The Support and Resistance function, in eWH, has been complete reworked to show the levels as I would draw them manually.
One button has replaced the previous two, providing levels from one or more timeframes, using your defined parameters.
In addition to a predefined number of bars, in which to find the S&R levels, you can also select additional areas from historical data - particularly useful if price is making new highs or lows
By default, eWH looks at candle closes but you can change this to wicks, if you prefer.
This short video shows how it works ...
Chris has been using eWavesHarmonics and the Advanced Trade Manager for about two years and has enjoyed the Trader Training Course. I hope that you'll get some inspiration from seeing how others are trading with eWH and what they've learned from the course..
Please send me an email if you would like to contribute as well - it's always a pleasure to read and share the many success stories.
Many thanks for your contribution , Chris.
We all did it or are still doing it… jumping from one trading strategy to another looking for the ‘Holy Grail’ and believe me I’m the guiltiest of them all trying to find that winning strategy.
Sometimes the best strategy has been staring you in the face for months or even years and you’ve totally disregarded it.
One of the best strategies around and one which I have been back testing and trading over the last few months is the TLB (Trendline Break) I’ve found the TLB especially on the higher timeframes to be an excellent strategy to have in your arsenal.
eWavesHarmonics makes trading the TLB easier with its automatically drawn trendlines, supply and demand zones, TLB alerts and KEEP function.
Below are a couple of examples of TLB’s that I traded from Wednesday last week.
XAUUSD – H4 TLB
Price has broken the W4 Trendline at a Supply zone and 38.2% Fib retracement on the 4hr timeframe.
We edit the name of the trendline to include ‘KEEP’ and switch to the 1HR timeframe looking for the re-test, once re-tested we place a SELL stop order below the candles after the trendline.
I’m targeting TZ1 on the 4hr timeframe for my TP moving my Stop along the way, with an initial R: R of 4.4:1
This is how it’s played out so far, I think there will be more downside to come and I fully expect it to hit my TP however, if not, I’ve banked profits so I’m happy.
EURAUD - H4 TLB
The same trade as XAUUSD above. Price has broken the W4 Trendline at a Supply zone and 38.2% Fib retracement in addition we also have a shooting star candle further rejecting the supply zone on the 4hr timeframe. (The below screenshot may look a little strange as my stop is already below the sell price however I forgot to screenshot this trade and I’m using the Candle Hider indicator (another For-exe.com goody)
Again, we edit the name of the trendline to include ‘KEEP’ and switch to the 1HR timeframe looking for the re-test, once re-tested we place a SELL stop order below the candles after the trendline. The only difference with this one is price only really re-tested the supply zone as the breakout was a big bearish candle.
I’m targeting the demand zone for my TP moving my Stop along the way, with an initial R: R of 4.6:1
This is how it’s played out so far, again I think there will be more downside to come and I fully expect it to hit my TP, as before profits already banked 😊
In summary, even if you think a strategy is not working keep at it and keep back testing making tweaks along the way, if you keep changing your strategy you are basically having to start the learning process over again. Master your strategy and the trades will become second nature to you and your success rate will improve dramatically. The two trades above were taken over two days, RINSE and REPEAT!!
Is that an ABC correction or a new motive wave up?
This is the sort of question that we traders will be asking ourselves all the time. Get it right, and you're at the very start of a big move; get it wrong, and you have a losing trade - but that's a trader's life. Sometimes we just have to make a judgement call, to get a nice trade.
Looking at the chart, you'd rightly say that price has been in a down-trend since the Frankfurt Open (the green line at the top of the chart) and that the bears are still there after the London Open (gold line).. So, surely this last move up must be an ABC correction?
Before deciding, you need to have a bigger picture in mind. The H1 chart provides that bigger picture, for us M1 traders, and before the London Open we already had the H1 blue TZ1 in mind for our longer-term target ... we're looking for an opportunity to go long. When price hit the cluster-cluster that had been drawn the day before, using the recent H1 moves, we had a good idea that a base had been found. The move that followed looked very impulsive - are the bulls now in control?
This is what followed ...
Price corrected, gave us a TLB, broke the last swing of the correction and didn't look back.
I was a bit surprised to see the FO supply zone broken so easily but we knew that once that had been dealt with, we have a good place to lock profits and let the trade run. I had to go out for the day, so set my TP just below the BBRN and left price to do its thing - a nice +8R return for when I got back, late afternoon. Nearly 12R was on offer, if you stayed with the charts to manage the trade to its conclusion
This trade, from the start, was discussed with some trading friends and I know I'm not the only one that benefited from that terrific move on DAX.
By the way - there has been another update to eWH this week, to keep gaps on the chart that were only just closed. This enabled some of us to find a long trade all the way down here (red arrows) ...
I'm often asked how to get in at the start of eWH 3 ... well here are just a couple of examples, on DAX M1 this week. You have to make that call: "is it an ABC correction or a Wave 1?". Look for solid support/resistance, have the bigger TF in mind, fill your boots.
Trading is made easier with eWavesHarmonics and the Advanced Trade Manager; check out the Trader Training Course to learn how to find these trades on any timeframe..
I shared the above chart with some trading friends, a couple of days ago, suggesting it was a good time to short Gold. Within a couple of days, price had dropped to the 4 demand zone and, as you'd expect, bounced. My thought then, as it remains still, is that TZ2 remains a strong target for price; perhaps after it has done some retracing.
There is nothing spectacular in the prediction - it's just reading the price action. Price might just find a base at the 4 zone and fly up to the blue TZ1, proving me wrong and confirming that "anything can happen".. What is spectacular, however, is just how much confluence there is for the top of that red 4 correction and the red TZ2 - much of which I discuss in the video that I've just uploaded to the training course. There were plenty-enough reasons to short around the 1320 level, with a market or limit order, offering a terrific RR down to 1287; and, obviously, an even better RR down to the red TZ2, if you're prepared to ride a correction. Traders who prefer to wait for confirmation, could have traded the close of the TLB bar; there was still a good return to be had.
Much of that confluence comes from the Fibo Clusters and there are cluster-clusters down at TZ2. A few of us have been trying out the new cluster-cluster feature this week and the usefulness has exceeded expectations. The latest version of eWH, with the cluster-cluster button, is now available for download, if you want to try it, but I'll probably do a few more tweaks in the coming weeks.
That new video, in the training course, shows most of the features used in eWH to: -
It was a terrific day for the Index Bears yesterday, with some 'there for the taking' shorting opportunities on most of the main indices.
Without knowing what the day had in store for us, I posted the above DAX H1 chart before the London Open, showing some 'cluster-cluster' zones that would likely provide resistance above and a price-magnet below. The middle C-C above price was the most interesting, as it aligned nicely with the wave 4 level, as labelled. About half an hour after that chart was published, we were expecting German PMI results; if those results were below expectations, we would likely see one of the clusters acting as resistance, if price got there before hand.
The PMI results were much lower than forecast and this is how price moved throughout the day ... from C-C to C-C.
The first two resistance C-Cs held price and the lower magnet C-C pulled price down nicely - and that's pretty much where it settled around the London Close. Over 250 points ...an easily-achievable RR of 20:1.if you had shorted the M1 news bar.
Looking for cluster-clusters is a part of my daily routine, so getting some more help from eWavesHarmonics, to reduce the time-spent on mundane tasks, has to be a good idea. Whilst we will never make the human eyeball redundant, an extra button is being added to the Fibo Clusters to scan clusters and draw the C-C zones. This is how the DAX would have looked using the new feature (the first originally-drawn C-C has been left on the chart for comparison) ...
It's not too bad, as it stands - these zones were plotted in test-mode at the time of the vertical line, not retro-fitted to price after the event. I'll be doing some more tweaking over the next few days to see if it can be improved and will do another blog post when the update is available for download.
In the meantime, keep an eye open for these cluster-clusters, on whatever instruments and timeframes you prefer to trade; they can be almost magical.
If you don't have a clue what cluster-clusters are then you really should take a look at the training course. - it is still free for owners of eWH and ATM.
Where next for the indices? Well, we appear to be seeing some strong impulsive bearish moves with more likely to come. DAX daily has recently had a TLB - might 10210 be calling? Very possibly, if the bears remain in control, but there are some C-Cs on the way.
EURUSD bounced on the Target Zone 1 yesterday, as plotted by eWH back on the 10th January, when price was rejected by the continuation supply zone, again, plotted by eWH.. That trade, would have netted around 270 pips or more. If you'd missed that, you had a second opportunity to short when price went back to test the BBRN - a good place for a limit sell order, that could have yielded the same return.
Now that TZ1 has been hit, where might price go next? If the bears remain in control, there are two points of interest below the current price, highlighted by using the eWH Fibo Clusters. The first cluster-cluster is pretty close to the Target Zone 2. The second, of particular interest, is right at the bottom of the gap that's been open since April 2017. Might the second anniversary of that gap provide the close?
Time will tell ... :)
Want to know more about the identification of these trade setups? Check out the Free Trader Training Course, for owners of eWH and ATM.
I’ve had a few emails, in recent months, asking if the Advanced Trade Manager (ATM) hides stop losses and take profit levels from the broker. To save me time in replying with the same responses all the time, I am inspired to write a blog posts that I can refer anxious traders to.
The simple answer to the question is: NO.
My question is: why do you feel the need to hide stop and take-profit levels?
If you think your broker manipulates price to stop you out of trades, or prevent you from reaching your take-profit level, you seriously need to find a broker you can trust: one that is registered with a well-respected financial regulator, such as the FCA (in the UK) , CFTC or NFA (in the USA).
Reputable brokers make their profits on spread or commission charges; they shouldn’t be making money from your losing trades. If you think otherwise, then you seriously need to withdraw your money – if they’ll let you. A good broker will be happy that you’re a successful trader – the more you succeed, the more profit they will make through your continued trading. You’re no good to them if you lose all your trading funds. A dodgy broker will be happy to clear your trading account, hoping that you’ll continue funding through over-stretched credit cards – like the many binary-trade brokers (regulated by dodgy gambling bodies – which should tell you all you need to know) that are now, mostly and thankfully, in the dustbins of history.
What are ‘hidden stop losses’ anyway? They don’t really exist but an EA can initiate a buy/sell order, to close your trade at the equivalent of your stop-level. That’s risky … what happens if your platform/computer shuts down when you have an open trade? A non-hidden stop loss is an instruction that’s already with your broker; therefore, there is zero risk to your trading account from your computer failing you.
Some people say they can prove that their broker has manipulated price to stop them out. I ask for some chart examples, so I can compare the price bars with my own charts but, to-date, have never received such ‘proof’. It’s simple enough to check price bars from one broker against other brokers. If your broker appears to have spiked a price, where others haven’t, then you need to lodge a complaint with that broker. Repeated occurrences of price-spiking justifies a formal complaint to their regulatory body, if they have one; at the very least, you should change brokers in a hurry. Widening of spreads might also account for some inexplicable stop-outs, for which comparing price bars won’t help much. Again, if that’s something that happens too often, at your stop levels, then send your broker a snotagram and dump them.
For most traders who suspect their broker of trading against them, the chances are that they’re just not very smart with their choice of stop-levels. I’m confident enough with my broker that I can put my stop-loss (not hidden) a few pips below what I believe will be the start of Wave 1, for example. This is something that I do often and have never felt hard-done by if I get stopped – it wasn’t the start of Wave 1 after all (this is explained in the Trader Training Course).
ATM does offer one 'hidden' feature, in that you can instruct it to move your stop loss (t0 break-even or via trailing-candles/fractals) and take partial profits, at a predefined level. The broker won't see that instruction until they receive it when price reaches the level. This doesn't do away with an almost-obligatory requirement to have a stop loss sitting with the broker already, in the event of a catastrophe on your computer.
Be smart with your choice of brokers, you need to be able to trust them like you would your family doctor. Also, be smart with your stop-losses and give price room to breathe.
The plan was to make Snorm Fibo Clusters a separate indicator but given its usefulness, it seemed more sensible to integrate it into eWavesHarmonics; so that's what happened.
I've also made a video, for the Training Course, on how to use and trade with Fibo Clusters
eWH version 2.0 is available for download - currently as a beta upgrade.
If you have already downloaded the upgrade, you might want to check again - the version uploaded today allows for three degrees of freezes (some eWHers will know what I'm talking about).
Version 2.9b Beta Upgrade is available for download.
New features: -
Spread Filter - for traders with variable-spread-brokers ... you might find this handy to stop you entering new trades when the spread gets too large. You can set the 'Max Spread' in the 'Configurable EA Options' panel. I'm using it to switch off DAX trading, outside of London hours, since my broker doubles the spread then (I'm not paying them more than I need to for a trade).
'Third Off' Button can be redefined - to whatever percentage you like, in the 'Button Options' panel. You might prefer 10% or 25%, for example, rather than the previous fixed 33.33%.
BE Level for multiple trades - you can choose to hide this now, from the 'Configurable EA Options' panel..
Looking for something else with ATM? Send me an email and I'll see what I can do -providing it's likely to be of benefit to other traders as well :)
So much for me saying, in my previous blog post, that "automated trading would be my focus for this year". Sometimes, when a trader-friend asks if I know of a tool that does something good, I have to drop everything to write one; and so was the case when Brett asked me about a Fibonacci Cluster indicator.
Fibonacci clusters do an excellent job of acting as support & resistance, They also work very well as price magnets. The best thing about them: they can be drawn a long-time in advance, providing trading reference points for an entire week, or more, if required.
The big problem though, is that they can take a long time to draw manually and leave one hell of a mess on the charts.
The Snorm Fibo Clusters indi draws the cluster levels for you - you just need to connect two significant swing points. There are (one-click button) options for the types of Fibonacci levels: retracements, expansions and internal swing extensions. You can adjust the reference swing points, the variable that defines what levels are 'close' and the value of the Fibonacci levels. Getting cluster levels could not be easier.
This will only be available to traders with a current eWavesHarmonics licence, as an optional add-on (for a very reasonable price, of course). The indi is currently being tested by the FOR-EXE team and, if all goes well, should be available in the next week or two.
Here's a little promo' video for it ...
As for the EA that started so well in December ... well, it's having a tiny draw-down at the moment. I'll get back to that as soon as I can. I've got a feeling that the Fibo Clusters might help to reduce the drawn-down ... fingers crossed.