Buyzone - use of higher time frames

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alichambers
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Buyzone - use of higher time frames

Postby alichambers » Mon Jun 25, 2007 10:22 am

Hi Avery,

Here's a problem I'm having a lot with the BZ:



I go long on the candles in the blue shaded area. However, there is a lot of whipsaw around the LongZone today, and I eventually lose money when my SL is hit in the green area.

This happens again after the next LZ trade is triggered.

It turns out that the trend for that day is down.

My problems and questions are:

1. I find it hard to know when sell in the blue area - the candles change so quick

2. Do you use a higher time frame to guage whether to take BZ trades or not - for example, if the daily candle is red, or daily EMA is down (??), don't take the longzone trades??? If so, which trend indicator is best for this?


Thanks - alex

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Patch
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1 or 2 or 3% is all I need

Postby Patch » Mon Jun 25, 2007 10:52 am

Hi Aled, alichambers

Great post.

TRO

Could / Would you consider coding a simple auto trade for TradeStation that gets in and gets out fast and furious for small gains and losses? One and two percent grows any account to millions in a few short years as you have proved to us with you spreadsheet already. Auto trading is the future of trading.

Patch
In VA

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Re: 1 or 2 or 3% is all I need

Postby TheRumpledOne » Mon Jun 25, 2007 12:30 pm

Patch wrote:Hi Aled, alichambers

Great post.

TRO

Could / Would you consider coding a simple auto trade for TradeStation that gets in and gets out fast and furious for small gains and losses? One and two percent grows any account to millions in a few short years as you have proved to us with you spreadsheet already. Auto trading is the future of trading.

Patch
In VA


NO!

I do NOT distribute auto code.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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TheRumpledOne
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Re: Buyzone - use of higher time frames

Postby TheRumpledOne » Mon Jun 25, 2007 12:34 pm

alichambers wrote:Hi Avery,

Here's a problem I'm having a lot with the BZ:



I go long on the candles in the blue shaded area. However, there is a lot of whipsaw around the LongZone today, and I eventually lose money when my SL is hit in the green area.

This happens again after the next LZ trade is triggered.

It turns out that the trend for that day is down.

My problems and questions are:

1. I find it hard to know when sell in the blue area - the candles change so quick

2. Do you use a higher time frame to guage whether to take BZ trades or not - for example, if the daily candle is red, or daily EMA is down (??), don't take the longzone trades??? If so, which trend indicator is best for this?


Thanks - alex


I do NOT see your dynamic SR indicator!?!??!?!

But, look at the range from the bottom of the red candle to the top of the green candle you have highlighted!!!

Looks like the buyers got tired after that run and then looks like price retraced about 100% to fill that gap!! This usually happens EVERYDAY!!

You have to put the pieces together.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

alichambers
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Postby alichambers » Mon Jun 25, 2007 1:53 pm

OK, here is my DynamicSR plotted.

(I had to convert the indicator to Amibroker software - and think I have it correct - DynR = highest high in last x periods, 5 here).

Would you be able to comment on why those long BZ trades whipsawed?

Thanks.


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Postby TheRumpledOne » Mon Jun 25, 2007 3:23 pm

I already commented on it.

GAP FILL!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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