neatz

Hi everyone, I've been trading the new system for the last 3 weeks now, but I've been using these indicators for the last 18 months. I know a few people have been having issues with how to pick the trend and where to look for entries so I thought I'd add my two cents worth and let you know what's been working for me. First thing I look for is the trend. Now I know that with this system we have the ability to trade in both directions, but at this stage if you're just learning the system, it makes far more sense to pick the trend at the beginning of your trading session and then trade in that direction only! To pick the trend look at the 13 ma's and the stochastic on the hourly chart. If they are BOTH going in the same direction, ONLY trade in this direction. The other thing to look at is where the is price in relation to the 13 ma's on the 1 hour chart. The tricky part of this is when the stochastic on the hourly goes +/- 40. When this happens, again look at the price in relation to the ma's. If the price is a fair distance away from the ma's don't look to trade in the opposite direction. If the price is hovering on, or very close the ma's, then you can start looking for trades against the trend of the ma's when the stochastic has crossed and CONFIRMED on the hourly. Again, only do this if the price is close the ma's when the cross happens. If not, keep trading in the direction of the hourly ma's. If the price was a long distance away from the ma's what you'll see happen, is the price will go sideways a bit, as the stochastic crosses and moves in the opposite direction to the ma's. Once the price hits the ma's again, the price will continue in the direction of the ma's, and the stochastic will cross back up continue with the trend. Just a point to note about this....notice how I've made no mention of the 15 minute chart here? The 15 minute chart is great for seeing the trends within the trend, but it's not reliable if you want to find safe entries when you're first getting used to the system. Please read over what I've just written over and over again, until you get it...check it against your charts and make sure you know what I'm talking about because I promise you, if you can get this, it will eliminate 70-80% of the mistakes you're making! Next thng is how to take your entries and how to manage them. Here we need to look at the 15 minute chart and the 5 minute chart. When trading with the trend, continue to follow the 15 minute stochastic until it reaches +/- 40 in the direction of the trend. At this point, once you get more experienced I would say you could look to scalp in the direction of the 15 minute stochastic when it's going against the major trend, but as a beginner I would strongly resist the temptation... Now the tricky part of this....when you go with the trend and the 15 minute stochastic turns, DON'T start trying to take trades against the trend yet. There are 2 scenarios that will occur: - 15 minute stochastic will cross but the stochastic is still in the extreme area (+/- 40). In this case you can keep looking for re-entries and keep trading with the trend. - 15 minute stochastic will cross and move OUT OF the extreme area and to what I've called no man's land (the middle bit on the stochastic indicator). What you need to do is now is WAIT for the 5 min stochastic to go all the way back to +/- 40 again, before you can look to take trades back in the direction of the trend. AND (!!), the 15 minute stochastic does NOT have to go all the way back to the other extreme to confirm a re-entry with the trend. You only have to wait for the 5 minute stochastic! I think these are the major things that you need to take care of. I can't figure out how to put this in bullet form, but if you've got questions about any of it, feel free to fire away. I'm sure Lance will add anything that I've missed with any of this, but I think it will help a lot of people get started with this. And just so you know I'm still learning this as well....I've only picked up most of this in the last week but it's already made a huge difference with my trades and it's eliminated a lot of the silly mistakes that I was making when I was first getting my head around it all! If anything's not making sense here, let me know and either myself or Lance will be able to clarify it for you. Cheers!