I may have discovered a diamond in the rough for my trading style. After seeing a possible trade setup for the QB strategy, I went to twitter to see if any one else was tweeting about it. I guess I found a user on tradingview.com going in on the same setup but utilizing this crazy looking spiderweb/cloud/smoke looking 4H chart. I was completely taken away as to what the hell was going that I neeeeeded to research what the hell was actually going on. Would you just look at it?!
How in the hell do you one day just make that up?! I pity that person who has no clue how to read any of whats going on in this picture. Luckily, it’s pretty simple if you’re familiar with each individual element.
If price is below the cloud (or Kumo in Japanese!), its a downtrend. When price is above, it is an uptrend. When it is in the middle, it is a neutral position. Thicker cloud = more volatility while thinner = less volatility. Market is considered Bearish if the SSA (red) line is below the SSB (blue) line and considered Bullish if SSA is above SSB; they are called Senkou Span A and Senkou Span B, respectively. The gray line, or Tenkan Sen, that follows price is a fast (9 periods) Exponential Moving Average (EMA) and the blue line, or Kijun Sen, is a slow EMA (26 periods). The funny looking green line, or Chikou Span, is today’s closing price projected 26 periods back; don’t ask why, I’m not that far in my research yet.
To the trade itself. I just followed what that guy was doing on his tradingview.com site. I wish I remembered where I found the link! He basically just looked at the Green line being above the cloud and price below the cloud. And, for him that was an entry signal. No idea why. I added an SSD to give me a bit of confirmation since I really had no idea what I was looking at.
What was awesome it coincided with the QB Strategy that I was looking into earlier, so I entered the trade. I fucked up my stop loss but placing a .1, so I got automatically booted from the trade at -2.6. Awesome. Re-entered and woke up with a +34 pips. Made breakfast and ate. +23.4 with all negative signs coming from QB strategy indicators, I exited.
Going to look more into this indicator and see if I can find some simple strategies to make my own.
AUD/USD 4H Chart using Ichimoku plus RSI (7), Fractals and a hint of SSD on other charts.
Thanks Gaiatrader for offering such a simple trade idea using the Ichimoku indicator. After doing a small amount of research into the indicator, I found Gaia and took their idea and added the use of 1H SSD on other charts to confirm timing of my trades. One reason I was turned onto this strategy was because they use Fractals. Fractals are something I have never used and want to give them a go; always learning for later on down the road.
I entered the trade since both Kijun and EMA were ascending as the RSI bounced off of the 50 level. Oh, the 1H SSD also showed an ascending trendline as well to confirm. This strategy is based off of swing trading. They suggest exiting if price crosses the Kijun or EMA, price enters the cloud or at a certain level of gain (can’t be too greedy). Speaking of not being greedy, I placed a .02 lots instead of the normal .01; need to feel the rush of upping my lot size and see how it looks with trades since I’m going to be a super duper successful millionaire, I might as well start early with my demo account.
UPDATE: Exited the trade with a +7.3 and a +1.46 addition to my account bringing me nearly back to where I was at the beginning of the month. Increasing your lot size it pretty interesting; you can keep the same risk/reward but only need to move half the distance to reach the limit you want. Anyway, the main reason I exited was due to the election and not wanting to risk the swings that come along with news that is released throughout the day. Going to take the rest of the day off and ‘enjoy’ the election.
I’ve nearly made back that 1.02% loss I had last week in just the past two days. Need to end this week well!