Simple Trend Follower System - page 7
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Hello,
Thank you for posting your trades with this specific method.
Please continue.
Cheers
BThat's the idea.
Understand the system system by working on real time will shows the good trades and the bad ones.
It's easy to show how profitable is a system posting the trade by the day end.
Btw: Our loonie trade is under water. Stop could be hit yesterday depending on what broker we have.
I did not close the trade yet. But I like to re-post the X4 rule. A signal is valid for the next 4 equal periods with this system or any other.
Examples.
M15 signal is valid for one hour.
M60 signal is valid for four hours.
The S&R levels
Hi,
A members asked me about the use of the S&R indicator (dots).
Main concept behind is to be used as helper to determine minor and major S&R. If you plot the fractals indicator it shows the same thing.
Often, the MACD or ADX does not provide an exactly entry point and for most new traders this is a problem, this happens specially when the market heavily trending.
A trending market means often no MACD crosses or ADX crosses are in timing and some traders needs an extra visual confirmation.
How to use it?
Wait for close after the break to take the trade.
If you feel the indicator is confusing your eyes, just remove it and take the MACD/ADX signals.Just try to draw some basic trendlines or determine the S&R levels when the ADX is just starting to grow becuase when the ADX is fully trending theory says price will override these levels easy.
You could also replace this indicator with Price Channel at 6, shift 1 or Price channel signal made by igorad, or even BB.
Extreme Point Rule
Hi
This is a very good strategy, and i am working on it.
Thanks for sharing it.
Can you say somethig about the Wilder's extreme point rule ?
Thanks
Hi
This is a very good strategy, and i am working on it.
Thanks for sharing it.
Can you say somethig about the Wilder's extreme point rule ?
ThanksI guess you're talking about RSI failed swing right? widely know as divergence
Some examples.
Hi
This is a very good strategy, and i am working on it.
Thanks for sharing it.
Can you say somethig about the Wilder's extreme point rule ?
ThanksOoops, sorry. Is not divergence. I remember now.
Page 48 of Wilder's book. More or like:
There is one more rule to follow the DMI, the extreme point rule.
The day when +DI(14) and -DI(14) crosses use the maximun valuere (price) reached that day.
If market is bullish the point of change is the minimum reached the day cross.
If market is bearish the point of change is the maximum reached the day cross.
Keep it on that point is your stop is not fired off even if the index is contrary to your position.
Sorry for this "literal" translation of the book.
My opinion it's different form the internet texts. Wildes wants to means use this rule to avoid whipsaws.
In the picture below (according to my opinion) we have two extreme points. Market is trending long, ADXis aboive 20, DMI just crossed pointing to a reversal and then continues long trend. You take note of the lows, and is your position survives do not go inverse, just keep it with the trend.
Maybe I'm wrong but the Wilder mention is too small in the book to fully understand what he wants to mean.
Correlation
Correlation between systems with different indicators is usually bigger than we think.
If we see another trades with another system and compare the correlation is surprising.
First our H4 "driver".
DMI on higher values with -DM on the right side.
Then our trading timeframe, H1. The entry points are close the entry points signaled with labtrend. See the rectangles and compare with the pictures in the other post.
Both systems are trend followers. Developed as trend followers, If we prefer breakouts and counter trends we need something different
This picture demonstrates how difficult is to trade some product where is outside the conditions established for the developed trading system.
We need to remember as some old trader says, we have time to go long, time to go short and time to go fish. But only the traders mind could identify where is that time and better which systems needs for that time.
If you're that some kind of traders that likes to trade with only one system, this picture shows time to go fish. Even by peg strictly to the rules losers are present here and you can't avoid anything if you decide to trade.
That's the awful truth. That's your choice. You do not lose any by stop to trade.
However, if you feel you're good to detect new market conditions, moving to another system could be profitable.
It's only mater of choice.
But
But often than sometimes, going fish is the only choice
. Got screwed is the other.
Recap
Best trade for this week. Same as with Lab Trend. AUD
New
New version, hands on it.
That's mean I need to explain how to use the Fibonacci Fan. Keep in touch.