Tempat infromasi bisnis trading forex serta investasi dan asuransi meliputi asuransi jiwa,asuransi mobil,asuransi property dan asuransi kesehatan. Forex Education Center And Investment. Showing posts with label Teknik Trading Martingale. Three Terms For Breakout Confirmation. Have you ever felt are thousands of pips above the long positions are still open, or thousands of pips below the short positions are still open? That is what you will experience if trading following the direction of the trend trend following.
Maybe you will not get bored watching the price movements for days, weeks or even months, because you're in a state of profit. But, how can I make such could happen? Breakout, or breach a certain price level. As easy as that why? Yes, as long as price movements are trending and meet 3 requirements that usually occurs in the condition of the breakout. Why there should be a condition? Is not if the price has gone through the key level could be considered a breakout?
Yes, there needs to be a requirement to confirm the validity of the breakout happens because many traders are stuck because it only focuses on the break at the beginning initial break only. Traders consider the price as long as it can penetrate the key support or resistance level then the breakout, and with their entry immediately sell or buy. But in reality the market does not always respond the way they think. Often times the price reverses to move back due to profit taking by large traders claimed they were too impatient or hurried entry.
Three requirements for confirmation of a breakout is simple. The key level of support or resistance point is really strong and has been tested. Price needs to break that level. Increasing distance from the valid key level. A bar breakout is not confirmed that the condition is not valid breakout. Price moves back downtrend reversal. For the daily time frame is usually a waiting time is 3 days or 3 bars.
If during that period the price has moved in the new area level then we can conclude that the condition is indeed a valid breakout. If you use a time frame lower than daily, then estimate the number of bars for confirmation, which is clearly more than 3 bars, and the smaller the time frame you are trading more and more bars to confirm. At A we created checklist to confirm the breakout: Instead the price closed below the key resistance so that the momentum of the breakout bullish is very weak and prone to movement reversal.
The breakout condition is not confirmed so invalid. Triple Screen Trading System Part 6. The third screen in the triple screen as a place to stop orders. The third screen is for short-term time frame short term.
In accordance with the rules of triple screen system that divides the time frame by a factor of five to six, then if a long-term time frames long term weekly on the first screen, then the standard time frame mid-term on the second screen is a 5-day period and the time frame short term is daily.
The third screen is used to place a stop order, either buy stop or sell stop, depending on the analysis we have done on the first screen and the second screen. Buy stop technique is applied to the condition that the uptrend market and sell stop for a downtrend market conditions. For example, if the weekly time frame bullish uptrend and the movement of the oscillator indicator 5-day time frame second screen is down, then we can put a stop buy order on the third screen in anticipation of an upward breakout.
Conversely, if the time frame weekly on the first screen bearish downtrend and the movement of prices on the second screen 5-day is rising, then we put a stop sell order on the third screen to anticipate beakout downwardly. Specifically, the placement of a stop buy order on the third screen with a technique called trailing buy stop and sell stop order placement technique is called with a trailing sell stop.
Techniques trailing buy stop and sell stop. If the bullish trend on the first screen and the indicator oscillator on the second screen is off, then buy stop orders can be placed at the level of a few pips above the previous highest level bar.
For example, we use the 5-day time frame as a rule of thumb, if the trend in the first screen bullish uptrend and the second screen oscillator indicator benchmark is down, then we place a stop buy order at the daily time frame third screen a few pips above the highest level the previous day.
If the prices continue to rally, then we stop buy order will be subject to, and vice versa when the market sentiment is bearish then we stop buy order will not be touched. Ways otherwise applied to the stop sell order if the trend is bearish on the first screen. This technique will show you the best time to open a position if the ripple ripple on short-term time frame has gained enough momentum to follow the wave wave time frame of reference second screen and tides tides the current time frame for long-term first screen.
Level of stop loss and exit. To stop buy order, stop loss level can be placed on several pips below the lowest price of the current bar or earlier, whichever is lower, and vice versa for a sell stop order. Changing the time frame in metatrader platform. In addition, to make the time frame that is less common, can be done on the MetaTrader platform.
For example, to make a 5-day time frame, we first entered into the daily time frame, then go to the Navigator - Scripts - Conversion Period, and change the parameters ExtPeriodMultiplier into: Open the 5-day time frame D5 in offline mode File - Open Offline.
D5 will be updated every 2 seconds default while D1 chart daily remains open. Triple Screen Trading System Part 1. Triple Screen Trading System Part 2. Triple Screen Trading System Part 3. Triple Screen Trading System Part 4. Triple Screen Trading System Part 5. Stochastic on the second screen. Besides Force and Elder Ray Index, an indicator oscillators commonly used on the second screen is stochastic.
The stochastic oscillator is a fairly popular indicators used by forex traders. This indicator is good enough to filter out noise or signals useless. Three ways to use this indicator was observed divergence happens, overbought and oversold levels and the direction of the stochastic line. The parameter that is often used is 9,3,3 and 14,3,3. Bullish divergence between the stochastic indicator and the market price movement occurs when prices form new lows are lower, but the stochastic indicator forming higher lows from the previous level.
This situation suggests the trend of the price movement will be changed from bearish to bullish. Conversely, if the price of forming higher highs than the previous level but stochastic indicator to form a high level that is lower than the previous high level, then the price will soon change direction from bullish to bearish or bullish divergence occurs. Overbought and oversold levels. Stochastic lines are above level 80 indicates overbought market conditions or overbought, and shows the price movement that will soon be corrected.
Overbought condition is a signal to sell. Oversold conditions or oversold situation occurs when the stochastic lines are under level 20, and is a signal to buy. With the triple screen trading system, the use overbought and oversold errors can be avoided because the trader only if the entry in the long-term trend has been the appropriate time frame. Suppose trend on the weekly time frame bullish, traders will only buy if there is an entry oversold conditions on the second screen or 5-day time frame intermediate time frame as the benchmark time frame.
Examples of the application of stochastic on the second screen. The first screen long term time frame is a weekly time frame. Entry can be done in the event of a bearish divergence in the intermediate time frame or 5-day time frame as the benchmark bottom image.
Oscillator indicators are used on the second screen is Elder Ray Index, or abbreviated Elder Ray alone. This indicator was made by Dr. Elder is based on the concept of strength of bullish and bearish in the market. Bullish strength measures the ability of the market to drive the price well above the current average, while the bearish strength measures the ability of the market to push prices lower than the average price now.
By using the trend following indicators such as MACD on the weekly long term time frame, then the trader can identify the direction of the long-term trend. Elder Ray indicator is used to determine the momentum of entry. If the price action on the weekly time frame is bullish or uptrend, then the trader should buy signal on the concentration of the 5-day time frame according to the norm of a triple screen , and the contrary to the movement of the market is bearish or downtrend.
The default period used Buy and sell signals. With Elder Ray indicator, the momentum to buy the most appropriate is when a price movement on long-term time frame is uptrend and Bears Power is in the area of negative below the zero line but the direction is moving upwards or towards the zero line.
If the weekly time frame is bullish, then traders should concentrate on Elder Ray indicator intermediate time frame 5-day , with the Bears Power on the negative area which is moving upwards.
Avoid to open long positions when the Bears Power is in the area above the line is positive or zero. Just as when we use Force Index indicator, long positions should be opened above the highest level on the day of, in this case can be used stop orders to buy stop. Being able to set the stop loss level at the lowest level that day or the previous day, whichever is lower. Level can be determined manually exit when the Bears Power is in the positive area and strengthened, and the Bulls Power is in the area of negative or positive area but are weakened.
For a sell signal otherwise valid, the entry when the time frame weekly downtrend bearish and the Bulls Power is in the negative area, but its direction is moving upwards. Entry signals can be more accurate if it occurs at the same time or a divergence between the Bulls Power Bears Power with price movements.
Bullish divergence occurs when the Bears Power form the bottom levels are higher priced but failed to form a low level that is lower than before. Instead bearish divergence occurs when the Bulls Power shaping bottom levels are higher priced but failed to form a high level higher than before. According to the analysts who observe Price movements through history data, in general market trend following 3 types, namely the long-term trend with a span of several years, the medium-term trend with a span of several months and the trend of the minor, or short-term trend for periods of less than a month.
Robert Rhea, a technical analyst, named to the 3 types of the trend with 'ups and downs' tides for the long-term trend, 'wave' waves for the medium-term trend and the 'ripple' ripples for short-term trend. In the last century trading by following the 'ups and downs' long-term trend is the best strategy, and if traders tend to want out of the market, then you should follow the 'wave' medium-term trend, while trading by following the 'ripple' short-term trend is rarely done.
However, when the number of traders is rapidly increasing and becoming more complex market, trading is mostly done by following the mid-term trends and short-term, but with the time scale time frame different. As has been reviewed in the previous section, the triple screen trading system is the main time frame for intermediate time frames, with a long term time frame for a higher level and short term time frame for the lower level.
If you plan for the possibility to hold the position for a few days or weeks, then you should concentrate on the daily time frame.More...