Q: Do I enter the trade when all the indicators show the same direction? In the video of finding opportunity quickly, it only shows 3 indicators whereas the Pip Predictor that I have installed show 5. I saw the entry price (red line), stop loss price (orange line) and profit/add on price (red dotted line). May I know when to take profit and exit the trade, and when to add on to the position? I fully agree with you to catch the big move in the currencies. Do I add on to the position if all the indicators are aligned when the price reaches this dotted red line.
A: The trading manual will explain all this. 1. You have the latest indicator which is why you see more than 3 indicators as shown in the older videos. The videos are still relevant though.
2. You can take profit by either the TP (take profit) point or using the stop loss as a trailing stop loss which will trail the price.
3. You can, when advanced, add to positions at add1, the arrows do not have to be aligned, but some traders prefer it if they are.
Another great question connected to this:
Q> Regarding multiple time frames. If for example there is a 15 min signal (Sell) MACD down good momentum. I see that the next time frame 30min also good, 4Hr also good. Is it a good idea to enter this trade even if the 1Hr MACD not good. I only ask because I notice this scenario quite a bit and it ends up being a good trade. Is it OK to skip one of the timeframes in a chain like this and still enter the 15 minute trade.
A> Great question. And actually, you can trade perfectly well the way you mention. You see when we created the indicator we of course simplified matters and also to ensure people were not spending too much time watching the screen, we simplified some more. But, if you do indeed rapidly look through the time frames as see the trend and direction of signals the same, then you have an even higher probability trade.
What you are doing, is in fact something a lot of apprentices do - use our system with slight amendments to suit them. Well done.
Update to help you:
The signals (arrows) occur when a certain set of rules is satisfied. This set of rules is not the same with the 5 arrows on the right-top of the chart. Furthermore, the 5 arrows refer to the current bar while the last signal arrow of each chart is several bars before. That gives the illusion of inconsistency because on H1 chart all the 5 arrows point up, while the last signal 17 bars before the current bar was a SELL signal. It must be clear that the signal arrow is valid only for the bar that it appeared and that the 5 arrows capture the conditions of the current bar.
- Signal arrow is valid ONLY for the bar that it appeared. OK someone may take it 2-3 bars later if the conditions allow but not after that.
- 5 arrows refer to the current bar and have nothing to do with the last signal, specially if the last signal is many bars away that the current bar
- The rules that cause a signal arrow to appear are not the same with the 5 arrows rules. More specifically, some but not all of the 5 signals exist in the set of rules of the signal arrows and there are some rules existing in the signal arrows that are not the same with the 5 arrows
Another user Q:
Not that it really makes a massive difference, but the academic in me is 'asking' whether you are using the 200 day Simple or Exponential Moving Average?
We show it in the arrows (5) because some people like to see the MA, BUT, we do not use it in the rules to generate signals because it is too slow indicator.
Related to this was this email from an apprentice and my replies in bold.
I am now trying more than one approach when using the Pips Predator indicator. (Not a problem, often a good idea)
I studied the zendesk materials, your webinars and 12 week course.
It is quite challenging to find entries where all arrows are aligned and the indicator showed good trends in the last 3-5 entries before. If I would look only for that kind of trades, I would probably have one trade a week. (They do not need to be aligned, it’s just a stronger signal)
What I do is the following, where I would like to receive your feedback:
1) I am checking 12 currency pairs, mostly minor vs. major – good.
2) I try to focus on 1h and 4h time frames, sometimes I use also the 1 day time frame to hedge fine. Good.
3) I check the news and upcoming publications via investing.com calendar in connection with the monitored currency pairs and try to understand if any pairs can be effected in a big way by the future awaited news and publications; based on that I choose the pairs which are most interesting based on the upcoming news/publications - That’s perfectly fine.
4) I enter when the indicator shows an entry (or if I am close to an entry) and at least if the MACD and MACD2 arrows are aligned; stochastik would be fine as well, but not necessarily needed, less important is the MA for me; I always double check daily trend to have the bigger picture if entering 1 or 4h time frame Perfect. Very good indeed.
5) I do not use limit order, but more often just include the SL and a dynamic trailing SL + entries to add positions; if I get a hit with a big trend I am then having 3 open trades, at least, within the same direction based on the entry levels the indicator suggests, but without the limit order which takes away possible additional profit Sounds good.
6) I check every 2-3 hours how the trades are performing Fair enough.
7) Only with EUR/USD I trade with 3 ATR bands showing me when the 3 ATR (up or down) is reached and when the price should bounce back; only here I include Limit order beside trailing SL; I use a LO being placed at the MA, so when the price hits back to the "middle" I get out, not to risk too much Fine.
8) I exit fast if I see a 2-3 candles of the time frame, moving in the opposite direction, not when the trend is going sideways for too long – good idea.,
Especially, the inclusion of upcoming news (calendar on investing.com) improved my hit rate enormously! Good stuff
Hope you have time to send me your thoughts in a few lines.
Below a very good hit I had today with EUR/GBP as a success story! All the prognoses (before the publications of the numbers) for GBP were very bad and the ones for EUR good/neutral. With prognoses I mean the estimates before the real published figures. Also, the GBP was climbing up and up new highs since the Brexit. So I guessed it is time for a big correction against the EUR. USD seems weaker than EUR as the prognoses are not soo well today. Thats why I checked EUR/GBP and for indicator signals. I exited after earning 5 % + of the portfolio (perhaps too early). Good sound analysis. You are confident and get it and something of a natural at trading by the sounds of it!