Trading Made Simple(r) | Foreign exchange indicator download - MT4/MT5 resources
Trading Made Easy(r)
I named this thread that because I learned a lot from "Big E"'s thread " Trading Made Simple " and I incorporated some of the ideas and indicators he used, and some of the methods on how he used them. In addition, I would like to dedicate this document to him, may he rest in peace.
While my templates do not include his primary indicator (TDI), they do include other indicators that I find easier to read than TDI. For example, Big E (Eric) would talk about when the TDI started to bend, arch, or flatten as a sign to quit, which I found to be too subjective for me, so I ended up ditching it. Also, he mentioned that he might give it up since he could still trade very successfully without it. In other words, he doesn't really need it either.
He also seems to enjoy trading the 4-hour chart the most, with the daily chart being a secondary favorite. He almost begged people to stop trading on the shorter time frames because you would get hit too much. I completely agree with him and suggest you do the same. However, if you must day trade, I recommend only using the 15 minute chart for day trading. But what you do is up to you. These templates work equally well on any time frame.
For those of you who haven't read Eric's post "Trading Made Simple" I recommend you do so.
Eric actually started talking about his approach largely in a thread and then eventually created his own thread. If you're interested, they're all here:
Craig Harris Random Methods
https://www.forexfactory.com/showthread.php?t=211188
Trading made easy
https://www.forexfactory.com/showthread.php?t=291622
Big E PDF:
Here are some .pdfs made by others that contain most of the important stuff Eric wrote in these threads.
-----------------------
continue...
I created this post in hopes of giving something back to this trading community, and the many traders on this forum who have selflessly given me the opportunity to learn so much from them. Every custom indicator I use (that I know of) is a free download from this forum.
The two templates I offer have evolved over a decade. And if we find useful things to add or change, they may continue to evolve even more over time. Nothing is set in stone here, except that my approach means always trading with the trend, which means: at what appears to be the beginning of a new trend, or the resumption of a previous trend.
Now, what's unusual about my templates is that they don't have just one, two, or even 10 ways to trade. There are many, and I'm sure there are many more that I haven't discovered yet.
Currently, I use 7 indicators that tell me: where and when to enter and exit a trade, where to set my stop loss and sometimes where to set my profit target, market direction, turning points, trends, convergence, divergence, etc.
I will start by explaining the two ways I trade using templates now, but I suspect that over time other traders here will reveal some other ways they have discovered, as will I.
What you must understand is that what is presented is not a trading system. The system has specific rules and no variables. Not so with methods. What I present are trading methods, techniques and advice. Multiple trading methods on entering and exiting trades (others may follow). The only specific rules are the ones you decide to make and follow.
I have attached a zip file containing the template and all indicators
I'm sure I forgot to mention or clarify a lot of things, so I'll add, correct, or clarify them as the discussion progresses.
Remember, there is no holy grail trading system, and there is no such thing as winning without losing.
Currently, I no longer visit this forum on a daily basis. I trade, own my own business, and travel a lot. I've held all three jobs for over 20 years, so I'm often too unavailable or too busy doing other things to get on the forums. If you have any questions for me and don't hear from me, I'll get back when time permits.
It is my hope that other traders will realize the power of these templates and contribute more trading methods that are hopefully more effective than the ones I have presented and that they can help traders make more money in Forex trading.
- Robin Hood
-----------------------
template:
# 1 (for 4 hour, daily, weekly and monthly charts)
#2 (for 1 hour and below time frame charts)
* The only difference between the two templates is that Template #2 includes the Market Open and Close Time indicator, which is primarily used for intraday trading. Mine has presets for London open and close times and US open and close times (based on Eastern Standard Time). They can be easily edited to suit your preferences and time zone. I love being able to visually see when different markets open and close.
*Personally, I only trade the 4 hour and daily charts, and I only use template #1.
-----------------------
Templates and indicators
-----------------------
Template #1
Indicators used
Upper window:
Yellow line = 5 EMA, Shift + 2, Close
HMA Line (Hull Moving Average) = Period: 12, Method: 3, Price: 0 - Color: Lime Green and Dark Pink
Heiken Ashi - blue and maroon
Synergy_APB - Dodge Blue and Red Bar Clock - DimGray
amplified market price
Lower window:
RSI 14 - Ochre/Brown Stochastic - 8,3,3 - SlateGray (thin lines), Slate Gray, Gold Stochastic - 14,3,3 - Slate Gray (thick lines), Blue, Red
50 lines - blue violet (I call it purple)
Template #2 (only for day trading or chart observation on shorter time frames)
It is exactly the same as Template #1, but it also includes an indicator called: JF_TradingTimes which shows you the opening and closing times of a specific market.
Note: None of these indicators will redraw after the bar is closed.
--------------------------
An explanation of the two basic methods of trade entry
Please note: At first, it may seem like there are a lot of indicators and things to remember using these templates, but I can assure you that once you understand how each indicator works and what the colors tell you, it will all become very simple. I'll post some diagrams, show examples of each, and show some of the ways I use them.
Indicator color
> Green and blue always mean "up"
> The colors red and orange always mean "down"
> None of the other colors used make any sense
Cross trade:
1. The HMA line is lime green and crosses above the yellow line for long trades, or the HMA line is dark pink and crosses below the yellow line for short trades.
2. For a short trade, the candle must have just changed from Dodge Blue/Blue to Red/Maroon, and for a long trade, the candle must have just changed from Red/Maroon to Dodge Blue/Blue.
3. After #1 and #2 above happen, you would ideally start trading after the first bar closes on the same side of the yellow line as the trade direction or ideally after the second or third candle closes. Entry later than this time carries greater risk.
4. The trade setup bar is the first candle that crosses the yellow line and is the opposite color of the previous candle. Both bars must be: Red/Maroon or Dodge Blue/Blue. Red/Maroon is for short trades and Dodge Blue/Blue is for long trades. The setup candle must be closed before you can enter a trade.
5. 2 random lines must be above or crossing the purple 50 line (long) or below the purple 50 line (short).
6. The RSI line (brown) must be on the same side of the purple 50 line as the trade direction at the time of entry.
Continuous trading:
Continuous trading means that you have already traded in that direction, but you are stopped out or exited for other reasons, and then you receive another signal to enter the same direction.
If a bar turns back to Dodge Blue/Blue after Red/Maroon or Red/Blue, and the Dodge Blue/Blue bar closes above the yellow line and all other indicators are in line, you can go long again.
If a bar returns to red/maroon after being Dodge Blue/Blue or Red/Blue, and the red/maroon bar closes below the yellow line and all other indicators are consistent, you can go short again.
*Also, we will discuss several other issues later in the thread.
change:
If all indicators are suggesting longs, and Stochastic 8, 3, 3 (the slate gray line) falls back below the purple 50 line and then back above the purple 50 line, and all indicators are still suggesting longs, then you can enter the market and go long.
If all indicators are suggesting bears, and stochastics 8, 3, 3 (thin slate gray line) retrace above the purple 50 line and then cross back below the purple 50 line, and all indicators are still suggesting bears, then you can go short.
Also, please keep this in mind
There are many different indicators or combinations of indicators that you can use to trade. For example, you can use:
1. Just the yellow line
2. Just the HMA line
3. Only one of the stochastic indicators, or a combination of both
4. Just candles change color
5. Only candles and HMA lines
6. Only HMA line and yellow line
7. RSI just broke above 50 line
Wait wait wait wait
--------------------------
Exit method
Just some possible ways...
1. Candles turn into opposite colors
2. RSI crosses the purple 50 line in reverse direction
3. The HMA line turns to the opposite color
4. The candle close is on the other side of the yellow line
5. One or both stochastics cross the purple 50 line in opposite directions
6. The HMA line and the yellow line cross in opposite directions
7. Stop loss (including trailing stop loss) is hit
8. Profit target achieved
9. Markets stagnate, stagnate, or become volatile
10. Trend changes direction
11. Plus many others such as: Fibonacci points, support and resistance areas, retracements, time of day, holidays, weekends, etc.
--------------------------
Stop loss placement method
For a long trade: Just below the low of the second candle after the bar you entered
For a short trade: Just above the high of the second candle following the bar you entered
NOTE: You can place your stop loss 1 candle from the high or low, but it will be hit more often
--------------------------
chart
--------------------------
Trading Tips:
When entering using the crossover or continuation method, it is best to enter on the first, second or third candle after the HMA line crosses the yellow line. Otherwise, it's usually best to wait for the next trade setup. This is because, as Big E once preached, most of the time candles only appear the same color on 3-8 bars.
When entering a trade using the crossover or continuation method, ideally you should enter the trade only when both stochastics have crossed the purple 50 line (in the direction you are trading), or one has crossed and the other is very close to crossing the 50 line.
You must wait for the setup candle to close before entering or exiting a trade, otherwise it may close with the wrong color and you do not want to place the trade.
The risk of entering a new trade immediately after a particularly large bar is generally much greater. So it is not recommended that you do this.
Whenever you place a trade, make sure that the closing price of the last bar is on the same side of the yellow line as the direction of your trade.
When two stochastics cross in unison (or very close to each other), it is usually a better than average trading setup. But before you jump in, you also need other indicators to agree.
When you place a trade, be sure to enter your stop loss immediately.
Do not enter new trades within the first hour after the market opens as spreads are often very wide. If I get an entry signal at the open, I will enter a few minutes before the open, when the spread is still normal.
When you receive the entry signal at 4 hours. Or daily chart, scroll down to 1 minute. or 5 minutes. On the chart, enter the trade only if they are moving in the same direction as the entry signal.
Personally, I don't like to trade when the previous bar's close is in the opposite direction of my trade. I usually wait until the bar closes in the direction of my trade before entering. It's a momentum thing. So the rule is: the candle/bar immediately preceding the entry candle is called the establishment candle/bar. The established candle/bar must close in the same direction as the trading signal. For long trades, the closing price of the set candle/bar must be higher than the opening price. For short trades, the closing price of the set candle/bar must be lower than the opening price.
Trading books I recommend you read:
phantom gift
The Way of the Turtle
More to come!
--------------------------
Anyway...
This may sound harsh, but I truly believe that if you ultimately cannot learn to make money trading Forex using these templates, then you should probably give up on Forex trading.
Here is a document containing many of the most important posts in this thread (thanks to krismitt who created it)
at last...
If you are blatantly rude, obnoxious, insulting or attempt to dissuade others with false information in a post, you will be placed on "ignore" status without warning (which means you will no longer be able to post in the thread). No one wants these distractions. We are here to help each other through teaching, learning or both, so we need a nice, welcoming environment where everyone feels welcome.
==============================================
Addendum - July 16, 2019
For those who may be struggling to achieve a higher percentage of profitable trades, here is my advice.
Only Trade Continue trading on the 4 hour chart until you have the trade perfect. Don't do any cross trades.
In my opinion, for new traders or those with little trading experience OR trading has yet to have consistent success, continuation trades are easier to trade and more reliable (until you perfect them) than cross trades because you are almost always jumping into an already established trend, in the direction of the trend. You are "going with the flow." You are swimming along the river. Both are easier than reversing course, which is what cross trading does.
I would also recommend (while you are learning) that for a short trade you set your stop loss 2 candles above the high of the candle you entered, and for a long trade you set your stop 2 candles below the low of the candle you entered. If your risk tolerance is lower, put the stop loss back to 1 candle, but you will lose more trades than if you put it back to 2 candles, but when you lose, you will lose less per trade. It's up to you, but choose one or the other, and whichever way you go, do it consistently.
I would also recommend (just as you're learning) that whatever your stop loss is in pips, you should also set a profit target for the same number of pips. Both are set up immediately right after you place your order. No exceptions. Make it a habit or you will live to regret not doing it.
Why I recommend you trade this way (until you are consistently profitable) is because it is like learning to ride a bicycle and use training wheels. Once you're good enough at trading this way, just like riding a bicycle, you can take off the training wheels.
Here are some examples of ongoing transactions:
to be continued...
--------------------------------------------------------
One way I trade stocks...
First, let's get this out of the way. I use different indicators for trading stocks than for forex trading. Why? Because the exact same indicators are not always available on every trading platform and this also fuels my honest thoughts.
There are only two types of trades I make when trading stocks. They are the same 2 I listed above for Forex. Cross trades and continuous trades. Continuous trading is much more reliable than cross trading and there is always an obvious stop loss point.
What really works in trading applies to everything. It doesn't matter if it's stocks, metals, commodities, futures, ETFs, cryptocurrencies or forex.
It doesn't matter what time frame you use. 1 minute chart or yearly chart, each chart shows the same pattern because they are all traded by humans or human programmed bots.
In the image below, I have deliberately hidden what the market is and the time frame of the trade, because neither is important and the truth is always the truth.
I marked 2 crossover trades on the chart, one long and one short. Long trades are on the far left and short trades are on the far right.
I won’t hand-feed you all my settings because I believe “it’s better to teach a man to fish than to teach him to fish”
entry:
1. Add at least 6 ema to the chart with 3 relatively close ema's of shorter length like 3, 5, 7 or 4, 6, 9, any combination will be good for you as it usually doesn't matter, just set them all around 11 or so. I use these 3 to show what the current timeframe is doing as shown in the smaller picture.
2. Then add 3 more ema. Use 20,30,40 or 25,35,45, or 25,50,75 or any combination you see fit as it usually doesn't matter, just set them all around 76 or so. I use these 3 to show me what the longer time frame is doing, as in the bigger picture.
*You could also add long-term moving averages that many stock traders use, such as the 200 moving average, etc., but I don't do that. I don't think so, since the price is usually far away from it, which means 200 Ma is basically irrelevant most of the time. They have a mantra: only go long above 200 points, and only go short below 200 points. That's silly if you ask me. Maybe this is why many traders are losing money.
3. Add MACD to the bottom of the chart. Hide the shortest ema line by changing the color to None or the same color as the background color. And add a horizontal line set to zero. The only purpose of using MACD is this: when the MACD line is above 0, you can only trade long; when the MACD line is below 0, you can only trade short.
4. A long crossover trade occurs when the MACD line crosses 0 and the shortest moving average crosses the longest moving average. Short trading is just the opposite.
5. In my opinion, every stock has a magic line that it likes to stick to best, but not always, just most of the time. Above it, you can only go long, below it, you can only go short.
6. I do not implicitly trade the weekly chart per se, but rather the daily chart. However, I only trade on the daily chart in the direction of the weekly chart. You determine direction on a weekly chart exactly the same way you determine direction on a daily chart, the indicators are the same, everything is the same. I also day trade almost every day and use the exact same setup, only then I use the 2 minute chart, but that's just my personal preference, any time frame will do. Use what you like.
quit:
In my opinion, withdrawals can be varied, just use something you feel confident in.
1. I will never continue to trade long when MACD is below 0 and vice versa.
2. Select the intersection of 2 emas. For example, when your shortest EMA exceeds the third shortest EMA. It's up to you to decide which two, as everyone has a different level of tolerance when it comes to refunding money when they win or lose it.
3. Or use some exit method you already know and like.
* I have a lot of stock trading idiosyncrasies that I need to add, and I will add them over time.
------------------
1. Don’t trade stocks with ugly charts.
2. Don’t watch or read financial news.
3. Do not enter trading chat rooms.
4. Trade what you see, not what you think.
5. Never be biased about the direction of a stock.
6. Never "marry" a stock.
7. Try to ride your winner until the indicator tells you to quit.
8. Always use and set a stop loss.
9. Learn to reduce! ! !
10. You will be best served if you only trade consistently, and only trade during strong trends.
I named this thread that because I learned a lot from "Big E"'s thread " Trading Made Simple " and I incorporated some of the ideas and indicators he used, and some of the methods on how he used them. In addition, I would like to dedicate this document to him, may he rest in peace.
While my templates do not include his primary indicator (TDI), they do include other indicators that I find easier to read than TDI. For example, Big E (Eric) would talk about when the TDI started to bend, arch, or flatten as a sign to quit, which I found to be too subjective for me, so I ended up ditching it. Also, he mentioned that he might give it up since he could still trade very successfully without it. In other words, he doesn't really need it either.
He also seems to enjoy trading the 4-hour chart the most, with the daily chart being a secondary favorite. He almost begged people to stop trading on the shorter time frames because you would get hit too much. I completely agree with him and suggest you do the same. However, if you must day trade, I recommend only using the 15 minute chart for day trading. But what you do is up to you. These templates work equally well on any time frame.
For those of you who haven't read Eric's post "Trading Made Simple" I recommend you do so.
Eric actually started talking about his approach largely in a thread and then eventually created his own thread. If you're interested, they're all here:
Craig Harris Random Methods
https://www.forexfactory.com/showthread.php?t=211188
Trading made easy
https://www.forexfactory.com/showthread.php?t=291622
Big E PDF:
Here are some .pdfs made by others that contain most of the important stuff Eric wrote in these threads.
-----------------------
continue...
I created this post in hopes of giving something back to this trading community, and the many traders on this forum who have selflessly given me the opportunity to learn so much from them. Every custom indicator I use (that I know of) is a free download from this forum.
The two templates I offer have evolved over a decade. And if we find useful things to add or change, they may continue to evolve even more over time. Nothing is set in stone here, except that my approach means always trading with the trend, which means: at what appears to be the beginning of a new trend, or the resumption of a previous trend.
Now, what's unusual about my templates is that they don't have just one, two, or even 10 ways to trade. There are many, and I'm sure there are many more that I haven't discovered yet.
Currently, I use 7 indicators that tell me: where and when to enter and exit a trade, where to set my stop loss and sometimes where to set my profit target, market direction, turning points, trends, convergence, divergence, etc.
I will start by explaining the two ways I trade using templates now, but I suspect that over time other traders here will reveal some other ways they have discovered, as will I.
What you must understand is that what is presented is not a trading system. The system has specific rules and no variables. Not so with methods. What I present are trading methods, techniques and advice. Multiple trading methods on entering and exiting trades (others may follow). The only specific rules are the ones you decide to make and follow.
I have attached a zip file containing the template and all indicators
I'm sure I forgot to mention or clarify a lot of things, so I'll add, correct, or clarify them as the discussion progresses.
Remember, there is no holy grail trading system, and there is no such thing as winning without losing.
Currently, I no longer visit this forum on a daily basis. I trade, own my own business, and travel a lot. I've held all three jobs for over 20 years, so I'm often too unavailable or too busy doing other things to get on the forums. If you have any questions for me and don't hear from me, I'll get back when time permits.
It is my hope that other traders will realize the power of these templates and contribute more trading methods that are hopefully more effective than the ones I have presented and that they can help traders make more money in Forex trading.
- Robin Hood
-----------------------
template:
# 1 (for 4 hour, daily, weekly and monthly charts)
#2 (for 1 hour and below time frame charts)
* The only difference between the two templates is that Template #2 includes the Market Open and Close Time indicator, which is primarily used for intraday trading. Mine has presets for London open and close times and US open and close times (based on Eastern Standard Time). They can be easily edited to suit your preferences and time zone. I love being able to visually see when different markets open and close.
*Personally, I only trade the 4 hour and daily charts, and I only use template #1.
-----------------------
Templates and indicators
-----------------------
Template #1
Indicators used
Upper window:
Yellow line = 5 EMA, Shift + 2, Close
HMA Line (Hull Moving Average) = Period: 12, Method: 3, Price: 0 - Color: Lime Green and Dark Pink
Heiken Ashi - blue and maroon
Synergy_APB - Dodge Blue and Red Bar Clock - DimGray
amplified market price
Lower window:
RSI 14 - Ochre/Brown Stochastic - 8,3,3 - SlateGray (thin lines), Slate Gray, Gold Stochastic - 14,3,3 - Slate Gray (thick lines), Blue, Red
50 lines - blue violet (I call it purple)
Template #2 (only for day trading or chart observation on shorter time frames)
It is exactly the same as Template #1, but it also includes an indicator called: JF_TradingTimes which shows you the opening and closing times of a specific market.
Note: None of these indicators will redraw after the bar is closed.
--------------------------
An explanation of the two basic methods of trade entry
Please note: At first, it may seem like there are a lot of indicators and things to remember using these templates, but I can assure you that once you understand how each indicator works and what the colors tell you, it will all become very simple. I'll post some diagrams, show examples of each, and show some of the ways I use them.
Indicator color
> Green and blue always mean "up"
> The colors red and orange always mean "down"
> None of the other colors used make any sense
Cross trade:
1. The HMA line is lime green and crosses above the yellow line for long trades, or the HMA line is dark pink and crosses below the yellow line for short trades.
2. For a short trade, the candle must have just changed from Dodge Blue/Blue to Red/Maroon, and for a long trade, the candle must have just changed from Red/Maroon to Dodge Blue/Blue.
3. After #1 and #2 above happen, you would ideally start trading after the first bar closes on the same side of the yellow line as the trade direction or ideally after the second or third candle closes. Entry later than this time carries greater risk.
4. The trade setup bar is the first candle that crosses the yellow line and is the opposite color of the previous candle. Both bars must be: Red/Maroon or Dodge Blue/Blue. Red/Maroon is for short trades and Dodge Blue/Blue is for long trades. The setup candle must be closed before you can enter a trade.
5. 2 random lines must be above or crossing the purple 50 line (long) or below the purple 50 line (short).
6. The RSI line (brown) must be on the same side of the purple 50 line as the trade direction at the time of entry.
Continuous trading:
Continuous trading means that you have already traded in that direction, but you are stopped out or exited for other reasons, and then you receive another signal to enter the same direction.
If a bar turns back to Dodge Blue/Blue after Red/Maroon or Red/Blue, and the Dodge Blue/Blue bar closes above the yellow line and all other indicators are in line, you can go long again.
If a bar returns to red/maroon after being Dodge Blue/Blue or Red/Blue, and the red/maroon bar closes below the yellow line and all other indicators are consistent, you can go short again.
*Also, we will discuss several other issues later in the thread.
change:
If all indicators are suggesting longs, and Stochastic 8, 3, 3 (the slate gray line) falls back below the purple 50 line and then back above the purple 50 line, and all indicators are still suggesting longs, then you can enter the market and go long.
If all indicators are suggesting bears, and stochastics 8, 3, 3 (thin slate gray line) retrace above the purple 50 line and then cross back below the purple 50 line, and all indicators are still suggesting bears, then you can go short.
Also, please keep this in mind
There are many different indicators or combinations of indicators that you can use to trade. For example, you can use:
1. Just the yellow line
2. Just the HMA line
3. Only one of the stochastic indicators, or a combination of both
4. Just candles change color
5. Only candles and HMA lines
6. Only HMA line and yellow line
7. RSI just broke above 50 line
Wait wait wait wait
--------------------------
Exit method
Just some possible ways...
1. Candles turn into opposite colors
2. RSI crosses the purple 50 line in reverse direction
3. The HMA line turns to the opposite color
4. The candle close is on the other side of the yellow line
5. One or both stochastics cross the purple 50 line in opposite directions
6. The HMA line and the yellow line cross in opposite directions
7. Stop loss (including trailing stop loss) is hit
8. Profit target achieved
9. Markets stagnate, stagnate, or become volatile
10. Trend changes direction
11. Plus many others such as: Fibonacci points, support and resistance areas, retracements, time of day, holidays, weekends, etc.
--------------------------
Stop loss placement method
For a long trade: Just below the low of the second candle after the bar you entered
For a short trade: Just above the high of the second candle following the bar you entered
NOTE: You can place your stop loss 1 candle from the high or low, but it will be hit more often
--------------------------
chart
--------------------------
Trading Tips:
When entering using the crossover or continuation method, it is best to enter on the first, second or third candle after the HMA line crosses the yellow line. Otherwise, it's usually best to wait for the next trade setup. This is because, as Big E once preached, most of the time candles only appear the same color on 3-8 bars.
When entering a trade using the crossover or continuation method, ideally you should enter the trade only when both stochastics have crossed the purple 50 line (in the direction you are trading), or one has crossed and the other is very close to crossing the 50 line.
You must wait for the setup candle to close before entering or exiting a trade, otherwise it may close with the wrong color and you do not want to place the trade.
The risk of entering a new trade immediately after a particularly large bar is generally much greater. So it is not recommended that you do this.
Whenever you place a trade, make sure that the closing price of the last bar is on the same side of the yellow line as the direction of your trade.
When two stochastics cross in unison (or very close to each other), it is usually a better than average trading setup. But before you jump in, you also need other indicators to agree.
When you place a trade, be sure to enter your stop loss immediately.
Do not enter new trades within the first hour after the market opens as spreads are often very wide. If I get an entry signal at the open, I will enter a few minutes before the open, when the spread is still normal.
When you receive the entry signal at 4 hours. Or daily chart, scroll down to 1 minute. or 5 minutes. On the chart, enter the trade only if they are moving in the same direction as the entry signal.
Personally, I don't like to trade when the previous bar's close is in the opposite direction of my trade. I usually wait until the bar closes in the direction of my trade before entering. It's a momentum thing. So the rule is: the candle/bar immediately preceding the entry candle is called the establishment candle/bar. The established candle/bar must close in the same direction as the trading signal. For long trades, the closing price of the set candle/bar must be higher than the opening price. For short trades, the closing price of the set candle/bar must be lower than the opening price.
Trading books I recommend you read:
phantom gift
The Way of the Turtle
More to come!
--------------------------
Anyway...
This may sound harsh, but I truly believe that if you ultimately cannot learn to make money trading Forex using these templates, then you should probably give up on Forex trading.
Here is a document containing many of the most important posts in this thread (thanks to krismitt who created it)
at last...
If you are blatantly rude, obnoxious, insulting or attempt to dissuade others with false information in a post, you will be placed on "ignore" status without warning (which means you will no longer be able to post in the thread). No one wants these distractions. We are here to help each other through teaching, learning or both, so we need a nice, welcoming environment where everyone feels welcome.
==============================================
Addendum - July 16, 2019
For those who may be struggling to achieve a higher percentage of profitable trades, here is my advice.
Only Trade Continue trading on the 4 hour chart until you have the trade perfect. Don't do any cross trades.
In my opinion, for new traders or those with little trading experience OR trading has yet to have consistent success, continuation trades are easier to trade and more reliable (until you perfect them) than cross trades because you are almost always jumping into an already established trend, in the direction of the trend. You are "going with the flow." You are swimming along the river. Both are easier than reversing course, which is what cross trading does.
I would also recommend (while you are learning) that for a short trade you set your stop loss 2 candles above the high of the candle you entered, and for a long trade you set your stop 2 candles below the low of the candle you entered. If your risk tolerance is lower, put the stop loss back to 1 candle, but you will lose more trades than if you put it back to 2 candles, but when you lose, you will lose less per trade. It's up to you, but choose one or the other, and whichever way you go, do it consistently.
I would also recommend (just as you're learning) that whatever your stop loss is in pips, you should also set a profit target for the same number of pips. Both are set up immediately right after you place your order. No exceptions. Make it a habit or you will live to regret not doing it.
Why I recommend you trade this way (until you are consistently profitable) is because it is like learning to ride a bicycle and use training wheels. Once you're good enough at trading this way, just like riding a bicycle, you can take off the training wheels.
Here are some examples of ongoing transactions:
to be continued...
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One way I trade stocks...
First, let's get this out of the way. I use different indicators for trading stocks than for forex trading. Why? Because the exact same indicators are not always available on every trading platform and this also fuels my honest thoughts.
There are only two types of trades I make when trading stocks. They are the same 2 I listed above for Forex. Cross trades and continuous trades. Continuous trading is much more reliable than cross trading and there is always an obvious stop loss point.
What really works in trading applies to everything. It doesn't matter if it's stocks, metals, commodities, futures, ETFs, cryptocurrencies or forex.
It doesn't matter what time frame you use. 1 minute chart or yearly chart, each chart shows the same pattern because they are all traded by humans or human programmed bots.
In the image below, I have deliberately hidden what the market is and the time frame of the trade, because neither is important and the truth is always the truth.
I marked 2 crossover trades on the chart, one long and one short. Long trades are on the far left and short trades are on the far right.
I won’t hand-feed you all my settings because I believe “it’s better to teach a man to fish than to teach him to fish”
entry:
1. Add at least 6 ema to the chart with 3 relatively close ema's of shorter length like 3, 5, 7 or 4, 6, 9, any combination will be good for you as it usually doesn't matter, just set them all around 11 or so. I use these 3 to show what the current timeframe is doing as shown in the smaller picture.
2. Then add 3 more ema. Use 20,30,40 or 25,35,45, or 25,50,75 or any combination you see fit as it usually doesn't matter, just set them all around 76 or so. I use these 3 to show me what the longer time frame is doing, as in the bigger picture.
*You could also add long-term moving averages that many stock traders use, such as the 200 moving average, etc., but I don't do that. I don't think so, since the price is usually far away from it, which means 200 Ma is basically irrelevant most of the time. They have a mantra: only go long above 200 points, and only go short below 200 points. That's silly if you ask me. Maybe this is why many traders are losing money.
3. Add MACD to the bottom of the chart. Hide the shortest ema line by changing the color to None or the same color as the background color. And add a horizontal line set to zero. The only purpose of using MACD is this: when the MACD line is above 0, you can only trade long; when the MACD line is below 0, you can only trade short.
4. A long crossover trade occurs when the MACD line crosses 0 and the shortest moving average crosses the longest moving average. Short trading is just the opposite.
5. In my opinion, every stock has a magic line that it likes to stick to best, but not always, just most of the time. Above it, you can only go long, below it, you can only go short.
6. I do not implicitly trade the weekly chart per se, but rather the daily chart. However, I only trade on the daily chart in the direction of the weekly chart. You determine direction on a weekly chart exactly the same way you determine direction on a daily chart, the indicators are the same, everything is the same. I also day trade almost every day and use the exact same setup, only then I use the 2 minute chart, but that's just my personal preference, any time frame will do. Use what you like.
quit:
In my opinion, withdrawals can be varied, just use something you feel confident in.
1. I will never continue to trade long when MACD is below 0 and vice versa.
2. Select the intersection of 2 emas. For example, when your shortest EMA exceeds the third shortest EMA. It's up to you to decide which two, as everyone has a different level of tolerance when it comes to refunding money when they win or lose it.
3. Or use some exit method you already know and like.
* I have a lot of stock trading idiosyncrasies that I need to add, and I will add them over time.
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1. Don’t trade stocks with ugly charts.
2. Don’t watch or read financial news.
3. Do not enter trading chat rooms.
4. Trade what you see, not what you think.
5. Never be biased about the direction of a stock.
6. Never "marry" a stock.
7. Try to ride your winner until the indicator tells you to quit.
8. Always use and set a stop loss.
9. Learn to reduce! ! !
10. You will be best served if you only trade consistently, and only trade during strong trends.
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