Norman, the first thing to remember is Newton’s 1st Law of Motion which states that a body (PRICE) in motion remains in motion unless acted upon by an external force. In simple terms, PRICE, in an UP trend will keep going UP until there are more sellers than buyers (external force). Then, remember that ALL semafors/zig zags and other reversal indicators will CONTINUE making new highs as long as buyers are buying and pushing PRICE higher.normannasty wrote: ↑Wed Mar 25, 2020 2:08 amI sit here since the vertical line. The red dot was on highest high so where the red line is. I waited for the sell signal. I usually take sell position when the first pink candle close. The first trade was minus the second also. And the red dot just moved moved and moved and no the arrow is in. So I think now its will be ok because its turned from a significant level.
When you get to your chart, the first thing to do is SEE what PRICE has done from yesterday’s close to today’s open – on your chart, PRICE gapped up and was never filled meaning the buyers are STRONG. Then SEE that PRICE came down and TESTED the open with a HAMMER candle from where it stayed and continue to stay, ABOVE the open – another sign of buyer’s strength.
Now look at XARD’s trend MA from the open and SEE the BLUE colours are longer in terms of number of candles than the red colours. This alone tells you the strength of the buyers since the pull backs (red colours) are small in numbers of candles meaning that they (sellers) are out numbered by buyers. As you do this, you should SEE that PRICE is making a higher high/higher low structure.
Then look at the cycle channel – the bottom channel is flat whereas the top channel is stepping UP.
All this is telling you that the PRICE bias, momentum and direction is UP and expect the red dot and arrow to keep going up until the sellers out number the buyers. PRICE is “”STAIR STEPPING HIGHER”!
So, until these change, SWING TRADE PRICE by buying the first blue candle closing above the blue trend MA and exiting when PRICE ACTION (buyers) start losing momentum – unless you are trading from dot to dot, we want to take bites out of the trend so bank profits. Ignore all red trend colours and buy again and keep repeating. If you don’t understand PRICE ACTION, trail PRICE with your stop below the current candle or 2 candles back or 3 candles back – whichever suits your style.
While doing this, OBSERVE the TDI but do not trade it – use it in conjunction with the trend MA and candle colours. As with all RSI based indicators, NOTE that PRICE is bullish when the green line is above zero and bearish when below zero. Also note that it will, at times, DIVERGE from PRICE as it is doing on the last 11 candles.
I would suggest you remove your yellow and red free scalping indicator as it looks like a Fisher indicator which is notoriously bad for repainting on top of repainting! It is also confusing as it is not in confluence with the TDI or candles and trend and is really a distraction.
Your Support and Resistance indicators are not needed as XARD’s MM is already doing that job for you. As XARD posted earlier, he pays special attention to the extreme MM levels.
I don’t have a US broker who trades indices with MT4 so I don’t know what PRICE is doing beyond the end of your chart.
I am also attaching my notes of a communication I had back in the 90s with an “old time” trader which I posted on my old thread.
I hope you find some of this useful.