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Any changes from the original will be denoted in blue thus Text
I trade HGI on all majors and timeframes 1h thru to MN.
I have an 8 period EMA on closing prices - which doesn't vary regardless of pair or TF. Why 8 ? Because that is a working day on 1hr, a full day on 4h, 1 week on W1 and almost 1 yr on MN !
I then put HGI on the charts and overlay that with the 6ths indicator.
I have also recently started using the semafor ind which is part of HGBnG
==> Start edit 08/06/16
Bob introduced me (and others) to CSS and I have since incorporated it into my trading as follows
I arrange my workstation as in the screenshots I posted a few pages further on. BEFORE I scan the individual pair charts, I look at the CSS for each relevant TF that I am trading. I trade all majors so my CSS uses all of them to determine currency strength.
I note down which pairs are above and below the +20 / -20 lines.
If they are in the middle section I rarely trade them (no trade, is a trade) but I will note which direction they are moving in and mark them for my watchlist if they seem ready to breakout of the 20's channel.
Having noted the pairs at each TF that are of interest I carry on as before below.
==> End edit 08/06/16
For each pair I am trading and for each TF - I make a very quick scan of the chart.
I am looking for signals and triggers as follows
A++ Signals and Trades
Signal - 8 MA above the top 6ths blue grid line
Trigger - Other supporting sell HGI indi formations AND/OR the 8 MA starting its move back down the grid below the top 6ths blue line
Action = Sell
No stops or TP used
Signal - 8 MA below the low 6ths blue grid line
Trigger - Other supporting buy HGI indi formations AND/OR the 8 MA starting its move back up the grid above the low 6ths blue line
Action = Buy
No stops or TP used
These signals and triggers are uncanny - I tend to use stop orders placed just below or above the blue 6th lines as appropriate to enter market.
Trade management - On a long trade when price gets to the low yellow line, I move my (mental) stop loss to BE. When it gets to the white middle line I start trailing it by the no of pips between the yellow and blue lines. I take profit when it gets near the opposing blue line OR I allow my TS to take me out. Vice versa for short trades.
Addendum - I have now also started to put a trail on my entry trade immediately because the 6ths tells me the distance in pips between the lines why wait till it gets to yellow. As price rises or falls I just watch that gravy train
I am also now experimenting with stacking trades (using a manual script) hence one of my interests in the grid system of trades in HGBnB. (In fact I had derived a manual version of this but it got me into eye watering DD had to abandon that experiment.
) - These trades are A++ because they ride the trends from the more predictable outer range boundaries into the median and price (almost) always goes back there !
NOTE 25/05/16 A ++ Signal is when the 8ma is above the top Yellow line and moving south or below the bottom yellow line and moving north when you use the SIXTHS SQ mod
A+ Signals and Trade
Signal - Blue wavy line
Triggers - Red (Green) trend arrow within 2 bars of the signal (2 bars max regardless of TF)
Action = Enter sell on next opening candle if Red arrow else buy if green
No hard stop or TP - I manage these manually
Signal - Blue wavy line
Trigger - Hi or Lo Semafor again within 2 bars of the signal
Action = Enter buy on next opening candle if Lo semafor else sell if Hi
No hard stop or TP - I manage these manually
These are A+ signals because they can arise in the yellow zone and I call that the "death by a hundred whipsaws" zone.
ps - The signal can be the trigger pattern and vice versa just depends on which pattern HGI draws first !
A - Signal and Trade
Signal Gold wavy line
Trigger - Blue wavy within 2 bars of the signal
Action - If market is below the signal and trigger sell else buy
No hard stop or TP as usual
B Signal and Trade
Price coming out of the yellow zone towards the top of the 6ths grid = Buy
Price coming out of the yellow mid zone towards the bottom of the 6ths grid = Sell
No hard stop or TP - but I watch these like a hawk in case the whipsaw cranks up !
These are B signals because typically the moves are smaller than those above
XXX Signal and Trade
If price is moving into (as opposed to out of see B type signals above) the yellow zone - I wont touch it with your barge pole
have a look at the pdf I attach to see examples of what I am doing - it really is much easier and simpler in pictures than in words.
Edit by Steve
I set this thread up for Charles, then made ownership of it over to him. Attached along with his pdf are:
- The version of the sixths indi with customisable line colours and widths that fullaforex did for us.
- A version of 3 level Semafor that only displays the level 3 that we are interested in - as used by HGBnG etc.
==> Start edit 09/06/16
Thanks to Bruster for the 6ths modification SIXTHs SQ_mod1 below. If you zoom in and out of your charts it makes the 6ths grid static (based on bar count level) and not dependent on zoom level. ==> End edit 09/06/16
