My e-book for trading daily charts - have a read

[mike45]

One more question - when you open the poistion, do you take the ATR value matching to closed candle of previous day?

thanks a lot,
mike

[michaeldunbar]

Hi,

Thanks for posting your system. I’m in a progress of developing mine; however, your e-book has helped me a lot. I’m using Oanda and want to be sure I’m setting up your system correctly. You’re talking about not showing “Sunday candle” in charts - in Oanda daily candle opens at midnight - so according to your description, would it be correct to ignore (there’s such option called “ignore weekend data”) data starting Saturday Midnight (Sunday candle open time) till Sunday Midnight (Monday candle open time) therefore skipping Sunday candle?

Also, I�m wondering - on Saturday there also is zero-activity in the market � do we want this candle to be included in charts according to the system setup?

Thanks a lot,
mike

I don’t use Oanda so I’m not up on their system of charting. You could use MT4 free charts - FXDD doesn’t give the Sunday candle. Basically the idea is to avoid this candle as it only contains 2 or 3 hours of data but is treated equally important by the indicator calculations.

Good luck and keep posting your thoughts

Michael

[michaeldunbar]

One more question - when you open the poistion, do you take the ATR value matching to closed candle of previous day?

thanks a lot,
mike

You take the ATR of the last 20 days. 70-80% of that figure is added or subtracted from the opening price of the day you are trading to get your stop.

[mike45]

Thanks for your reply - I understand about Sunday candle, but how about Saturday candle - there is no market activity at all - do we want it to contribute in charts ?

Thanks a lot,
mike

I don’t use Oanda so I’m not up on their system of charting. You could use MT4 free charts - FXDD doesn’t give the Sunday candle. Basically the idea is to avoid this candle as it only contains 2 or 3 hours of data but is treated equally important by the indicator calculations.

Good luck and keep posting your thoughts

Michael

[michaeldunbar]

Like I said, I have no experience using charting which has Saturday candles. Use Metatrader if you want to avoid it - and from what you say, it sounds like it should be avoided.

Michael

[mike45]

I just got the Metatrader to be sure my charts correspond to ones you are describing in your system. Now my problem is that I can not get MA added to the RSI. I’m draging the Moving Average icon into RSI section, but MT4 adds this EMA to main chart instead of RSI.

I’m not very familiar with MT4 - does anybody knows what I’m doing wrong?

Thanks,
mike

[pipalot]

I just got the Metatrader to be sure my charts correspond to ones you are describing in your system. Now my problem is that I can not get MA added to the RSI. I’m draging the Moving Average icon into RSI section, but MT4 adds this EMA to main chart instead of RSI.

I’m not very familiar with MT4 - does anybody knows what I’m doing wrong?

Thanks,
mike

Hi Mike,

After you drop the MA onto the RSI window, a dialogue box appears, rather than just clicking OK you must choose Apply To : ‘first indicator’s data’ and then click OK.
If you don’t do this it sends the MA into the main indicator window exactly as you described.

Kind regards,

Pipalot

[butter143]

hi micheal,

thanks for your book which shows a relatively simple way (if i may say so) of trading the dailycharts. i’m new at forex and i feel trading the dailies where things are slower will be a good way of letting myself in to forex trading. also this seems to suit my personality.
i do have a question:
on the gbp/usd, the AO fozzy signal indicator was pointing down indicating a sell, however a look at the rsi 8 and ma 8 doesn’t seem to show them crossing, they’re so close, that i don’t think the sell signal should be taken.
i’d like to know what’s your take on this. would you take this signal? this i noticed on the 26th oct.

also i observe that sometimes the indicator signals you to enter a trade only for it to disappear and become straight. this can be confusing to me.

any advice on what to do will be highly appreciated.

[michaeldunbar]

Hi butter, if you feel the cross is a weak one - which could be based on candle patterns or the actual size between the two lines (RSI and MA of RSI) - which of course is totally dependant on price anyway - then don’t take it. I don’t.

If you see a signal has disappeared, it means you’re looking to get in one day too soon. You MUST wait for the next day’s candle to open before trading. Read the book again.

[butter143]

@michaeldunbar

Hi butter, if you feel the cross is a weak one - which could be based on candle patterns or the actual size between the two lines (RSI and MA of RSI) - which of course is totally dependant on price anyway - then don’t take it. I don’t.

If you see a signal has disappeared, it means you’re looking to get in one day too soon. You MUST wait for the next day’s candle to open before trading. Read the book again.

thanks Micheal, very clear explanation you’ve given.

from the looks of things i don’t think i’ll be using the AO fozzy indicator as it gives conflicting results. the indicator gave a sell signal and the currency has been in an uptrend ever since. this was on the 26th.(I’ve attached a screen shot as at that time).
i think I’ll stick to the way you described in the book, and learn to using my eyes instead.

[michaeldunbar]

Glad to help. Remember, your eyes are the best tool at your disposal!

…and trading with the trend is certainly a good road to take. The 8and8 gives us the chance of rejoining the main trend, just wait for the opportunities.

[michaeldunbar]

Thought i’d give this thread a bit of a shake! I see the ebook has been downloaded around 2000 times so c’mon people - post your experiences.

For my part, the cross allowed me to get back in on the GBP/USD uptrend at today’s open and having a good ride up on it. Also short on USD/CAD from 0.9357 and hoping today’s exhaustion spike doesn’t derail this storming trade.

Not touching the yen just now.

Michael

[faqcya]

Ok my experiences from coding this is that it does good in trending markets but falls short in the ranging markets so I’m looking for suggestions to add to this EA to determine when its trending.

[wliu84]

try the indicator included in topchess’ “how to swing trade successfully”

it’s almost never wrong on the daily

[1ce2go]

Help, I know this sounds dumb, but I don’t see the e-book, where can I download it?
thanks
Sean:

[tonymand]

Help, I know this sounds dumb, but I don’t see the e-book, where can I download it?
thanks
Sean:

Post # 1 the 8 and 8 method attachment

[michaeldunbar]

Thought i’d give this thread a bit of a shake! I see the ebook has been downloaded around 2000 times so c’mon people - post your experiences.

For my part, the cross allowed me to get back in on the GBP/USD uptrend at today’s open and having a good ride up on it. Also short on USD/CAD from 0.9357 and hoping today’s exhaustion spike doesn’t derail this storming trade.

Not touching the yen just now.

Michael

Quick update on those two trades. USDCAD was stopped out at the ATR channel line on the 7th for just over 100 pips profit. Bit unlucky with the pullback but can’t be too unhappy with the 100(!)

GBPUSD stopped out today on the ATR channel line for 87 pips profit. Bit of a wild day today so happy to take the pips and run for the weekend.

Take a look at GBPJPY - what a monster! Confirms my view to stay out at the moment. Might dip my toes in the water with a small sized trade if we get 3 reds or blues in a row. EURUSD looking the nicest option right now.

Will look to get back in on the GBPUSD and USDCAD when the cross happens to rejoin the main trend.

[redrum]

I really, really want to like this system. Mostly because it has such low amounts of input to use, well that and the success it seems to have had as the fozzy method. I just can’t get myself to trust it anymore. I’ve seen the charts have a cross and take it then come back and check it the next day and the cross had disappeared. I then started waiting until the next day on crosses, which seemed to work better, but damn if it didn’t happen again… so I gave up on it. Just couldn’t trust it anymore. Maybe I’ll give her another go some time.

[michaeldunbar]

Hi. The cross will not disappear if you wait till the next day - it’s set into the chart by then.

Yes, all systems will have losses and wins (I took a loss on the EUDUSD today… ho-hum). That’s why in the ebook I recommend backtesting on the pairs you are using - go back as far as your spare time allows. The positive results will give you the confidence to weather the bad times.

p.s. use FXDD charts for trading decisions - I’ve found their open/close times are most suited to the 8and8 method. You don’t have to trade them. Personally, I trade with fxcm (with the cash rebates) but use FXDD’s free charts to make my decisions.

Thanks for sharing redrum and hope to hear from you again.

Michael

I really, really want to like this system. Mostly because it has such low amounts of input to use, well that and the success it seems to have had as the fozzy method. I just can’t get myself to trust it anymore. I’ve seen the charts have a cross and take it then come back and check it the next day and the cross had disappeared. I then started waiting until the next day on crosses, which seemed to work better, but damn if it didn’t happen again… so I gave up on it. Just couldn’t trust it anymore. Maybe I’ll give her another go some time.

[michaeldunbar]

Addendum:

I know in the ebook it gives a link to North Finance charts but these charts now use a “Sunday candle” so FXDD’s free charts are the best option.