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Factor of N
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Created: by Eric j Attachments:190

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Factor of N

  #61 (permalink)
Big game hunter
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zt379 View Post
First to thank you for the idea here.
Secondly to show a combo of 5min and 80min (experimenting with time frames)
to see if I'm understanding the concept properly?

The 5min chart is the section covered by the rectangle (randomly selected )on the 80min.
Blue arrows = long entries as per your switch bar criteria.

Switch bars:
Aqua for long = down bar followed by up bar followed by break of up bar high.
Magenta for short = up bar followed by down bar followed by break of low of down bar.

Buy: on switch bar when LTF (5min) MACD < 0 and HTF (80min) MACD > 0.
Sell: on switch bar when LTF (5min) MACD > 0 and HTF (80min) MACD <0

Does that all sound correct?

Many thx.

No . The longer timeframe Macd histogram defines the trend and the direction to take trades in . The shorter timeframe Macd histogram defines a retracement and possible signal into the direction of the longer timeframe . The Macd hisogram has 2 different duties in factor of N . The switch pattern has no function in this method and is only a heads up to a possible trend interuption although you can use it for a signal if you find it useful .

The premise is ....
1. there exists an overall bias or trend .
2. there exists dips and rallies counter to the overall bias or trend that
represent opportunities to join the overall trand .

I would be very careful with anything lower than 15 min. for a shorter timeframe because you pick up lots of noise and junk signals . You can apply the above premise as a template and build your own multi timeframe system using other oscillators or none at all .

Im glad you like it , maybe try trading it exactly as Ive described and then take the concept and explore other ways to define the trend on a bigger timeframe and other ways to define dips and rallies on a smaller timeframe . I thinks its totally possible to trade < 15 min. but in the present form it doesnt work well at all possibly because the histogram picks up data too late . Try heiken ashi , swing level breaks or other price action approaches that do not depend on an algorithm to define themselves .

Attached Thumbnails
Factor of N-eurusd-9_1_2010-240-min-.jpg   Factor of N-eurusd-9_1_2010-15-min-.jpg  
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  #62 (permalink)
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Eric.
Thanks for the reply.
I think I have it but perhaps didn't explain it succinctly,
so thanks for the clarification.

You had "cancellation" trades and, if I may ask,
are you using any particular criteria to determine this?

Many thx.

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  #63 (permalink)
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Yeah, I am looking at your charts and I don't really understand the "rules" either, or are you just following a general principal and adjusting your trades based upon discretion? It's cool if you are, I just don't want to go mad trying to unlock the secret, if there is no secret to unlock, you know what I mean? Thanks in advance for clarifying.

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  #64 (permalink)
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Here's a snap shot.
80min MACD > 0 (hence blue background)
5min MACD <0 (hence red background)

Look for longs on 5min in red zone using signal bar (aqua) to enter/
I think !?

Attached Thumbnails
Factor of N-audusd-8_31_2010-5-min-d.jpg   Factor of N-audusd-9_1_2010-80-min-d.jpg  
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  #65 (permalink)
Big game hunter
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vegasfoster View Post
Yeah, I am looking at your charts and I don't really understand the "rules" either, or are you just following a general principal and adjusting your trades based upon discretion? It's cool if you are, I just don't want to go mad trying to unlock the secret, if there is no secret to unlock, you know what I mean? Thanks in advance for clarifying.

No secret guys . The rules Im using have been included in the thread here BUT not all in one place or post , sorry . What Im trying to show is that you must first grasp this as a concept and then forge your rules for yourself . Multiple timeframes is a very powerful concept and what makes sense to me doesnt have to fit you , just me . I dont believe in adapting to someone elses ideas because they have developed something that fits them .

The concept for me is just to follow along in the path of the bigger pictures direction .

SO , the boiled down rules Im using here is to identify a signal , enter with a stop limit order 1 or 2 pips away from the benchmark candle ( the candle at which the variables are met ) , place a stop loss 1 or 2 pips ( or even 3 or 4 ) beyond the last swing level and place a target limit order equal to the stop loss ( 1/1 risk ) and I either get the target or a stopout .

But if a short benchmark sees a subsequent bar make a higher high before it triggers that order is cancelled ( cancellation ) and if a long benchmark sees a lower low before it triggers then that order is cancelled .

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  #66 (permalink)
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zt379 View Post
Here's a snap shot.
80min MACD > 0 (hence blue background)
5min MACD <0 (hence red background)

Look for longs on 5min in red zone using signal bar (aqua) to enter/
I think !?

Cant tell because I cant decipher the bars as close > open or close < open , but heres what I got . Im in eastern standard time NY so I would look to trade AU when it sees volatility so probably around 0100 - 1100 EST give or take . Forget the 5 min. its too fast use a 15 min. . I marked up on my chart where the longs would be from today .

You coulda got + 20 pips and 2 cancellations today with an exit at 1/1 risk .

Look into forming your own dead zone or no dead zone because theres always opportunities . I just want to be around when things are moving and my targets have a high probability of being hit .

PS , I dont take trades in a retracement zone that began in the low volatility zone ( dead zone ) . I establish this low volatility dead zone by looking at when the hourly range is highest and only look for trades during those times and ignore the rest .

Attached Thumbnails
Factor of N-audusd-9_1_2010-15-min-.jpg  
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  #67 (permalink)
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Eric j View Post
Cant tell because I cant decipher the bars as close > open or close < open , but heres what I got . Im in eastern standard time NY so I would look to trade AU when it sees volatility so probably around 0100 - 1100 EST give or take . Forget the 5 min. its too fast use a 15 min. . I marked up on my chart where the longs would be from today .

The coloured bars (aqua and magenta) only fire if the bar meets the criteria you gave.

Quoting 
You coulda got + 20 pips and 2 cancellations today with an exit at 1/1 risk .

thx Eric for the chart.

Quoting 
Look into forming your own dead zone or no dead zone because theres always opportunities . I just want to be around when things are moving and my targets have a high probability of being hit .

PS , I dont take trades in a retracement zone that began in the low volatility zone ( dead zone ) . I establish this low volatility dead zone by looking at when the hourly range is highest and only look for trades during those times and ignore the rest .

Thx I'll look into that dead zone.
I appreciate your feedback re the 5min, but so far I'm quite impressed, all be it that I put up the 5 and 80 combo just to understand the concept..

Here's the continuation from last chart just for reference..many thx..
Hope my charts are an intrusion.

Attached Thumbnails
Factor of N-audusd-8_31_2010-5-min-e.jpg   Factor of N-audusd-9_1_2010-80-min-e.jpg  
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  #68 (permalink)
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Eric.
Your chart p#66.
I don't understand?
The bar with first green arrow has a lower low.

The bar with 2nd green arrow does not have lower low but you cancel because you say it does have LL ?

what am I missing ?
thx

PS: I think you mean the trigger bar is the entry bar ?
And the trigger bar must not have a LL than the bar where your arrows are ?

Although the 2nd green arrow does not have a LL on the trigger bar but it also does not get filled at one tick above trigger bar.

The 3rd green arrow I see does have a LL on the bar with the arrow and the trigger bar (entry bar).

Apologies, I just wasn't sure which bar must not have the LL (for a long) and HH (for a short).
thx

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  #69 (permalink)
Big game hunter
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zt379 View Post
Eric.
Your chart p#66.
I don't understand?
The bar with first green arrow has a lower low.

The bar with 2nd green arrow does not have lower low but you cancel because you say it does have LL ?

what am I missing ?
thx

PS: I think you mean the trigger bar is the entry bar ?
And the trigger bar must not have a LL than the bar where your arrows are ?

Although the 2nd green arrow does not have a LL on the trigger bar but it also does not get filled at one tick above trigger bar.

The 3rd green arrow I see does have a LL on the bar with the arrow and the trigger bar (entry bar).

Apologies, I just wasn't sure which bar must not have the LL (for a long) and HH (for a short).
thx

No problem . The green bar with the up arrow would be the benchmark .

* The benchmark ( for a buy ) would be green and would come directly after a red bar .
* If the benchmark ( for a buy ) sees price trade above it then its " triggered " .
* If the benchmark ( for a buy ) sees price trade below it ( LL ) before it is triggered ( thats what Im referring to as a LL ), you cancel it .
* A LL is significant only if it is a LL to the benchmark ( for a buy ) if its not yet triggered .

And inverse for a short .

Again , these are criteria Im presently using and theres no reason you cant develop your own criteria and its important to test your own variables to find what is best for you and the instrument you trade .


Last edited by Eric j; September 2nd, 2010 at 06:50 AM. Reason: Clarification
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  #70 (permalink)
Big game hunter
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This hasnt happened often but it happened twice today . Two trades are still open and both stops are 2792 , 1 winner 2 losers - 12 pips as of now . Range is < 100 pips today prolly due to the news and the holiday weekend coming up .

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Factor of N-eurusd-9_2_2010-240-min-.jpg   Factor of N-eurusd-9_2_2010-15-min-.jpg  
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