RisklessPips » Thu May 19, 2016 6:08 pm wrote:
This is how I use the combination of HGI, 6ths and now Semafor. - Apologies to Tony - I am using the description I wrote to you minus any personal stuff - saves me having to reinvent the wheel
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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
What I then do is 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.
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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 !
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.
