10.4 Advanced and Counter

[davek]

Hi Mike:
I have been studying your counter trend 10.4 trades here, thanks for posting your trades and thoughts. The two indicators you added to Bob's template, 240 NRP TMA band and the zigzag, could you please post them here, I'd like to add them to my 10.4 template too. Regarding the zigzag, what do the numbers signify at each swing, you mentioned time, is that time in minutes how long each swing took? The band indicator you are using for support/resistance, as a point, of entry/stoploss?

Thanks,
Dave

[mjws00]

Sure Dave,

The band is standard TMA NRP. Essentially a 20 LWMA with ATR Bands. I've found it to be wonderful, and pretty highly respected by currency prices. You just need to remember that if price is trending very strongly, it will push up through and keep going. If ranging you can touch trade it with good results. I just use it as something for confluence. If you get a strong 10.4 setup and the band happens to be topped or bottomed out. Good things are likely to happen.

The zigzag is the (move in pips) / (number of bars). It is just a simple way of seeing how big moves have been and how impulsive they were. Obviously a move that goes 100 pips in 3 bars is stronger than one that took 20 to cover the same ground. I use it to get a feel for who may be gaining or losing power, and it highlights swing high lows, and SR nicely. The number on the side of it is how far it has retraced the last leg in pips. Just a quick hack I did.

Enjoy.

[davek]

Thanks Mike for the two indi's and your explanation of how you use them in your trading.

Mike, could you elaborate a bit more on how you use the 1h to get into a trade on the 4h, I read where you say that the 1h has already twitched, so I'm assuming you use it as a timing factor to enter a trade on 4h, when you have time, maybe a pic or two of a past/current trade of how you use the two timeframes as an example, to show the nuances/detail of how you use the 1h/4h together?

Thanks,
Dave

[mjws00]

Here is how I am currently judging when RSI is breaking down so we might get safer placement of our pendings.

As you can see the trade was decent. My live exit was better, this is the charting demo. There may be a better way... but I'm doing this for now.

Mike

[mjws00]

Closed AUDNZD at a small profit. I like the chart for a short, but I am long NZD elsewhere and this nets out to short AUD which is meh. This is primarily a time exit. It is also the only trade I don't have large profits locked on, so not worth monitoring for me. Only 50 pips available with my impatience. More to those in better timezones and with longer time horizons.

[davek]

Here is how I am currently judging when RSI is breaking down so we might get safer placement of our pendings.

As you can see the trade was decent. My live exit was better, this is the charting demo. There may be a better way... but I'm doing this for now.

Mike

Thanks Mike, your two examples are clear on how you use the lower time frame rsi2 to get into a trade. I am assuming that you used the m30 in this trade example because the h1 rsi2 was not pegged up? I will be putting your trade examples in my 10.4 trade folder for future review. Thanks again for taking time out of your busy day to post your charts, I'm sure they are helpful to many here.

[mjws00]

There seems to be a pretty significant variance in how long the h4 rsi can stay pegged. Which makes sense. My first thought after seeing lots of the very long 12-24+hr pegged rsi was that the 1 hr would be early enough to get me in, without being so early momentum had not faded. On lots of trades the 30 min seems to be the right balance. This is discretionary trading, I will look at anything that is useful.

It is always a trade off. I prefer to sell into a peak, with a second entry when I am early vs. waiting for it to top have it spike down, and having to chase it. Just suits me better.

The charts are good to post. Makes me think for a second before I take a counter-trend trade. I am a "feel" player so sometimes get tuned in to very short timeframe action and momentum. Always early, when relating to higher timeframes. You have to know if you are "wrong" or if you are just a touch early or late. Hopefully others will post some trades and ideas as well. You never know when you'll spot a piece of the puzzle that will just resonate.

Mike

[rosst]

Here is how I am currently judging when RSI is breaking down so we might get safer placement of our pendings.

As you can see the trade was decent. My live exit was better, this is the charting demo. There may be a better way... but I'm doing this for now.

Mike

Was this done with a pending order? If you can consistently grab the prices at the top like that - you have got it made!
Thanks for sharing...

[mjws00]

I sold into WMR1. Didn't want to miss the entry. There was a pending entry available there, but I was sleeping, and didn't want to rely on it getting there, so just used a market order. You'll see me selling into tops often. Typically a touch early, sometimes with a second entry. I scale in and out. Personal rules disallow third entry against, I never want to get too heavy on one idea.

[rosst]

I sold into WMR1. Didn't want to miss the entry. There was a pending entry available there, but I was sleeping, and didn't want to rely on it getting there, so just used a market order. You'll see me selling into tops often. Typically a touch early, sometimes with a second entry. I scale in and out. Personal rules disallow third entry against, I never want to get too heavy on one idea.

It was a beautiful trade! I should have known that Mondays often look like a break out in the wrong direction - but I have been trying to wait till the RSI has been flat for a few bars before placing pending orders - you are quick! Thanks for the charts....