【Basis/Justification】Day-by-day environmental recognition of the sky and earth’s day-to-day (MTF) considerations and reflections
Shirou here!
In this article
A Discussion and Thoughts on the Daily Timeframe Environmental Recognition of Heaven and Earth’s Disequilibrium
I would like to speak frankly about it.
I hope it provides some hints for Heaven and Earth users in terms of environmental recognition.
【Basis】Consideration of Heaven and Earth's Daily Timeframe Environmental Recognition (MTF)
First, the considerations.
In daily timeframe environmental recognition, there is a method of applying DSATEA to the four key points, right?
Of course, by looking at the daily and 4-hour candles together with Heaven and Earth indicators, the win rate tends to improve.
Recently, personally,
if the daily environmental recognition is possible, applying DSATEA on the 1-hour timeframe should allow for higher-quality trades with an edge
I feel.
In short, environmental recognition means predicting or forecasting the daily candlestick, that is,
whether the day's candlestick will rise or fall?
This is what environmental recognition is about.
There may be some fluctuations, but if the direction is correct, on the lower timeframe, namely the 1-hour chart, one can aim for buying pullbacks or selling retracements
as the idea.
Therefore,
the correctness of the daily environment recognitionis深ly tied to trading profitability
I feel.
The movement of the indicators and candlesticks, these two are key.
Let's look at it in images.
GBPCAD Daily
In Heaven and Earth’s dashboard, ABUDMI lit up. (6 a.m.)
According to the approximate environmental recognition of the indicators,
- Oscillator DX is rising
- (Histo DX2ver2 also aligns up and down)
- Direction of Oscillator Lime arrow
- ABUDMI crosses the zero line – long direction
Based on the above, a long bias would be appropriate.
However, what becomes most important next is the movement of the candlesticks.
Candlestick movement is
- Is it moving from a point toward the line?
- Or from a line toward a point?
is crucial.
Since the current point is lit, I predict the candlesticks will move short.
However, the indicator is oriented for a long, the direction is opposite.
When these two movements are opposite like this, I skip it.
Actually, the image is the situation at 18:00, after it closed at 6:00. (12 hours have passed)
Against the four-point indicator’s long signal, it moved short by 37 pips.
This time, the candlestick movement—short moving toward the line—was correct. (Today there was the UK GDP release, but the value was exactly as forecast)
In this way,
if either side moves opposite, the environmental recognition will not function
as a result.
From 6 a.m. to 6 p.m. trading, relying only on indicators for environmental recognition would have been mistaken
What I want to say is,
Daily environmental recognitionis only functional when both indicators and candlestick movements are correct
That is how it works.
In my view, if the daily environmental recognition is correct, a 1-hour timeframe trade could show
the peak of buying to peak of selling, and peak of selling to peak of buying
while showing entries and exitsa trade can be good even just from ABUDMI color changeI think.
USDCHF 1-hour
There are cases where a stop loss is involved, but ABUDMI color-change stop losses are often less frequent.
That is all—I’ve shared my thoughts and considerations on daily environmental recognition in my own way.