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| Author: | mieloo [ Thu Mar 29, 2012 8:29 am ] |
| Post subject: | Half top-Half bottom |
hi i will try to explain one of my favorited trade setups, hopping that we can turn it in a nice EA. from the begging i want to state that i followed this method close only on EURUSD, but i believe that it can be applied on any low spread instrument. the idea should be generally valid. so this is the idea: the price moves in one direction with determination till it touches a suport area. lets say some buyers apear here. they will start to buy stopping the fall. the price from where buyers started will be a sell fractal. after a quick test buy they usually stop and close their possition. here we will see a buy fractal. now the price will retreat because the sellers will try to start the down move again. after this moment if we see a M5 candle closing over the buy fractal we can read this as a sign that the buyers are makeing their stand thus for we are looking for a buy order. IMHO the best place to buy is when price touches half the distance from the sell fractal (the dippest one) and the buy fractal that appears after the move that determined the M5 close finished. words can sound complicated but i will clear it with some pics. i dont use indicators in my trading, i'm only interested in price, but for automation reason i included in the setup SMAangle(i didnt find any other solution for identifying a determined move) and Fractals. now the buy order methodology: 1. wait for the SMAangle (24) to cross under -0.5. 2. wait for a sell fractal to form 3. wait for a buy fractal to form (the distance betwin this two should be at least 10 pips). 4. after we have the buy fractal in place wait for a M5 candle close over the buy fractal ,or some times its enough if the price went at least 7 pips over. 5. wait for the move to finish when we will see the second buy fractal 6. measure the distance from the second buy fractal to the deepest sell fractal and place a buy limit order at the "half" of this distance. i believe that u should include the spread in this calculation. so the SL should be 1 pip under the deepest sell fractal and the TP should be 1 pip under the sencond buy fractal, and the R:R should be 1:1, including spread. hope this will attract your interest... as i'm sure that this could be done, because i watched closelly the price action in the last 9 month and i pretty sure that there are robots that trade this kind of setups. this is my version for the 5 min chart , but the setup can be done on any timeframe. i beleive that the Big Boys use it on tick. waiting for your opinion. and of course i will post more setups. |
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| Author: | mieloo [ Fri Mar 30, 2012 10:10 am ] |
| Post subject: | Re: Half top-Half bottom |
right now on eurusd... the angle it was close to -0.5. lets see.. |
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| Author: | mieloo [ Fri Mar 30, 2012 11:56 am ] |
| Post subject: | Re: Half top-Half bottom |
tp hit |
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| Author: | guandi [ Sat Mar 31, 2012 4:12 am ] |
| Post subject: | Re: Half top-Half bottom |
Hello mieloo, can you post the SMAAngle indicator and what is the settings for both, default settings? It will be glad if you can attached your template file too, it will greatly help in testing your idea. Best regards. -guandi |
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| Author: | mieloo [ Sat Mar 31, 2012 6:54 am ] |
| Post subject: | Re: Half top-Half bottom |
hi guandi. smaangle 24 periods. just that. and Empty4-bill w. fractal indicator. and yesterday we had another setup. missed the TP for only 1 pip, but the trade is still open. |
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| Author: | mieloo [ Mon Apr 02, 2012 2:15 pm ] |
| Post subject: | Re: Half top-Half bottom |
i will follow the price action as the sell fractal (1.3277) can be the starting point for the trade setup. the trade from friday evening was a winner but i dont recommned keeping trades over the weekend. in the following picture we had to touches on 0.5. the first one around 1:00 AM CET... and on monday, and due to a gap... i believe that this is a time and place where it is not worth trading, so i will desconsider it even if it had a valid setup. the second touch on 0.5 was in a good trading period but the price action was too direct.. so no setup. earlier at 1.3315 we had a sell fractal and a -0.5 touch. i started to look for the setup, but the price hasted to 1.3277, so this level is the one that matters right now. |
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| Author: | mieloo [ Mon Apr 02, 2012 3:45 pm ] |
| Post subject: | Re: Half top-Half bottom |
the pending order is set. buy limit 1.3295, tp 1.3315, sl 1.3275 |
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| Author: | mieloo [ Tue Apr 03, 2012 6:33 am ] |
| Post subject: | Re: Half top-Half bottom |
result, no trade. |
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| Author: | mieloo [ Tue Apr 03, 2012 6:40 am ] |
| Post subject: | Re: Half top-Half bottom |
on late american trade the 0.5 was touched again, but the trade did'nt trigger till the end of the sesion which for me invalidates the setup. in low volatility the chances that this works are slim as usually the price action is ranging... the picture is relevant. |
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| Author: | mieloo [ Tue Apr 03, 2012 6:54 am ] |
| Post subject: | Re: Half top-Half bottom |
on the asian session the smaangle came very close to 0.5. again we had a nice setup , with price touching perfectly on the 50% of the distance from the first buy fractal and the second sell fractal that apears after the close of a M5 candle under the first sell fractal. valid trade , tp hit... and i was sleeping.... this is why this needs an EA which is not a hard thing to do in my opinion as the rules are clear. yes it will lose some trades because of the limits of the indicators, but i believe that it worth a try. |
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