Forums General Discussions Simple visual trading – KIS

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  • #6245
    Edington
    Participant

      Hello everyone.

      This is a simple visual setup using very few indicators. I would like to share this, maybe some traders are interested in using it, suggest improvements and changes, and/or criticize ( hopefully constructive)  I have tried to reduce the amount of indicators to a minimum to see if a trading setup could be made as clear, simple and reasonably successful. Remember, always works – if you are not sure, consult a higher time frame.  :yes:

      I would like to make one thing clear – this is not an original system or approach. I am not the author of any of the indicators used. Most of it is from other systems from all around. For that reason, i will not be posting the indicators used. I will list them here, so you can google them – they are all available from original sources. – most from ff.  I will post the template.

      So, first, we are using 2 EMAs, 50 and 35 for trend bias. We are also using RSI candles(forexprofitsupremebars) and GannHiLo histogram. In addition, we have MTH Kiads clock and fibonacci pivots. Thats all. How I trade it> The EMAs are used for trend bias. If 35 is above 50 we are buying and vice versa. What we are looking for is pullbacks within the trend when the gann changes color, and possibly the rsi candle. We enter the trade in trend when both gann and candle are of the same color. The best trades most of the time are those launching from the EMAs, most notably the 50 Ema. Time frame, technically any, but higher the TF reduces false entries. I prefer 30 and above TF. Once the conditions are met, i enter 3 trades, targeting the next fibonacci pivot, and 2 others. Stop loss is discretional, but i use recent high/low plus a few. Once the first target is reached, Stop loss for 2 other trades is moved to entry point.  I have marked several entry points on the charts.

      So, this is my first attempt at KIS. Comments, critics and suggestions welcome.

       

      Best, Michael

       

       

      • This topic was modified 9 years, 3 months ago by Edington.
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      #6250
      scissors
      Participant

        Hi Edington,

        From what I see from my charts, ema50 seems to be magnetic line for PA, I looking mostly on TF15. Correct me if I am wrong.

        By the way what are the setting for ema? You are using exponential and HL/2?

        Thanks for the visual :-)

        scissors

        #6251
        BalrogTrader
        Participant

          Nice thread Edington. I’m here and subscribed already… :good:

          Nothing has ever motivated me more than this...

          #6252
          Edington
          Participant

            The moving averages are exponential, 35 and 50, no shift, applied to close. If you have a preference to HL/2, you can change it, but the difference is marginal. 50 ema is, on virtually any chart and timeframe the usual support/resistance/bounce point. It is just a number, but it works because majority of traders recognize it.(in theory lol)

            One thing i wanted to mention – another reason for going KIS – i wanted to get rid of oscillators like Stochastics. The reason is that – they all lie…or they only tell the truth some of the time. That makes them unreliable and can navigate your trading in the wrong direction. Telling you, dont buy here, its overbought…then the price goes up 1000 pips. As someone has recently pointed out to me, unlike stocks, in Forex the overbought/oversold is an illusion. :-)

             

            Scissors, if are going to use 15 min, i would change the gannHILo setting to be less sensitive. Also, maybe for the candles – this way you might reduce the false entries.

            Best, Michael

            #6254
            scissors
            Participant

              Hi,

              Thanks for the useful advice, will look into it :)

              Scissors

              #6255
              simplex
              Moderator

                i wanted to get rid of oscillators like Stochastics. The reason is that – they all lie…or they only tell the truth some of the time. That makes them unreliable and can navigate your trading in the wrong direction.

                Hi,

                If you want to learn why Stoch and similar oscillators are having problems in displaying a great deal of the swing spectrum correctly, you might be interested in reading the following article: http://www.stockspotter.com/files/PredictiveIndicators.pdf

                Focus on those paragraphs titled ‘Spectral Dilation’.

                unlike stocks, in Forex the overbought/oversold is an illusion

                I support that! Very unfortunate term, to say the least.

                simplex

                A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)

                #6256
                Edington
                Participant

                  Thank you Simplex. A very interesting read. I am now exploring the idea to see if I can apply it.  :good:

                  Best,

                  Michael

                  #6259
                  MTH2014
                  Participant

                    Hi Brother,  Great to see You open Your thread,  Congratulation ..  and allow me to Subscribe…

                    Best Regards

                    MTH

                     

                    Intuition, Experiences and Common sense..
                    http://www.binaryoptionsedge.com/

                    #6261
                    Edington
                    Participant

                      Hi Brother. Thank you. Always good to see you.  This is my first thread here and I hope this will be a experience everyone will benefit. Learn, collaborate and share – best motto. :good:

                      Best,

                      Michael

                      • This reply was modified 9 years, 3 months ago by Edington.
                      #6268
                      Edington
                      Participant

                        Hello traders.

                        I have been thinking of of adding another GannHiLo to the chart from a higher timeframe to supplement the trend bias given to us by the EMAs. The idea is to reduce false entries and give more stability…particularly in the lower time frames. But here lies a problem. The approach is used as a confirmation, or a visual aid, but considering that a higher TF is used, the Gann can hypothetically change before the candle is closed relative to its timeframe. Now this is relative, because if you use 15 min to 30 min(2x), it should be negligible. It might become a problem if you use daily to weekly for example (x7) In terms of trading it  – as long as the higher tf keeps its color, trend is still going. If they both change, you must re evaluate the situation, consult moving averages – either a sharper pullback, or a reversal. Also, i have taken some trades – might have used 4 trades instead of 3, but this was a rather sharp move.

                        Best, Michael

                        • This reply was modified 9 years, 3 months ago by Edington.
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                        #6349
                        hannele
                        Participant

                          Hi Edington,

                          I like the simplicity of this, and will try it next week, subscribed :-)

                          cheers

                          hannele

                          #9919
                          Fibo
                          Participant

                            Which is the bottom indicator?

                            #9921
                            Edington
                            Participant

                              That would be GannHiLo histogram. It is available for download, google is your friend.  :-)

                              Best, Edington

                              • This reply was modified 8 years, 7 months ago by Edington.
                              #10042
                              tyler
                              Participant

                                Hi Guys

                                I am newbie in this forum.  This is really very useful information for all hoping great time ahead.

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