I no longer use rsi, cci, stochastic or macd on the sub-window as I would always set it similar to that of the trend line on the 1hr chart and it would simply be a duplicate signal of what was already happenning on the main chart.jwigginton27 wrote: Sat Sep 07, 2019 7:20 am
Hi Xard,
Question for you on your entry and exit. I realize this is subjective, but just getting your thoughts and experience. As you know as a candle is developing and can move from (blue/pink) to black over the course of the time period. For example, when I'm starting off a new day for HK30 or WS30. I can look to see what it did in higher time frames and previous days, overall trend etc.
Before you open a position - Are you:
1. Waiting for a previous candle to close in the right color/trend direction and then open a position
2. Just waiting for it to pass the OPEN position level?
3. Something else? Considering the RSI/CCI, etc
For exits - Are you just closing when it dips into the black/below the MA trend line, candle closes below the trend line, or something else?
From reading through the threads, seems like people get the overall system and it's amazing, but have most questions on the entry and exit strategy, since the candles change during the course of the period you are trading.
Thanks again!
Josh
On the 1hr chart once price has crossed the trend line and that line has changed colour it tends to stay with this line in the direction of the new trend. The only time it does not do this is when price is in a ranging period say after a big move and price just sits there for a couple of days and rather than try to trade it I simply wait it out for a break and we see price cross the trend again on the 1hr and the whole process starts off again..
Either way if it crosses and we get the new colour candle then provided the middle trend line has changed too then we are good to go with our trade. I tend to close my trades around 120 pips in profit on the HK50 and that is me done for the day even though price may continue for +200 pips on most days. If I am in a trade and price crosses back over the middle trend line and my candle goes black I will exit my trade right there and then, take the loss and wait for price to cross at a later time.
Just make sure the middle line has changed to the new trend and ususally you can't go wrong. Once it has changed on your 1hr chart you can then drop down to the 15 min chart and trade and exit with more control. You will also see more opportunities to get back in on a trade in the 15 min chart when price crosses back over the signal line in the direction of the trend.
When the 1hr cycle Dots appear they can from time to time recalculate when price continues to move past them in the previous trend so just remember that the Cycle has not changed until price has crossed back over the middle trend line on the 1hr chart then the cycle Dots tend to be solid and we have a change in trend that is good to go.
Basically, when the Dots appear they are saying to stop trading in this direction and wait for the trend to change on the 1hr chart where trading continues again in the new direction.
Is the system perfect? No, you will never get a perfect system in forex trading chaos. What the system does is help you from making stupid trades that erode your profits.
Using the system you can see at a glance what type of trade you should be in for today based simply on the middle trend line. If price is below the 1hr Trend line then you will not be in a buy trade that day and if price is above the middle trend line you will not be looking to sell that day so with that in mind you can then look to see where your best trading possibilities are for that day and trade with confidence knowing that you are trading in the direction of the main move.
If you trade currencies, commodities or indices you can use the 61% of the Daily ADR as your target and the system will work for you just fine.
With Indices (HK50) I can hit my 120 pips usually by just hitting 38% of the Daily ADR and that is why I switched to Indices.
All the best
Xard777