Make sure that you only time you exit the "four-hour cloud" is if you're doing so on the same side that matches the slope of the dynamic/adjustable eight-hour price range envelope.
Compare & Contrast with Christopher Lewis
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Make sure that you only time you exit the "four-hour cloud" is if you're doing so on the same side that matches the slope of the dynamic/adjustable eight-hour price range envelope.
Guess what bro? Your four-hour cloud is NOT four hours—it's seven! Did you change something at some point in the past?
Since the "cloud" already belongs to ichimoku, I'm going to call this the "One Look Causeway" strategy. It is used specifically on five minute charts. Positions are entered when candlesticks form on the side of the causeway that is opposite the direction of the slope of the triple dark-green baselines (as the brown instantaneous moving averages cross over the black trigger lines in the desired direction).
Hopefully, price will break through the light-green causeway so that traders can pocket their gains as soon as the brown instantaneous moving averages cross back over the black trigger lines headed in the "wrong" direction.
Ideally, this should be done in a manner (during periods) that conforms with the contention that intraday trades should ultimately flow in the direction of the slope of the eight-hour (NOT the four-hour) trend. In more simple terms, short positions should be entered when the one-hour (54-minutes) causeway is beneath the eight-hour causeway; and long positions should be entered when the 54-minute causeway is above the eight-hour causeway.
(And of course, the four-hour baseline should match the direction of the trades/positions as well.)
This is how positions are to be monitored and managed, as opposed to using a pseudo swing trading style of trading. Though this technique is based on the latter, it is designed to maximize profits by trading with greater precision, and to practically avoid almost ANY losses by exiting positions with profit before the longer-term price flow ever has an opportunity to turn the tables with a fully-fledged reversal.
Hopefully, price will break through the light-green causeway so that traders can pocket their gains as soon as the brown instantaneous moving averages cross back over the black trigger lines headed in the "wrong" direction.
Ideally, this should be done in a manner (during periods) that conforms with the contention that intraday trades should ultimately flow in the direction of the slope of the eight-hour (NOT the four-hour) trend. In more simple terms, short positions should be entered when the one-hour (54-minutes) causeway is beneath the eight-hour causeway; and long positions should be entered when the 54-minute causeway is above the eight-hour causeway.
(And of course, the four-hour baseline should match the direction of the trades/positions as well.)
This is how positions are to be monitored and managed, as opposed to using a pseudo swing trading style of trading. Though this technique is based on the latter, it is designed to maximize profits by trading with greater precision, and to practically avoid almost ANY losses by exiting positions with profit before the longer-term price flow ever has an opportunity to turn the tables with a fully-fledged reversal.
The table in Post #573 mixed up GBPUSD and GBPJPY. In any case, I purchased GBPJPY and EURJPY last Friday, and this is where the Cable-Yen is now...
Since EURJPY's day-to-day bias is now bearish, and given that I have no plans to monitor and manage these two positions, I'm going to pocket my gains from the Euro-Yen now for about 15 pips worth of profit. (I'm going to try to hang with GBPJPY for as long as the four-hour baseline continues to advance.)
UPDATE: Actually, GBPJPY has gone nowhere in the last 40 minutes, so I went ahead and locked in my profits at about 38 pips.
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If USDCHF's four-day price flow truly is turning north, then the pair becomes a strong buy candidate as soon as it enters the shaded area, and more so the deeper it penetrates into the region. At that point, it simply becomes a matter of waiting for price to turn around to initiate its escape...
GBPUSD has decided NOT to resume its climb (for the time being, at least). However, EURGBP is now in a nice position to go back to falling (that is of course, IF it decides to do so).
Fortunately, I woke up this morning just before the USA Retail Sales numbers were scheduled to be released, and managed to exit my EURGBP short position with profit right before that happened...
Here's what I find after continuing to rely on the pseudo swing trading information, but applying it in more of a day trading manner...
Whereas the strict application of the former approach points to the four-hour baseline in conjunction with the eight-hour and four-day price range (price flow) envelopes as the backbone of the system; transferring these measures to the day trading environment has me essentially dismissing the four-day measure as irrelevant, deleting the four-hour baseline as lagging, and relying instead on the eight-hour price range envelope for overall direction with the 90-minute channel suggesting the more immediate directional tendency and the 15-minute channel tracking the trajectory of the "actionable" trend.