Skyold wrote: ↑
Wed Jan 20, 2021 10:02 am
schenkthetank42 wrote: ↑
Wed Jan 20, 2021 7:07 am
f. Optional that PURPLE PSAR is above price
Please let me know if you can help. Happy to provide and learn other information from y'all! Excited to share information.
there are some good approaches that I'm about to work on.
do a scrennshot and show your chart.
It's definitely interesting.
Thank you for getting back to me!
You'll see in the chart below the current chart I'm looking at. I'm not always by my computer, but EURGBP had the perfect setup for me to short (see right-most red vertical line and red arrow).
In the chart you will see the following:
200 EMA (green)
ADX 14 with DMI (levels are 20, 25, and 50)
MACD2 12, 26, 9 (colored that I found online somewhere)
MACD1 3, 10, 16 (colored that I found online somewhere)
ADX 7 with DMI (levels are 20, 30, and 50)
Purple PSAR 0.02, 0.2
Gold PSAR 0.1, 0.4
TDFI of EMA that I found in one of the forums on this website. Only started using it today, so I really don't know how it works. However, I am mainly using it to plot arrows since it is close to where I would like to place them or have bot automatically trade. I'd prefer to trade myself if I get an email or alert on my phone or screen saying "short x pair" or "buy x pair".
The way this system works is as follows:
1) Look at D1 and H4. Make sure they are trending the same way. Use 200 EMA to help build trend. I also create my own S/R lines using D1, H4, H1, and M30. Sometimes M15 if I'm feeling it.
2) On M30, make sure 200EMA is below price (for long) or above price (for short) - this is only if it is in tandem with D1 and H4 200 EMA. This creates the most sure 1st check, especially for pairs with huge spreads. Otherwise, sometimes I will still trade depending on other factors like S/R & Fibo, and the next steps in my system.
3) Check if MACD1 has or had appropriate MACD/Signal cross at some point in relevant potential trend. MACD crosses below Signal above zero for shorts; MACD crosses above Signal below zero for long. This signal catches potential trends faster than MACD2 (the default settings).
4) Check if MACD2 has or had appropriate MACD/Signal cross at some point in relevant potential trend. MACD crosses below Signal above zero for shorts; MACD crosses above Signal below zero for long. This signal is usually slower than MACD1, but it tells me that I definitely should go to the next step.
5) Check ADX(14). If ADX line is above 20 (25 is better), then place long trade when +DI line crosses above -DI AND +DI is above or crosses above 20 AND -DI is below 20. This tells me that uptrend is strong and I will buy on the spot as long as Gold PSAR is below candle. I will definitely buy should Purple PSAR also be below candle. If ADX line is above 20 (25 is better), then place short trade when -DI line crosses above +DI AND -DI is above or crosses above 20 AND +DI is below 20. This tells me that uptrend is strong and I will buy on the spot as long as Gold PSAR is above candle. I will definitely buy should Purple PSAR also be above candle. ADX and PSAR just double check each other. Gold PSAR is faster than Purple PSAR. [It is especially best when Gold PSAR (and Purple PSAR) switch positions.]
The ADX(7) indicator I use only if I feel like being a bit impatient, or if I want earlier confirmation of the trend strength. It's faster than the ADX(14), so I'll review the ADX(7) in tandem with the ADX(14). I prefer using it when ADX and +DI or -DI are above 30, but will use it if they are above 20. It's a riskier move, but I'll sometimes use it.
In the chart, you'll see where I would prefer to see the alerts and arrows (or have bot trade).
Purple vertical line - I might have traded only because ADX(7) -DI line went to 20.
All red vertical lines I definitely would have shorted since all indicators are where I want them to be.
All blue vertical lines I would strongly consider going long. Everything looks great except that 200EMA is above price, not below. If I was still watching this pair, I probably would have taken another buy trade where the blue arrow is from the TDFI indicator, or the candle next to it. However, that's only because of the spread. If it was a bigger spread I probably wouldn't take it at the blue arrow.
Happy to hear what you think. I'd be thrilled to read other suggestions for improvement or anything else.
All the best!