Thursday, December 27, 2007

Synching to the markets


I think I have found a sweet spot in my seeking. Using the Kalman deviations, the fib retracements, the heiken ashi's and bring back the keltner's seems to have made a very big difference in the results from today. Without adherence to the value areas created by keltner exhaustion there were many smal losses today. With the keltner relationships in view, all trades went as planned. I don't expect to bat perfect but unlike the original enthios system I started out with, now I have a clear stop level so I can walk away from the screen when I have a trade on and not fear the ultimate disaster like in the past.

so to recap the setup aaaagain:

Start with a 4hr chart
plot the kalman deviations at the beginning of the week.
plot the previous weeks high and low fib extensions, high to low and low to high
Apply keltners to every chart.
For swing trades stay on the 4hr timeframe. When heiken's show a reversal on the close of the candle enter and target the next level of support or resistance.

For intra-day take the exact same method and use a 5 minute chart.

There is a slight nuance. Price should be on the correct side of the levels for entry, a heiken which signals beyond the  proper side of the levels is not valid. I won't take those until price comes back inside the levels. However if the heiken bars become too large I will either scale down a timeframe (1 min) or just walk away from the setup. No trade is worth an unncessary risk.

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