(FINAL) Part VIII: Checklist & Trade Examplessubmitted by ParallaxFX to Forex [link] [comments]
This concludes the series. If you have any questions, please post them on the thread so everyone else can benefit from getting an answer. I will do follow up posts with my scans of the 5pm EST timeframe. I can't commit to doing this every day, but I will do my best to keep it somewhat regular. At least this way you will see what my eyes are looking for in terms of real-time setups.
You can view the previous parts here:
Part I: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/
Part II: https://www.reddit.com/Forex/comments/h7m1jh/part_ii_10_minuteday_trading_strategy/
Part III: https://www.reddit.com/Forex/comments/h97sv7/part_iii_my_10_minutesday_trading_strategy/
Part IV: https://www.reddit.com/Forex/comments/hcssjp/part_iv_my_10_minutesday_trading_strategy/
Part V: https://www.reddit.com/Forex/comments/hd70rd/part_v_my_10_minutesday_trading_strategy/
Part VI: https://www.reddit.com/Forex/comments/hee2o0/part_vi_my_10_minutesday_trading_strategy/
Part VII: https://www.reddit.com/Forex/comments/hhf2mk/part_vii_my_10_minutesday_trading_strategy/
Checklist for my strategy:
Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/submitted by ParallaxFX to Forex [link] [comments]
Welcome to Part II of this ongoing series. How many parts will there be? No idea. At least 4-5, I guess. I'd rather have this broken down into digestible chunks than just fire hose you with information.
Part I was really just a primer. If I'm using the whole baking a cake analogy, then in Part I we covered what kind of cake we're baking. I will not cover in this post where we look for entries and exits, that's coming next. Part II is going to cover what ingredients we need and why we need those ingredients in greater detail.
What Kind Of Strategy Is This Again?It's my 10 minutes per day, trading strategy. I think the beauty of this strategy is that it allows you to take a good number of trader per week without having to commit an inordinate amount of time to the screens. This is both a mean reversion and trend-continuation based strategy. It is dead simple to learn and apply. I'd expect a 10 year old to be able to make money with this.
The List Of Ingredients & Why We Use These Particular Ingredients
*I will have an image at the end of the post showing a textbook long and short setup*
Bollinger Bands: Bollinger Bands (BB) have a base line (standard is the 20SMA, which is also what we will use for this strategy) and two other trend lines (known as the upper Bollinger band [UBB] and lower Bollinger band [LBB]) plotted 2 standard deviations away from the 20SMA. The idea behind BB is deviously simple - the vast majority of price action, approx. 90%, takes place in between the two bands. In other words, when price trades off the UBB or LBB, you could consider prices to be overbought/oversold. However, just because something is OVERbought does NOT mean its run is OVER. Therefore we need additional tools to make sure we are using the BB as effectively as possible. TLDR: BB help contextualize where to look for our technical setups using this strategy. Finding the candle/bar pattern is not enough. We need to make sure the setup is in the 'right' part of the chart. We accomplish that using the BB.
Stochastic Oscillator: The Stochastic Oscillator (Stochs) is a secondary momentum indicator. Because it is an oscillator that means the signals it generates are range-bound between 0 and 100. There are tons of momentum indicators out there. Theoretically you could swap out the Stochs for RSI or MACD. My hunch is that you won't see a measurable statistical difference in performance if you do. So why Stochs? Because I like the fact you have the %K and %D lines (you can think of them as moving averages) and the fact that the %K and %D lines crossover is a helpful visual aid. Like any other momentum indicator, the Stochs will generate overbought and oversold signals. We use the Stochs to help back up what the BB are telling us. If price is trading at, or even broken out of, the UBB and Stochs are also veeeery overbought that can be potentially useful information. It doesn't mean we have a trade necessarily, but it is a helpful piece of data.
Fibonacci Retracement & Extension Tool: This tool is OPTIONAL. The only reason I use this tool for this strategy is to integrate a mechanistic means of entry and exit. In other words, we can use fibonacci levels to place limit orders for entry and profit taking, and a stop order to get us out for our pre-defined risk allocation to each particular trade. If you DON'T want to use the fibs, that is perfectly okay. It just means you will add a more discretionary layer to this strategy
Candlestick/Bar Patterns: There isn't a whole lot to say here. We look for ONE formation over, and over, and over again. An indecision bar (small body, doesn't close on its highs or lows) followed by the setup bar which is an outside bar or an engulfing bar. It doesn't particularly matter if the setup bar is an engulfing bar or outside bar. What matters is that for a long trade the setup bar makes a HIGHER HIGH and has a HIGHER CLOSE relative to the indecision bar. The opposite for a short trade setup. The bar formation is what ultimately serves as the trigger for placing orders to take a trade.
*MOVING ON* Now We Get Into The Setup Itself:There are 3 places where we look for trades using this strategy:
There will be other nuances I will cover in terms of how to make the strategy more effective in Part 3. For example, I will go into much more detail about how the shape of the BB can tell us a lot about whether a currency pair is likely to reverse or not. I will also cover how to gauge the strength of the setup candle and a few other tips and tricks.
Technical Nuances: You can overlay a lot of other traditional technical analysis on top of the above. For example you can look for short trades off the UBB in conjunction with a prior broken support level that you now expect to be working overhead resistance. If you want to go further and deeper, of course you can. Note: the above is about as far as I went when overlaying other kinds of analysis onto this strategy. I like to keep it simple, stupid.
TEXTBOOK LONG TRADE OFF LBB:
TEXTBOOK SHORT TRADE OFF UBB:
TRADE OFF MBB:
And that's a wrap for Part II.
Part III - My 10 Minutes/Day Trading Strategysubmitted by ParallaxFX to Forex [link] [comments]
You can find Part II here: https://www.reddit.com/Forex/comments/h7m1jh/part_ii_10_minuteday_trading_strategy/
Okay I’ve thought about what to include in Part 3 and this is what I’ve landed on:
Some technical nuances and tricks that build on Parts I and II.
I was going to include entry and exit points in Part III but it would be waaaay too long if I did. So that will have to wait for Part 4 or 5. There’s some really good stuff in this post though, I promise. The stuff in this post will lay the foundation for the options you will have in terms of determining your entry and exit points.
Technical Nuances & Tricks:
In this section I want to discuss some techniques that are optional to use. I am going to keep this fairly simple and focus on 2 main topics: fibonacci and horizontal levels of support and resistance.
Horizontal Support and Resistance:
Here is the same EURGBP D1 chart with the Fractal Indicator:
That’s a wrap for Part III.
submitted by Andrew-Mark to u/Andrew-Mark [link] [comments]
Introduction:Much after they emphatically show toward a path, it just means there is a decent possibility or likelihood that the market will take that heading, not an assurance. It's likewise great to recall that specialized markers depend on information gathered from past exchanges. Each exchange is unique thus it is conceivable that authentic data probably won't be adequate to effectively discover future market developments. Additionally, recollect that a marker ought not to be utilized in seclusion. It ought to be utilized in mix with others. Given underneath are a few pointers that can demonstrate to be useful in apportioning probabilities, obviously like we said previously, don't depend on them to foresee advertise developments.
MACD:MACD is known as the moving average convergence divergence calculation is a covering indicator used to track trends. The MACD consists of 2 exponential moving average and histogram. It is to keep in mind that these two lines in the indicator are not simple moving averages because many traders think it that way.
Forex Index:The force index tells you how much force or volume is behind a trade. The manner in which this can help you is by helping you see what's happening underneath the surface. So if a pattern is going up and the Force Index is going down, it implies that the volume is diminishing and the pattern will likely return soon. So it sets you up for what's to come
Stochastic Oscillator:The Stochastic Oscillator shows you overbought or oversold conditions. Overbought and oversold sign is significant on the grounds that it gives you when to anticipate that the pattern should go down when it has been going up for some time.
On the off chance that a cost goes excessively high excessively quick, it implies that that pair is very nearly being overbought and therefore it will return. So it cautions any merchants who may be going to enter an exchange taking a gander at the pattern that it may before long return because of the restorative wave. Additionally, on the off chance that it descends too rapidly that shows that it is oversold thus it will before long skip back thus you have to act in like manner.
The stochastic indicator is widely used in the Forex community. It consists of two lines: the indicator line %K, and the signal or trigger line %D. The stochastic indicator can be used to identify oversold and overbought conditions, as well as to spot divergences between the price and the indicator. The stochastic oscillator is probably the most popular of the indicators in Forex used to estimate overbought/oversold, but watch out! It has the sad drawback of naming a currency overbought or oversold when it is really just on a prolonged trend. This is especially noticeable in USD/JPY, which can get the bit in its teeth and trend in a single direction for months, while the stochastic ... Stochastic Oversold-Overbought Post # 1; Quote; First Post: Aug 1, 2019 2 :26pm Aug 1, 2019 2:26pm Frag8383 Joined Oct 2018 Status: Member 97 Posts. Hi, I have a problem with the stochastic indi, I suppose that is the same problem that many people have. I love the stochastic indicator, I use a similar strategy than the FF Thread "Escalator Pips" just Google it if you want to find the ... Stochastic is a simple momentum oscillator which also helps to find overbought and oversold conditions. Stochastic is also scaled from 0 to 100. The reading above 80 indicates that the pair is overbought and the reading below 20 indicates that it is oversold. Even though both RSI and Stochastic can determine the oversold and overbought levels ... Stochastic Floating Overbought/Oversold Levels Metatrader 5 Forex Indicator. A built in stochastic is the core of the Stochastic Floating Overbought/Oversold Levels Metatrader 5 forex indicator. This special version allows the use of only two price combinations. All prices are already included and this version further extends the indicator by adding “floating level.” The Stochastic forex ... Stochastic Oversold/Overbought is a tradig system based on the Stochastic indicator. Free Forex Strategies, Forex indicators, forex resources and free forex forecast ... The stochastic indicator is also an excellent tool to use when identifying overbought and oversold conditions. Basically, what you have is an oscillating indicator with two lines crisscrossing each other. It also has horizontal lines on the 80 and 20 mark to identify overbought and oversold conditions.
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RobotFX STOCHASTIC alert indicator will alert you when the Stochastic main is crossing the signal in the over sold or overbought areas. In other words, we don’t care how many fake crosses can ... http://www.stochastic-macd.com/stochasticindicator.htm Know what you do when the stochastic oscillator is oversold on one time frame but overbought on anothe... Stochastic RSI - How To Identify Over-Sold Or Over-Bought Markets Using The Stochastic RSI Indicator - Duration: 9:57. Cutting Edge Crypto 21,754 views What are RSI and Stochastic? These are two very important types of overbought and oversold indicators. How to use stochastic indicator? How to use RSI indicator? In this stock market indicators ... The Double stochastic trading strategy. http://www.financial-spread-betting.com/academy/forex-stochastics.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO ... The Stochastic Oscillator is one of the most used Leading Indicators in Forex trading. This is a two lines oscillator that is used to determine overbought and oversold conditions of the Forex ... Register Here ~ https://dreamsultd.iljmp.com/6/stochasticrsi In this video I go over how to use the Stochastic RSI Indicator on tradingview.com to determine ... There's only ONE overbought oversold Forex, stock market, day trading for swing trading indicator that works today. http://www.topdogtrading.net/youtubeorgan... Forex สอน เทรด : 167 - รู้หรือยัง? เทรด Stochastic Over bought/sold แบบนี้ เทรด Stochastic Over bought/sold แบบนี้ Forex ... What are the best stochastic settings for scalping? On a 5 minute or long term chart here are the best settings. Also try it with our free Direction Arrows o...