Well for me, everytime I have a setup with the intra-day system it seems to always go against me. I place all my S&R’s at the high and low pivot points and obvious places where price has stalled. I just dont know really where price will be turning around because it always seems to turn around at an newly made s&r in between my previous s&r’s. Also, most people that I have read that use the system say they watch for candle patterns but from my experience using the 30 min time frame, candles never hardly follow typical price patterns even at s&r’s. From some of Nicks videos also (the you tube videos) he always exits by instinct and never follows his t/p and usually gets out 20-25 pips before it. How do you go about setting up a trade with the system? I might check out the 45 per day system. How is your success with that one? Thanks and I really appreciate you taking the time to write back.
I gotta start exiting the way Nick does . My problem isthat I have been trying to stick to my rules so I have been losing trades that were clearly up 20-30 pips :mad: because they reverse on me. When I trail my stops I miss the big moves & almost always break even so it’s a catch 22. I’m currently trying to find the middle ground. I have found when using the AO that if the chart is allready above the center point and you get another signal to go long that I have been losing trades because the trend was over. I only like to take the signals to go long when I get the green line below the center point to catch the trend at the early stages (and vice versa for shorts). That’s why I rather use the 45-a-day system which I have had good success with. The 45-a-day system is identical to Vanessa except it uses MACD crosses instead of the AO. I also add in ADX to see the trend strenght and I confirm the trend direction on a 4hour chart. Hope I didn’t confuse you more . I have no problem answering question if I can.
Sounds interesting. I remember reading something about the ADX in Trading for a Living by Elder. How do you use this to see the strength of the trend? And how strong does it need to be for you to enter or not enter?
Also, you say you look at the 4 hour chart for the overall trend. So say the 4 hour is a downward trend. Does this mean you only trade on short setups on the 30 min or will you trade corrections too (Long)? Thanks. The advice is well appreciated.
As far as ADX, I look for the +DI line to cross up above -DI for a long trade and vice versa for a short. But also the ADX line [B]must be 20+ [/B]for a trend to be developing. 25+ is a strong trend 40+ really strong trend. [I]See link below for details on ADX[/I]. I love this indicator because I have been burned so many times when I have a good trade setup only to have ADX below 10 and I get burned because the market is range bound. I know Kathy Lien writes about ADX in her books also.
As far as the 4 hour trend direction. I basically look for a slower moving average to cross the higher to indicate trend direction (Like the Cowabunga system :) ). The exception is is the market is Overbought or oversold and I will look to see if stoch is heading in the other direction which indicates a possible trend reversal despite the MA's not crossing the other direction yet. I use this 4hr confirmation because I have also been burned many times when going against the trend. I hate when I take a great looking setup, then [B]WHAM,[/B] it goes the other direction and never comes back :mad: . This is why I use a longer chart & ADX for entry confirmations.
Sorry for the long winded post. Time to head home, it’s freaking snowing in PA. I was just golfing in 80 degree weather on Wednesday and now it’s snowing . This weather is like the market. You can try to predict it but it does what it wants in the end .
Sorry Im just getting to you. Been busy with school work and all. Thanks for all the info on the ADX.
Like always I have some other questions to ask. Based on the 4hr system by Vanessa, when you set up you s&r lines, how do you make your judgement on strengths? Also, how do you deal with so many pivot points because to me it seems like Im placing so many lines on my chart that there is never a good time to enter because Im near some line of support or resistance. I have attached a pic of my set up on GDP/JPY. Could you look at it and tell me what you would do different to the setup.
Red lines are my major S&R
Orange is my medium
Skinny black lines are my minor
Basically the further out lines are stronger S/R. You’ll notice lines like the 4hr,weekly, monthly, yearly lines are much further apart so the price is more likely to reverse. Also the more times a price bounces off a certain point the stronger it support or resistance. I just draw some main ones since I have been using this attached MT4 indicator which automatically plots the daily, weekly, monthly lines . Sometimes the price will blow right through a s/r lines othertimes it will struggle and reverse. I have been trying to exit when it doesn’t make a clean break because I am losing out on good pips from it pulling all the back to my exntry levels :mad: . It doesn’t do yearly but that is easy enough to add. I have also been learning how to draw trendlines which are awesome support a resistance as well as seeing which direction the trend is. You can zoom in on a 4hr or daily chart. I don’t want a zillion line post so see Pipbulls post on how he draws them. I like them alot because you can almost predict when the price will reverse if its OS or OB and it near the long term trendline.
This EA isn’t programmed to give buy & sell signals. It just gives the audio alert, onscreen alert & email alert. I didn’t write it and I asked the person on another forum, who did write it, if he can add that funcionality but I haven’t heard back from him yet.