Tuesday, July 31, 2018

Treat Indicator Creatively


Strange how most of the time I entered the trade and it immediately become profitable. I used TDI-RT indicator that usually triggered by crossover. But it is very much too simple. Trading is not that simple. I used TDI as exhaustion indicator and looked for other divergences. 

From time to time we treat indicator like a holy grail. Use it blatantly without thinking. If it do this then we buy. If it crossover we sell, and so on. There is no such thing. I give you example with TDI above. Crossover at the top of the band, is good indication for a sell. But what happen next, price is continue to go up which is normal at the trending market. Lazy traders will think the indicator is a failure but actually we need to see it with different way. So many times if TDI crosses at the extreme area, price will give a push a little bit more before reversal. Like what happen above. So next time if we see setup like this, we can wait for last push before entering. And then the second crossover is working. We also need to check other indicator for confirmation like RSI, ADR and ADX.

Most of the time spend from trading is not the trade itself. It is to observe the price structure and watch like an eagle at critical zone. Trading is a waiting and patience game. In two weeks, I almost hit 10 percent profit which is over target. I only trade with 0.1 lot and the result is incredible. The P/L curve is up smooth. There is some manageable losses. Some trades reverse back after being stopped out. It is all normal. More than 2 months training and the trades are more precise and higher win ratio. Everything is good so far. Never ending learning in trading to achieve a greater full life.




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