Strategy 2: Two Timeframes ("TC Experts")
This strategy uses the TC Expert indicator in Two Timeframes. The 1-Hour TC Expert is used to determines trend. The TC Expert on a 10-Minute Chart is used for Trade Entry and Exit.
When the 1-Hour TC Expert is bullish, for example, then Trend is UP, and the strategy will buy when the 10-Minute TC Expert turns bullish. The strategy exits a buy trade when the 10-minute Expert turns bearish, or when price closes below a Gann Hi/Lo line that is used as a trailing stop.
Indicators used in this strategy & their inputs:
1-Hour Chart: TC Expert (7,18,36,7)
10-Minute Chart: TC Expert (7,18,36,7)
Gann Hi/Lo Activator - Gann HiLoA(7)
Chart 1. The TC Expert is composed of two separate indicators.
Trend
Trend is the direction of the TC Expert on the 1-Hour Chart. When the Schaff TC Expert is applied to the chart, two indicators appear, both a black Schaff Trend Cycle (‘STC’) and a green Schaff Trend RSI (‘STR’).
Chart 2. Trend changes are highlighted by the the red and blue vertical lines, after which the TC Expert indicator turns bearish and bullish, respectively.
Trend is UP when the TC Expert is bullish. The TC Expert is bullish when both the black STC and the green STR are rising above the lower red-dotted Buy line shown in Chart 2.
Trend is DOWN when the TC Expert is bearish. The TC Expert is bearish when both the black STC and the green STR are falling below the upper red-dotted Sell Line.
Trade Entry
The strategy uses the TC Expert and a Gann HiLo line on a 10-Minute Chart to time when to enter a trade. When Trend is UP the strategy will buy when price is above the Gann HiLo line and the 10-Minute TC Expert turns bullish. If Trend is DOWN the strategy sells when price is below the 10-Minute Gann HiLo line and the 10-Minute TC Expert turns bearish then the strategy sells.
Chart 3. With a DOWN Trend in place, a Sell Entry occurs on the 10-Minute Chart at 9:20 at 2.0387.
TC Expert Strategy: Buy Entry and Sell Entry rules:
BUY when 1-Hour Trend is UP and
- The 10-Minute TC Expert turns bullish and
- Price is above the Gann HiLo line
SELL when 1-Hour Trend is DOWN and
- The 10-Minute TC Expert turns bearish and
- Price is below the Gann HiLo line
Trade Exit
Various exit tactics are used, depending on how price could develop.
Trend Indicator Changes Direction
If the 1-Hour Trend changes direction then exit the trade.
Trade Entry Indicator Changes Direction
If the 10-Minute TC Expert changes direction then exit the trade.
Price Closes beyond Trailing Stop
The Gann HiLo line is used as a Trailing Stop on the 10-Minute Chart. If the strategy position is long, then exit if the 10-Minute price closes below the Gann HiLo. If the strategy is short, then exit if price closes above the Gann HiLo.
The chart below follows the GBPUSD trade shown in Chart 3.
Chart 4. The sell position exits when the 10-Minute TC Expert turns bullish.
The sell trade entered on October 3 at 9:20, at 2.0387, exited at 16:40, at 2.0313, when the 10-Minute TC Expert turned bullish (with both the STC and STR rising above 25). The result is a profit of 74 pips.
TC Expert Strategy: Buy Exit and Sell Exit rules:
Exit a BUY Position if one of the following situations occur
- Trend changes to DOWN, or
- The 10-Minute TC Expert turns Bearish, or
- Price closes below the Gann HiLo on the 10-Minute Chart.
Exit a SELL Position if one of the following situations occur
- Trend changes to UP or
- The 10-Minute TC Expert turns Bullish or
- Price closes above the Gann HiLo on the 10-Minute Chart.
Initial Stop Loss Order: Controls trade risk. Establish before the trade. (See "Risk Controller".)
Risk Control
Go to Risk Controller. Input risk preferences to determine:
- Stop Loss Order
- Maximum Position Size
Use the Trade Strategy Worksheet to control, monitor and record the trade.
Posts
