I will take a short break now to allow for any more questions before I introduce the next topic. 
it can be in subtrend 
Hello, Tymen
Great thread!
I can’t resist pointing something out to you.
In your previous example — 301 Moved Permanently — where you showed a series of 10 color-coded trades producing a total of 765 pips, you asked for suggestions on how to “manage” the whipsaws, and thus improve the overall profit.
I suggested not entering a long trade above the upper BB, and not entering a short trade below the lower BB.
[B]You have proposed a better method: trading only in the direction of the trend, as determined on a higher time-frame.[/B]
Here’s what I can’t resist pointing out to you:
Your method improved the overall profit of that series of trades by 488 pips, for a total of 1,253 pips.
My method improved the overall profit of that series of trades by 522 pips, for a total of 1,287 pips.
That being said —
[B]I agree that your method is sound, and I think that everyone following this thread should employ your method.[/B]
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Tymen1 - this thread and especially your quote caused me to go into the archives (actually reams of printouts that I thought were important at the time) to find a quote by Linuxtroll regarding the original D. Guppy EMA setups. L. said, “Simple trading tip - check the Weekly for trend, enter and exit on the Daily chart. Take it easy and you’ll make a lot of pips.” Added confirmation I think. d.
Tymen, first let me congratulate you on another superb thread. It really is most engrossing.
I do have a question which I would appreciate your take on.
In the diagram below you exited on the ‘X’ because the price action had tagged the BB and 2 retracement candles followed. Why then did you not exit on the 5th candle after entry? If you look at the diagram you see that the 3rd candle tags the upper BB and then there are 2 retracement candles (finishing just above the mid BB). Would that (if you followed your rules) not have been the correct place to exit? Of course in this example you would have made few pips as the exit is only just above the original entry.
Would like to ask when you say higher timeframe, how much Higher? Is there a factor we should use to multiply by ideally to get a good higher timeframe? I mean for example would someone trading on 1 hr charts and another on 4hr charts and a 3rd on daily charts all use a weekly higher time frame to which to base their trade decision?
I must say I feel like a priviledged Padawan being trained in the ways of the Force by a Great Jedi Master.
sorry, may be for some traders its as 2х2
but I have to ask for explanation please
what are series of price actions on the single home chart?
what exactly longer term average is? for exemple, is EMA (50) longer term average ??
Hi RenaLa
i think price action is shown by each candle, so a series of candles may equal a trend. The home chart is the TF that you are trading
Longer term average for example super guppy
Thank you for your post [B]Clint [/B]and thank you for keeping tally of the pips.
That’s a lot of pips!! 
As you are already well aware, the standard method of testing the direction of trade, is to use a higher timeframe.
But for the newbies here, I had to use charts to illustrate this point.
Thanks Dobro.
I can see your retracement set up.
[B]There is more to this matter of exits than I am posting here.[/B]
I am using the 2 candle set up as a means of exits because we need something right now that something must be simple and does not clutter the charts.
We have a whole section coming on BB exits and I hope to treat your matter in much greater detail there.
hi kockneerebel,
thanks
then another question
we still can determaind the trend with the set of EMAs (30,35,40,45,50,60)
right?
Please wait.
We will come to that.
Thank you for the kind compliments!!
Thanks again, [B]kockneerebel[/B]
Saved me the trouble.
Yes, by using this kind of filter we may be facing trouble when price enters a range.
If I recall correctly, Tymens last chart shows a daily chart from early 2009 until the present day. If you look at that chart, its made up 9 or 10 large swings that the method is attempting to capture.
Here’s a simple technique that might help you understand what he’s doing. If your using MT4 locate these trades on the daily chart using the zig zag indicator (or take the signal from the MACD). Mark the position of these trades on your chart using vertical lines.
Now zoom out to the weekly chart, and you can see how these trades relate to the weekly price action. Similarly you can zoom out further to the monthly chart. You’ll often find additional TA and price action clues in the trend timeframe that support the entry (or filters to exclude the entry).
Alternatively adding two zig zag indicators set at say 28,1,1 and 6,1,1 to the weekly chart might help you to visualise how the daily micro trends fit into the overall longer term trend. The 28,1,1 will show the longer term weekly trend, and the 6,1,1 will coincide approximaty to the daily swings that you are trying to capture. When you look at it this way you’ll see why you perhaps wouldnt want to take the counter trend trades.
Someone asked earlier about ratios between timeframes, well by plotting trades in this way, and observing how they appear across different timeframes you’ll immediately see if the trend timeframe that you select is makes any sense for the timeframe that you are trying to trade. For example you’ll imediately see that using a monthly chart for trend determination makes no sense at all for scalp entries on a 1 or 5 minute chart, but its entirely appropriate for daily entries. Remember, all Tymen is trying to do is to identify a trend, and then find a high probability entry point that maximises his potential gain, and minimises his potential losses.
I dont wish to derail tymens thread as he looks to be following a pre planned step by step route, but looking for a confluence of continuation set ups in the trend timeframe, and reversal set ups on the trigger (home) chart is an extremely powerful trading concept.
You have to start slowly, but once you understand the concept and framework, with a little work you can always find and trade a trend somewhere in some timeframe. More importantly, you can layer in whatever TA or price action methods that work for you.
hope this helps.
[B]TOPIC 9
TRADING WITH INDICATORS
INTRODUCING THE TRIPTYCH[/B]
[B]What is a triptych?[/B]
Now that’s a fancy word and you will not see that word used much at all on this forum.
A triptych is [U]a set of 3 charts[/U] of the same currency pair.
The [B]home chart[/B] is of a certain timeframe and is used to do all the [U]maintenance of your trade.[/U]
The [B]Trend chart[/B] is of a [U]much longer timeframe[/U] than the home chart and is used to decide whether [U]to trade long or short.[/U]
The [B]timing chart[/B] is a [U]much shorter term timeframe[/U] than the home chart and is used to get earlier and better entries.
As you bring up the topic of triptych, I can also reccommend Phillipe Cahen’s book DTAFM, its a slightly different approach to trend trading as the trade entries are based on breakouts from periods of low volatility, but its by far the best book on technical analysis that I’ve read.
The original version in english is out of print now, but the publisher will print and bind copies on request.
There is something I would like you to do now…
Google Kinetic FX Trading (of Sydney, Australia) and get the web teaching page below.
Click on the Training Videos tab and then select the “Trading using multiple time frames” video from the list of videos.
(don’t forget to turn on your sound!!).
Please not that there is no advertising in these videos!!
They are purely educational.
You will also find the videos on money management and Trading psychology very rewarding to watch.
These videos will answer many questions.
Here is the web page you should get >>>
