence trade. very small micro lot size
no stop. I hope it loses so I can test the rescue trade again
Two nice winners on TDI EURNZD for 44 pips and 23 pips
I currently still have a trend following PO opened
as there is strength in Euro weakness in NZD
but that is just testing out a currency strength
indicator
so far Big E’s TDI system is proving to be
extremely robust which may account for the
80.000+ posts on his thread
and on TDI EJ 15 pips banked and hoping for a further
50 pips under resistance. I’m doing so well I had better
watch that overconfidence and greed don’t kill the
golden goose. update: closed second trade for 23 pips
Several trades today over three systems.
Two engulfing trades supported by currency strength analysis
One TDI trade only today, a bounce off red on AUDNZD and
aiming for just 15 pips as although NZD is well down across
the board, AUD, whilst up om the chart is not so great on
currency map over last few days
Three Divergence trades on very small lot size, enabling rescue trades
if they fail.
Here is the TDI trade - There is also a sell trade which is a pre existing Divergence trade on very small lot size. Good record keeping is
the issue now - I am keeping my Contrarian Divergence trades on
another PC to avoid too much clutter.
