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Systems (EA's and manual), and Managed Accounts => Manual Systems, Trade Journals, Indicators, Manual Trade Help => Topic started by: diyforexskills on May 15, 2018, 09:03:48 AM

Title: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 15, 2018, 09:03:48 AM
I am starting this new thread with Donna's permission.

Even though most of my current trading is with EAs, and will continue to be, I have always maintained an interest in technical analysis and monitoring for the fundamentals. Principally for longer term trading on the Daily and H4 and looking for advance warning on the H1.

And so I am planning to embark on more manual trading but in a semi-automated fashion. After identifying good trade setups I will place entry and SL and TP conditions on the charts manually in the form of trendlines, at any angle, and then the Magic Wand EA (to be available soon) will read those trendlines and do the rest including being able to to load up on positions. Trendline based SL and TP will be movable during open trades as the trade structure develops.

So the purpose of this Thread will be about exchanging views on possible trade setups which would be enterable by placing the appropriate trendlines on the chart. eg entering a Buy on the bottom of an upward sloping channel and "naming" the TP as being the upper line of the channel. Or identifying a possible reversal, breaking a trendline and placing a TP trendline at a Fib retracement level.

Whether people use or not use the EA in executing and managing the trades will be immaterial. It is all about sharing ideas, and results, on price action based trade setups, focusing on the longer term.

Hope you will join in the discussion.

Andrew
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 16, 2018, 08:37:55 AM
First intentions

So this is how I intend to analyse charts for possible setups that I might take.

1. I am going to use the Alligator indicator to check for trending (MAs aligned)and ranging (MAs criss-crossed) periods; and perhaps use the red or blue lines to trail my stops during trends.
2. I will use the MACD to see if possible trendline (TL) breaks are supported by bullish or bearish divergences (Normal and/or hidden).
3. I will check the Weekly for signs of dominant trend and any major Support and Resistance zones and any strongly signalling reversal candle if any.
4. I will trade on the Daily.
5. I will use the same chart setup to look at H4 and H1 charts for any early clues as to if and when price might be moving into ranging or trending mode.

I have applied this to the GBPUSD  Daily chart as shown below. Two trades that I would have taken if I had been doing this since mid-April.
And my intention as to where to set the next trendline for adding to my Sell position. When using the Magic Wand in future, we would label this TL as a SellStop and so when the line is touched/broken, the EA will enter a Sell trade.
In the second chart, H4, you can clearly see that this pair has been ranging and so we should be waiting for a breakout. The bounce from below of the MACD, shown in red box, is usually a good indication of further downward move.
At this stage I would set my SL at the level of the end of the red line of the Alligator indicator, and trail the SL rather than setting a TP. (I believe that this could well be the start of a Wave 5 from a cycle starting in 2014 in which case it would finish at around 1.2 or less. But maybe I am just being hopeful   :)  )
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 17, 2018, 05:13:09 AM
Another day, so time to adjust

Some weak US data and a positive announcement re Brexit, helped to push up the GU a bit overnight (speaking from Australian time).

So my TL SellStop from yesterday did not get hit.

I am still of the view that the bearish trend will resume, so if I had my Magic Wand I would now place two TLs as shown in the image.

TL1 is a SellLimit roughly along the middle MA of the Alligator (SMMA 8 shifted by 5, Median price). So if price continues to rise I will get a Sell trade at a good price.

TL2 is a SellStop and so if price resumes its downward trend I will get a Sell trade at a possible slightly better price than if I use the standard entry point below the lowest wick.

At some point I will have to set a SL. I would do that with the Magic Wand TL along the blue line of the Alligator (SMMA 13 shifted  by 8, Median price) with SL to be actioned only on the close of the candle above the TL.

The advantage of using the Magic Wand TL to set entries is that we don't have to specify a particular price for that entry. Entry can be triggered anywhere along that TL. Same for TP and SL when we use sloping TLs. Hence we avoid the fear of missing out and by being too conservative when setting Limit orders.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 17, 2018, 09:49:47 AM
A nice example

Just checking on the USDCHF pair which has been on a massive uptrend. So if we had been in that trade, would now be the time to take profit?

This is where I am hoping that looking at three timeframes will help us in the future, as shown in the image.

So when we dial down to the H4, we can clearly see the pause; and from H1 we can see how ranging it has been for a while.

Given the length of the trend, and these features on H4 and H1, I would set my TP/SL as shown on the red line of the Alligator, waiting for a close below the line. If price resumes its upward trend, I could always get in again; having banked a nice profit.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 18, 2018, 08:57:47 AM
Magic Wand in action (testing phase)

I am currently testing the Magic Wand EA which I will be using to place and manage the trades.

I had set a Sell Limit trendline, and set the EA to add three scale-ins at -5, -15 and -25 to the initial trade on break of the trendline.

All four trades are at 0.01 lot.

Reason for using scale-ins is that we never know how close price will go relative to the trendline we set, and in this way we can get some better entries, and reduce potential loss should price go against us compared to if we had just entered with 0.04 lot on trendline.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 18, 2018, 01:25:16 PM
Adding the Trendline SL

To continue the testing of the Magic Wand, I have now added a SL trendline to the chart, roughly along the middle MA of the Alligator.

So these two trades (see previous Post), will be closed if and when price at close of the Daily Candle, touches this trendline.

By selecting SL at Candle close, I am avoiding being stopped out too early because of a spike in price.

As the trade progresses, I will be able to adjust the SL trendline if I feel that is warranted.

All about staying in control and responding to the market.

Also shown is the fact that I have several other trades open, all bar one in profit. They were all entered on the basis of this system. And all at a miserly 0.01 lot. But when you have several, and you scale-in if in trend, you are still making money. And any "mistake" will not send you broke or break the bank. And you will be more likely to make rational decisions.
But as always, each to their own.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 19, 2018, 06:21:19 AM
Setting a Take Profit Trendline with the Magic Wand

In yesterday's Post I set a SL trendline - which of course functions nicely as a TS.

But we can also add a TP trendline as shown in the first image. This takes advantage of the fact that price can overextend during a strong trend, moving well away from the mean. So why not try to capitalise on that to see if price overextends enough to trip our TP trendline. That way we can bank some nice profit and we can then always get back in, at a better price, when price retraces to the mean. This is nicely shown in a graphic form (second image) from Justin the Daily Price Action educator in his latest blog. He uses 10 and 20 EMAs rather than the Alligator SMMAs that I use, but the concept is the same.

https://dailypriceaction.com/friday-qna/forex-breakout?inf_contact_key=27314e77769a80a7a205a42b3fb253e3379869685d1d4338bda7378f2077b40d
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 21, 2018, 02:59:18 AM
Weekenders

Some people don't have much free time during the week but can do some chart analysis on the weekends. And we can scan for any important news announcements over the weekend which might have an impact on market open. Problem is that we cannot set new trades or modify conditions for existing trades on weekends.

But we can with the Magic Wand.

So now we can just allocate some time on the weekend, analyse our favourite charts for setups, check for any news, and then use the Magic Wand to place our trades and refine exit conditions for existing trades.

I did that this past weekend. We had a successful royal wedding which I thought might push up the GU on Monday. So I set a BuyStop trendline for that. But we also had the news that China was going to buy more US goods; that could push up the USD and so put further downward pressure on GU. So I placed a SellStop below.

Then all I had to do was wait and see what the market will do this coming week.

Will the royal flush be trumped by the USD? At time of posting, not yet!
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 21, 2018, 08:32:52 AM
Weekenders

Some people don't have much free time during the week but can do some chart analysis on the weekends. And we can scan for any important news announcements over the weekend which might have an impact on market open. Problem is that we cannot set new trades or modify conditions for existing trades on weekends.

But we can with the Magic Wand.

So now we can just allocate some time on the weekend, analyse our favourite charts for setups, check for any news, and then use the Magic Wand to place our trades and refine exit conditions for existing trades.

I did that this past weekend. We had a successful royal wedding which I thought might push up the GU on Monday. So I set a BuyStop trendline for that. But we also had the news that China was going to buy more US goods; that could push up the USD and so put further downward pressure on GU. So I placed a SellStop below.

Then all I had to do was wait and see what the market will do this coming week.

Will the royal flush be trumped by the USD? At time of posting, not yet!

.... but it has now, and trade has been entered. A little later than expected because i was driving home with laptop switched off. And since a trendline entry is not placed with the broker, but sits on the chart, we have to have the computer on 24/5 or use a VPS to ensure trades are entered and closed as set with the Magic Wand. Lesson learned.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 23, 2018, 02:01:10 AM
An Asian session flutter

All is quiet on the asian front. My Daily trendline trades are nicely in profit at around $218. The TP and SL lines for these are in place but don't look like being hit soon. And so I am bored.

So time to switch to the M5 chart on the GBPAUD. Major trend is still down, so have set some lines for a breakout of the current range on that timeframe. Either a Sell Limit from the top of the range or a Sell Stop from the bottom. And of course a SL and a TP since we are trading on this short timeframe.

The setup is shown on the H1 chart.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 23, 2018, 06:22:41 AM
An Asian session flutter

All is quiet on the asian front. My Daily trendline trades are nicely in profit at around $218. The TP and SL lines for these are in place but don't look like being hit soon. And so I am bored.

So time to switch to the M5 chart on the GBPAUD. Major trend is still down, so have set some lines for a breakout of the current range on that timeframe. Either a Sell Limit from the top of the range or a Sell Stop from the bottom. And of course a SL and a TP since we are trading on this short timeframe.

The setup is shown on the H1 chart.

Well that one ended in a loss. I had set the entry to include scale-ins at -ve pip distances; the SL trendline, which I moved a bit closer while the trades were open, closed all trades as shown for a $14 loss.  A reminder to me that during the Asian session, most pairs seem to drift up despite what the longterm trend may be.

I still have a few little gremlins that need to be fixed before I release the Magic Wand for a 2 months $10 trial, with the $10 counted towards the cost of a lifetime $79 licence later on.

You can do this type of trendline trading without the Wand, it's just that being able to set entries and exits with a sloping trendline is far more versatile then using pending orders which can only be placed horizontally, ie at one fixed price.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 24, 2018, 05:16:50 AM
Trading on the M1 with the Magic Wand

As part of the testing I had a little fun on USDJPY, M1 timeframe.

Three wins and one loss, using the scale-in feature. A mix of stop and limit entries and plenty of trendline adjustments as the trades progressed.

All looking good. And the trades entered on the Daily are all still in play and at $315 in profit. TP and SL trendlines are being used to manage the trades all of which are trending nicely with temporary short retracements at the "big round numbers".
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 24, 2018, 08:39:15 AM
User Guide now available

In readiness for the launch of the Magic Wand EA trial, the User Guide can now be accessed from here
http://www.fxautotraderelite.com/resources/

By way of further illustration, two possible setups for trades on the Daily, can be seen in the image. The placing of the trendlines (the magic wands) will of course depend on your own view of market direction, bolstered by what the current trendlines and/or indicators of your own choice, are suggesting as possible options.

Given that these are trades on the Daily, there is no need to set SL or TP lines at this stage. They will depend on which trendline is broken first and hence which trade we will be managing with the EA. Trendlines can be adjusted over the coming days as the patterns develop.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 25, 2018, 08:28:34 AM
User Guide now available

In readiness for the launch of the Magic Wand EA trial, the User Guide can now be accessed from here
http://www.fxautotraderelite.com/resources/

By way of further illustration, two possible setups for trades on the Daily, can be seen in the image. The placing of the trendlines (the magic wands) will of course depend on your own view of market direction, bolstered by what the current trendlines and/or indicators of your own choice, are suggesting as possible options.

Given that these are trades on the Daily, there is no need to set SL or TP lines at this stage. They will depend on which trendline is broken first and hence which trade we will be managing with the EA. Trendlines can be adjusted over the coming days as the patterns develop.

Magic Wand EA is now available for trial

For just $10 you can now try out the Magic Wand EA to help with trendline trading. Expiry for the trial licence will be 31 July 2018. The $10 will count towards the full purchase cost ($79) if and when you decide to move to an indefinite licence.

The method I am using for this type of manual trading is outlined in Reply #2; and the rationale for it all is set out in Reply#1.

There is no fancy website for this trading tool, just this Thread. To get a copy of the Magic Wand, please send $10 to my PayPal account, sydap2003@yahoo.com.au   Pls make the payment as to a "friend" so that we don't incur payment processing fee. Half the payment will go to Donna as a contribution to maintaining the Forum from which we all benefit. The EA will be sent to you via email within 24 hrs and usually much sooner, ie whenever I am at my computer which is pretty often. Pls note that I live in Sydney Australia, and I do sleep at night.  :)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 26, 2018, 03:52:01 AM
First intentions

So this is how I intend to analyse charts for possible setups that I might take.

1. I am going to use the Alligator indicator to check for trending (MAs aligned)and ranging (MAs criss-crossed) periods; and perhaps use the red or blue lines to trail my stops during trends.
2. I will use the MACD to see if possible trendline (TL) breaks are supported by bullish or bearish divergences (Normal and/or hidden).
3. I will check the Weekly for signs of dominant trend and any major Support and Resistance zones and any strongly signalling reversal candle if any.
4. I will trade on the Daily.
5. I will use the same chart setup to look at H4 and H1 charts for any early clues as to if and when price might be moving into ranging or trending mode.

I have applied this to the GBPUSD  Daily chart as shown below. Two trades that I would have taken if I had been doing this since mid-April.
And my intention as to where to set the next trendline for adding to my Sell position. When using the Magic Wand in future, we would label this TL as a SellStop and so when the line is touched/broken, the EA will enter a Sell trade.
In the second chart, H4, you can clearly see that this pair has been ranging and so we should be waiting for a breakout. The bounce from below of the MACD, shown in red box, is usually a good indication of further downward move.
At this stage I would set my SL at the level of the end of the red line of the Alligator indicator, and trail the SL rather than setting a TP. (I believe that this could well be the start of a Wave 5 from a cycle starting in 2014 in which case it would finish at around 1.2 or less. But maybe I am just being hopeful   :)  )

Sometimes you come across an article that really gels with what you are doing and adds some further guidance. This article from the forexboat people did that for me today. It describes trendlines as dynamic support/resistance (as opposed to horizontal line which are fixed) and shows how you can use trendlines to really good effect. With or without the help of the Magic Wand to automate the entries and exits.

https://www.forexboat.com/use-support-and-resistance-with-price-action/?utm_source=Email&utm_medium=All&utm_content=Blog_Email_Img1&utm_campaign=Blog

Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 27, 2018, 02:50:46 AM
Having a go on the USDJPY

Applying the concept of the article in previous Post and my system of trendline trading with the Magic Wand, I have looked at the USDJPY and have set up my Magic Wand trendlines as shown in the second image. The top image shows the initial trendline analysis going back to 2014 which forms the basis of my setup for the coming week.

This is an example of how, if we are short of time during the week, we can analyse charts and set up our trades for the coming week using trendlines and the Magic Wand to automate our entries and exits based on dynamic entry and exit levels. And by using just trendlines and in my case two indicators, the Alligator to identify trending and ranging periods, and the MACD which in this case shows a double top (on the MACD itself) and a slight bearish reversal.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 28, 2018, 05:50:17 AM
AUDNZD

A lot of talk about a weakening Aussie this morning. So I took a look at the AUD pairs and have settled on the AUDNZD.

On the Daily there seems to be an opportunity to go short with a TP at either an upward Support trendline from April 2018 and/or a downward Resistance turned Support from October 2017.

So on the H1 I have placed an entry with an upward sell stop line to get me in at the bast price; or, if price goes up instead I won't get triggered and hence won't make a loss. Best of both worlds! That is the advantage of the dynamic entries and exits that you can make by using trendlines and the Magic Wand EA.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 28, 2018, 06:39:19 AM
AUDUSD

This was a setup that was triggered this morning and since then price has moved against me. However, with the Magic Wand EA, I had placed another three Sell limit orders at -10, -20 and -30 pips last week and with this morning's retracement two of those sell limit pending orders have been triggered.
The stop loss is still some 80 pips away. So the best result would come from a bit more retracement to trigger the third sell limit order, and then for price to go back down.
We'll see what happens. The longterm trend is down according to the technicals. And the fundamentals. But that is no guarantee.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 28, 2018, 09:05:41 AM
AUDNZD

A lot of talk about a weakening Aussie this morning. So I took a look at the AUD pairs and have settled on the AUDNZD.

On the Daily there seems to be an opportunity to go short with a TP at either an upward Support trendline from April 2018 and/or a downward Resistance turned Support from October 2017.

So on the H1 I have placed an entry with an upward sell stop line to get me in at the bast price; or, if price goes up instead I won't get triggered and hence won't make a loss. Best of both worlds! That is the advantage of the dynamic entries and exits that you can make by using trendlines and the Magic Wand EA.

A small hiccup, now fixed and we are in the trade. Any retracement at this early stage will trigger some more Sells, but otherwise we are heading south. I will set a SL at most recent top, about 70 pips away. Will replace that with a downward sloping SL trendline in a day or so if all goes to plan.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 28, 2018, 12:32:35 PM
AUDNZD

A lot of talk about a weakening Aussie this morning. So I took a look at the AUD pairs and have settled on the AUDNZD.

On the Daily there seems to be an opportunity to go short with a TP at either an upward Support trendline from April 2018 and/or a downward Resistance turned Support from October 2017.

So on the H1 I have placed an entry with an upward sell stop line to get me in at the bast price; or, if price goes up instead I won't get triggered and hence won't make a loss. Best of both worlds! That is the advantage of the dynamic entries and exits that you can make by using trendlines and the Magic Wand EA.

A small hiccup, now fixed and we are in the trade. Any retracement at this early stage will trigger some more Sells, but otherwise we are heading south. I will set a SL at most recent top, about 70 pips away. Will replace that with a downward sloping SL trendline in a day or so if all goes to plan.

... a few hours later
Given the movement in price I now feel better placed to set a SL trendline as shown on the H4 chart. What this will do is that the trade will be caught in a pincer move between the upward sloping TP line (red) and the downward sloping SL line (orange). Sort of in that shaded area on the chart.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 29, 2018, 05:43:51 AM
Partial closes option

The AUDNZD trade is going as expected having made some 50 pips so far, about halfway to the TP line I have set.

Just for demo purpose I have closed the main trade at a very small profit so that only the scale-in is still trading.

If I had entered with 0.02 lot, I could also have set the Magic Wand to close 50% of either or both of the main trade and scale-in trades at some specified pips in profit or in loss.

You can see these Input settings on the image. This is what makes the Magic Wand so versatile.

Magic Wand EA is now available for trial
For just $10 you can now try out the Magic Wand EA to help with trendline trading. Expiry for the trial licence will be 31 July 2018. The $10 will count towards the full purchase cost ($79) if and when you decide to move to an indefinite licence.

The method I am using for this type of manual trading is outlined in Reply #2; and the rationale for it all is set out in Reply#1.

There is no fancy website for this trading tool, just this Thread. To get a copy of the Magic Wand, please send $10 to my PayPal account, sydap2003@yahoo.com.au   Pls make the payment as to a "friend" so that we don't incur payment processing fee. Half the payment will go to Donna as a contribution to maintaining the Forum from which we all benefit. The EA will be sent to you via email within 24 hrs and usually much sooner, ie whenever I am at my computer which is pretty often. Pls note that I live in Sydney Australia, and I do sleep at night.  :)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 30, 2018, 08:30:10 AM
USDJPY

This Sell trade finally triggered after several days. The pair is in a downward sloping channel on the Daily, had failed to touch the top of the channel and was heading down, as indicated by the start of the turning with the Alligator indicator. We now have a retracement and so far two of the negative scale-ins have also been triggered.

So we will wait to see what happens next. With most other pairs with the USD, eg GU, EU and AU, the USD is strengthening and hence forcing the pairs down. But with UJ, we are assuming that the USD is weakening against the JPY. So a risky trade.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 30, 2018, 02:29:50 PM
AUDNZD

A lot of talk about a weakening Aussie this morning. So I took a look at the AUD pairs and have settled on the AUDNZD.

On the Daily there seems to be an opportunity to go short with a TP at either an upward Support trendline from April 2018 and/or a downward Resistance turned Support from October 2017.

So on the H1 I have placed an entry with an upward sell stop line to get me in at the bast price; or, if price goes up instead I won't get triggered and hence won't make a loss. Best of both worlds! That is the advantage of the dynamic entries and exits that you can make by using trendlines and the Magic Wand EA.

A small hiccup, now fixed and we are in the trade. Any retracement at this early stage will trigger some more Sells, but otherwise we are heading south. I will set a SL at most recent top, about 70 pips away. Will replace that with a downward sloping SL trendline in a day or so if all goes to plan.

... a few hours later
Given the movement in price I now feel better placed to set a SL trendline as shown on the H4 chart. What this will do is that the trade will be caught in a pincer move between the upward sloping TP line (red) and the downward sloping SL line (orange). Sort of in that shaded area on the chart.

Almost there...

The AUDNZD moved down nicely late in the day, Sydney time, and has almost reached the TP Magic Wand line (a longer term trendline Support). So I have now moved the SL Magic Wand line in case price reverses before it hits the TP.

Nice trade whatever happens now. Almost 90 green pips.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 31, 2018, 01:24:26 AM
AUDNZD

A lot of talk about a weakening Aussie this morning. So I took a look at the AUD pairs and have settled on the AUDNZD.

On the Daily there seems to be an opportunity to go short with a TP at either an upward Support trendline from April 2018 and/or a downward Resistance turned Support from October 2017.

So on the H1 I have placed an entry with an upward sell stop line to get me in at the bast price; or, if price goes up instead I won't get triggered and hence won't make a loss. Best of both worlds! That is the advantage of the dynamic entries and exits that you can make by using trendlines and the Magic Wand EA.

A small hiccup, now fixed and we are in the trade. Any retracement at this early stage will trigger some more Sells, but otherwise we are heading south. I will set a SL at most recent top, about 70 pips away. Will replace that with a downward sloping SL trendline in a day or so if all goes to plan.

... a few hours later
Given the movement in price I now feel better placed to set a SL trendline as shown on the H4 chart. What this will do is that the trade will be caught in a pincer move between the upward sloping TP line (red) and the downward sloping SL line (orange). Sort of in that shaded area on the chart.

Almost there...

The AUDNZD moved down nicely late in the day, Sydney time, and has almost reached the TP Magic Wand line (a longer term trendline Support). So I have now moved the SL Magic Wand line in case price reverses before it hits the TP.

Nice trade whatever happens now. Almost 90 green pips.

Precision placement

When i went to bed last night price just needed to drop another 1.5 pips for the spread for the AUDNZD to be closed at profit with the TP Magic Wand line.
So how lucky was I that I had placed that TP line with such precision that price failed to break it so that I could demonstrate that if the TP don't get you, the SL will!   ;)  Maybe later to day, or of course there is just sufficient room for the price to crash down to the TP line again; at 11 am local time when the Chinese PMI data are released.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on May 31, 2018, 03:48:57 AM
AUDNZD

A lot of talk about a weakening Aussie this morning. So I took a look at the AUD pairs and have settled on the AUDNZD.

On the Daily there seems to be an opportunity to go short with a TP at either an upward Support trendline from April 2018 and/or a downward Resistance turned Support from October 2017.

So on the H1 I have placed an entry with an upward sell stop line to get me in at the bast price; or, if price goes up instead I won't get triggered and hence won't make a loss. Best of both worlds! That is the advantage of the dynamic entries and exits that you can make by using trendlines and the Magic Wand EA.

A small hiccup, now fixed and we are in the trade. Any retracement at this early stage will trigger some more Sells, but otherwise we are heading south. I will set a SL at most recent top, about 70 pips away. Will replace that with a downward sloping SL trendline in a day or so if all goes to plan.

... a few hours later
Given the movement in price I now feel better placed to set a SL trendline as shown on the H4 chart. What this will do is that the trade will be caught in a pincer move between the upward sloping TP line (red) and the downward sloping SL line (orange). Sort of in that shaded area on the chart.

Almost there...

The AUDNZD moved down nicely late in the day, Sydney time, and has almost reached the TP Magic Wand line (a longer term trendline Support). So I have now moved the SL Magic Wand line in case price reverses before it hits the TP.

Nice trade whatever happens now. Almost 90 green pips.

Precision placement

When i went to bed last night price just needed to drop another 1.5 pips for the spread for the AUDNZD to be closed at profit with the TP Magic Wand line.
So how lucky was I that I had placed that TP line with such precision that price failed to break it so that I could demonstrate that if the TP don't get you, the SL will!   ;)  Maybe later to day, or of course there is just sufficient room for the price to crash down to the TP line again; at 11 am local time when the Chinese PMI data are released.

... and yes, 11 am was the time; and the trailing SL won. So a 40 pip gain in the end. Of course since then price is dropping again and so another precision placement of the SL Magic Wand! That's what makes forex trading so much fun.

Next up..... the story of the Yen trades placed last night.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 01, 2018, 03:49:00 AM
Trends don't last forever.... time to wedge?

The GBPAUD has had a decent ride on a trend. So how long will it last? Most trends end with a wedge pattern. So why not use the Magic Wand to set up a wedge with a trailing SL and what I like to call an advancing TP.

As I have shown on the chart. So as the momentum of the downward trend slows, we become more conservative/tighter in our expected TP level; and more aggressive/tighter in our SL level. And of course if the slowdown is only temporary, we can always get back into any continuing trend.

Note that I have set the trendlines as fixed distance ones. You can do this by going to Parameters in the Properties menu of the Draw Trendline tool; and unticking "Ray". Not so useful in this instance but think about how that would be helpful if you were using the Magic Wand within a range and you did not want to be triggered by that trendline once price had escaped from the range. I'll show an example later.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 01, 2018, 09:36:48 AM
Supply and Demand Zones

In my trendline trading I focus mainly on sloping Support and Resistance lines.

However the horizontal lines are also important for the analysis and the subsequent placement of trade entries and exits. This article caught my attention because it gives a nice explanation of how these S/R or Supply and Demand Zones work and how to spot them.

http://www.tradeciety.com/supply-and-demand-trading-strategy/
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 02, 2018, 06:46:59 AM
The good and the bad but no ugly as yet...

The equity of all my open trades with Trendline trading with the Magic Wand rose as high as $520 and is now down to $280. So generally good but these last few days could have gone better. But trading on the Daily means there is a long way to go on all these open (microlot) trades.

I opened three Yen trades last week based on a long-term trendline analysis which suggest that there is scope for some profits from Sells. As shown in first image. Trades were entered on a sloping Magic Wand line on the H1 but TP and SL lines are based on the Daily.

As we can see from the charts we moved into profit for a short time, but then got hit when the BOJ curtailed its bond buying, pushing the Yen lower. (Wouldn't it be great if we could draw trendlines for Central Bank actions!   :)  )
Also evident from the chart is that I had set my marty scale-ins way too tight for trading on the Daily. That is the problem when you switch to hourly charts for entries; you lose the bigger perspective on trade management. Lesson learned.

The second image is a close-up of the USDJPY setup. With two long-tailed bullish dojis and a very solid green candle since the trades were opened, the outlook is not rosy. But the Alligator indicator still has its Jaw shut suggesting horizontal ranging and the SL is still some 200 pips away. Note that the SL Magic Wand line slopes down so as time progresses, the SL will get tighter.

In the other two trades, price has not even crossed the faster green line of the Alligator and the indicator is still pointing down. So patience is required.

http://exceptionalfx.com/magic-wand/

or for a 2 month trial till end July 2018 pay USD$10 to https://www.paypal.me/diyforexskills  50% will go to donna in support of the Forum
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 03, 2018, 03:40:22 AM
USDCHF - Buy or Sell?

If we analyse the Daily chart for USDCHF with my method, we are left in a quandary.

In terms of the Alligator, price has closed below the blue (slowest) line of the indicator and the MA lines have started to cross (the Jaw of the Alligator is closing). So a Sell would be in order.

However, if we look at both the S and R horizontal line and the sloping trend line, we appear to be at a major junction. Price is either going to bounce (USD to get stronger) or we are going to have a breakout, go south.

So I will wait for a confirmation. Sell if price closes below the horizontal line in the next day or so. Buy if there is a convincing bounce - a bullish pin bar would be a good confirmation. And since I may not be at the computer when either of these occur, I will set my Magic Wand sell stop and buy stop lines as as shown. So,  even though the markets are closed over the weekend, I have done my analysis and the trade entries are set for whatever may happen.

Talking about pin bars and trendlines, there is a nice article by Justin of Daily Price Action.
https://dailypriceaction.com/pin-bar-trading-course?inf_contact_key=9b9d75e10f6b8565996b396b3f0e7f934b77476d56791e8b8812dee64a658d01
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 05, 2018, 06:28:09 AM
The Magic Wand in Action

I have prepared a 30 min video showing how I use the Magic Wand with price action analysis for what I call trendline trading. Using an analysis of the GPBJPY from today as an example.

You can view it here

https://www.screencast.com/t/RYitUPkmvMgB


Purchase your copy from here  http://exceptionalfx.com/magic-wand/

or for a 2 month trial till end July 2018 pay USD$10 to https://www.paypal.me/diyforexskills  50% will go to donna in support of the Forum
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 06, 2018, 07:13:34 AM
The Magic Wand in Action

I have prepared a 30 min video showing how I use the Magic Wand with price action analysis for what I call trendline trading. Using an analysis of the GPBJPY from today as an example.

You can view it here

https://www.screencast.com/t/RYitUPkmvMgB


Purchase your copy from here  http://exceptionalfx.com/magic-wand/

or for a 2 month trial till end July 2018 pay USD$10 to https://www.paypal.me/diyforexskills  50% will go to donna in support of the Forum

GBPJPY

In the video I showed a setup for the GBPJPY. Given the pin bar on the Weekly I said I was nervous about pulling the trigger on a Sell. If I did not have the Magic Wand I might have placed a sell limit order on the Resistance line as shown with arrow, and it might have just triggered. But that would end up as a loss if price continues to push higher.

But with the Magic Wand I was able to place an upward sloping sell stop line instead. In this way I will only be triggered if price indeed goes back down and crosses that line at close of day. If it does not, I will have avoided a loss; if it does, I will still be getting in at quite a good price.

That to me is the advantage of using trendline trading with the Magic Wand.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on June 10, 2018, 06:20:10 AM
USDCHF and GBPJPY and FREE TRIAL

Neither of these setups have been triggered as yet.

The GJ touched the sell stop line but retreated at the close. The Magic Wand has been set to require a close below the sell stop line before entering the trade and hence no trade has been entered. Maybe this week. The pound is still under pressure and the market seems to be risk off again thus favouring the safe haven Yen.
The USDCHF is still deciding which way to go. We can afford to wait.

I am off on holidays this week till end July so why not give the Magic Wand EA a try for free till then. Try it out on demo and have some fun; practice reading the charts for S and R zones and trendlines; any timeframe will do. The EA file is attached.

You can view the instructional video here

https://www.screencast.com/t/RYitUPkmvMgB

And access the user Guide from here  http://exceptionalfx.com/magic-wand/
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on November 02, 2018, 10:49:36 PM
Double TrendLine Principle

An interesting manual trading strategy has been posted by the Traders Academy Club. You can watch it here.
https://youtu.be/9qwAk9h3Hds

It interested me because it is simple and it is ideal for semi-automation using the Magic Wand EA.
http://exceptionalfx.com/magic-wand/

So instead of drawing the trendlines and confirming the trade entry with divergence, and then waiting patiently until price breaks the trendline, you can make the trendline the entry trigger using the Magic Wand and set the SL, TP and partial close etc as soon as the potential entry conditions have been confirmed. Then you can rest easy, go to sleep or whatever.

The two key screenshots from the video are shown below.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on November 11, 2018, 05:44:04 AM
Double TrendLine Principle

An interesting manual trading strategy has been posted by the Traders Academy Club. You can watch it here.
https://youtu.be/9qwAk9h3Hds

It interested me because it is simple and it is ideal for semi-automation using the Magic Wand EA.
http://exceptionalfx.com/magic-wand/

So instead of drawing the trendlines and confirming the trade entry with divergence, and then waiting patiently until price breaks the trendline, you can make the trendline the entry trigger using the Magic Wand and set the SL, TP and partial close etc as soon as the potential entry conditions have been confirmed. Then you can rest easy, go to sleep or whatever.

The two key screenshots from the video are shown below.

The GBPUSD provided a textbook example of how to apply this strategy last week.

1. Wait for price to almost retrace back to resistance trendline on Daily

2. Check for divergence between price and MACD on H4

3. With divergence confirmed, enter a Sell on break of H4 support trendline

4. SL above daily trendline; TP could be as low as previous low. I took profit before weekend. (Given the Brexit news today, should have left the Sell trade open I think!   :)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on November 16, 2018, 06:53:45 AM
For a limited time you can now purchase the Magic Wand and any of my four products for half price.

Magic Wand http://exceptionalfx.com/magic-wand/ $40

(What is so good about manual trading with the Magic Wand?

Simply put, it means that you can place dynamic entry and exit points based on your own trendline analysis of the charts, and have the Magic Wand EA enter and manage the trade for you while you sleep or are otherwise occupied. You can also do all the analysis and place all the setups over the weekend if that is the only time you can devote to trading.)


FX Autotrader Elite http://www.fxautotraderelite.com/  $150

DIY Trade Manager Plus http://diytrademanagerplus.com/  $40

EA Controller http://exceptionalfx.com/ea-controller/  $40

(Free upgrades for the Autotrader and TM will be made available by mid-December)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on November 30, 2018, 07:48:12 AM
Possible Setup

If we examine the EURJPY chart we will see an uptrend and a more recent sharper one; and what now appears as a double top.

The theory now is that price should revert back to the longer term uptrend line.

So I have employed the Magic Wand and set the Sell Stop entry, tp,and sl trendlines (TLs) as shown.

The beauty of the Magic Wand is that we can set entry and TP targets as dynamic sloping trendlines rather than having to rely on fixed horizontal levels.

And now we wait to see what happens. It's a good reward to risk ratio trade setup.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on November 30, 2018, 08:55:53 AM
Possible Setup

If we examine the EURJPY chart we will see an uptrend and a more recent sharper one; and what now appears as a double top.

The theory now is that price should revert back to the longer term uptrend line.

So I have employed the Magic Wand and set the Sell Stop entry, tp,and sl trendlines (TLs) as shown.

The beauty of the Magic Wand is that we can set entry and TP targets as dynamic sloping trendlines rather than having to rely on fixed horizontal levels.

And now we wait to see what happens. It's a good reward to risk ratio trade setup.

.... one thing I had not looked at in my hurry was to look for major S/R zones such as the big round numbers. In this case 129.00.

I have now added that line and that makes this setup somewhat questionable - has R turned into S??   We'll soon see. I had almost been triggered but price is now moving back up, spurned by 129.00
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on November 30, 2018, 12:09:43 PM
Thank you for sharing your ideas here. I will perhaps/hopefully get around to setting up my first Magic Wand trade this weekend.

For this one: you could of course adjust your sell trigger a bit below 129. And add a buy trigger in case you were wrong.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on November 30, 2018, 09:38:59 PM
Thank you for sharing your ideas here. I will perhaps/hopefully get around to setting up my first Magic Wand trade this weekend.

For this one: you could of course adjust your sell trigger a bit below 129. And add a buy trigger in case you were wrong.

Yes, probably should have, but it worked! Had entry set to "At candle close". Nice 42 pip profit.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on November 30, 2018, 10:12:41 PM
Wow! Great result. And great advertisement for your Magic Wand!
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 01, 2018, 12:29:15 AM
And another...

We had a similar setup to EURJPY on the EURCAD last night. In that case, instead of the double top signifying a possible reversal and providing a SL zone, we had a Resistance line from the Daily to bolster a case for the Sell. And we also had a bearish divergence with MACD on the H1.

Both I feel, are worth looking for with these types of setups - so trade on H1 with the two TLs (longer and shorter) and check for divergence also; and look for clues on the Daily to help confirm or otherwise.

http://exceptionalfx.com/magic-wand/
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 02, 2018, 05:15:51 AM
My setups for next week

Now that the FXAE BB EAs are off and running and under Control (https://donnaforex.com/index.php?topic=20211.msg383005#msg383005 ), I can devote some more time to manual trading. So I have spent some 30 mins today and came up with these setups and have identified another possible two; they need more time to develop so will check back on Tuesday.

On the charts the orange lines are the entry TLs, the green the TP and the red, the SL trendlines to be used by the Magic Wand. In a couple of them I am also adding scale-ins, either at - pips or + pips and managing closure by Basket.  Grey lines are S/R zones from the Daily that I am alert to.

Currently I am doing this on demo. If all goes to plan I will open a live account for this style of Magic Wand trading and make the link available.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 03, 2018, 08:04:14 AM
Weekend gapped

The weekend gap caused by the China/US agreement to be nice to each other for a while, rendered my four setups (see last Post) irrelevant.
EJ did get triggered but led to only a 5 pip loss, so not a problem. The other three were not triggered and are now invalid. However, with two of them I have just moved the TLs to reflect the new sharp upward TL and looking for the new TL breaks.

On my pending setup I had a nice downward channel on CADJPY, for which i was awaiting a sell confirmation, but instead that pair has broken the channel to the upside.

And now I need to keep my discipline and not rush into further setups; weekedn gaps often get filled within a short while. So too risky.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 05, 2018, 11:20:55 PM
Be Vigilant with Named Trendlines

When trading with the Magic Wand we use the trendline tool to draw lines which we then name as buy stop, sell stop, buy limit, sell limit, tp or sl.
The Magic Wand EA acts on these named trendlines.

These named lines will stay on the chart if the trade is not triggered for any reason, and they will be invisible if we switch charts to another currency pair. But the EA will see them and act on them !!!!!

Consequently I have had several trades closed almost instantly when in fact they should not have been closed and would have yielded a profit.

So some rules:

1. Delete any named trendline that is not being used.
2. On any new chart opened for Magic Wand trading, check Object List (from right click anywhere on chart) and delete any named trendline that shows up.
3. Consider using non-Ray trendlines (in Trendline Parameters, uncheck the Ray box). This means that these trendlines are time-bound as shown on the image (for GBPAUD H1) and so they cannot interfere during future trading period. Of course they need to be long enough for the setup to activate and be completed. In top image I had entry line (orange) too long since trade could trigger at time when there was no sl or tp line. Bottom image is what is needed.
4. Be especially careful if at one point you are trading on the Daily and then switch to hourly. A short trendline on the Daily is a long trendline on the hourly.
5. rather than switching currency pairs on the same chart for a new setup, consider closing the chart used once trade is completed, and then opening a new chart for the next trade setup.
6. Never save a chart with trendlines as tpl file and apply to a new chart of different currency. The original lines won't show (you would not want them too) but they are there, and the Magic Wand will act on any named trendlines visible or not.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 06, 2018, 01:46:40 AM
So far so good

Am finding it relatively easy to look at charts from time to time and see reasonable setups. Just trading 0.01 lots at this stage as I learn.

And performance curve is positive as per image thus far.

And here is a thought. If we trade on demo and copy to live using the FX Blue Trade Copier, we can use the Controller to control the copying (the FX Blue Trade Copier has been programmed to be controllable by the EA Controller.) So copy only when we are being successful with the Magic Wand and stop copying when we lose our touch - become too greedy, take too many questionable setups etc.

Please see previous Post for important info re "named" trendlines when using the Magic Wand EA.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 06, 2018, 04:08:08 AM
A Sloping SL Line is like a TS

One of the reasons I like trading with the Magic Wand using sloping trendlines is that they give you a TS as shown below. And of course if you have a sloping TP line based on say a channel, you can also benefit from having a "Leading" Profit. ie the take profit exit increases/decreases with the slope meaning that you can be exited at a better price.

Please see Reply #43 for important info re "named" trendlines when using the Magic Wand EA.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 11, 2018, 01:27:37 AM
Using Channel for TP and SL

Having entered a Sell on the break of a trendline, I now have the SL and TP trendlines in place as a channel - ie, effectively a TS and a leading TP.

I had the TP line too low last night so just failed to get a close; have now moved that up a bit to be less greedy and hopefully to get a close.

Progress so far with my Magic Wand trading is shown in image - trading 0.01 lot per trade whilst I practice.

Magic Wand http://exceptionalfx.com/magic-wand/ $40

(What is so good about manual trading with the Magic Wand?
Simply put, it means that you can place dynamic entry and exit points based on your own trendline analysis of the charts, and have the Magic Wand EA enter and manage the trade for you while you sleep or are otherwise occupied. You can also do all the analysis and place all the setups over the weekend if that is the only time you can devote to trading.)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 13, 2018, 06:00:18 AM
Finding Trendlines

If you are new to forex and having difficulty identifying trendlines, here is a free indicator that will draw trendlines for you. You can change things like period and timeframe.

A bit busy for my liking but could be useful as a start especially if you see trendlines converging - what they call a confluence;  an area which could provide a reasonable level of S or R.

And/or if you want some nice thick lines to indicate overall direction, here is a another freebie.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 13, 2018, 02:05:21 PM
This free 'heatmap' indicator can be useful too, for finding support and resistance levels:

https://www.mql5.com/en/market/product/5550
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 14, 2018, 11:10:44 AM
That's it for the week

It's Friday night in Australia and time to call it quits for the week.

Am happy so far with my Magic Wand trading. A few hiccups but still nicely in profit despite trying for some unusual setups. Manual trading does require some discipline. which I don't always have :)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 20, 2018, 06:05:49 AM
Trendline primers

Came across another useful article for trendline trading.

This one is the H&S pattern pointing out that the most favourable setup for this pattern is the one with the upward sloping neckline. Making it ideal for trading with the Magic Wand.   https://www.tradingsetupsreview.com/head-shoulders-pattern-trading-guide-depth/

In case you missed them, here are some previous info/suggestions:

1. Reply 27 - understanding Supply and Demand zones
2. Reply 32 - Double Trendline principle using two TFs
3. Reply 35 - Double trendline on the same TF

Have switched to trading with 0.02 lots in my testing so I can close 50% at a designated TP level in pips. Took a bit of a hit on the AUDUSD today (thank you FOMC) but CADJPY looks like making up for that loss. So should still finish this fourth week in profit. Will move to trading on live with the Magic Wand in 2019.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 21, 2018, 06:07:56 AM
Still doing well

I  am spending maybe 10 minutes each day checking for setups on the H1 timeframe. There seem to be plenty of opportunities without too much searching. Not looking for large moves and judicious use of sloping SL and TP trendlines.

Not all wins but the trend continues to go up.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 21, 2018, 08:51:07 AM
Looking good! Though everyone's results will be different with this one, of course. Would appreciate if you can post more examples of your trades to help me get into the right mindset for using this profitably.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 21, 2018, 09:38:11 AM
Looking good! Though everyone's results will be different with this one, of course. Would appreciate if you can post more examples of your trades to help me get into the right mindset for using this profitably.

Sure. Will do. Here is one that looked good but failed today. So price had dropped more steeply than longer term trendline. On the shorter term TL we had a bullish divergence with MACD. So was hoping for a pullback to the longer term TL. But the market thought otherwise!

Note that my win rate is only 54% but pf is around 1.3 because of favourable reward to risk.

(To save me explaining each time - I use grey TLs to mark up the Daily or H4 charts to give me perspective. I then use dark orange for entry lines and make them non-ray - so time limited. I then use red lines for SL and green for TP and make them Ray lines so that they extend into the future to cover any trade that is triggered.)

PS Version 04.00 will be issued soon - v01.00 seemed to miss entries from time to time, probably due to intermittent broker connection, so now entry is looped.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 22, 2018, 06:01:52 AM
Looking good! Though everyone's results will be different with this one, of course. Would appreciate if you can post more examples of your trades to help me get into the right mindset for using this profitably.

So here is a possible setup for Monday on the AUDNZD.

1. The analysis starts with the Daily - nice downward channel, with two long pin bars rejecting the R line; so initial prognosis is for downward continuation.
2. On the H4 a double top is evident and no indication of any divergence, and so hopefully not a bear trap.
3. On the H1, price is just above the neckline of the double top and again no divergence is showing and no evidence of the channel morphing into a terminating wedge.
So set:
    a. sell stop TL just below the neckline;
    b. slope the SL trendline so that it starts with at least a 1:1 reward:risk ratio and slopes down parallel to the long term R line of the  channel (ie effectively a TS);
    c. TP trendline just above the next major S/R line from the Daily

Then add the Magic Wand EA to the chart, make sure there are only the three named trendlines (SL, TP and sell stop), decide on whether to enter on close of bar or whenever price touches sell stop line, (same for exit), enter lot size and decide whether or not to do any partial closures, set BE, add scale-ins etc (suggest to keep it simple). This is only a 30 pip trade unless we aim for the next R line or do a sloping TP line within the channel.

Hopefully that gives some idea as to the process you might follow. You can adjust SL and TP trendlines as the trade progresses, but just make sure you don't accidentally cross price with the trendline when you do that.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 22, 2018, 10:12:03 AM
Looks like a good one! I think I would put the TP a bit more north to be on the safe side. Do you ever use a TS instead of, or in addition to the TP?
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 22, 2018, 11:22:20 AM
Looks like a good one! I think I would put the TP a bit more north to be on the safe side. Do you ever use a TS instead of, or in addition to the TP?

Should be, but the experts suggest that a reversal setup, ie a bullish divergence on the MACD in this case, would provide a safer bet, and would mean going long. We'll see.

A sloping SL line is in fact a TS because the stop gets tighter as price moves forward to the right (the steeper the slope the tighter the TS) - price moves at angles mostly, not straight up and down. But with the Magic Wand you can also trail  by pips or ATR if you wanted to. I like to have my TP and SL lines converging at some point in a pincer type movement.

One further option. Price has moved down fast and is sitting on a S/R zone. So could bounce a bit before heading south. So we could additionally place a sell limit order trendline some 10 to 15 pips higher. And see which gets hit first. Would be a very tight SL for the limit order, and hence only very a small risk.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 23, 2018, 06:56:05 AM
Here is another possible setup, for GBPAUD H1

Looking for a reversal - pretty steep recent climb, approaching the 1.8 big round number which is also a Daily S/R zone, and bearish divergence with MACD on the H1 (less clear on the H4, so ??)

A possible 90 or so pips trade. I may tighten SL by increasing downward slop of SL TL and/or moving it closer to price action once trade is under way. But Monday could be a very quiet day with little movement given Christmas on Tuesday.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 23, 2018, 11:13:05 PM
OK, I have set up a trade similar to your AUDNZD one. Let's see how it goes.

By the way, I assume the percentage of risk function does not work with a trendline SL...? Would it be possible to program it as such?
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 24, 2018, 03:01:43 AM
OK, I have set up a trade similar to your AUDNZD one. Let's see how it goes.

By the way, I assume the percentage of risk function does not work with a trendline SL...? Would it be possible to program it as such?

The weekend gap killed my entry line, so no trade taken. But I have got in now after the rebound.

As to % Risk. I did not think it would, but I gave it a go. And to my surprise it works! Given the lot size that was entered, it must have used the SL value from the SL trendline at the entry point. That would make things interesting. The closer the entry occurs to the SL line, the larger the lot size will for the same % Risk. As per image.

I would want to test that out on demo before I apply it to live. But thanks for asking. Would not have occurred to me.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 24, 2018, 05:31:55 AM
OK, I have set up a trade similar to your AUDNZD one. Let's see how it goes.

By the way, I assume the percentage of risk function does not work with a trendline SL...? Would it be possible to program it as such?

The weekend gap killed my entry line, so no trade taken. But I have got in now after the rebound.

As to % Risk. I did not think it would, but I gave it a go. And to my surprise it works! Given the lot size that was entered, it must have used the SL value from the SL trendline at the entry point. That would make things interesting. The closer the entry occurs to the SL line, the larger the lot size will for the same % Risk. As per image.

I would want to test that out on demo before I apply it to live. But thanks for asking. Would not have occurred to me.

My coder has just confirmed that that is how it works. So the pips SL used in the %Risk calculation is the SL pip value of the SL trendline at the time that the trade is entered. So the closer the entry occurs to the SL line, which will occur if you draw a sloping entry trendline, the larger the lot size will be for the same % Risk. Feels like a good Christmas present to me.   :)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 24, 2018, 12:31:15 PM
I set it up just after the markets opened again.

As to the % risk, great! I have now just set it to 0.1 lot for testing purposes. But that is a great functionality.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 24, 2018, 12:35:37 PM
It has taken the trade, but for now it is going sideways.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 27, 2018, 08:46:16 AM
Took a bit of a hit last week but back on track with the winners.

Now all I need to do is keep my nerve and continue trading like this on live in 2019.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 27, 2018, 05:29:09 PM
I find this method helps with the nerves, if you are setting up the trades and not watching the execution too closely.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on December 27, 2018, 05:34:51 PM
Did you get a win with the trade above, by the way? I did not, because apparently it just failed to hit my TP and then reverted and hit the SL. Oh well.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on December 27, 2018, 09:30:57 PM
No, lost the AUDNZD. Now have it set for a Buy son the H4 since it seems to want to break out of the Daily channel to the upside. I am being quite conservative with TP levels; scored a nice AJ sell last night that way.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 06, 2019, 08:08:19 AM
Practicing is Finished - now we move to Live

Six weeks of practice and only 1 week was a loss. Now I am all set up to trade on live with the Magic Wand.

I find working on charts on a VPS to be sluggish so am going to try doing the analysis and drawing the trendlines on my home computer MT4 and then saving the setups as tpl files and copying these to the VPS; and loading onto their respective charts. I expect to be doing that on a daily basis. I do the setups on the H1 or H4 timeframes and so there is usually quite a few hours before price gets near the entry line. So plenty of time to copy and past.

And yes I will make my live account performance available but it may well be on FX Blue unless the myfxbook Support finally get their act together.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on January 06, 2019, 09:09:04 PM
I find working on charts on a VPS to be sluggish so am going to try doing the analysis and drawing the trendlines on my home computer MT4 and then saving the setups as tpl files and copying these to the VPS; and loading onto their respective charts. I expect to be doing that on a daily basis. I do the setups on the H1 or H4 timeframes and so there is usually quite a few hours before price gets near the entry line. So plenty of time to copy and past.

Good idea. I was struggling with that as well.

Question: can you open a trade manually. So without using a trendline, and then have it closed by trendline TP or SL?
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 06, 2019, 11:54:06 PM
That would be dangerous. Manual trades are assigned a magic of 0. So you would have to enter that as magic. But then the TP and SL lines could impact also on any other manual trades you have open on the account.

However if you want an "instant" trade entry, ie a manual entry, just make a short entry line (sells stop or sell limit or whatever) and then move that trendline to touch price (having set entry at candle close to false). For sell stop, move line from bottom up to touch price; for sell limit move line from top down to touch price. So instead of price moving to touch the trendline for entry, we are moving the trendline to touch price.

The other solution to your question is to invest some funds to add the trendline feature for TP and SL to the DIY Trade Manager Plus.

But for me the benefit of using the Magic Wand way of trading is that we can make technical based decisions on manual trading without having to be at the computer to execute the entry. And of course if you want to confirm the trendline based entry you can set Manual Confirmation on screen and/or by email to true.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 07, 2019, 01:31:02 AM
Template from Demo to Live

So I have analysed and setup the trendlines for two possible trades on the demo account on home computer, saved each as a tpl file and copied across to the live account on VPS. Seems to work. Now we wait for price to touch the entry lines.

(Magic Wand trendlines - dark orange is entry; TP is green; SL is red)

To keep myself organised, I create a sub-folder in the Template folder for each day so that the tpl files are easy to find. Then delete sub-folders when no longer of use.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 07, 2019, 07:25:31 AM
We have lift off....

Well that seems to work - setting up on demo and copying the tpl across to the live account. The EJ trade has been triggered and AJ look set to follow soon.
For EJ, I have moved the SL line a little to make for a tighter SL/TS.

The FX Blue link to the live account for Magic Wand trading is below.  Yes, it is a tiny account (my forex rebates from 2018) and am only trading microlots to start. But as they say, "big things from little things grow." That's the plan anyway.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 07, 2019, 07:54:02 AM
When in doubt

We never know how a trading pattern is going to work out. For USDCHF Daily I am expecting it to bounce off the grey TL for a buy limit entry. But maybe it won't retrace that far and move up meaning that we need to have a buy stop TL in place as well..
Or maybe it will crash through support and so we need to have a sell stop in place.

We can place each of the three possible entries on our chart with the Magic Wand. And then sit back and see which one(s) get triggered.

When one or two of them are triggered we can place the TP and SL lines on the chart. We can only have one of each of these on the chart so we have to wait to see whether we will have a Sell, or one or two Buys. Since this is trading on the Daily, we will have plenty of time to place these lines.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on January 07, 2019, 10:22:28 PM
Got it. Another practical question: if I want to use the % risk, should I enter 0.0 for initial lot size? Or does the % setting override that one?
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 07, 2019, 10:40:38 PM
Got it. Another practical question: if I want to use the % risk, should I enter 0.0 for initial lot size? Or does the % setting override that one?

% risk setting overrides the fixed lot size.

(Lost the first two live trades last night. So Murphy's Law was obeyed yet again!  :)  But in context of previous demo trade history it's just a blip. So ever onward.)
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 08, 2019, 01:13:55 AM
Just one today on live and a few more speculative ones on demo so I can keep learning

It's not the best time for trading with thin liquidity and that flash crash spike that is evident on many charts making a good analysis difficult.

So trying a Sell on the AUDUSD based heavily on big round numbers S/R levels and a feel for the fundamentals. So expecting a rejection at around 0.7200; a sloping SL line (= a TS); and a horizontal TP line ( = a normal tp setting at fixed price).
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on January 08, 2019, 08:47:03 AM
Thank you. I took one on GBPUSD last night, which just barely missed the TP and so turned into a loss as well. Which is the second time I could have had a win with a more conservative TP (though it seemed quite reasonable). Oh well.

CORRECTION: Seems it did not even trigger, for some reason.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on January 08, 2019, 11:08:11 AM
When was this 'flash crash spike' you are talking about?
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 08, 2019, 11:15:38 AM
When was this 'flash crash spike' you are talking about?

2 Jan 19. Yen related but affected others.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 11, 2019, 03:54:37 AM
Not very magical

My third live trade is just holding on. I made a silly mistake two days ago. I adjusted the entry and exit TLs on my demo because of price action, and clean forgot that I needed to change it too on the live account! So an early entry that is now in a loss on live; whereas the later entry on the demo fared better - a small partial closure win and a small loss for the other half.

To top that off, Windows 10 decided to update on my home computer and in the process knocked out the demo MT4. The files were saved but the actual platform had to be reloaded meaning all charts and hence all trendline settings for open trades were wiped. Thank you Microsoft.

Anyway, the first week's trading in 2019 has wiped out the gains in December 2018 on demo, so back to square one. Starting next week.

Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 12, 2019, 04:02:04 AM
Thank you. I took one on GBPUSD last night, which just barely missed the TP and so turned into a loss as well. Which is the second time I could have had a win with a more conservative TP (though it seemed quite reasonable). Oh well.

CORRECTION: Seems it did not even trigger, for some reason.

Are you using v04.00? v01.00 was missing entries for me as well from time to time but am not having this issue with v04.00
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on January 12, 2019, 11:51:42 AM
Yes, not sure what went wrong. I did make the mistake to leave the trendlines on the chart afterwards, though, and it was triggered afterwards... Would even then have been profitable, had I not failed to draw the TP line at a slight angle so that it was just out of reach by the time the trade was triggered. Therefore it ended in a small loss, but I will regard it as a learning experience.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 15, 2019, 06:11:04 AM
A channel example

This one on NZDUSD is holding nicely so far. So entry was a buy limit off the bottom trendline. The sloping SL line acts as a trailing stop.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 16, 2019, 07:17:43 AM
... and the TS ensured a BE close as price fell to below the channel. So nothing gained, nothing lost.

So let's see if we indeed get a new move down following the breakdown of price moving up the channel.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 16, 2019, 10:40:04 PM
Had a glitch with the initial entry so trendlined a second sell stop entry. So now we are in the downward channel.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: diyforexskills on January 17, 2019, 07:07:25 AM
Sliding down nicely. The red line is effectively a TS; the green line could be described as an advancing profit. The trade will be closed when either of these lines are crossed by price.
Title: Re: TrendLine Trading with or without the Magic Wand
Post by: FLechdrop on January 17, 2019, 02:01:09 PM
Have not gotten around to this much lately due to work and travel, but this trade of yours is looking particularly good!