Health comes first.
Find the calm and balance you need and don’t feel pressured by this thread or any other endeavor Tymen.
Glad to hear that the barking dog issue has improved somewhat. Now go get rested and take your time with the completion of this thread/method.
A fellow dentist, well, a soon to be dentist. Cool. 
Congratulations on your career choice. You’ve made a very good choice!
How’s the job market for dentists in Spain? I’m asking because it might interest you to know that Sweden is screaming for dentists… Just a tip if you feel like learning Swedish
Also, congratulations on finding Tymen and this thread. My first beacon of light in the forex world was when I found Tymen.
Ok, after some demo testing and requests, I can now reveal the technique that I am currently developing.
The idea is to use higher TF charts such as the daily and 4H to anticipate a move. This typically involves analysis of the Bollinger Bands from high time frames down to lower time frames.
There is absolutely no new material here - everything that I use has already been taught Tymen and Graviton, I’m just using them in a slightly different way.
------------------ EXAMPLE TRADE ------------------
Above is a chart of the 4H EURAUD. This part is relatively unimportant but I have a view from the daily chart that this is in a sustained downtrend and could still have a way to go down. Usually, I wouldn’t worry about the long term trend, though.
The important thing to notice on the above chart is that price is going up but the outer band has begun contracting.
This tell us that one of 2 things is going to happen:
We now drill down to the 1H time frame to see PA in more detail…
On the 1H chart we have a sausage, so the contraction happened a while ago. The current PA will be looking bearish if price fails to close above the previous candle, especially with that long doji candle.
The CBL I have drawn on this 1H chart is for illustrative purposes only - if we enter on the breach of that CBL, we will enter with a 50pip risk.
Now we drill down to the 30M chart…
The 30M chart paints a nice picture - the extreme candle fails to close above the previous high and the outer BB begins contracting! The important thing to note is the contraction of the BB.
Now that all Bollinger Bands from the 4H down to the 30M have begun contracting, we can look for an entry on the 15M time frame.
Notice on the 15M I am also using Graviton’s stoch(8,3,3) - this is just for extra confirmation. I don’t think it’s a good idea to swear by the stochastic since it is just a lagging indicator, but can provide useful confirmation to help be more selective with your trades.
All I do on the 15M chart is draw a traditional 2 candle CBL but my rules for entry are slightly different.
To get a valid entry signal:
As long as these two conditions are fulfilled, I enter immediately at close.
On the picture above, I entered at the close of the long red candle, which is at the lower green line.
My risk with this entry was 49 pips.
Here is the final picture:
The green line shows where I entered this trade, with 49 pips risk.
If I had waited for a safer 4H 2 candle CBL entry, I would have entered with 87 pips risk.
Even though the 49 pips and 87 pips still represent, say, a 2% risk to your account (due to proper position sizing), your R/R is greatly increased if you use the same exit strategy as you normally would.
IMPORTANT NOTE:
The type of trade I have shown is reasonably rare. The reason for this is because when the 4H chart normally begins contracting, PA has also begun its retracement and the lower time frames are already deep into the retracement. Typically, the 15M TF’s 2CBL entry would have long been missed by the time the 4H begins contracting.
By doing things the other way around, you do things in a slightly unorthodox way, but you get the opportunity to enter at a much more attractive R/R.
Summary of the idea:
Exit strategy:
I’m not yet fully endorsing this technique, you should test before you trade and see if it suits your style.
[B]Ironheart,[/B] it sounds like a well-thought out strategy, and I shall begin to analyze it first thing tomorrow morning. Increasing the Risk:Reward ratio as you have done will surely bring the DNA Method to new heights. One thing - can this method of entry be used for both [I]squeezes and bubbles/sausages?[/I] Or is it one or the other?
Happy pipping to all!
thanks a lot Graviton for ur brief reply… appreciate it very much…
unfortunately i have exit this EU trade once it had finished doing BB walk on H1 for a nice 90pips… :o
ur thread will be my next stop… will look into it asap…
Firstly, thank you for answering denefx’s questions.
I really appreciate it.
I take particular note of your PSAR settings!!
I thought that I was the only one trying to reset them. 
I will carefully investigate your settings.
My first beacon of light in the forex world was when I found Tymen.
Thank you for your very kind words, Magnus!!
You are adding a nice stabilising influence on the forum and a voice of reason where threads become contentious.
I trust you own trading has matured nicely.
I hope our new fellow dentist becomes a good friend to you.
I now intend to devote more of my time to bringing major + real improvements to the DNA method.
I am still going to chase that illusive method for quality exits at the end of a BB walk - my holy grail for now.
Maybe I will have a look at an inverted PSAR.
Thank you for presenting your strategy, IronHeart!!
Anything to improve the risk/reward ratio is most welcome.
You have done well!!
Now it is a fact that the lower timeframes will always change before the higher ones.
[U]The lower the timeframe, the more leading it is.[/U]
You may, therefore, have some problems with future trades.
Don’t let this put you off, however!!
Searching for improvements is very difficult and many attempts by me have failed. :o
We soldier on and keep trying!!
[B]Thank you for the very clear and extremely well outlined explanation!![/B]
Yes, I agree totally.
[B]IronHeart [/B]has done a marvellous job!!
One thing - can this method of entry be used for both [I]squeezes and bubbles/sausages?[/I] Or is it one or the other?
A sausage in a lower timeframe will [U]always [/U]become a bubble in a higher timeframe.
So looking at an entry in a NO TRADE area, the region where a BB walk ends…
The end point of a BB walk can be clearly located in the higher timeframe bubble.
Going down to the lower timeframe of you choice may see a sausage that is already well underway in your retracement.
This is because the lower timeframes lead the higher ones.
90 pips!!
And you just got started.
Excellent!!
I have yet to see that with any other method on this forum!!
Not beginners luck, I can assure you!!
I just wanted to say a big thanks to tymen! I am a finance student right now, our Macro prof mentioned Forex and it sparked my interest, I started reading on it, and playing with a demo account and find the size and speed fascinating.It has consumed almost all my free time in the last 8 months. By comparison, I find that equities are very slow and dragged out. I have only read to post 2480 but have already picked up a tone from your lessons, and I should also thank your for the some of the excellent reading suggestions at the beginning.
Excellent!
I have “well-meaning envy” (like we say in Spanish) to those who can find such innovative strategies… I would like to think it’s a matter of perseverance and experience because that I can get eventually and not a new cerebral cortex.
It’s just a matter of time this method, even being topclass at the moment as it seems by results, gets two folded better with all the work put in it.
Magnus (o990l6mh)! I didn’t know you were dentist (read you a lot in Tymen’s posts and your journal). Yes next year should I get my freedom again from the claws of Dr. Gay Escoda, I mention in case you read something about him in dentistry Journals.
Dentistry job market in Barcelona (so it just gets worse in other cities): At the moment it’s overcrowded and OMS reports say we have more than twice the recommended. We had a lot of Latinoamerican dentists coming these late years and that didn’t help.
As per income… approximately 1200 euros/month when out of University… then discount 60 euros/month from Catalan Dentist Association and 140/month from insurance. Go figure… I could talk lots about the matter but I think it’s DNA related the issue of us wanting to exploit every opportunity to earn more or pay less… even at the expense of others or the government :(.
But some of us are trying to get that mindset changed… it’s needed to let our society evolve if we keep the good things we have.
Sorry about being sooo offtopic, from now on I will try to stick to relevant matters. It’s just I can’t send personal messages so bare with me please!
Back to study!
Hey Trizzle,
I find this technique a lot more powerful when the 1H or 4H is in a squeeze.
It’s actually more speculative in a bubble or sausage, which is why I have been working out ways to take profits - I will post about this below.
Hi Tymen, thanks for your encouraging words.
I agree, the main problem with this method is that the 15M leads higher TFs.
Having said that, by using the 4H in an unorthodox way to lead the lower TFs, especially if a lower TF entry still exists - is a fantastic way to reduce the number of trades taken and only focus on the high quality ones.
I’m still always testing and developing though!
I’m sure as long as we all work together, we will keep ahead of the curve!
While you not yet have 50 posts you can talk on as much about dentistry as you like!!
Great to have you here, [B]dustin112[/B].
However, as a retired school teacher I would say to you to put priority to your finance studies.
That is, do not get distracted.
You do not want to be failing your studies. :eek:
Keep the forex work in the background for just now!!
I am on summer holidays right now, No studies to get distracted from :D.
I want to share something else with you guys too…this is what actually inspired me in the first place to seek earlier entries…
Here is a chart of the AUDUSD 4H.
You can see the yellow vertical line I have marked - this is where the contraction begins. From this point on, we will either have a bubble or a sausage, at that time it is unknown.
Having said that - the one thing I have consistently noticed is that as soon as the BBs begin contracting, a retracement of some sort WILL happen (or is currently underway). It could be a big retracement going all the way up to the mid-BB or even beyond, or a smaller one that only lasts 1 candle.
Here’s the thing though - on a 4H chart, even if price doesn’t reach the mid-BB, it still moves a significant amount. [B]On the chart above, the retracement was 87 pips in magnitude.[/B]
I have also marked in green the proposed 4H CBL entry point. This entry provides 59 pips risk. With this entry we want to take TP1 at the mid-BB and TP2 at the outer BB. With these targets, my experience of the R/R has been anywhere between 1:1 to 1:3. Unfortunately, most of my trades tend to break even, which is why I tend to achieve lower average R/R ratios, such as 1:0.5. This is not really a problem if you are able to achieve a winning rate of 80%.
The problem I want to address is one of the chart above, the 4H entry in this case offers a low R/R because of the large SL. Worse still, we are never able to take profits because PA never reaches the mid-BB.
I have also marked in pink the 15M entry point. By analysing the 4H chart for contractions and using the 15M for entries, we are able to enter with 26 pips risk, and hence the maximum R/R that PA offers us is [B]2.3[/B] - a huge improvement over the 4H CBL.
The problem we now have is where to take profits.
Do we use the typical midBB and outerBB for TP1 and TP2?
Well, if we can achieve a winning ratio of 70+% (which is possible), why not just close out both contracts at, say, R/R = 1.2? or 1.5? This way we just take humble profits, and generate consistent gains.
I am currently carrying out a number of ways to take profits. Here are my current tests:
I’ll keep everyone informed of my progress!
