Razor,
Yes I trade using the S/R. The key is not to fight the waves. Check out the JJRVAT (on Elitetrader called Day Trading 2.0) thread to get an idea of what I mean. If you trade this method going with the waves (and not against) it is easy money. Banged out 42 pips (4 consecutive winning scalps) in less than an hour on Monday.
Edward
TRO_DYNAMIC_FIBSSR
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- razorboy
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Exactly
But the issue I was having when I was playing inside the lines, is that sometimes i would be mr all star with these - and then the retracement pattern would change. I was just using the pivot point or an early fib line as an entry point. Instead of ranging back and forth, a strong trend would develop, but with a lot of fake outs - lots of stop outs.
As I have said, I have also run the stats tons of times to figure out if playing between the lines is the right way to go. If you use the most optimistic results, then yes playing between the lines is a great method, but if you dont use tick data, the 5 minute candle data doesnt offer enough granularity to show accurate reversals and stop outs - and the truth is that some of the moves are way too small to really catch, even if you are scalping - the profits may show on a histogram, but that is just theoretical
So now I have started using these as a breakout system - only going one way at the moment until i am sure of the reliability of the approach. What I have seen is that the relative ages and positions of the lines gives a good idea of future movement. Specifically, the older trend line tends to push the newer trend line around - unless the newer trend line is in the direction of the older one
Let me explain - you have some blue dots that have been on the chart for a while. - then a new, lower than previous level, of red dots start to form - I am looking to go long here - this is a break out - red dots will typically get pushed up - sometimes a lot, sometimes not so much - profit.
But sometimes this will happen, and the red dots will establish a new lower high and i will start looking for a new run up - but price wont move so much - the range has gotten really tight and flat to the point where a new series of lows will form - higher lows - I will still be looking for that push up (typical ascending triangle) - which typically happens.
I have found that the age and relative movements of the lines to be an excellent predictor of the direction of movement - the problem with testing it using 5 minute charts is that you wont find the entries - often only the exits as you dont wait for bars to close to enter. All the pictures will show you that the action is inside the lines, but i have found that more reliably, the action is outside the lines - which then becomes inside the lines when you capture a screen shot of your successful trade,
Right now I am just using the system to go long (which means I am going short something else) As I find managing two simultaneous and opposite positions in the same currency to be a little confusing - cuts down my trades and my mistakes - just wanted to see if anyone else was using them like this
But the issue I was having when I was playing inside the lines, is that sometimes i would be mr all star with these - and then the retracement pattern would change. I was just using the pivot point or an early fib line as an entry point. Instead of ranging back and forth, a strong trend would develop, but with a lot of fake outs - lots of stop outs.
As I have said, I have also run the stats tons of times to figure out if playing between the lines is the right way to go. If you use the most optimistic results, then yes playing between the lines is a great method, but if you dont use tick data, the 5 minute candle data doesnt offer enough granularity to show accurate reversals and stop outs - and the truth is that some of the moves are way too small to really catch, even if you are scalping - the profits may show on a histogram, but that is just theoretical
So now I have started using these as a breakout system - only going one way at the moment until i am sure of the reliability of the approach. What I have seen is that the relative ages and positions of the lines gives a good idea of future movement. Specifically, the older trend line tends to push the newer trend line around - unless the newer trend line is in the direction of the older one
Let me explain - you have some blue dots that have been on the chart for a while. - then a new, lower than previous level, of red dots start to form - I am looking to go long here - this is a break out - red dots will typically get pushed up - sometimes a lot, sometimes not so much - profit.
But sometimes this will happen, and the red dots will establish a new lower high and i will start looking for a new run up - but price wont move so much - the range has gotten really tight and flat to the point where a new series of lows will form - higher lows - I will still be looking for that push up (typical ascending triangle) - which typically happens.
I have found that the age and relative movements of the lines to be an excellent predictor of the direction of movement - the problem with testing it using 5 minute charts is that you wont find the entries - often only the exits as you dont wait for bars to close to enter. All the pictures will show you that the action is inside the lines, but i have found that more reliably, the action is outside the lines - which then becomes inside the lines when you capture a screen shot of your successful trade,
Right now I am just using the system to go long (which means I am going short something else) As I find managing two simultaneous and opposite positions in the same currency to be a little confusing - cuts down my trades and my mistakes - just wanted to see if anyone else was using them like this
- eudamonia
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Razor,
Not precisely I guess. I do, however, test all my setups using tick data (in Ninja or NeoTicker replay). However, where you mentioned that you were fading the trend, I am looking to catch a retracement. But only if we are making say HH and HL in a long trend. Eventually the trend does end but I can usually catch about 85% winners anyway.
Edward
Not precisely I guess. I do, however, test all my setups using tick data (in Ninja or NeoTicker replay). However, where you mentioned that you were fading the trend, I am looking to catch a retracement. But only if we are making say HH and HL in a long trend. Eventually the trend does end but I can usually catch about 85% winners anyway.
Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.
- biggusdickus
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What a sweet indicator this is! I am not a fan of indicators but I found a copy for Ninja and noticed it produces the same lines I usually do. Could not believe such a useful tool would be provided given all the crap that is promoted.
I liked this indicator so much I purchased a copy of Multi-charts so I could apply this version with the dynamic info. ( My Ninja copy only has the SR lines).
Don't care about automation- I like the idea of keeping it simple.
Buy low sell high- Don't get greedy.
Many thanks to TRO
I liked this indicator so much I purchased a copy of Multi-charts so I could apply this version with the dynamic info. ( My Ninja copy only has the SR lines).
Don't care about automation- I like the idea of keeping it simple.
Buy low sell high- Don't get greedy.
Many thanks to TRO
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- biggusdickus
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