My price-action strategy

[fxfxfx]

Hi alright,

 

The formula is on C11 and on B22 ;)

And nearly all cells have conditional formatting -> When some input shows the wrong (for example: daily and 4-hourly trend not matching,...) The text-color or cell-color change from blue to red.

The field C11 says if the trade is valid.

The field C22 tells you which kind of entry/tp/trade-management to use and this will be calculated in relationship to the fields C3-C10

 

Your EXCEL-File which you kindly saved should also work because I only used simple formulas and no macros...

 

But here are the formulas:

C11:

=AND(C3=C4,C7=C3,C8=1,C9=1)

 

C20:

=COUNTIF(C14:C19,1)

 

B22:

=IF(C11=0,"Trade not valid !",IF(AND(C10="TRENDING",C5=1)=1,"Entry: Enter at the HIGH/LOW of the candle. Target: Trail S/L at candlestick-formations and/or S/R-Lines",IF(AND(C10="SIDEWAYS",C5=1)=1,"Entry: Split your orders in 2 orders. Enter the first order at 50% of the candle and the second order at the HIGH/LOW of the candle. Target: 2x your risk",IF(C5>1,"Entry: Split your orders in 2 orders. Enter the first order at 50% of the cancle and the second order at the HIGH/LOW of the candle. Target: 1st order 2x your risk, Target 2nd order: Last Swing High/Low",""))))

 

Cheers

 

fxfxfx

 

Well, when I downloaded it at first I did think it was supposed to give an OK for the trade, as the intervals C3:C10 and C14:C19 have a double input, but then I checked the cells C11 and C20 and there's no formulae in them, so I thought you were suggesting it as a visual check list. I opened the file with Excel 2010, so even if it's written with Openoffice, all the formulae should still be visible. It looks like there's something wrong with it then.

 

P.S. - Can you check if there's an option to save it as an xls file?

Edited July 2, 2011 by fxfxfx

[fxfxfx]

Hi,

 

Fixed now the EXCEL-thinggy ;)

 

Excel-Version can be downloaded here:

http://www.4shared.com/document/nXFPi1oi/PATradeHelper-0001.html

 

Although it does not look 100% like the openoffice-version (conditional formatting) - It shows/calculates now the correct value(s).

 

The problem was that Openoffice treats a TRUE with 1 and FALSE with 0 and OFFICE treats a true with TRUE and FALSE with FALSE ;)

 

Cheers

 

fxfxfx

 

Hi alright,

 

The formula is on C11 and on B22 ;)

And nearly all cells have conditional formatting -> When some input shows the wrong (for example: daily and 4-hourly trend not matching,...) The text-color or cell-color change from blue to red.

The field C11 says if the trade is valid.

The field C22 tells you which kind of entry/tp/trade-management to use and this will be calculated in relationship to the fields C3-C10

 

Your EXCEL-File which you kindly saved should also work because I only used simple formulas and no macros...

 

But here are the formulas:

C11:

=AND(C3=C4,C7=C3,C8=1,C9=1)

 

C20:

=COUNTIF(C14:C19,1)

 

B22:

=IF(C11=0,"Trade not valid !",IF(AND(C10="TRENDING",C5=1)=1,"Entry: Enter at the HIGH/LOW of the candle. Target: Trail S/L at candlestick-formations and/or S/R-Lines",IF(AND(C10="SIDEWAYS",C5=1)=1,"Entry: Split your orders in 2 orders. Enter the first order at 50% of the candle and the second order at the HIGH/LOW of the candle. Target: 2x your risk",IF(C5>1,"Entry: Split your orders in 2 orders. Enter the first order at 50% of the cancle and the second order at the HIGH/LOW of the candle. Target: 1st order 2x your risk, Target 2nd order: Last Swing High/Low",""))))

 

Cheers

 

fxfxfx

[alright]

Hi,

 

Fixed now the EXCEL-thinggy ;)

 

Excel-Version can be downloaded here:

http://www.4shared.com/document/nXFPi1oi/PATradeHelper-0001.html

 

Although it does not look 100% like the openoffice-version (conditional formatting) - It shows/calculates now the correct value(s).

 

The problem was that Openoffice treats a TRUE with 1 and FALSE with 0 and OFFICE treats a true with TRUE and FALSE with FALSE ;)

 

Cheers

 

fxfxfx

 

Thanks for that, although I still can't use it. I need to modify the true-false option and I'm embarrassed to admit I don't know how to do it. The reason is that my Italian Excel tranlates The TRUE-FALSE value into my language (VERO-FALSO) but keeps the option in English, so whichever I choose I always get the final result as wrong. How do u get the double choice in a cell? If I get to that point I'll be able to amend it. From this pic you'll maybe understand what I mean

http://screencast.com/t/KM9NHtlsK8JC

[⭐ musketeer]

Hi,

 

Fixed now the EXCEL-thinggy ;)

 

Excel-Version can be downloaded here:

http://www.4shared.com/document/nXFPi1oi/PATradeHelper-0001.html

 

Although it does not look 100% like the openoffice-version (conditional formatting) - It shows/calculates now the correct value(s).

 

The problem was that Openoffice treats a TRUE with 1 and FALSE with 0 and OFFICE treats a true with TRUE and FALSE with FALSE ;)

 

Cheers

 

fxfxfx

 

I hope that version is same as openoffice version

http://www.multiupload.com/KXCWVAV95K

[fxfxfx]

Hi alright,

 

You can do this by doin this:

 

Navigate to the "DATA" Then you should have a button called "Data Validation" -> Here you can change the value of the list ;)

 

But I will try to make a new version where we do NOT use TRUE or FALSE and use instead YES and NO - This should work better and also non-english version should then have no problems...

 

Cheers

 

fxfxfx

 

Thanks for that, although I still can't use it. I need to modify the true-false option and I'm embarrassed to admit I don't know how to do it. The reason is that my Italian Excel tranlates The TRUE-FALSE value into my language (VERO-FALSO) but keeps the option in English, so whichever I choose I always get the final result as wrong. How do u get the double choice in a cell? If I get to that point I'll be able to amend it. From this pic you'll maybe understand what I mean

http://screencast.com/t/KM9NHtlsK8JC

[fxfxfx]

Hi musketeer,

 

Thx,

 

Looks good - but the only problem which stays is the problem with NON-ENGLISH version of Office.

 

Maybe we can make a version with YES and NO instead of TRUE and FALSE as these are Key-words for EXCEL and always treat it like a boolean...

 

Cheers

 

fxfxfx

 

I hope that version is same as openoffice version

http://www.multiupload.com/KXCWVAV95K

[alright]

Hi alright,

 

You can do this by doin this:

 

Navigate to the "DATA" Then you should have a button called "Data Validation" -> Here you can change the value of the list ;)

 

But I will try to make a new version where we do NOT use TRUE or FALSE and use instead YES and NO - This should work better and also non-english version should then have no problems...

 

Cheers

 

fxfxfx

Perfect! That solved my problem, thanks ;)

[⭐ musketeer]

Hi musketeer,

 

Thx,

 

Looks good - but the only problem which stays is the problem with NON-ENGLISH version of Office.

 

Maybe we can make a version with YES and NO instead of TRUE and FALSE as these are Key-words for EXCEL and always treat it like a boolean...

 

Cheers

 

fxfxfx

 

Hi TripleFX :)

Please check it, is it works per rules... have no time until tomorrow...

http://www.multiupload.com/XOMIM4SQTR

 

Best!

[armando91]

Hi fxfxfx,been following your thread since its inception, what happened to it.I check it everyday and no new information.

When are you going to give your last lesson.

Please finish what you started so we can have a complete picture .

Thanks very much for all the time you put in.

[nnn123]

What happened. No more charts nothing. I went away and it has stopped. Unfortunately, I am away for a month so I will not be able to do much. Have a great time. I will pop in if I get a change

[armando91]

too bad this thread has died, it was very educational and had a lot trading wisdom nuggets.

[⭐ izogrey]

Hi guys,

 

IMHO, I think that nothing is wrong here. Here it is why:

 

Trading activity suppose a human being with two strong complementary abilities: intuition and reasoning. This is why it's so hard to be good at this.

 

This method contains a synthesis of main elements for both categories - elements to help your good intuition and elements to help your good technical analysis. Even more, fxfxfx gave some references for further reading ( Nial Fuller, YTC ... ).

 

This method, as is described here, contains also the operational part: what to do every day, how can you construct your own analysis and trade management daily routine.

 

So maybe I'm wrong here, but it seems to me that the overall image of this method is complete.

 

Of course, this means nothing for the thread reader if he/she will not practice a while this method in order to "feel" and "think" about it - in order to harmonize his/her own intuition and reasoning. For this activity, there are two needed elements: the information, which i think is complete in this thread, and the will to do it, which depends on the thread reader. But fxfxfx already told us about this.

 

So, in my opinion, it's nothing sad here: this thread was the first step, and the second one is the personal transformation of every reader in a better trader. And I wish all of you good luck on this !!! :-)

 

Cheers

[fxfxfx]

Hi folks,

 

Hi izogrey,

 

Yes - Izogrey - you are totally right ;)

 

I really shared ALL the stuff that is needed in this thread.

What I finally wanted to do is to write probably a summary - But I really have rare time at the moment (due to many reasons) and soon I also want to go to vaccation and then I also do not know how good the internet-connection will be ;-)

 

But all I can say to you all is:

practice, practice, practice - and the willingness to learn AND doing.

 

Maybe here a very very very small summary:

 

Preparation:

Draw SwingHigh/SwingLow,

Draw S/R-Lines and update them on a daily basis or so...

Attach the alerter

Wait for a candlestick-pattern.

Check if the candlestick-pattern occurs at a re-trace

Check if daily and 4-hourly is aligned

Check if candlestick-pattern occurs at a S/R-Line and ONLY trade in the direction of the trend.

Always go for a Risk/Reward of 1:2

 

Trade-Management:

If setup occurs in a ranging market:

 

If candlestick-pattern is a pin-bar and has the right direction (the wick shows to the opposite direction than the trend) split your order in 2:

1st order: Enter at 50% of the the PIN-BAR and the 2nd order at the HIGH or LOW of the PIN-BAR -> SL: At the HIGH or LOW of the PIN-BAR, Target 2x your risk

 

If candlestick-pattern is an inside-bar make an order with the entry: HIGH or LOW of the outside-bar (but only in the direction of the trend). SL: 50% of the outside-bar, TP: 2x your risk (But only if the TP would NOT exceed the boundaries of the sideways channel).

 

If candlestick-pattern is a fake-breakout make an order with the entry: HIGH or LOW of the false breakout-bar (but only if the false breakout was to the opposite of the trend). TP: 2x your risk (But only if the TP would NOT exceed the boundaries of the sideways channel).

 

If the candlestick-pattern occurs at a change of trend and went outside the boundaries of a sideways market and then retraces back (If there was sideways market).

Entry for the setup remains the same (except for PIN-Candle: Entry: HIGH or LOW of the PIN-BAR) and also the SL for the setup remains the same, but leave the TP open and trail the SL:

 

Example:

 

After a setup occurs at a change of trend and you opened your position and you see on the way UP or DOWN a PIN-BAR, move the SL to the HIGH or LOW of the PIN-BAR and if you see on your way an INSIDE-BAR, move the SL to the HIGH or LOW of the OUTSIDE-BAR and if you see on the way a FAKE-BREAKOUT in the right direction, move the SL to the HIGH or LOW of the FAKE-BREAKOUT-BAR. TP will be reached when you get stopped out ;)

 

There are also other components to consider - but the system itself is COMPLETELY outlayed now guys and should be enough to be profitable.

 

Maybe when I have a little bit more time again, I can post some "tips" - But these tips do not change the system mentioned here (although it is not a system - it is more a collection of tools as some setups maybe need a little bit more discretionary).

 

But the MOST IMPORTANT thing is to EXCERCISE them.

 

Cheers to all

 

fxfxfx

 

Hi guys,

 

IMHO, I think that nothing is wrong here. Here it is why:

 

Trading activity suppose a human being with two strong complementary abilities: intuition and reasoning. This is why it's so hard to be good at this.

 

This method contains a synthesis of main elements for both categories - elements to help your good intuition and elements to help your good technical analysis. Even more, fxfxfx gave some references for further reading ( Nial Fuller, YTC ... ).

 

This method, as is described here, contains also the operational part: what to do every day, how can you construct your own analysis and trade management daily routine.

 

So maybe I'm wrong here, but it seems to me that the overall image of this method is complete.

 

Of course, this means nothing for the thread reader if he/she will not practice a while this method in order to "feel" and "think" about it - in order to harmonize his/her own intuition and reasoning. For this activity, there are two needed elements: the information, which i think is complete in this thread, and the will to do it, which depends on the thread reader. But fxfxfx already told us about this.

 

So, in my opinion, it's nothing sad here: this thread was the first step, and the second one is the personal transformation of every reader in a better trader. And I wish all of you good luck on this !!! :-)

 

Cheers

[fxfxfx]

Hi folks,

 

It's me again ;)

 

Few people asked me if this is the only system that I trade - And my answer here is very clear:

NO - This is NOT the only system that I trade... But this is the CORE-system which I trade on a regular basis and which gives me enough triggers and suits my lifestyle.

 

As I said: I treat trading like a business - And from time to time I evaluate other system/strategies.

Like a company: Every company must look for diversification and/or improvement of their existing core-business(es).

 

I always use common sense and ask myself lots of question(s) when I evaluate other strategies/system(s).

 

As trader you MUST be open-minded (But of course only with common-sense in background) for new system(s)/strategies - BUT: You MUST trade your CORE-TRADING-SYSTEM regulary.

 

I do NOT think that all the people will trade the EXACT same way as I trade - But they will surely use components of the system that I showed to you all and they will mix it with other parts of price-action or whatever works for them -> They develop their own system.

 

And: This system is NOT written in stone !

I regulary analyze my trade(s) and if I find that modifying this or that will improve my trading -> I will try to find a way to implement it -> Then I demo it and then I TRADE it.

 

Like in EVERY BUSINESS you must analyze if you are on the "right" way -> And if you recognize that something is wrong, you must find corrective ways to bring it to the right way.

 

I regulary analyze at weekend ALL of my trades and try to answers what went wrong -> It is not always possible to find answer(s) -> You can't force the market to do what you want -> You must follow the market.

 

But often the problem is that people do not follow their own rules -> Therefore you must have a trading-plan where you wrote down every aspect of your system -> When you saw that you did not follow your own rules you must force yourself to re-read your trading-plan and/or make a "cheat-sheet" or a check-list in EXCEL -> Did you got the idea how your mindset should be ? You made something wrong -> You MUST a find a way to avoid it the next time... and I do NOT exclude myself here -> All human beings are making avoidable mistakes from time to time -> This makes us human ;)

 

Folks,

This is how EVERY successful business run(s) - And in trading it is not much different ;)

 

Cheers

 

fxfxfx

[nnn123]

Hi 3fx,

 

Long time!!! Sorry about that.

 

I wanted to know if the attached chart is correct in the horizontal line markings.

 

http://clip2net.com/s/14nTi

 

I tried to pick only the major pivots in the two waves ( teal line showing up and down). There were too many lines showing up.

 

If it is incorrect then please let me know the correct way.

 

Thanks.

[fxfxfx]

Hi nnn123,

 

Your lines are looking good (in terms of validity).

 

A little tip:

Only draw the line(s) from the last 2 major moves (one move up - one move down ... or vice versa).

When the distance between the lines is sooooo small, you are basically on the wrong time-frame ;)

Switch to higher one(s) or lower one(s) until you see that it suits better - OR: Skip this pair until you CAN make clear/good lines...

AND: Rule Nr.1: If you are unsure about a setup/trade,... -> Skip it ;) -> The next one will surely follow...

 

Hope this helps...

 

Cheers

 

fxfxfx

[nnn123]

Thanks 3fx,

 

That really helps as I have way too many lines.

[learningfx]

Hi FxFxFx,

 

I had being following this thread for sometime.

Only recently started to work on it and here is one

simple question to check with you or anyone who

can help to clarify my understanding.

 

According to my understanding, any break of previous high is a uptrend

as show in the 4hr TF.

However, in the D1 TF, the current candlestick is hitting previous resistance level

and not yet close.

 

In this case,

a. Even though D1 & 4H TF are both uptrend, but as D1 had not close &

break the previous high, we should wait for it to confirm & break higher than

previous high before any long setup is valid.

 

Is my understanding correct ?

 

Thank to fxfxfx & other for sharing and helping

each other.

 

USDCAD 4Hr TF, Uptrend

http://img836.imageshack.us/img836/4495/20110912usdcad4hr.gif

Uploaded with ImageShack.us

 

USDCAD D1 TF, Uptrend

http://img88.imageshack.us/img88/9483/20110912usdcadd1.gif

Uploaded with ImageShack.us

Edited September 12, 2011 by learningfx
Update

[fxfxfx]

Hi learningfx,

 

See it this way:

Daily is SIDEWAYS/UPTREND, 4-hourly is uptrend

 

But what is more important:

I do not see any strong confluences of Price-Action Elements

 

Do this:

 

Draw a trendline at the 4-hourly starting from the lowest zig-zag to the next higher lowest zigzag located to the right -> OK ?

 

Wait until price closes a good portion above the 1.0000 Area (Seems to be a strong resistance-level...).

 

Then wait for the retracement.

And then: Wait for confluence of Candlestick-Pattern at/with S/R-Line(s), Trendline or Fib-Level.

 

Or:

 

Wait until price got clearly rejected from 1.0000-Level and look for confluence-level at the 0.9920-area (S/R, Candlestick-Pattern, Trendline, Fib-Level)

 

Hope this helps.

 

If you are doing hard with this strategy maybe take a look at this Price-Action Strategy which is a little bit more mechanical:

 

http://forex-strategies-revealed.com/advanced/trend-line-trading-strategy

 

The Author of this strategy is Myronn and he is also a very honest guy and this strategy simply works and has a huge R:R Ratio...

 

Cheers

 

fxfxfx

 

Hi FxFxFx,

 

I had being following this thread for sometime.

Only recently started to work on it and here is one

simple question to check with you or anyone who

can help to clarify my understanding.

 

According to my understanding, any break of previous high is a uptrend

as show in the 4hr TF.

However, in the D1 TF, the current candlestick is hitting previous resistance level

and not yet close.

 

In this case,

a. Even though D1 & 4H TF are both uptrend, but as D1 had not close &

break the previous high, we should wait for it to confirm & break higher than

previous high before any long setup is valid.

 

Is my understanding correct ?

 

Thank to fxfxfx & other for sharing and helping

each other.

 

USDCAD 4Hr TF, Uptrend

http://img836.imageshack.us/img836/4495/20110912usdcad4hr.gif

Uploaded with ImageShack.us

 

USDCAD D1 TF, Uptrend

http://img88.imageshack.us/img88/9483/20110912usdcadd1.gif

Uploaded with ImageShack.us

[learningfx]

Hi fxfxfx

Thank for your reply and the strategy by Myronn.

 

BTW, why is D1 chart SIDEWAY now as the

candlestick is not yet close for the day ?

 

My understanding of sideway is when at least 2

candlesticks High/Close are very close to each other.

 

Thank you

[fxfxfx]

Hi learningfx,

 

No: The definition is not that the last 2 candlesticks High/Close are very close to each other.

The last few swing-highs and swing-lows should be near to each other and form a kind of "channel" - And: Yes - I know that especially for beginners it is sometimes hard to recognize a sideways-channel... - This knowledge comes only from observing the charts again and again and that you try to see it exactly -> You must learn to see the charts more "abstract"... - Sometimes it is better to zoom out and look again to the chart.

 

Take a step back from your monitor and look again at the chart (last 20 candlesticks or so...) - Do you recognize a "channel" ?

 

That's why I said that probably trading Myronn's trendline-strategy is maybe better suited for beginners as it is a little bit more "mechanical" ...

 

Hi fxfxfx

Thank for your reply and the strategy by Myronn.

 

BTW, why is D1 chart SIDEWAY now as the

candlestick is not yet close for the day ?

 

My understanding of sideway is when at least 2

candlesticks High/Close are very close to each other.

 

Thank you

Edited September 12, 2011 by fxfxfx

[learningfx]

Hi fxfxfx

Thank for the explanation, is this what you

see in the uptrend/sideway channel for the D1 TF ?

 

Sorry that my explanation of sideway is bad

 

http://img801.imageshack.us/img801/3083/20110912usdcadd1ch.gif

Uploaded with ImageShack.us

 

If So, then I need to practise more on observing such pattern.

[fxfxfx]

Hi learningfx,

 

Find attached my comments ;-)

 

http://img846.imageshack.us/img846/327/usdcad603.gif

 

Uploaded with ImageShack.us

 

Hi fxfxfx

Thank for the explanation, is this what you

see in the uptrend/sideway channel for the D1 TF ?

 

Sorry that my explanation of sideway is bad

 

http://img801.imageshack.us/img801/3083/20110912usdcadd1ch.gif

Uploaded with ImageShack.us

 

If So, then I need to practise more on observing such pattern.

[learningfx]

Hi fxfxfx,

 

Yes, finally get what you meant,

a picture is worth a thousand words.

 

By zooming in with around 20 candlestick, I can see it now

Thank for sharing another skill with us

[PyeR2]

3 cheers for 3fx for this thread. Price action is the only thing that works & the massive s**** heap of failed EA's in this forum is a testament to that.

I have 10+ yrs experience trading & it took me 5yrs to start making a buck out of it. The turning point was when I started doing analysis as is being taught in this thread and using my brain and price action instead of trusting squiggly lines, EA's and scam signal providers.

 

3fx you are very lucky to have seen the light so early in your trading career. Cudos to you.