Newbies.... Stop being befuddled by charts

Thanks for sharing this :slight_smile:

Another clean long term (20) chart displayed of the EURUSDā€¦ This time with a lossā€¦

When price action pulls back, the strategy most times can filter it out, a major attribute of this system.
But when it pulls back strongly and consistently (Liquidity Grab), the Indicator cannot filter such a volatile upswing and produces a change of trend signalā€¦ only for the original trend to continue shortly afterā€¦The resulting whipsaw will generate a loss (using normal risk managementā€¦ ie: tight SLā€™s).

One way to combat this issue is to lengthen (1 -3) the MA Period setting (Volatility Adjustment) or change the Moving Average from a WMA to either an EMA or SMAā€¦ both will have the effect of smoothing the Indicator resulting in later entries and exits from positionsā€¦ Itā€™s what works best for your tradingā€¦

It can be a balancing act on volatile pairsā€¦

Last change of Trend 13th Feb @ 8.00pm (UTC11) EURUSD on the 1 hour TF.

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Iā€™ve been using this strategy with PA and supply and demand on The daily charts. Will drill down to the one-hour for entries and refined supply and demand zones.

I find myself looking to close trades too early that are in substantial profit. So I started looking at the distance between the MAs and have found this to be a helpful piece of information in deciding to close or let the trade run.

if the Gap has closed considerably and the near a supply or demand zone I will more than likely close. But if they are approaching a supply and demand zone with a fair distance between I will let it run and watch carefully.

I found this to squeeze out additional Pips fairly safely.

KC

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Something differentā€¦ a clean long term (2 - VIDYA MA) chart displayed of the XTIUSDā€¦

West Texas Crude (USOIL) has taken over from Gold as my most profitable trading pairā€¦

This strategy makes trade what you seeā€¦ so simpleā€¦

Last change of Trend 15th Feb @ 2.00am (UTC11) XTIUSD on the 1 hour TF.

I have found this strategy to be the most profitable one for me so far. (demo only) One of the challenges that I have to work on is my ā€œneedā€ to get the best entry possible. This has come back to bite me more than onceā€¦ or twiceā€¦ or :laughing:.

I believe this is rooted in my current chart reading skills and impatience of missing out on possible pips, an emotion I have to tame. I will either try to anticipate color change, with price action and S&D or find the 9wma has changed for a candle or two on a 30M chart and jump in.

However, on exits this strategy has kept me in trades that I would have otherwise exited too soon.

Since the start of my account (end of Nov. 2018) I am in the green! I continue to work on my chart reading / analysis to improve my entries.

Reading all the S&D post on BPs as helped tremendously and I continue to learn but I still have the have the the occasional urge to ā€œtouch the hot stoveā€ to see if it is really hot!

Great Thread!

KC

Hello, guys, and thanks for an interesting topic. I saw the default entry rules were like wait for the indi to go green and price go 20 pips above the 20 SMA (for long trades). What about rules for the adjusted version - with 9 period, for example, standard WMA9 setting that @Trendswithbenefits referred to on January 3. Do you have any fixed ones? Or do you apply that basing on discretion?

I find this strategy quite interesting. There might be some issues to adequately spot entry and exit levels, which implies that this indicator should be used in combination with another. I was curious if this strategy is functioning when trading only with majors? Have anybody already tried it?

I tried this strategy during the last week and really start to like it. Iā€™m using it in combination with the MACD to try and filter out the false signals. Setting SL above/below the last swing high/low.
I donā€™t have enough data yet to see which pairs are better suited for this strategy.
So far Iā€™m liking this one a lot. Plenty of opportunity every day to get into a trend. If anybody has already more experience in getting around the false signals I would obviously be very interested.

I am just starting with this but what I have done is to go back 6-12 months on the daily and just look at which pairs and in which direction seems to have the most respect for the indicator. Then I have experimented with adjusting the period.
Still making notes on this but it is pretty obvious just from looking which ones are chopping through the lines and which ones are spot on - obviously this is different depending on TF and pairs.

It is true that MA is mostly used indicator as it is very accurate, however, the issue is that it is lagging the market. So, market comes first and then MA follows. I think that this situation can be overcome by introduction of Bollinger Bands in chart analysis

@Baldursufate, @VarSine, Have a read of the posts below (can be found further up the thread)

This should give you more information on how to setup and tune the Indicator to each pairs volatility.

Hope this is of some help, Cheers

Sasan FX1 Youtube Channel has picked up on this strategy. (Published on Apr 3, 2019)

He has a few ideas that could help with your trading using this system.

Watch his version of this strategy for those not convinced of its simplicity.

For those wishing to try Sasanā€™s strategyā€¦ Set the XLV4 Indicator to WMA90. (NZDUSD 5min)

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@Trendswithbenefits ,

Iā€™ve been incorporating this strategy with PA, SD. Used to try and anticipate the ā€œchange in colorā€ and found that itā€™s much better to simply wait and then get in. I have to say when emotions started saying ā€œtake the money and run!ā€ itā€™s kept me in trades increasing the profit!!

Tx for the thread @Trendswithbenefits!!

KC

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Thanks for sharing. It will be helpful for me. I am a newbie :grinning:

thanks for sharing , it is very nice and helpful for me

hello every one today I am going to tell you that

Just remember scalping is for amateurs and bottom feeders.

Sitting there for 8 hours a day like an absolute lemon. Do the maths [average daily profit] / [hours spent at screen daily].

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I am convinced this is behind the appalling success rate for traders. I suspect most new traders go straight into very short-term trading as it appears easy and low-risk. Most traders lose but most traders are new traders. Most old traders trade long-term and are mostly winning.

You should be convinced, because its the main reason.

Newbies eager as hell to jump on board, donā€™t have the capital to trade long term, so the only option here is intraday trading/scalping.

Sitting there like an absolute lemon, to make an average of $30 an hour.

It all depends if you want to be the guy that makes $200 a day by spending 8 hours a day, 5 days a week, or the guy that makes $1000 a week from 1 trade that you found by looking at the bigger picture.

Both guys making the exact same amount, one is just being smart about it. The more you trade, the more chances you have of losing.

Less is more.

I had a very bad week this week: The Ā£10K Gamble - [The Journey] - had to close a lot of positions purely because they werenā€™t going anywhere and just bouncinā€™ around.

Even then averaged Ā£700+ an hour for time spent.

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@Trendswithbenefits,

Ok. this IS crazyā€¦ can It really be that simple and UNsophisticated for long term traders?

I have been using thisXLV 4 MA on my charts. But I have to admit I have let PA and the 4H color change 9MA drive me insane! Admittedly, I have been trying to catch tops and bottoms, pull backs at the beginning and their turn as well. I believe my vision has been clouded, confounded, BEFUDDLED by the charts!!

This morning I stripped it all away using the Daily TF. I will hold positions for days and weeks. Though I have read, heard and been told thousands of times I wouldnā€™t be able to catch the perfect entry and exit I have still tried.

Finally I have seen the light! The scales have fallen from my eyes! I have to stop being so precise and anticipatory. WAIT for the tide to turn and swim with the current!!

Why does it take so long to embrace!!! Oh yeah, because I am so smart!!! :laughing::laughing:

Looking forward to being even more patient and ā€œwait for the light to changeā€ before stepping on the gas!! :sunglasses::sunglasses:

Thanks again for the thread and thanks to all who have contributed!

Looking forward to updating here and in my journal shortly.

KC

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