Price reached the midpoint on M5. Ok to close and ok to move SL to break even if you want to let it ride until VHP signal line looks to recross the Lime Heiken Ashi.
I do expect continued upward movement because of the M15 data.
I do expect continued upward movement because of the M15 data.
Price approaching the purple 200EMA. The 200 is a typical point of indecision. Can be a little pullback there. Not necessarily a reason to get out. But prepare for it.
And, Yes.
You can keep scaling up on timeframe to decide if you want to stay in on any trade you start on M1 and up.
When your trade is completed. Check out the indicators that supposedly massively repaint and tell us if the signals are still there that got you into the trade (edit) or into a previous trade that is still within the left end of the VHP channel.
If you decide to do some trading this way, you will be doing essentially what I think the KOF folks should be doing.
No waiting for candles to make a large divergence from the 9ema. A more clear signal for entries AND exits.
I posted this once before, but here it is again for my “official” KOF template:
KOF - VHP - XB4.tpl (32.1 KB)
As I hope you can see. There is no more guessing which ema to close on. You close at the channel midpoint or the 200 ema in the scenario shown above.
How many times did I close on the 200 when doing strictly KOF with just the emas for indicators…never.
So many edits. Sorry.
The stall at the 200 ema.
Which is why I designated it as a good exit point for scalping.
If you enter a scalp (say a Long position) and the 200 is just above your entry, there may be not enough room to make profit . But in my first trade screenshot, notice how my long entry was over the 200 ema because the 200 was just under the VHP channel.
Massive win on EU short!
200. Pips!
Cigars all around!
Just to confirm, as you moved from M5 to M15, you put in a second LONG postion? what happens to the positon you took on the M5?
No. Sorry for the confusion. There was only the 1 entry on it. Going to the M15 showed a similar signal, so that means there is reason to think the trade could last longer because the exit point are further away on the M15. I was happy just taking the M5 chart and closing at that channel midpoint.
For anyone wanting to stay in longer, they could keep checking higher timeframes and the clues on those charts.
The strategy works for all timeframes, so anyone can do what I often do, which is to start the trade on a D1 charts, using a D1 charts signal.
Now you are playing with the big boys.
This is AUDCAD M15 - would you scalp this trade? Its below the channel but direction is down also. All higher timeframes are also pointing down.
I could take a risk on it by doing the pending Buy order. You know it’s a lower win rate and I recommend closing it at the channel midpoint line.
Win rates are still decent.
I should probably say something like, I don’t recommend these trades when you’re learning because you want to continue to good feelings of almost always winning. But we all know we all take a little more risk sometimes.
I don’t know your level of trading experience but just so you know, pairs like that can move very slowly.
Ok. I am back home now. Did a few hours of actual work today. Its good to have something to get me out of the house and away from the computer. There’s a little exercise involved too.
Anyway:
Here is an example of doing the pending order strategy on D1
On middle lower chart you can see where you would enter (Yellow arrow). While VHP signal line stays over Lime Heiken Ashi, stay in the trade (Move SL to at least break even when candles reach 200 EMA).
This is a month long trade and provides enough pips for all the lobster dinners you want.
Suggestion - since you could be at a large negative profit, practice with small lot sizes. I’m talking 0.01 or 0.02.
When your account is at a point where you can do half lots or full lots, It pays you thousands a month.
Of course, you have to be watchful for these setups. Its common to find at least 1 a month. But if there is not one, we can scalp every day and keep the profits coming in.
If anyone spots a good setup, feel free to post it.
Especially a D1 chart setup.
(Edit) Re: Trade 2 above. Especially after the conversation with farhanuktrader about the Aud/Cad trade on M15.
For Trade 2 its the same situation. The Buy signal was not going to show up near the trade entry point and price did not return all the way to the channel midpoint. So the options are to protect a small profit with an SL or don’t close until price actually makes it to the midpoint, combining it with trade 3. But I notice we actually have a nice double-top between trade 2 and trade 3. So in my opinion, trade 3 could have been the sell back to the channel bottom before entering the Trade 3 Buy.
H1
I don’t think I need to put more little arrows on the chart anymore.
You were right, no other indicator validated that reverse trade and it never made it to the mid-point. Gosh, I am learning so much.
The way I look at your trade is that it almost made it back to the midpoint. By moving your SL to break even or perhaps to a candle of profit, this trade was a no risk one with a small profit.
You knew going in that the angle of the channel was against you and now you see that there’s still no reason it cannot be a win.
It’s hard to wait for the perfect signals. Its still hard for me, anyway. They don’t all have to be perfect. When we know going in that our trade is against the trend, we take what we can for profit and we are not disappointed that we didn’t get more.
One thing. Maybe the next chapter in trading this way.
When I traded by placing the pending Buy orders, I could see that if price made it to my order, the official signal of the Heiken Ashi turning green would have occurred and the VHP signal line would cross the Heiken Ashi. This is usually what happens.
Your trade did not have the same probability of receiving these signals at the point of your Buy order.
Like I said, still not a bad trade.
Financial freedom awaits at the end of your road!