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!!
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.