First off...this is NOT a system. It is just a simple strategy that I adapted to the 1000 tick ES chart that should help a trader who is struggling to see the ES movements a little clearer (see next post). More on LBR is here. http://www.lbrgroup.com/index.asp I have no affiliation with them and I don't endorse them in any way. I did learn this strategy from Linda a long time ago. Why 9 and 34? I like looking at a faster ema combined with a slower ema. You can pick out whatever works for you. As I said before, I don't use the HA bars for anything. To me, they're just lines. Entry: On my first chart, you'll see the countdown of the ticks at the top right of chart, next to the current bar. I enter when it looks like, a signal will be given on the close of the bar. Usually within 100 ticks of the close. If it looks like the 3/10 hist bar is going to be approxiamtely the same as the previous bar, I wait until it turns down. As I stated before, no need to test the way I trade it. You'll never duplicate all of the scratch trades, but I would never discourage anyone from trying to automate it. I'd appreciate you not throwing me into some guru or scammy camp. I don't sell anything, I don't want to sell anything. In fact, you couldn't buy anything from me if you wanted to. Well that's not exactly true. I got all kinds of crap in my garage that my wife wants to get rid of. That you can buy. Again, just a strategy that I wanted to share. Hopefully it will help a few people who are struggling. If you don't get anything out of it, that's okay, no need to worry about it.
Here's why this strategy is a good foundation, for me, to trading the ES. We all know that markets move in a stair step looking sequence (impulse-correction-impulse). They rarely just move in one direction without a pull-back. This is especially true at the beginning of a momentum move or change in trend. Visually, here is what I am looking at and what the strategy decscribes with the indicators. 1) First Cross: This is the 16 line alerting me to the trend changing direction. 2) The 3-10 histogram moving to the opposite side of the zero line from the 16 line. This is the 3-10 histogram telling me we are having our first pull-back after the trend change. 3) The 3-10 histogram turning back towards the zero line. This is the 3-10 histogram telling me the pull-back "might" be exhausted and the trend is ready to continue. Is it going to work 100% of the time? No. Can you make some money watching for the sequence of events and trading them? Hopefully. Will you observe other patterns or triggers that you can develop into a profitable trading strategy? Probably.
I've received a few PM's asking if I use the same indicators to find different set-ups? Yes, I'll mention those later. This is the simplest, it works for me, and I don't want to muddy the waters with multiple set-ups, for now. You would be welcome to post any nuances, that you see, that seem to be repetative enough to bank some profits. It might help others.
Taking signals just before the 10 am release can add some volatility to your results. Notice how the tick volume exploded over the 2-3 minutes within the release of the numbers. I think there were 3 1000 tick bars in one minute. If you use trailers, they caught 6 points pretty easily before the momentum subsided as shown by the 3/10 histogram rolling over around 10:02-:03.
Donkee...Appreciate your time and effort in helping others..I wanted to follow along with this thread but my MACD looks nothing like yours. Any ideas to help mine get aligned with what yours shows? Chart attached...thanks again. BP
Someone already coded it for you about a year or so ago, on the ninja trader forums. link: http://is.gd/wFQe
Please don't mistake this for a system. It is not. If you don't see a way to make money from it, then please do not use it. It's okay.