It’s better to not lose anything. If you get stopped out with a few pips gain, you can try again later.
you didnt understand …
For exemple I do long position trade. I open trade off H30M chart. The price went 100 pips or more until it starts forming H4 retracement.
Now I have to deside to close my position with 100 pips or keep the trade ( becouse I open the trade for long position trade)
or I just need to wait and see if the retrace can come back to the entry level (was this a good entry for long position trade or not)
You are right, I don’t understand your question. If you went long on the M30, and are 100 pips ahead, the H4 cannot be turning to head down. If it was headed up when you entered the trade, it must be up more now. Is your question how much of the 100 pips profit should you risk to follow that higher time frame (H4) trend up? Essentially, are you trying to convert a 30M trade into a H4 trade?
yes, two days ago I have entered short off the H30M chart and I was following it until retracement on H1 chart or even H4 (I dont remember) then I took profit at the Lower BB on H1(or H4) and retracement rised higher then my first entry was.
and I made the second entry at the better price.
its the good case.
But I always doubit should I close the trade at the lower band becouse I dont know how strong retracement would be.
If its un understandable again just never mind. its ok
Graviton, you always wait for the retracement line to be broken to enter a trade?
If you are going to enter short, you enter short when the retracement line is broken and then you take a look at the 15min and 1h stochastics? I ask yo this because by the time the retracemente line is broken the 15 min or 1H stoch would be in oversold area, and you would have to place the SL a little higher.
Take a look at thje EUR/USD 1H chart today. There is a retracement line. and the 1H stoch is going up, but the 15min stch is already in overbougth zone. How would you manage the trade?
Please could you explain how do you use the stochastics and the break of the retracemente line. And where to place the stop loss. Is not very clear for me yet.
Thanks! 
Well, I think I understand your question better now. The fact is, you never know how far a retracement will run. That’s why I have a rule to at least exit with half my profit from a trade. That causes me to exit from many trades that would have continued in my direction later had I waited it out, but if you never take profit, you always give all your profit back to the market.
Half the time, I get a better entry after the retracement is over, so I get half the profit out of the trade plus a better entry. You can get more than half your profit many times if you set a reasonable stop just beyond a previous higher low for an uptrend, lower high for a downtrend, and exit there. Once again, you should be able to re-enter the trade again at a better price about half the time. OK?
Hi graviton, from my understanding of stair stepping.
You mean that if we have profits running we adjust our SL accordingly to the previous low of a candle (If we are going long)
Thus if the PA hits our SL, it could possibly mean a reversal and we are stopped out? Because a long trend, price keeps making higher lows.
So when you add in a new lot, the SL would be the low of the previous candle?
Thank you
No, I don’t always require a retracement trend line to be broken to enter. That is an entry signal, like a good CBL. I also have a good entry signal from RSI, Stoch, and Moving averages that is a bit complicated.
After I get a good entry signal, I apply filters to decide if I want to take the trade. One filter is that shorter Time Frame trends are going in the direction of my trade. If the 15M price action is against the direction of my trade, I usually only have to wait a short time for it to turn around and give me a better entry where the short time frames are in the direction of my trade.
If you are trading the 1H chart, the shorter TF’s of most interest would be the 15M and 5M. When both of those are in the direction of the trade, I’ll take the trade. I don’t consider over bought or over sold regions. That’s because the stoch will often be saturated in the over bought or over sold regions for long periods of time. I do look briefly at the RSI when the stoch is saturated, and I do also look at the stoch of the time frame above the saturated stoch for more information. But the fact is, stoch signals will often be overbought or over sold for long periods of time during the best trading.
This is totally different from range trading where the overbought and oversold signals give trade signals to sell and buy respectively.
When looking at lower time frames to make sure they are moving in my direction just at the moment of entering a trade, I’m going to look quickly at the next major time frame down, and if it’s going in the direction of my trade, then I’ll work on down. So, if trading the 4H for instance, and I get a good entry signal like a good CBL or retracement line is broken, I’ll check the 1H stoch. If it’s not headed in the direction of my trade, I wait until it is. When it is, I move down to 15M. If it’s not headed in the direction of my trade, I wait. When it is, I’ll move to the 5M chart, If it’s not headed in the direction of my trade, I wait. Usually you don’t have to wait long at all with these short time frames.
When the 5M stoch is headed in my direction, I’ll glance at the 1M, usually if it’s not headed in my direction it will be in just a few minutes. When it is, I check all the other filters, 1H, 15M, 5M, 1M again and if they are all in my direction at that moment, I enter.
That is how you use lower Time Frame stoch to optimize entry. You can do the same thing by just looking at price action of lower time frames directly, but using the stoch for this purpose is just faster and easier for me.
Does this make sense?
The above is a method for optimizing entry. It will often help keep you from being stopped out for a loss right after entry. It will also allow you to enter with much tighter stops and therefore risk less on entry. But note that entry is a small part of a trade. Once you have optimized entry, you still must still manage the trade for optimum profit. That along with good money management are much more important factors in success than optimum entry.
Using these lower timeframes in your trading is 1/2 the core belief of multi-time frame trend trading. The other 1/2 is trading with the higher level trend. This is a lot of work, but with practice it gets easier, and it pays very well.
Yes, that’s true. It may be two previous lows if the previous low is just 17 pips below price and I want to run a 30 pip minimum stop. Then, 2 previous lows may be 37 pips below price, so I would wind up placing the stop a little wider than I intended, but that’s the way the market moves. It’s unfortunate it does not move in nice even 20 or 30 pip moves, but it just doesn’t. Of course, the stop below the previous 17 pip higher low still meets the criteria of being below the previous minimum low, but it may be just too close to price to stand a quick spike, according to my analysis of price action for that particular pair at that particular time on the chart I’m trading.
Note that saturation of a lower timeframe Stoch is a very good trend indicator. Just about any time the lower time frame stochs are saturated in one direction, the price is in a sustained trend.
Hi Graviton,
I would like to go back to yesterday questions if you wouldnt mind
when you look at the london open to see wich way to trade
do you look for the gap between last close and open to see if the new candle can be extreem candle? What tf do you look at?
is there a table where you can evaluate the pairs real quick for the volatility?
Thank you for the answer Graviton!
Please correct me if i am wrong.
If i´m a day trader i mostly will be trading the 1H chart, right? So my bigger timeframe will be the 4H chart, and my smaller timeframes will be 15min and 5min.
I´ll always be trading in the direction of the 4H chart. When i get a good signal in the 1H chart, then i will switch to the lower timframes for confirmation and filter. is that correct? Sorry if i make to many questions
Volatility can best be evaluated using ATR. For short term volatility, look at ATR on short term charts. If you are interested in long term historical volatility, you can look at ATR on the monthly chart. I don’t have a table on that, but you may be able to find one on the internet.
When I look at the London open, I am only looking at direction. Often times if London opens with a bull candle, it is a bullish day, reverse for bear candle. It’s just a start for the day, news can easily reverse that direction.
Yes, that’s correct.
looks like I dont understand something.
london opens with a bull candle …
how you can say that the candle is bull candle until the candle closed
do you look at the first candle on 1Min chart or 5 min chart to say that london opens with bull candle
if you can see at the daily candles you will find that first PA going for the retracement and then continue to go with the trend.
if so how you can say that london open with bull (or bear) candle ??
I’m not looking at the close. I’m only looking at how the market opened. Use the first 30M or 1H candle of the new day if you like. I just look at how price is moving right after the open.
Of course, if it’s an open after a weekend it’s a different situation since it may open with a gap and gaps usually close.
Here’s version 8 of the CBL Alert indicator;
Fixes a bug when finding extreme candles off the upper BB.
Shows stochastic long/short for the timeframe two timeframes lower.
No longer highlights a row if the CBL candle is 0 (the developing candle).
Ah brilliant! I haven’t incorporate stoch into my tools yet. Cus there are times they give false signals, but like you said its best used in ranging markets.
Pardon me ask graviton, but i dont see many cbl entries on the 30mins 1hr 4hr tf. I don’t trade the no trade zone, thus reducing alot of entries for me.
But if there is a valid entry in the tradeable zone, the success rate is pretty high i must say.
I would like to ask you, what method of entry were you using before the cbl taught by tymen?
I have learnt the swing trading from you too as well, but apparently this week i could not find any swing trades.
The weekly or daily charts appear to be on retracement, or no entries can be found at an earlier TF.
Perharps if you could share with me a possible swing trade/position trade you just entered, so i could see what i have possibly missed out? Thank you!
I have two other methods for entering trades that I currently use. One is the breaking of a retracement trend line, which we’ve already discussed. The other is based on RSI, Stoch, and MA indicators.
My current swing trades are All taken off the H4 chart. They are all CBL entries, EU, 6/7: AU,6/8: GU, 6/8: NU 6/9 I These trades all have a theme of falling dollar.
If you are looking for swing trades, just focus on the H4 chart and take CBL entries. All four of these trades are doing quite well. I entered all four with stop buys. Two opened in the middle of the night while I was asleep.
UJ H4 also gave a CBL today, but I didn’t take it as it didn’t follow my theme of falling dollar. It’s also a little late in the week for me to open a new swing trade. I always either trade rising dollar or falling dollar, never a mix of the two.
These trades should be clear to anyone who has read Tymen’s thread. Did you have problems seeing these trades, or were you just unwilling to take the plunge?
If you just take the plunge on these, you should be able to make 500 to 1000 pips a week easily. I will probably close all these trades Friday noon and not hold them over the weekend. I may very well swap back to a rising dollar theme next week if the market reverses and I get good CBL entries for rising dollar trades. Most probably I will just re-enter these same trades. I have no problem exiting for the weekend and paying spread to re-enter. The spread is a very small % on these trades.
Any other questions?