RisklessPips » Fri May 13, 2016 11:33 am wrote:
One of the first things I ever read by Bob was the sixths indicator which is still available - essentially and paraphrasing a lot the indicator divides your screen into 6ths based on how Empty4 displays the trading range for a pair. In his original posts he was clear most traders get wiped out trying to trade trends from the middle out when it is easier to trade them in.
If you look at the chart the Blue lines top and bottom delineate the range. The two yellow lines show the zone within which he advised not to trade but to take profits. The white middle line was used for white box trading.
Anyway in my trading I added an MA and when it crosses the top sixth line from above that is a sell signal. When the MA crosses the low 6th from the bottom that is a buy signal.
For a long trade when price hits the low yellow level I move my SL to BEP. When it hits the white level I start trailing it by pips represented by the gap from yellow to white. Normally I just let the TS take me out but I have been known to manually close out when price gets above or below the opposing blue level. You can ride this baby on most pairs and TF's like a gravy train.
Then came HGI - and now as you can see from the chart not only does it reconfirm the 6th entry points but it also gives you many more trading options in between the low and top 6ths ! I am currently not trading those areas in between the yellow levels (old habits die hard) but I am sure the pips I am leaving on the table will disabuse me of this in a few months.
So what has HGI added to my trading ?
Confirmation of the signals I trade on 6ths
Additional entry levels between the blue and yellow levels
Alternative TP levels on the way up or down
Option to trade in the "death by a hundred whipsaws" yellow zone
Less stress and more time being a human being
BTW in the original 6ths indicator what are blue lines on my chart were Gold, what are yellow on the chart were green. White was always so.
