Ok… It’s been a while since I have updated this thread… so for anyone still following here we go…
Primarily an updated strategy for the longer term CFD Index traders. Although this can be applied to any Forex Cross pairs and/or larger timeframes with equal success.
The Chart below is the US30 Index (4 Hour TF). I have imposed the XLV4 Indicator on to Raghee Horner’s GRaB Candles Indicator… Another great visual Indicator for those starting out in the FX Markets.
It retains all the simplicity of the MA Coloured Slope Strategy Green - BUY, Blue - Hold, Red - Sell…
The GRaB Candle Indicator is based on the EMA34 and is a way of incorporating coloured candles into the Coloured Slope Strategy… As you can see… it gives a nice clean idea of market sentiment on the longer term charts…
For an overview of Raghee’s Strategy and Indicator Please follow the links below
This Strategy should be used with Email / Sound Notifications in place, so you can live a little and get away from your screens. Hope this is helpful to all and a good addition to your trading arsenal…
Cheers
PS: I will be adding a Post later showing how to add S&R Levels to your Colour Charts.
I love this honesty. Before I moved into forex I had been swing trading FTSE350 stocks and the FTSE100 index. No regard to trend, just the short-term swing changes. Success was random, the best trades were the ones that became trends: the regular losing patterns were ranges.
Moving into forex I took every trend I could see, not even bothering to use recognised entry patterns, and I did nothing but make money.
Eventually, I tried to be more selective and just take the best trends. And just use the best entry patterns. This significantly reduced total trades per month but didn’t increase profits at all.
I am still trend-following but now use shorter holding times than I would like and am wary of pyramiding. This might be only a temporary restriction as I see a shortage of long-term consistent trending in the forex charts over the last year or so. (This could be a Brexit side-effect or that might just be coincidental but either way should eventually resolve itself.)
Still in demo but going live shortly. As a US citizen I was leaning toward Oanda but checking the spreads I believe that I am going to be opening a small account with Forex.com
But you make some interesting points. What’s more: it reminded me clearly of (more) stuff of Wilder’s. So much so that I’ve uploaded yet another of my “nuggets”.
To begin with have a read from page 15 in the PDF (page 10 of the book itself) “A Modern Fairy Tale by Jim Sloman”. Not only does it say a lot about trading what you see and not what you believe. But also touches on another topic the other day in which I noted that I believe that children would make far better traders than most of us (myself included).
Then take a look at page 20 in the PDF (page 15 of the book itself) i.e. about going with the market. It sure makes you think.
And frankly I’m pretty stoked that you made me think of this today. I’ve spent most of this weekend (in between messing with people on the forums that is) brushing up on my new toy and the data that I now have at my disposal (reading and watching videos on trading with $TICK, $TRIN, $TIKI). And I realized something: what possesses us as traders to always want to go against the grain (and somewhere in this very book Wilder addresses this very issue). I mean: does it make any sense at all to be trying to go long when the NYSE ticks are negative and falling and the number of declining issues is climbing while the number of advancing issues is falling??? It’s not rocket science. For goodness sake!!! Alright: on extreme readings then the market is running out of steam and conviction so then it’s perfectly acceptable to take advantage. But that doesn’t happen that often during any given day.
Anyways. Enjoy. Sorry about the size i.e. whoever scanned this thing was a bit overzealous with the DPI it would seem (and for some reason or the other I cannot find my original copy of either this book or The Delta Phenomenon both of which I kinda cherished as one was a gift some years ago from The Delta Society). Now I’m not saying whether or not Adam Theory has merit nor not. Some years ago I sat compiling the data but that didn’t last for much longer than a week or two so who knows. But I can say this: there cannot be a better read on trader psychology and a whole bunch of other things that are just so logical but for some reason or the other we allow all manner of other things to cloud our judgment.
Really REALLY good stuff in there (as I say: possibly not so much the theory that’s being postulated but then again I didn’t really give it a fair chance) (and given that just about everything I do is Wilder based in some form or another I’m probably missing out).
From what I do remember: you needed a stomach for pretty wide stops which I didn’t have at the time. Not a problem nowadays.
LOL!!! Nope. Matter of fact I lost all that some years ago and it’s actually stayed off believe it or not.
Nah. This risk based position sizing is the ■■■■ (for me anyway). In most cases: only a black swan event would cause price to reach my stops!!! LOL!!! But of course: at the expense of position sizing. But you know what: I sleep nights!!! LOL!!!
But I dunno. Maybe Adam Theory is worth a look at again. When you first read up on it: it comes across as a bit daft I seem to remember. But I also do recall that even in the short time I spent inverting charts and stitching them together on a daily basis (which was time consuming and a pain in the you-know-what) it appeared to have some merit. As I say: just never gave it the shot that it deserves probably (those were the days that I spent more time system hopping than actually getting on with the job at hand). Put it this way: Wilder is no fool. And given the amount of money he’s accumulated (and spent) over the years well: I’m pretty sure he’s done alright. That type of money didn’t come purely from selling books and giving courses I’m sure (well: I’d like to think that was the case anyway) (and even if I’m wrong: I don’t want to know about it!!! LOL!!!).
I do for an experimental account for an offshore broker I use, Actually MT5. I like MT5 a bit better, but there are more tools available for MT4. But the difference between the two is pretty much negligible to me.
Newbie here and just read this post. But I did pocketed a bunch of pips just using the 20SMA at 1HR TF. But looking at these posts with the kickass color changing and all got me interested more. I felt like it validated my belief on simplistic cleaner charts.
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