I've been thinking about where to begin this journey. My usual stuff is already out there and if anyone wants info - everyone knows to just ask. No, I wanted to kick off with something new (or new-
ish anyway).
By that, I mean you will have seen all the individual elements before but as I said in my intro, I have been trying to replicate / approximate the kind of methods I once used. Reason being, they were based in the longer time frames.
Thing is, this still ties into my work just now, as in reality, these can be converted quite easily to run on the scalping grounds, so nothing really has to be learned anew.
So to start with I was looking at the H4. This particular doo-dah also runs very nicely on H12 but not always on Daily. Reason being, there is almost by definition, a certain amount of information lag once you get into the Daily. So for now, I'll set that aside. We'll come back to it later with something else.
Ok. The chart and its elements.
H4 (Here AU, which seems to be well suited).
- Screenshot 2019-01-31 at 20.52.52 - Edited.png (51.15 KiB) Viewed 24964 times
Ichimoku Kinko Hyo (9 16 52 0)
We include the Tenkan Sen along with the Senkou Span A and Senkou Span B but not Kijun Sen or Chikou Span.
MACD Histogram (5 3 3 0) (In Upper Window)
MACD Histogram (26 12 9 0) (In Lower Window)
EMA 30 (Close 0)
This is a method so devoid of tension and hassle, so supremely laid back, that you'd think it had been taken out of school and raised on a farm by Cheech and Chong.
We can investigate the subtleties involved in the trade management and even best-price entry techniques and how to maximise your return at a later date. For now, the basics are:
The Lower MACD gives directional bias.
The Upper MACD is involved in the trigger. It is the hammer on the gun, if you will. One step removed from ''
bang''!
If we were looking for a long entry, we would be looking at the L-MACD to show in the upper half, ideally having just moved into the upper half from the lower.
We then wait until the U-MACD gets over onto the same side too. Now, we don't want to be going in here, what we are looking for is for the U-MACD to drop back down to the lower half and then if / when it turns back up, that's when we look to get in on the action.
Now, I've gone over the MACD stuff first but that's actually not a prerequisite, as each of these listed ''steps'' is of equal importance. Bearing that in mind, we'd then also be looking for price to be above (a) the cloud and (b) the 30 EMA.
We can suffer it being just inside or flirting with the edge but it needs to be giving signs of wanting to leave.
I could begin to talk about the way you can take the angle of the cloud into account. Or price sitting between the EMA and Tenkan Sen and what signal candles we can find in there.
Or how fibs can give you an insight into the invisible lines-in-the-sand we seek to fine tune or give us confidence in our entries.
However, for now, I won't, as that's going to lead us into how we act once we're in a trade and how to stack and...and...and...
We'll get to that. For now, if this is something that may be of interest, maybe chuck the stuff on a spare chart. See what you think.
Some pairs will suit more than others, I've got it on AU here as I know it suits that pair. Just a cursory look back in time will let you know if the one you are looking at has a chance of working out. If not, into the bin with it and find one that does.
Once again, I can 100% guarantee that you will have seen most if not all of these elements used elsewhere before, I make no claim to ownership of any of the techniques here. I have read, studied, been taught and used, so many different techniques that I genuinely couldn't tell you where I first saw or heard about any of them. The point is, nothing here is commercial property and so we are free to use them as we please.
After all, all we are doing here is building a base framework into which we can look to fit our fine tuning born out of the fine work done here on Kreslik already.
A little bit of cross breeding never did anyone any harm, right
IS A LIE__________
