Every now and then, thankfully with a fair degree of frequency, we get some really nice moves on DAX that make trading seem so easy; today was one of those.
I've made a little video that shows how we used the eWavesHarmonics tools to identify the setup and targets. It also shows some of the discussions, about the trades, that I had with my trading friends.
I touched on the subject of the ABC123 indicator in the previous video ... it's a sort of MT4 Elliott Waves indicator - yep, only sort of - it doesn't replace the expert eye of an Elliottician.
It's not intended to do perfect Wave counting, at least not at the moment. But ... it does do the following: -
The ABC123 indi is still very much work in progress but I've made a video (in my usual rough-and-ready video producing fashion), that shows it in more detail - initially intended for a few of my trading friends who are putting the indi to the test; and already getting some nice trades from it.
Drop me an email (or use the contact form) if you would like to try the early version - I'll make it available (for a very reasonable price) as I did the Wave Finder indi if there is enough interest. It only works with eWavesHarmonics though.
This indicator is similar to the Snorm Labels, on the Free Indicators page, but has been specifically designed for Elliott Wave analysts.
There's nothing fancy about it - just a quick way to label the waves in a consistent fashion. You can see it in action on this short video ... which also includes a little preview of the project that I'm currently working on - related to Elliott Waves.
If this is something that you'll find useful, click on the eWavesHarmonics page and scroll down to the download file ... free of charge for nice people only.
If you have a current eWavesHarmonics licence., you might like to download this free indicator from the eWH Shop (link on the installations page). - it won't work without eWH.
The Snorm Pivot Confluence indi, draws daily, weekly and monthly pivot levels, along with daily ADR and/or ATR levels. It then looks for confluence of those levels plus any others that you have on the chart, such as: eWH target zones (including the multi-timeframe TZs that the Wave Finder plots), support and resistance, fibo clusters, or your own manually drawn lines.
As you can see from the above picture, bold yellow lines are drawn where levels align; you can choose a differnt colour if yellow isn't your thing. Seems like the bottom yellow line was enough to stop the collapse of cable for the week. If only it could stop Boris Johnson dragging the UK towards a no-deal Brexit :)
There was a terrific example of the Wave Finder working on DOW today, looking for confluence of Target Zones.
"M15 1" and "H4 1" are the auto-plotted target zone 1 from the 15minute and 4 hour charts, shown here on the M1 chart. Combined, they make a very nice price magnet and possible area of SR - in this case, the H4 was a previous bullish TZ; the M15 was the bearish - in exact alignment.
What happened when price got there ...
An instant reversal, offering a very nice R:R trade, for those brave enough to take it.
See June blog post for more info.
Some professional fund managers would be happy to get a 12% return in a year. On a Dax 1-minute chart, you'll often see opportunities for that in less than an hour, as we found this morning. I wasn't alone in getting that trade and this one only took half an hour. A 1% risk gave a 12% return - you can do the sums if you'd rather risk 2 or 3% per trade.
So how do you do it? Using eWavesHarmonics, looking to buy the dips and sell the rallies ... seeking the lowest pip-risk, as in the above example. After the London Open, price fell a little, before slowly making its way up, in a 5 wave move - this looked like the first motive wave up and we know they come in threes. After that, it was just a matter of waiting for a correction
There was much more than 12R available this morning. My first entry was just tagged with a trailing SL - for a little over 1R - could have been managed a bit better, I admit. No bother, though, the correction that took me out, immediately provided another entry, as price corrected to test a small momentum gap (you are missing out big-time, if you don't pay attention to the small gaps). The second trade had profits locked at 12R - then it was just a case of seeing where price might go to. As it happened, it went as far as the H1 kick-start gap and promptly reversed. Perhaps some more upside to come later ... we will see when New York wakes up.
Want to know more? Check out the Trader Training course, where all is explained.
After many years in the making, the eWH Wave Finder is now available - exclusively for eWH licence holders as a one-time purchase (for a very nominal fee)..
Not only can you use this to provide an at-a-glance view of the wave counts, on all your favourite instruments, across all the timeframes (except M30 because I dislike that TF); you can also use it on a single chart to show the target zones from the higher timeframes - look for confluence to support your trading decisions.
This short video shows it in action, with a nice example on BitCoin.
You can get the eWH Wave Finder from the ewH Shop - link on th eWH Installation Page.
A month has already passed since the last blog post - doesn't time fly when you're having fun ... Since the last post ...
More updates to eWH - as you can see from the above pic, there has been a change to the buttons. The Clusters button is appropriately named and related buttons have a similar look to the main eWH buttons. The 'Show All' button, next to Options, is bigger as well. A few other changes also made and the latest Beta upgrade is available for download, as v2.01 now.
I've received many requests for some example trades by other traders, who use eWH and have done the course. A few have now been added to the end of training course - with more to come. These are mostly M1 DAX and DOW trades at the moment but we'd all like to see some nice examples from other timeframes and instruments - please email them over as MT4 weblinks, if you have something that you're particularly proud of and want to share.
Cours de trading maintenant avec la narration en français, grâce au travail acharné d’Erik. 8 vidéos terminées jusqu'à présent et nous espérons tout finir d'ici la fin juin.
Where is EURUSD off to? Keep an eye on those cluster-clusters and don't forget to mind the gap :)
Finally, congratulatons to Liverpool and commiserations to Spurs, for the Champions League Final, yesterday. I know quite a few Arsenal supporters who are happy with the results ... strange that :D
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!!