Happy to see ET has offered a refuge for longer term traders – and happy to post up the current guidelines I’m using to set up trend-following trades. I say current guidelines as they may never be perfect and complete – they are profitable but there’s always room to learn and improve. However, I’m opposed to indicators that generate an additional chart. My guidelines use only daily and weekly TF candlestick / bar charts, refer to daily EOD unless weekly is stated. Some of the factors below might seem to replicate each other – but in practice they rotate at different points in the chart’s life cycle – so one of these will change before the others as a strong trend starts to decay, or as a ranging price starts to trend. Comments below are given with reference to setting up to buy in an uptrend, just reverse the instructions for a short set-up in a downtrend. 1. last Close must be above 200EMA 2. vertical sequence on chart must read, from high to low – price, 50EMA, 100EMA and finally 200EMA 3. swing phase using 3-bar reversal chart must be bullish (i.e. last swing, low or high, is higher than previous) 4. Trend Strength Indicator must score 70 or more (my TSI is total weekly Closes + Highs + Lows above 50EMA in last 33 complete weeks) 5. how many consecutive weekly Closes are above 50EMA, counting back from the most recent? (the more the better) 6. is last full week’s bar completely above 50EMA? (caution if it straddles it or is completely below) 7. how many adjacent weekly bars overlap the last full week’s range? (caution if more than 3) Once targets are graded using the above guidelines, entry is at EOD. The entry day can be selected using a variety of TA – I don’t find choice of entry trigger pattern is critical but it must indicate some confirmation of trend and point to a meaningful TA-based stop level. Handling correlation, risk management, money management etc. are up to the individual. So is choice of market sector I’m using this approach in forex but delighted to hear how it might work (or fail) elsewhere. I hope this can be an alternative to day-trading for new traders. But my main reason for posting would be to hear how this approach might work elsewhere / could be improved. Comments welcome.
What's your performance so far in Forex and do you apply it to certain forex currencies only (if so...which ones) ?
OP throws out a suggestion.., then gets busted on Why not offer a simpler alternative - assuming you're able Or this a..., my dick is bigger than your dick fest Time was I could have used help - no one offered then either - and busted on me Suppose none of you ever experienced that - which is too damn bad - for you RN
Couldn't help but notice the stark contrast between your title and your trading method. As others have indicated, you need to simplify. Nothing wrong with using daily and weekly data, and nothing wrong with using indicators. But your overall procedure seems a bit much. No way of knowing for sure without performance data ... from an actual backtest. Your entry procedure is very suspect IMO. Why enter on the EOD? Why not enter on the very next opening price after getting an entry signal? And your "variety of TA" is very vague. It sounds like you're leaving the entry up to chance after going through all that complicated procedure to find conditions suitable for entry. Very confusing.
Plenty of free help avail on this site, besides some of us have already given enough and the karma was just not reciprocated. Unfortunate but been there done that, never again least not when it comes to trading help. For direct help I rather donate to cancer, starving/sick kids, diabetic society, alzheimer, etc not ungrateful leeches on internet forums. Sorry for the rant.
Zestilio : Insufficient clarity of these two statements to evaluate/comment/Code them! 3. swing phase using 3-bar reversal chart must be bullish (i.e. last swing, low or high, is higher than previous) 4. Trend Strength Indicator must score 70 or more (my TSI is total weekly Closes + Highs + Lows above 50EMA in last 33 complete weeks) (for #3 above, "higher than previous" compares Closing prices? The most recent pivot to the prior pivot? close > than prior high? ...) (for #4 above, the TSI is unfamiliar to me, and the description seems "odd" Closes + Highs + Lows above ....?) Pardon if I have misunderstood.