Multi-Time Frame Trend Trading

Beginner Questions
102

here is the last one for today: USD/JPY buy at 94.22, SL at 94.00

103

Hey Graviton, thanks for the complementary thread to Tymen’s system.

There’s a lot of very useful information here.

I appreciate your continued efforts to provide an expert FOREX education.

104

It’s Monday morning here in the energy capital of the world, Houston Texas. The pair selections we did over the weekend for the Sunday Aussie open (my US CDT) are no longer valid. That means I’m in the middle of my morning routine of re-evaluating pairs for today’s trading. Some may stay the same, most will change. I’ll respond to questions as soon as my business is done. I hope everyone has a great trading week :slight_smile:

105

Live trading going on now in nija doji chat room for tymens thread and this one.

106

When you do your evaluation, are you looking primarily at the angle of the midline or pa? Often the midline will be at a different direction than the pa. Also the pa may be bouncing off the outer or midline. Just trying to see what you see.

107

for best results PA should confirm angle of mid bb. we trade price though, so if a conflict decide if it is a good retracement entry to main trend

1 Like
108

Wow, you learn fast! Must be nice to have a young mind. I was smart when I was young. Foolish though :slight_smile:

109

the problem with multi timeframe trading is that you’re using lagging indicators, so when weekly is showing down, and daily is showing up, it could actually be the reverse.

110

Only take the best set-ups even if it’s only 1 or zero. Not taking a position is a position. When in doubt, leave it out.

1 Like
111

Those closest trends to your home trading range count the most. PA rules. It MUST confirm. We trade price, not trend lines. Trend lines just improve our odds, sometimes. but we don’t want to get carried away with them and trade against PA. Tymen’s BB DNA entry method will put you in at the end of a retracement to the trend, but WITH PA. Questions?

112

So both multiTF and BB DNA must be used together for best results. MultiTF is just looking for set-ups with trend. BB DNA is for entry. I sugest reading Tymen’s thread on trend trading, it’s long, but well worth it.

113

Questions?

114

I have one how we can recognize direction of the PA in the squeeze and after?

115

I’d suggest that to evaluate the PA within a squeeze, you’d be best to utilise the BB DNA method as it stands.

Look for the extreme candle, observe the PA advancing in your recognised trend direction, then enter when the CBL is met.

As long as you trade with the trend, there is no reason I would say (looking for confirmation here) not to use Gravitons 5 lots system, as the squeeze may turn into a trumpet coupled with a significant BB walk.

116

cordite, if I understood correctly the entry price in the squeeze equals high or low of extreme candle depend on your entry long or short, right?
but how you can say that the price is going to retrace or continue to go in trend direction?

117

look 30M eur/usd its in the squeeze right now. There is extreme candle that made cbl to go short right?
or NZD/USD Daily chart (it was in the squeeze) what was extreme candle to go short but the price is rising?

maybe Graviton can explain?

118

Very difficult, because of many false breakouts. The best you can do is look for a BB DNA entry on another TF. If you can’t, then enter when PA clears the old range that was in the squeeze.

1 Like
119

You only trade in the direction of the longer term trend, as established before.

So, if you know that you will only take long trades, then you wait for an extreme candle to break the lower BB. You then enter based on the CBL rules for that candle, as outlined in Tymens thread.

You don’t know that the price will retrace, or if it will continue, as you can never KNOW what price is going to do. However, what you can do is recognise patterns in history and attempt to use those patterns to best predict that the PA will have a PROBABILITY of going in the direction of your trade.

By going with the longer term trend, and by using Tymens BB squeeze rules, you are attempting to increase the odds in your favour that the trade will go with you, given that historically more times than less the PA will continue with the trend once an extreme candle has penetrated the opposite BB. So effectively you are utilising an entry system that historically produces more winners than losers, at least when combined with an effective R:R ratio and money management plan. That is where the 5 lots system of graviton comes in. By using 5 lots, you are trading only with your PROFITS and not yuor CAPITAL, at least as soon as the first lot has reached it’s TP or there abouts.

And what if TP1 does retrace and hit the SL? No matter, as it’s a small investment of your trading capital, and thus a small hit - something which your capital can take (ie, 1% or there abouts - Graviton please confirm).

Trading with profits can only have two outcomes - increased capital or horizontal capital, but it cannot result in a LOSS to your capital. As Graviton says, protecting your capital is the number one goal of your trading plan.

I hope that makes sense. If not, I will try and re-word. I’ve tried to make it succinct, but it might just all be whaffle :smiley:

1 Like
120

BB DNA entry its the entry from squeeze for O-BB PA walk

or O-O (I guess its when the price is in flat )

121

Using the squeeze as a mini S&R and enter as soon as the PA penetrates either (as long as it’s in agreement with the LT trend)?