【Basis】Daily environmental recognition of the Day of De-eswing between Heaven and Earth (MTF) reflections and thoughts
Shirou here!
In this article
Thoughts on the daily environment recognition of Heaven and Earth’s Day Swing
I’d like to speak honestly about it.
I hope this provides some hints for Heaven and Earth users in their environment recognition.
【Basis】Considerations on Heaven and Earth’s Day Swing daily environment recognition (MTF)
First, the considerations.
In daily environment recognition, there is a method of inserting DSATEA at four key points on the daily chart.
Of course, by looking at both the daily chart and the 4-hour chart with Heaven and Earth’s indicator and candlesticks, the win rate improves.
Recently, personally
If you can recognize the daily environment, adding DSATEA on the 1-hour chart tends to allow for higher-probability trades
I feel.
In short, environment recognition is about predicting whether the current day’s candlestick will rise or fall.
There may be some fluctuations, but if the direction is correct, you can target pullbacks/bollinger buys on lower timeframes, namely the 1-hour chart.
Thus,
the accuracy of the daily environment recognitionisdeeply related to trading profitability
I feel.
I believe the two keys are the indicator and the candlestick movements.
Let’s look at it in images.
GBPCAD Daily
On Heaven and Earth’s dashboard, ABUDMI lit up. (6 AM)
According to the general environment recognition of the indicator,
- Oscillator DX is rising
- (Histogram DX2ver2 also aligns up and down)
- Direction of the Oscillator Lime arrow
- ABUDMI crosses the zero line toward a long bias
Based on the above, a long bias seems appropriate.
However, what’s important next is the candlestick movement.
Candlestick movement is
- whether it is moving from the dot toward the line?
- or from the line toward the dot?
is crucial.
Since the current dot is lit, the candlesticks are predicted to move short.
However, the indicator is biased toward long; the direction is opposite.
When these two movements differ like this, we skip it.
In fact, the image is the situation at 18:00 after it was confirmed at 6:00. (12 hours have passed)
Against the four points’ indicators and long, the price dropped 37 pips toward short.
This time, the candlestick movement from dot to line toward short was correct. (Today there was the UK GDP release, but the numbers were exactly as expected)
In this way
if either side moves in the opposite direction, environment recognition does not function
as a result.
In trading from 6 AM to 6 PM, relying on indicators alone for environment recognition would have been wrong
What I’m trying to say is,
Daily environment recognitionfunctions properly only when both indicators and candlestick movements are correct
So it is.
In my view, if the daily environment recognition is correct, one-hour trades could display peaks of buying and selling—buy peak to sell peak, sell peak to buy peak
while enabling entries and exitsEven just a color change of ABUDMI can make for a very good tradeI believe.
USDCHF 1-hour
In some cases, a stop loss is involved, but a color-change stop loss of ABUDMI is often minimal.
That concludes my thoughts on daily environment recognition as I see it.