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hello MP,
As you have wrote you do not average if the dots repaint and if the trades goes bad you do a hedge instead of a stop loss to protect your margin. When do you decide to do a hedge and for how long do you keep it before you close the trades?
Thank you,
chonghm
hello MP,
As you have wrote you do not average if the dots repaint and if the trades goes bad you do a hedge instead of a stop loss to protect your margin. When do you decide to do a hedge and for how long do you keep it before you close the trades?
Thank you,
chonghm=================================================
i do not average until we reach a bottom, I do not use a stop loss and I do counter the bad trade with a hedge and I never close the trade, correct !
Now its far easier to write that then do it, but with experience and using the daily, weekly and monthly charts, I can usually project enough into the future to at least know when to START looking for the bottom.
The charts will almost immediately tell me Ive made a mistake in judging trend, so I will enter a hedge almost immediately --- for instance, in reality ive been LONG at noon, est, thinking i would have gotten out of the trade by then but been wrong. Knowing the currency will reverse at noon and knowing the trend is LONG, I take a SHORT trade and ride it as far as it will take me, which I hope will only be a day, BUT in the case of a major trend reversal on the DAILY CHART (which I can read with indicators and the LRC) I might just place a short with no tp and start studying like mad to see where this thing might bottom. I have held a downtrend for a month at times, but only because the monthly chart told me I could !
On all chart timeframes there is a trend --- the daily may be going up, the weekly may be going down and the monthly may also be going up -- which one you wish to be in is your choice, dependent on margin available for drawdowns, but if one knows the trend, can see it spelled out on the LRC's, then one knows if one is safe or not and can proceed accordingly.
If you are "safe" and can afford to hold, then one holds till everything comes back, based on the trend on the timeframe you like !
perhaps some "spaghetti" charts might help
the first is the daily -- green is the SHI overlay and the yellow are hand drawn LRC's starting at the top of the downside move to the bottom of the same move, where the SHI channel takes over with a new trend. the white arrow shows the upcoming resistance area which will be the top of the green channel on the upcoming WEEKLY chart. And the third chart is the MONTHLY, showing we are approaching either a breakout or reversal, although the candle pattern strongly suggests a breakout and continuation of the move to the s+r triangles at 1.0878, although the bols is dropping a bit and worth watching as we approach that point. At the very least, at the top of the monthly chart LRC, we should hit 1.0243 while i went long at 0.9068 -- if we breakout, so much the better for the long I hold
so the end result of all this is my long will undoubtedly be taken out, perhaps not tomorrow
Hello MP,
You always stressed on LRC. Do you have an indicator for that or if not how do you hand drawn it. Sorry for my ignorance on this indicator. Your earlier explanation on the stop loss and hedge is most helpful.
Thank you,
chonghm
Helo MP,
Thank you for your wonderful explaination,
chonghm
Hello MP,
You always stressed on LRC. Do you have an indicator for that or if not how do you hand drawn it. Sorry for my ignorance on this indicator. Your earlier explanation on the stop loss and hedge is most helpful.
Thank you,
chonghm==============================================
attached, in my finest 2nd grade artwork, is an attempt to illustrate and show how the channels work.
OK, here we go !
the ORIGINAL channel may be hand drawn or taken from one of the SHI overlays. If one were to hand draw it, you start from the LOWEST and FURTHEST AWAY point from the present price that you can and draw the LRC to "todays" present price, wherever it may be !)
The SECONDARY trend is drawn from the CLOSEST AND HIGHEST point on the chart that is close to the present price, with the original channel in place.
In this example, the original trend is moving along nicely in an upwards direction WHEN all of a sudden, a downside move in the channel BREAKS DOWN and starts heading SOUTH, away from the main channel
Now EACH time the price approaches the top or bottom of ANY channel, we take profit in whatever manner suits us and go flat and wait for a sign of the price breaking out of the channel, or doing what it usually does, which is bounce towards the bottom of the channel -- In this case, thats exactly what happened, only it broke thru the ORIGINAL channel and formed a new trend (SECONDARY TREND)
NOW we draw our second channel, and watch over time to see what the price will do each time it comes to the top or bottom of the new channel.
the question marks (???), which is actually a THIRD channel, show where the price is now at the top of the SECONDARY channel, and we wait to see if there is a breakout of that channel, which would now be going in the direction of the third channel --- we continue this on and on, which along with the ziggies, dots, s+r overlays, gives us a very nice VISUAL warning of tops and bottoms and CLEARLY shows the present trend of the currency, allowing us to enter a simple long or short and sit back !
to PREDICT what a currency does, I start with the one month chart, go to the weekly chart, then the daily and finally move down to the timeframe I wish to trade in, having now gotten an excellent idea of what the TREND of the currency is, by having seen it in every timeframe --- using the LRC, i IMMEDIATELY see the trend of the currency, and so spend NO time wondering !
In the example below, I could have gone SHORT once the SECONDARY trend was formed and confirmed, or I could have played each UP and DOWN cycle of the secondary trend as a seperate trade OR I could have scalped every 5 minute move INSIDE all of the above --- just depends what you want to do and what timeframe you wish to work in !
EVERY type of trader can benefit from the LRC, as there is NO simpler method of seeing where the price is and what it is doing, plus notification of "probable" tops and bottoms you should be aware of !~ It is TOTALLY visual, can be understood in a moment and serves as a guide, along with the ziggies and dots, as to what one should do next !~
For fun, you can trade EVERY TIMEFRAME during these moves, which is what I enjoy doing !
mp
mp
==============================================
attached, in my finest 2nd grade artwork, is an attempt to illustrate and show how the channels work.
I can see you're a great artist.
I can see you're a great artist.
==============================================
ALWAYS A CRITIC IN THE AUDIENCE !!
lol
mp
I can see you're a great artist.
Real-time setup
Real-time setup
Why is this picture so big?
I have to scroll al over the place to see it? Hoe do I reduce the size of pictures so that I do not have to scroll to read the posts after them? 
Real-time setup
Did you draw these trendlines manually?