The strong trend continues to present opportunities with pullbacks.
Greg - now that you are back to shorter TFs are you still using D. setting 30 or the original 21?
dobro,
That is a 30 on the DC. When I go to shorter time frames I often shift to a longer period DC setting like the 30. I often double check the the longer time frames including the 2, 1 hours as well as the 30, 15 minute time frames. Remember this strategy works best in trending markets and during active trading hours. I have recently added the ATR Trailing Stop indicator to my ThinkorSwim charts to help determine trending. I like to see a shorter time period the same trend direction as the longer time frame. Let me know if you want to see a chart with the ATR Trailing. I’m not sure it is available on all trading platforms.
Greg
Heck Greg, I can’t even get the Don. channel indicator to load. I have saved a couple of versions but where they are in my computer I have no idea. I’m not a geek unfortunately. Using BBs but can’t see as easily the flat/no trend areas as well as with the Don. thanks for the reply, d.
dobro,
You might want to go to Samurai Channel Thread and use the 34 Kijun line. You can ajust the Kijun line to 21 or anything you like. The Samurai Channel Strategy is very good and I use it in a similar fashion to the 10/20. But you can substitute the Kijun line for the center DC line or just use the Samurai Channel strategy with pull backs within trends.
It is funny that many readers here have trouble getting the Donchian Channel Indicator, it has been around for a long time. It is also sometimes call price channels. Keltner channels might work too.
Good Luck,
Greg
I will give it a look. I paper traded the E/$, 30M TF, at 11:00 CST The buy entry was at 1.03073 and the pr went up 16 pips but not quite to the upper BB. I will demo this strategy for this week and next. Thanks for sticking it out, d.
If at 1st, 2nd, 3d, or more I don’t succeed, keep screwing around. Got the D. channels on the chart. thanks all, d.
Good work Greg, really surprised hasnt been more interest in this thread but who cares, if you have found a profitable strategy just keep grinding it out and making the $$$
good luck mate
My 1st trade a few minutes ago, +3 pips on the gbp/$. The price started to stall and the RSI was going into overbought so I got out early. Had I stayed in my SL would have been hit. Off & running!
This 17 pip long on the eur/usd was on the one hour chart. No trade set ups were there overnight, but this one presented in the morning.
Greg
Hey can someone post the Don Channel indicator with the line through the center please?
for mt4.
Thanks!!!1
Another winner on the 3 hour chart for 15 pips. The DC were strong and the pullback gave an opportunity for a trade. I let if rise to meet my trigger and I kept the target within the range of the previous candle. Note the extreme reversal short right after my target hit. To me this is why reasonable target work well for me.
Greg
Hi Greg
In your first post you gave the setup as follows:
Set up
5 minute chart
RSI set at 5, 35, 65
SMA at 50
Donchian Channels set at 21suggest these currencies
eur/usd
usd/chf
aud/usd
nzd/usd
eur/jpy
gbp/usd
usc/cad
gbp/jpy
jpy/usdRules
Long
Enter long when there is a upward movement of the currency. The price bars should be above the 50 sma.
Watch for a dip in the RSI to above 35%.
Watch for the price bar to fall below the center Donchian Channel.
Set an entry at the center Donchian Channel.
All three Donchian Channels must be moving up.Short
Enter short when there is a downward movement of the currency. The price bars should be below the 50 sma.
Watch for a rise in the RSI to above 65%.
Watch for the price rise above the center Donchian Channel.
Set an entry at the center Donchian Channel.
All three Donchian Channels must be moving down.Targets are usually 10 to 20 pips. I watch the channels and often use pivots to guide stops and targets.
I have a couple of questions:
- Are you sticking to the setup rules, as per your original post?
- If you would re-write the setup rules now, how would you change them?
Thank you!
Great questions.
Basically yes mostly the same rules. I have shifted more to a 34 period Donchian Channel. A little more stable. In addition I seem to be shifting to longer term price charts, up to 6 hours. It depends on the price action observed on the charts. I have studied the Samurai Channel Thread where Huascar uses a 34 period Kijun Line. This turned out to be very similar to the center Donchian Channel line I use. Look to my postings on the Samurai Channel thread. I don’t really trade the breakout, rather the pull back within a trend. In my mind this is mostly price action, not pure like some traders, but with underpendings like the Donchian Channel that add structure to my trading. The upper and lower Donchian channels help also in setting targets and stops with respect to the ranges of the price bars.
I will be glad to respond to more questions, but you might read the past entries in Sammurai Channel and this thread for commentary. I also use support and resistance levels. I want to know the where these are as I trade. Drawing Fibonacci levels is also helpful in establishing targets.
I’m not an expert trader but rather a layman trader who is beginning to experience some consistent gains after 4 years of work. I will say that I have never blown an account. Currently over the last 33 trades I have a 68% win rate and my stop loss to win amount is better now that I’m trading longer time period. I do think that Huascar in the Samurai Channel Thread has really helped my trading.
Greg
I had a brief look at the Samurai channel, but I found your setup easier to understand. I’m attaching a chart to confirm if I have it correct:
Price is trending DOWN
Bars below the 50SMA
RSI >= 65
Price hits centre DC line
= Open SHORT trade (red arrow marks the spot)
I edited the indicator to display the centre line, which from what I looked up, is the average of the other two lines.
cheers!
The trades. The first one on the 6 hour, looking for a turnaround. Lost the trade for 24 pips. The second, 5:30 ET pullback in short trend, won the trade for 8 pips. Stupid mistake on first trad. I simply should have stayed with the rules.
Greg
Looks very good to me. RSI on a 5 period, with overbought at 65 and oversold and 35. The main key here is to wait for the set up. I don’t watch the charts all day long, but just check in and more watching at key times like 8:00 am EST. Keep posting your set ups please.
Good Luck,
Greg
D. - can you share your Don. channel source. Mine has dotted lines which must be in the code as I can’t change to solid lines, or color, permanently. Thanks, d.
Dobro,
That chart looks good to me. In FXCM which I mostly post I found the Donchian Channel in their custom indicator inventory. Unfortunately I’m not an expert on modifying indicators like some of the traders in BabyPips. I have Thinkorswim for charting and I was able to get into Thinkscript to add the middle line. As I improve in trading I’m increasing the number of contracts I trade and I plan to go to ThinkorSwim when I reach 10 micros, then I will trade minis. (On ThinkorSwim I have access to the Trailing ATR indicator, which is great for identifying a trend over 5, 15, and 30 minutes charts at the same time. It is not needed for the 10/20, but it does help me with trends.
This 10/20 strategy is conservative especially when I only trade the eur/usd and onely once or twice a day. It is kind of like getting good at one thing. In my opinion trading FX and Futures is a deadly game and without a highly discipline game plan I’m cooked.
Greg
PS Thanks for posting your charts.
