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Author Topic: TrendLine Trading with or without the Magic Wand  (Read 14706 times)

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Re: TrendLine Trading with or without the Magic Wand
« Reply #15 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #16 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #17 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #18 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #19 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #20 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.  :)
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Re: TrendLine Trading with or without the Magic Wand
« Reply #21 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #22 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #23 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #24 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #25 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.
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Re: TrendLine Trading with or without the Magic Wand
« Reply #26 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/
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Re: TrendLine Trading with or without the Magic Wand
« Reply #27 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.

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« Last Edit: June 02, 2018, 08:29:19 AM by diyforexskills »
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Re: TrendLine Trading with or without the Magic Wand
« Reply #28 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
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Re: TrendLine Trading with or without the Magic Wand
« Reply #29 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


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