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Author Topic: Chart Setups / Discuss trades here  (Read 19840 times)

Offline donnaforex

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Chart Setups / Discuss trades here
« on: September 18, 2015, 06:48:55 PM »
Use this topic to post your chart setups and ask questions about trades. Comment on other people's charts and let's help one another learn more about trading with FX1DO and how to make better trades.

Note: I recommend learning the CORE strategy first as per the PDF file Bill provides. The core strategy is not intended to be traded mechanically over and over regardless of anything else going on in the markets (like an EA, for instance). It is a starting point from which to learn.

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Offline donnaforex

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Re: Chart Setups / Discuss trades here
« Reply #1 on: September 20, 2015, 09:37:02 AM »
Anyone struggling with anything they want feedback on?

Here's a typical chart setup for the FX1DO system for you to look at... this is a "perfect" example (not all setups are this perfect!), it illustrates quite nicely the principle of FX1 entries (trade in the direction of the cycle but at the best possible price!).

GBPAUD M5 chart attached.

Explanation:

Price is in a DOWN CYCLE as evidenced by the red MA's
Price rising into our setup zone, whilst the m5 stochastic in the top window flashes a pink sell condition alert.
At the same time, we have confirmation from the higher timeframe via the bottom stochastic window showing that the H1 cycle is currently down also.

Entry: Anywhere in the setupzone
Profit: Banked 20 with very little drawdown. If using partial exits and leaving a portion of your trade, you could have exited at the -3ATR for around +45 to +55 pips depending on your entry point.


If anyone has any questions please ask on the topic. I'll try to post some 'less than ideal' setups shortly to illustrate a few points about not trading this system like a 'robot' and applying some logic to get a favourable outcome.
« Last Edit: September 27, 2015, 02:00:11 PM by donnaforex »
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Offline donnaforex

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Re: Chart Setups / Discuss trades here
« Reply #2 on: September 20, 2015, 09:57:46 AM »
OK this next example comes from GBPCAD M5 from Friday. It shows some fantastic buy trades but as you can see has an issue:

The longer term stochastic isn't green


Let's take a look at the stochastic to begin with. The short term cycle is very clearly upwards, and we are short term trading therefore should be looking for buy trades, however the long term cycle from the h1 doesn't agree. On closer inspection of the higher timeframe stochastic line however, we can see that it started off low and is steadily rising - if it continues this trend upwards eventually the longer term stoch will itself switch to a buy cycle, indeed you can see this beginning to happen due to the beige background forming later in the session.  Also we have the fact that for the H1 timeframe to signal a sell condition alert price needs to RISE to bring up the H1 stochastic. You could have used this knowledge to make buy trades counter to the longer term cycle.


I have also attached here a picture of what the H1 chart looks like at the same time as this run up was happening, you can clearly see that price is rushing up to meet the daily open line. If you are studying Bill's system you will also know that price will have a tendancy to revert right to this point! So, even though at first the long term stochastic doesn't line up, we can see that the daily open strategy matches up AND the stoch is steadily rising to try and give a longer term sell condition alert.

All this information gleaned from looking at what the higher timeframe is doing tells us that not only are our buy trades pretty safe, but it gives us a perfect target point at which we can stop trading counter to the higher H1 cycle and look for potential reversals back to the downside. Taking into account the overall context then, for me, this trade appeared to be even higher probability than the 'perfect' setup i posted above for all the reasons i just explained.

And this, folks, is why you cannot trade this strategy like a robot, but you CAN make excellent, high probability trades based on using your brain and applying all the knowledge you have gained.

Hope this helps!
« Last Edit: September 27, 2015, 02:00:51 PM by donnaforex »
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Offline kjen17

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Re: Chart Setups / Discuss trades here
« Reply #3 on: September 20, 2015, 01:22:24 PM »
thank you Donna for examples. Are you able to post the template you are using or does it include indicators which only come with the paid for product?

Also - can the principles be scaled up to trading on higher timeframes or is it only effective for daytrading?

Offline donnaforex

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Re: Chart Setups / Discuss trades here
« Reply #4 on: September 20, 2015, 02:12:45 PM »
I have attached my current template for M5 pairs to this message. You will need to get the indicators installed though before it will work (they are all free). You can get them by following Bill's instructions on the other topic. Note: The files you download with the PDF are not full and complete, you also need to install the STO indicator and the coloured MA's indicator, instructions for which are in the "all_trdrs_start_here" channel in Slack messaging program (which you'll also get access to when you sign up). The STO indicator is obtained by filling in a form, and the coloured MA's is available from Bill himself only once you have 3 posts on dfx with your results.. you can still trade the system easily without the 3 MA indicator though as long as you are aware of how MA's and MA crosses work you'll be fine.

I am running the London session webinar tomorrow if you want to come along and join and i can help troubleshoot any problems you have http://goforexpro.com/events.php . Also, Bill is there everyday for New York sessions (make sure you do get Slack as well, access by joining here: http://goforexpro.com/FX/fxcenterupdates/ !)

Everything i am trading at the moment uses the free FX1 system, although i'm working my way through ForexNow which is a paid upgrade, it doesn't feature in any of my analysis here.  (ForexNow sales page here though Bill and myself recommend you earn the cost first through using the free system!).
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Offline donnaforex

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Re: Chart Setups / Discuss trades here
« Reply #5 on: September 20, 2015, 02:14:16 PM »
attached current template
« Last Edit: September 28, 2015, 10:24:15 AM by donnaforex »
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Offline donnaforex

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Re: Chart Setups / Discuss trades here
« Reply #6 on: September 20, 2015, 04:06:13 PM »
OK here's one more chart for you for now - this is a trade which would end up being a loser for most traders. It's helpful to examine these also so we can see warning signs for the future...

Note:

- Price rose into our setup zone and the stochastic M5 is high. Note that a pink sell condition alert wasn't given because the bar closed outside the setup zone (although it may have flashed pink during the formation of this bar at the time, thus giving us a signal). The higher timeframe stochastic also confirmed the downside bias.

- Entry is on the candle i have marked with a yellow arrow.

So, how could we know we have entered a 'bad' trade here?

How about:

- The fast MA going above the other two MA's
- The stochastic turning beige and then finally green
- The very fast sustained movement on the entry bar itself (if you are watching price action closely, the fact that price was moving with a lot of momentum right up through our setup zone may have cautioned you and held you off from entering until price stalled).
- Price hitting the +1 ATR, and then the +2ATR
- The two red moving averages getting closer together and getting ready to cross over.
- That the switch in cycles occurred at the same time as the sessions changed (from London to NY) - when NY comes online then you have a whole new set of traders entering the equation which can lead to reversals in the cycle.
- Tradeline break to the upside

Any strategy that doesn't use hedging or zero stoplosses, is going to have losing trades like this. The key here is to learn from them and to know that in the long run the statistics will play out and leave you a net winner - when looking at the big picture over hundreds of trades you should find your losses are easily recovered.

For myself, i like to watch how price reacts around the setup zone. If price is accelerating with some force through the setupzone, then it may not be the best time to enter - i might look for a better entry above the setup zone once price has stalled. in this 'bad' trade example, if you did manage to get in at a point above the setup zone you may still have been able to bank your 20 pips if you were lucky, otherwise, you will likely have gotten out for a small loss if you noticed the combination of the above warning signs unfolding on your chart.  The important thing here is to not trade blindly and to pay careful attention to what is going on with the chart and the signs that price action is giving to you.

Finally, make sure you formulate an 'exit plan' for what you will do when things go wrong.


« Last Edit: September 28, 2015, 08:18:08 AM by donnaforex »
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Offline jamesfrance

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Re: Chart Setups / Discuss trades here
« Reply #7 on: September 21, 2015, 11:00:42 AM »
Thanks for posting charts they really help with understanding the system,Just one thing that STO indi,is it supplied free? as the one I have just has a red band at the top and a green band at the bottom?

Thanks

Offline donnaforex

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Re: Chart Setups / Discuss trades here
« Reply #8 on: September 21, 2015, 11:20:59 AM »
Get the up to date Sto indicator from here: http://goforexpro.com/GoFXPro-MQLMTF_STO.php
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Offline jamesfrance

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Re: Chart Setups / Discuss trades here
« Reply #9 on: September 21, 2015, 03:37:32 PM »
Quote from: donnaforex link=msg=346993 date=1442830859

Get the up to date Sto indicator from here: http://goforexpro.com/GoFXPro-MQLMTF_STO.php


Great Thanks for your help Donna

Offline Bippo

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Re: Chart Setups / Discuss trades here
« Reply #10 on: September 21, 2015, 11:08:41 PM »
Quote from: donnaforex link=msg=346957 date=1442761573

OK here's one more chart for you for now - this is a trade which would end up being a loser for most traders. It's helpful to examine these also so we can see warning signs for the future...

Note:

- Price rose into our setup zone and the stochastic M5 is high. Note that a pink sell condition alert wasn't given because the bar closed outside the setup zone (although it may have flashed pink during the formation of this bar at the time, thus giving us a signal). The higher timeframe stochastic also confirmed the downside bias.

- Entry is on the candle i have marked with a yellow arrow.

So, how could we know we have entered a 'bad' trade here?

How about:

- The fast MA going above the other two MA's
- The stochastic turning beige and then finally green
- The very fast sustained movement on the entry bar itself (if you are watching price action closely, the fact that price was moving with a lot of momentum right up through our setup zone may have cautioned you and held you off from entering until price stalled).
- Price hitting the +1 ATR, and then the +2ATR
- The two red moving averages getting closer together and getting ready to cross over.
- That the switch in cycles occurred at the same time as the sessions changed (from London to NY) - when NY comes online then you have a whole new set of traders entering the equation which can lead to reversals in the cycle.
- Tradeline break to the upside

Any strategy that doesn't use hedging or zero stoplosses, is going to have losing trades like this. The key here is to learn from them and to know that in the long run the statistics will play out and leave you a net winner - when looking at the big picture over hundreds of trades you should find your losses are easily recovered.

For myself, i like to watch how price reacts around the setup zone. If price is accelerating with some force through the setupzone, then it may not be the best time to enter - i might look for a better entry above the setup zone once price has stalled. in this 'bad' trade example, if you did manage to get in at a point above the setup zone you may still have been able to bank your 20 pips if you were lucky, otherwise, you will likely have gotten out for a small loss if you noticed the combination of the above warning signs unfolding on your chart.  The important thing here is to not trade blindly and to pay careful attention to what is going on with the chart and the signs that price action is giving to you.

Finally, make sure you formulate an 'exit plan' for what you will do when things go wrong.






Donna

I really can say you are a good teacher
please go on with this thread\chart examples

p.s.
I can't stress anymore about the importance of drawing "Trade" Lines with this system


great posts on this forum

thumbs up for you
« Last Edit: September 21, 2015, 11:11:41 PM by Bippo »

Offline FunCoupons

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Re: Chart Setups / Discuss trades here
« Reply #11 on: September 24, 2015, 04:29:50 AM »
Hello,

I've made an update to the iHistory indicator. This improved version adds account percentage and options to only show your pip count or pip count with account percentage for the selected period. I hope this helps you guys out.

Regards,
FC.
« Last Edit: September 25, 2015, 12:17:17 PM by FunCoupons »
Success is neither magical nor mysterious. Success is the natural consequence of consistently applying basic fundamentals."
? Jim Rohn

Offline firewight

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Re: Chart Setups / Discuss trades here
« Reply #12 on: September 24, 2015, 05:59:18 AM »
Quote from: FunCoupons link=msg=347138 date=1443065390

Hello,

I've made an update to the iHistory indicator. This improved version adds account percentage and options to only show your pip count or pip count with account percentage for the selected period. I hope this helps you guys out.

Regards,
FC.


This looks interesting mate, I'll  take a look!

Cheers!

Offline Bippo

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Re: Chart Setups / Discuss trades here
« Reply #13 on: September 25, 2015, 10:17:16 PM »
Quote from: FunCoupons link=msg=347138 date=1443065390

Hello,

I've made an update to the iHistory indicator. This improved version adds account percentage and options to only show your pip count or pip count with account percentage for the selected period. I hope this helps you guys out.

Regards,
FC.



thx FC much appreciated
it is good for my ego satisfaction

Offline SuperM

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Re: Chart Setups / Discuss trades here
« Reply #14 on: September 27, 2015, 09:46:45 AM »
Hi Donna, thanks for your effort. But I cant see your charts. Its says "file not found". Anyone have the same problem? Thanks!

 

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