AHG - Profitable Strategy for Struggling Traders
- Thread starter Anekdoten
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Trading successfully using technical analysis based charts must includes a [REASON] to trade ( Setup/Pattern/Indicators), A [FRAMEWORK]: Supp/Resistance Lines, MAs, Pivot levels, Bollinger/Fib. Bands... And an [EXECUTION] Trigger ( A Strategy based continuation/violation of certain level/thresholds).. Of course last but most important is [Money Management] this must be invidually tailored for each setup.. Could be $Stops, $Targets, MAs, Supp/resistance, Swing High/Lows etc....
Given that HA Color changes to show Trend is NO holygrail at-all..
But within a context of a Trade, I would like to show how I incorporate HA into
a Pattern Based trading in the following Example.
[REASON]: Potential H & S Pattern
[FrameWork]: H&S Formation within the Fibonacci Bands, Showing a Clear NeckLine.
[Execution]:
1. Wait for HA Bar [RED] Close below the NECKline to confirm the Trend.
2. Short One Tick Below the Low of the B/D Bar.
(Watch HA Color Confirming the lower B/D Bar)
[MM]:
** Stop above the Right H&S High (on close basis)
(In fact, I thought this would happen first during the RT setup)
** Target the Entire Range of the Head from the Head to the Neckline (A Measured Move)
Example:
Chart1: Time: 2.46pm pattern formation
Chart2: Time 3.38pm. (Result)
Regards,
Suri
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1699476" border = 0>
<img src= "http://www.elitetrader.com/vb/attachment.php?s=&postid=1699478" border = 0>
Given that HA Color changes to show Trend is NO holygrail at-all..
But within a context of a Trade, I would like to show how I incorporate HA into
a Pattern Based trading in the following Example.
[REASON]: Potential H & S Pattern
[FrameWork]: H&S Formation within the Fibonacci Bands, Showing a Clear NeckLine.
[Execution]:
1. Wait for HA Bar [RED] Close below the NECKline to confirm the Trend.
2. Short One Tick Below the Low of the B/D Bar.
(Watch HA Color Confirming the lower B/D Bar)
[MM]:
** Stop above the Right H&S High (on close basis)
(In fact, I thought this would happen first during the RT setup)
** Target the Entire Range of the Head from the Head to the Neckline (A Measured Move)
Example:
Chart1: Time: 2.46pm pattern formation
Chart2: Time 3.38pm. (Result)
Regards,
Suri
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1699476" border = 0>
<img src= "http://www.elitetrader.com/vb/attachment.php?s=&postid=1699478" border = 0>
Quote from mark1:
Nov 29 afternoon NQ
I have a quiz for you, what do you see when you see a "no signal" in my charts?
Isn't something we know very well?
First to answer wins an used inflatable doll kindly donated by our sponsor Anek
Strong Trend??
OK, 1 tick above or below indicator.
I ask because as I review your chart, almost every time there is a go signal, the price pulled back below/above the magic tick within the next bar or two. ( I see one exception)
Quote from Anekdoten:
As you sing the children songs don't forget the inevitable "Trend is your friend" chorus. Must train them from the very beginning.
My six year old can already spot Ms, Ws even head and shoulders.
On a daily basis I ask her, "what's the predominant trend up, down or sideways ?", if she nails it, I usually come up with a surprise like a new free webgame, a piece of chocolate, etc.
There is nothing like kids, they are priceless, but a kid that can trade, that's priceless and a little more
Anek
Working on the tune, but my 3-year old son is becoming acquainted with chart reading... On a daily basis he opens charts in QT, scrolls and identifies trends and makes live calls... 3+ consecutive green candles and he calls out "Green Daddy Green" very enthusiastically and when he spots 3+ consecutive red candles "Red Daddy Red" very nervously (probably a product of our checking his college account together for the past year).
I am working on his bullish bias and teaching him the way of AHG
From my understanding, it is one tick above or below the signal bars high/low.
I'm just not real clear if we should wait for a micro-pullback-I'm talking seconds here-or just enter at the magic tick price.
I'll be back later...Thanks!
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