Trading with mp6140

[Paul71]

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ok, not doing anything else for a minute

channels are nothing more than two parallel (theres also a middle one that is VERY strong intraday resistance) trend lines, with a little magic of their own.

they very accurately predict and confirm trend changes and probable tops and bottoms, and can be earily comforting. In addition, one can use trend lines, which only show a single top or bottom, or whats becoming extremely popular in the UK, the DeMark trend line, which is now being used at a lot of UK brokerages --- they all do the same thing, although the demark is more an entry and exit tool than the "trend indicating" LRC.

i will say one thing -- after 30 years and having pretty well settled on whatever my "system" is, i NEVER stop looking at new things to see if there is any possible "edge" to using them --- long ago i learned that things exist because they are valid, it just depends on whether theyre valid for me or not, and you should adopt that thought process i would imagine !

enjoy and trade well

mp

if youre using metatrader, i can send you a very nice custom indicator that does everything for you.

I'm only pulling your leg, Mp. If you use them, that's up to you.

 

[mp6140]

I'm only pulling your leg, Mp. If you use them, that's up to you.

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why do you resist even looking at them -- if i had not taken a very good look at a ****** in my youth, read all the ancient greek and roman wisdom so concerning (with a long look at the kama sutra and solomans love songs) i would never have learned how to give so much pleasure so young in my life --- once having learned though, an uncountable number of married housewives experienced some real pleasure !

LOL

mp

 

[wasp]

Thanks but I'll pass....

Ahh didn't realise they changed as and when price moved......

 

[Paul71]

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why do you resist even looking at them -- if i had not taken a very good look at a ****** in my youth, read all the ancient greek and roman wisdom so concerning (with a long look at the kama sutra and solomans love songs) i would never have learned how to give so much pleasure so young in my life --- once having learned though, an uncountable number of married housewives experienced some real pleasure !

LOL

mp

I have looked at them in the past. Then i realised price action on a chart doesn't BO of a channel, or even into one, it just heads for another favourable pre-determined price.

 

[mp6140]

I have looked at them in the past. Then i realised price action on a chart doesn't BO of a channel, or even into one, it just heads for another favourable pre-determined price.

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set up your H1 chart with the channel (pros use the H1 for trend and overall look - see, using the shorter timeframes for exact ins and outs !)

now youve got a better idea of where your price is heading and where its been, in a very graphic and visual manner.

the lines (using some software) will change as the support and resistance dynamically changes, but really shouldnt.

what it gives you is a target, and once you learn how they work, a 60 min chart, with the LRC, will give you great places to look for OVERALL s+r.

remember, on each side, theyre really just trend lines with little algorithms inside the program, whipping the little s+r donkeys to move the lines and keep up with the action if its changing anything.

If resistance changes, would you not like to know it ??

mp

 

[Paul71]

They do seem very convincing, but, when a numpty like myself started to draw diagonal lines on a chart of a globally traded market and actually believe in them, i knew something was wrong.

 

[mp6140]

They do seem very convincing, but, when a numpty like myself started to draw diagonal lines on a chart of a globally traded market and actually believe in them, i knew something was wrong.

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but did they WORK, therein lies the question ?

mp

 

[Paul71]

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but did they WORK, therein lies the question ?

mp

In a word pal, no.

 

[mp6140]

In a word pal, no.

then not being used correctly, as they should match trendlines exactly

take a look at chart enclosed -- double arrows are the bounce back up on the channel -- follow up and see where we have trend line (orange) and two LRC (white and aqua) showing top and bounce DOWN, which breaks the orignal upside trend.

index then drops to the 12860 support and moves up as fireguy and i commented on three days ago, and is now moving up to the single white arrow -- at that point, i would watch for a break up or bounce down, which is probably what shall happen.

but this is only a 10 day longer range chart, so only for trend concepts --- but armed with that info, one can very successfully trade the upside and downside of the intraday channels, which would take another chart to show !

its totally impossible that they dont work, but very possible youre not using them correctly !

i have newbs trading from one side of the channel to the other, which i dont recommend doing without experience, and they seem to be making profit by golly

mp

 

[trendie]

Ahh didn't realise they changed as and when price moved......

wasp: I was doing the same experiment. I am using 1-min bars to accelerate the points at which the slope changes.

However, if the trend is down, and you short in the upper zone, then arent you getting a good deal, unless its a rocketing move in opposite direction?
rather than dismiss it out of hand, might be worth futher analysis, even with the repainting. But it sure makes back-testing an utter pain.
And yes, the channels resize dynamically, so you would still need some other method to give you a signal that the pull-back is complete. As per mps thoughts, s/r is as good as any method.
Notes on images; on the second pic, the red-line is where the second pic carries on from.
if you had shorted in the upper channel from the first pic, then you would still be trading in the correct direction.
the purple markers are S_and_R indicator from some nerdy-geek called Chris, whoever he is! :cheesy:

 

[trendie]

whhops! just what I was waiting for, a reversal.

the only issue here would be the lack of advance warning of slope-direction change. and the speed it happened, but thats what MTFs are about, I suppose.

Quite pretty, though. I am tempted to switch.

 

[Trader333]

mp6140

take a look at chart enclosed -

No chart is attached


Paul

 

[mp6140]

wasp: I was doing the same experiment. I am using 1-min bars to accelerate the points at which the slope changes.

However, if the trend is down, and you short in the upper zone, then arent you getting a good deal, unless its a rocketing move in opposite direction?

simply put -- YES !

rather than dismiss it out of hand, might be worth futher analysis, even with the repainting. But it sure makes back-testing an utter pain.

not a strong believer in back testing anyway, but i use what works and this works --- its really nothing more than trend lines, that will readjust (not the real repainting like zigzags though, and certainly not on the higher timeframes)

And yes, the channels resize dynamically, so you would still need some other method to give you a signal that the pull-back is complete. As per mps thoughts, s/r is as good as any method.

there are a couple of trend arrows and dynamic s+r arrows that help this whole thing tremendously --- when intraday trading, one reaches resistance and then a little arrow pops up above the price --- its telling us that once the price retraces off this high, goes down to the 23 fib (usual, except for the BIG one just before rollover) it will now go to the NEWER high shown by the arrow --- you can skip this and just set a trade by looking at the H1 chart and taking that high as your tp point, and then sit back on a longer trade. I use the H4 for "overnite" trades (means you guys -- the london open) and since forex moves to where it says it will move, my overnite trades come out very nicely, while i sleep !

i use one called "support and resistance" --- those THREE words have to be there, as there are many s+r overlays. but i have to maintain that the channels should not repaint onthe higher timeframes, which is where your "absolute" tops and botttoms live.

i have two charting systems and one repaints (mt4) and the other doesnt, UNLESS there is an awfully good reason to do so as the lines are simply measuring PRESENT support and resistance, based on past history of tops and bottoms, and therefore will depend on how far back youre looking.


Notes on images; on the second pic, the red-line is where the second pic carries on from.
if you had shorted in the upper channel from the first pic, then you would still be trading in the correct direction.

if youre with the trend, you can do no wrong as the market will take you out of any bad trades (whatever a bad trade is !)

the purple markers are S_and_R indicator from some nerdy-geek called Chris, whoever he is! :

as you can see on attached chart, even though price spiked past the LRC, it didnt move the top because it was spike and not a close above the line, so the historic LRC holds.

are you using "SHI_CHANNELS_REAL" ??

ALSO, what does "cheesy" mean ?
cheesy:

mp

 

[mp6140]

mp6140
No chart is attached

Paul

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WHOOPS !

 

[trendie]

one more pic. I wont post anymore, as the reversals and re-reversals are now obvious.

 

[Splitlink]

wasp: I was doing the same experiment. I am using 1-min bars to accelerate the points at which the slope changes.

However, if the trend is down, and you short in the upper zone, then arent you getting a good deal, unless its a rocketing move in opposite direction?
rather than dismiss it out of hand, might be worth futher analysis, even with the repainting. But it sure makes back-testing an utter pain.
And yes, the channels resize dynamically, so you would still need some other method to give you a signal that the pull-back is complete. As per mps thoughts, s/r is as good as any method.
Notes on images; on the second pic, the red-line is where the second pic carries on from.
if you had shorted in the upper channel from the first pic, then you would still be trading in the correct direction.
the purple markers are S_and_R indicator from some nerdy-geek called Chris, whoever he is! :cheesy:

No, it is daft to dismiss it out of hand. I have used it on a couple of occasions , to good effect but there are problems with it because the channels are like Bollinger Channels.
They could be the beginning of a trend reversal where the trend line gradually flattens out and the price keeps to the outside As mp says, you have to be flat on crossing the outer band and decide on the direction later. It is an indicator of overbought or oversold. The old question crops up, like the indicators at the bottom of the chart.

How many bars do you use?

It needs other signals and practice but should not be dismissed out of hand.

Split

 

[Splitlink]

one more pic. I wont post anymore, as the reversals and re-reversals are now obvious.

Trendie, I don't think that that chart tells us much. The last bar on that chart is the only one that is accurate. The rest is hindsight. That is one of the reasons that I prefer Bollingers. Bollingers do not change position when the price moves on.

 

[trendie]

Trendie, I don't think that that chart tells us much. The last bar on that chart is the only one that is accurate. The rest is hindsight. That is one of the reasons that I prefer Bollingers. Bollingers do not change position when the price moves on.

yes, I guess you're right. With boll-bands and stuff, there is the "audit-trail" aspect, that the lines are not re-drawn, ie, history is not rewritten.

the one drawback is the lack of showing where the previous channel was, and what bar triggered a change, removing any chance of seeing the "story unfold" as you read the chart, as it were.

 

[mp6140]

yes, I guess you're right. With boll-bands and stuff, there is the "audit-trail" aspect, that the lines are not re-drawn, ie, history is not rewritten.

the one drawback is the lack of showing where the previous channel was, and what bar triggered a change, removing any chance of seeing the "story unfold" as you read the chart, as it were.

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the idea of having to see where the last channel was, while nice for historians, bears little need if one is simply watching for what is coming --- first, youre using the wrong channels if theyre repainting, as the LRC ONLY repaints when there are NEW support and resistance areas that will change the old ones, otherwise i could never use a 10 year monthly chart to compare to a 3 month daily. At one time i enjoyed looking back, but found it really just superfluous information.

i know youre not going to like my chart, but notice the parallel red lines --- THAT IS THE MAJOR TREND LRC, there are also two others (white and blue --- red, white and blue, get it ? --lol)
WHITE is a secondary LRC and BLUE is a tertiary --- IN THE ENCLOSED CHART please note how there is an original blue uptrend WITHIN the RED major uptrend, notice how it hits the top of the major (red) trend, and REVERSES to the downside as expected --- NOW YOU GET THE DOWNSIDE MOVE and notice that the prices came right to the bottom of the RED LRC and now bounced up --- we will watch as the price now makes its way to the top of the (presently) white and aqua bands !!

the white and blue channels show the trend within the trend, but the RED MAJOR TREND DOES NOT ALTER !

THE WHITE AND AQUA BANDS ALTER SIZE, BUT THE RED (MAJOR TREND) DOES NOT !

BOLS are not fully capable of showing exit prices, especially in a fast move, but the LRC simply remains where it is --- it never compresses the way the bols do, but remains sitting in the same place.

if you notice ANY of the LRC jpegs ive attached, NONE of them move, even when prices spike thru them --- im not sure what youre using but not the correct tool.

mp

 

[mp6140]

Mp -- Another Channel

for split --- simply to show it dont get any easier and THEY DONT REPAINT unless youre using the wrong ones !

now, working with what youse guys have, understand that a trend line can be broken also, so on the shorter time frames, if youre using a trend line, you would have exactly the problem you complain about also !

but yours are not the right ones obviously

mp