5NITRO+ Instructions – Trading 3

Trading Page 1 ( first )
Trading Page 2 ( back )Summary  ( final )

Infinite Guidelines

There is not just one correct way to trade profitably or use these tools to do so. There are infinite ways.

Do not be afraid of 5NITRO+ or overwhelmed. Load it onto your chart and observe it for a few days or a week. Observe how it responds in different situations and on different time frames.

The default Alert Level of 50% is not Magical. Nothing about 5N+ is Magical. As is outlined below, 50% is representative of 75% of all parameters of the entire meter indicating the same trend bias.

90% was the last Alert Level used while Beta Testing and used in the FX Pro Account Results for most of the later higher time frame trades. With it loaded on my trading selection of 40-70 symbols at once and on different time frames mainly focusing on H1 or higher, I generally sought to be informed of major market happenings and major flows for that particular methodology at the time.

Once visually and or audibly informed, observation and analysis of like-kind and correlated symbols was done. My own internal decision making algorithm was applied. This included and always includes all applicable technical + fundamental information at my disposal. How much influence either the technical or fundamental information has on each and every decision varies with each decision. There are no absolutes.

But again, the primary goal of this beta testing was just that … to test the product and make necessary adjustments where necessary. So in reality during this testing process in an effort to achieve more pure results, technical information carried more weight within my internal decision making algorithm than it normally does.

NITRO+, ClearChart, and the 200SMMA all combined were afforded more influence on each and every decision than normal. So as to make the testing as pure as it possibly could be. But the caveat of this is of course I still remained aware of overall fundamental happenings. It was impossible to eliminate this fundamental influence from the equation completely, as this was not an EA being tested.

This 90% initial alert might be suitable for higher take profit levels similar to in the account statement with longer hold times. Depending of course on each individual user and methods, this may not suitable for Intraday traders as it can actually sometimes indicate the window for opportunity may be over, at least momentarily.

Theory of Normalizing

This 90% method that was used in testing seamed to hold true for higher time frames only. This might be due in large part because lower volume sessions such as Australia and Asia having a lesser polluting effect on the higher time frame technical data.

Ideally when performing momentum relativity analysis across 50+ pairs, beginning from a neutral centerline is preferred.

The meter, in general, does not necessarily need to have its internal inertia indications normalized when loaded on the time frames of H4 and higher. Mostly not for H1 either, but users should be aware and make appropriate adjustments to their analysis. H1 chart guided trading falls into a grey area of whether it is Intraday or not.

FX Traders, and really all traders for that matter, should always be aware and make appropriate adjustments whenever the underlying market environment has changed.

Such is the case on a daily basis when entire regions either open or close for trading

… as the world turns.

Relative comparisons change as the clock ticks and sessions change

For Example:   EURUSD throughout the London and New York sessions may have traded within a relatively normal range of about 136.7 pips, as it did from September 2014 through May 2015. EURUSD was bullish all day with normal Tick Volume supporting. All technicals were indicating Buy and Hold all day.

Now, the New York Equity Market closes. Activity comes to a crawl. All of our momentum indications begin screaming Sell! Sell! Get Out Now! But wait, for 13 hours straight the technicals have been telling us over and over how amazing it would be to take a position in EURUSD. Why the sudden change of heart?

From the technical’s relative momentum perspective, something terrible has just happened. From their relative perspective, EURUSD is experiencing a relatively drastic sentiment change.

If the technicals could talk they would say “Why in the world would these humans methodically be funneling funds into this FX pair all day long for 13 straight hours, and then just suddenly stop? This does not feel right at all. Something bad must have just happened. I guess dump all momentum positions to be safe. Sorry for the bad advice all day!”

The technicals are completely unaware that the day, and all of its normal flow and volume, has just ended at the top of the hour. They are making their relative comparisons to that of 13 hours worth of normal activity.

Relativity has changed.   Relative comparisons need to change.

While we can make the adjustments to how we apply the technical information being given to us, it is more difficult for the technicals themselves. They lack knowledge of sessions opening or closing and the effects. For that matter they lack any knowledge of any fundamental events such as this. Yes, code could theoretically be added to compensate for the clock and these session turnovers, but we are not there yet.

It is especially difficult for a tool like NITRO+ whose internal algorithm is comprised of many momentum based parameters. Current inertia comprises a large percentage of the meter’s ultimate output, regardless of time frame loaded or selected. Informing us of current inertia opportunities is one of the primary objectives of this tool.

The period of Australia and Asia will help in allowing these momentum parameters to normalize. To return to center. To all return to around the same neutral centerline.

Sure, there would technically seam to be a relativity issue on the flip side as London opens and activity suddenly begins to flood in. Though for about 60 minutes to 105 minutes prior to London, there is generally a gradual build of activity.

But nevertheless, most all pairs now beginning around the neutral centerline provides for a far more consistent relativity measurement than from 50+, sometimes drastically different and separate levels. Since the internal momentum indications have all normalized around neutral and have essentially ‘reset’ back to square one, the ability to measure new activity has now better equalized across most FX pairs, less major events.

In Other Words:   At the end of each day, the momentum technicals for all pairs are mostly all at different levels or rather intensities of. These high momentum levels reached and the differences between pairs can be extreme.

EUR Pairs may have all spent the day spiking 200-300 pips based on some EuroZone fundamental event such as Greek Resolution voting. While CAD Pairs may have spent the day relatively flat. Therefore, it is preferred to make new relative momentum analysis if these pairs have all returned to around the neutral centerline. Such as what happens during the Australia and Asia sessions, less major events.

Trend Entering NITRO Mode

There is a total Global Percentage % range of 200. There is a total TITAN III range of 100

From a technical perspective, 50% is the default action level alerting us of possible current inertia opportunities. This 50% ‘possible opportunity’ level coincides with the meter lighting up into NITRO Mode. The 50% opportunity level is not as reliable on charts less than H4 during sessions other than London or New York.

NITRO Mode is alerting current inertia-based opportunities

This default 50% NITRO Mode can now be adjusted by each user to possibly better sync with unique methods and goals. This can be fine-tuned by each user under the Visual Alerts section within the settings. Same with TITAN III.

Main Global Percentage Number exceeding the default 50% Visual Alert causes the middle vertical action bar to illuminate. TITAN 3 exceeding the default 75 Visual Alert causes its vertical action bar to illuminate. Both of these levels are now adjustable by the user under Visual Alerts within the settings.

  • NITRO Mode LIME or NITRO Mode BLUE for actionable Long Trend
  • NITRO Mode RED or NITRO Mode BLACKfor actionable Short Trend
  • 50% Global Percentage = 75% of all parameters indicating the same trend bias
  • 75 TITAN III = 75% of T3 parameters indicating the same trend bias
  • 75% of variables all indicating the same trend bias has proven over time through the history of Technical Analysis to be an accepted, reliable level of trend continuity confirmation.

    On smaller time frames for Intraday Traders, 50% – 60% Global Percentage is generally the level for possible current inertia opportunities. Percentages above 90% sometimes tend to indicate a possible momentary overbought or oversold area that sometimes may indicate an area to begin considering taking some profit.

    In other words from a technical perspective for Intraday Traders, an actionable window of opportunity might sometimes be from 50% thru 100% beginning with London open. The new matriXx overbought oversold feature now helps to assist in this high range when we are considering and pondering taking some profit.

    All bets are off for Intraday Traders once the New York Stock Market closes. As mentioned above for 5NITRO+ loaded on 30M charts or less, the following lower volume sessions before London opens again will now render any technical information used by 5NITRO+ drastically less useful and reliable, except for hard S&R levels.

    So technically while it is being ignored during theses other sessions, 5N+ is normalizing its internal momentum indications to be ready as activity returns beginning about 60 minutes to 105 minutes before London open.

    As these low volume sessions pertain to 5NITRO+ loaded on the higher time frames and whether or not the technicals also become polluted as mentioned above and whether or not it needs to reset itself – not entirely. While the 50% acting as support should be ignored if the breach below occurs during theses sessions, the overall trend bias of the meter still tends to holds up and 0% does actually tend to act as solid support.

    In other words, there is enough Market Maker technical levels trickery and meaningless random price action taking place to where the default 5NITRO+ key levels are less precise, less meaningful, and definitely less reliable. The Global Percentage Levels that would ordinarily carry weight and help guide our decisions need to be adjusted. Or possibly even discarded altogether.

    Reversal is Improbable During AustralAsia

    It is not probable though for Market Makers during these low volume sessions to completely reverse the overall prevailing trend bias of 5NITRO+ loaded on these higher time frames.

    More precisely, it is not probable for actionable Long scenarios greater than 50% flipping to an opposite 50% Short scenario on these higher time frames.

    Market Makers are primarily trying to move prices within hi/lo range of previous London + New York sessions

    Australian and Asian Market Makers need to feed and clothe their families also. They need to generate revenue each and every day for themselves. They need price to move. Movement begets more movement.

    They are trying to trigger as many speculative, weak-handed limit and stop orders as possible. Or as it is called, “Stop Hunting”.

    They do not want to Stop Hunt the Real Traders though. Because of this controlled throttling back to stay within a range, the overall main trend direction of the meter indicated with the big arrow tends to remain intact on the higher time frames that the Real Traders use.

    Metatrader 4 Indicator Software with AlertsOn H1 charts or higher, and sometimes but lesser often on M30 charts, exceeding ~90% the first time indicates sizable money flow. It is probable that price action will remain in the similar trend, if not exceed. As time frames increase, this ~90% carries more weight.

    It takes a great deal of money flow to breach these ~90% levels. In other words, there is a reason for this strength. And, it often seems there is a higher probability that this strength is REAL and will produce follow-through. Or, tends to at least revisit the same price levels that produced these ~90% levels again before falling below 0.0%. Of course this excludes low volume sessions.

    First Time

    The term first time needs to be clarified: On H1 time frames and lower for intraday traders, first time is considered here from London Open through New York Close. Again, we do not recommend and will never give any advice to day trade during any other sessions except for extreme stop loss and normal take profit orders that were already placed. Exceptions can be made if these other sessions are a Currency’s home sessions and there is market-moving news, such as JPY, AUD, NZD, or NIKKEI for example.

    First time as considered here, can generally occur at any time on H4 charts and higher. The meaningless, lower volume price action of Australian and Asian sessions will seldom be enough to affect 5NITRO+ or confuse it as to what it feels is the overall prevailing trend as indicated by the direction and color of the main up or down arrow.

    But, just because first time can generally occur at any time for H4 charts and higher, does not mean these times other than London open through New York close are equivalent. 80% of my D1 position trading still happens during about the same 3-4 hour period every day towards the New York Equity market open. On days such as NFP I begin earlier.

    This period of session overlap provides the greatest liquidity for most symbols in our Market Watch window. Less some CFDs that are tracking certain non-Euro Zone or non-US exchanges. This period of overlap and highest liquidity allow for the most accurate analysis of technical data.

    Market Makers are least in control during London + New York overlap

    It is the purest time.

    It is the time when Market Makers are least in control compared to all other times of day.

    Visualize a mountain. While this period of session overlap might be considered the peak, consider the beginning of London and the close of New York Equity to be the base of the mountain. So then, ‘First Time’ measurement is most ideal when it occurs somewhere within that mountain.

    96%  97%  98%  99%  100%

    Many experienced N+ 2N+ 3N+ 4N+ and 5N+ users have noticed a somewhat interesting phenomena that occurs, primarily on Hourly charts and lower.

  • TITAN III maxed out at 97+
  • Strength maxed out at 9 9
  • 4Boxes all indicating same bias as T3
  • … all components combined maxxed out – maxxes out the meter at 100%

    For technical purposes, 99% 98% 97% or even 96% is considered ‘Maxxed Out’. There are sooooooo many parameters that even down to 97% should be considered statistically the same as 100%.

    This statistical equivalent is already coded into what the GLOBAL% considers a ‘Maxxed Out’ TITAN III output to be. Technically, the GLOBAL% should not display 100% until TITAN III displays at least 99. But again, there are sooooooo many parameters within the TITAN III formula, up to 140 across up to seven time frames. So, we decided that 136 out of 140 parameters all indicating the same trend bias is statistically the same as 100%. With as tight as many of these parameters are, it is a strong achievement for 136 out of 140 to all agree.

    As many users have already noticed and have come to rely on over the years, 96% 97% 98% 99% 100% on Hourly charts and lower seems to truly indicate a momentary ‘Maxxed Out’ condition of the current trend. This has been incredibly reliable for users over the years. While some users choose to actually take risky opposite-trend positions, many others choose to safely interpret 100% as an indication to take some or all profit. Or rather, as an exiting indication rather than entry.

    100% Equivalent on Hourly charts and lower seems to truly indicate a momentary exhaustion of the current trend

    Be careful applying the same ~100% maxxed out interpretation to the higher time frames of H2 H3 H4 H6 H8 H12 D1 WK MN.

    As was evident in GOLD and SILVER during their runs from 2004 to 2012 and evident in the current JPY runs of 2012 thru ?? 2016, the meter can spend a great deal of time maxxed out on these higher time frames … as price continues and continues and continues and continues.

    So because this 96% 97% 98% 99% 100% phenomena can only be safely interpreted on lower Intraday-type time frames, I personally use it as a medium term take profit alert for D1 position trading. Very seldom as an ultimate exit indication, but instead taking some profit in a percentage of units.

    Depending on where we are within a cycle such as early 102.00 or medium 120.00 for this current USDJPY megatrend as an example, a 100% trigger from the lower time frames is used to take some profit off the table. Ideally then, this momentary maxxed out condition will hopefully allow us to re-establish that portion of the position at a reduced rate following sizable retracement. Alas USDJPY retracement from 110.00 down to 105.00 in the Fall of 2014.

    These 100% outputs on the lower time frames tend to coincide, but not perfectly which is actually ideal, with the new matriXx dots illuminating on H4, D1, and the Weekly charts. Using these two indications in combination to manually take some profit helps to diversify exiting and introduce needed variance.

    The bulk of take profits are still influenced and arranged primarily by each level of support and resistance. Because arranging take profits using support and resistance means that decisions are made weeks, months, and sometimes years in advance – using these 99% 100% and matriXx indications really helps to round out the decision making process.

    Australian and Asian Sessions Pollute

    The coding and logic involved with the meter lighting up into NITRO MODE @50% indicating possible initial take action level, is derived from historical price action and technical analysis of the London and New York sessions.

    The default 50% NITRO action level does not apply to other sessions such as CME-only, Australia, or Asia. When 5NITRO+ lights up @50%, it is assuming volume is within a normal range.

    Australian and Asian Sessions Synthetically Limit Profit

    When volume is within a normal range, as it is during most all London + New York sessions less holidays, massive breakouts and breakdowns are possible and thus massive or rather full profit potential exists. As is discussed above, there simply is not enough volume and thus propelling inertia to carry price through any type of sizable Support or Resistance. Therefore, profit potential is capped and limited.

    5N+ was coded to assume massive breakouts and breakdowns are always possible

    Profit potential being synthetically limited due to an external factor such as volume, completely changes the dynamics of 5NITRO+ alerting inertia opportunities. Aside for a symbol such as NIKKEI, for example, volume is seldom within a normal range during these other sessions.

    Again, this is not absolute.

    There are obviously occasional liquidity and volume spikes during Australia and Asia for home currencies, home bonds, and home indices. The rest of the market is also subject to spikes during these sessions on occasions. For example, when the BOJ makes a major move or announcement that, by arbitrage and correlation default, affects the entire market. Even those Forex pairs without ‘JPY’ in their name.

    These occasions of liquidity, volume, and price spikes are why these sessions cannot be written off as are ‘After Hours’ in the equity markets (less earnings reports) or ‘Overnight Electronic’ in the commodity markets. And why as outlined on page one, many newer traders choose an intraday method so as to never hold positions overnight. Hence, The 24 Hour Forex Trap.

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    INERTIA

    Trend + Momentum + Support & Resistance  =  Historically Leading Indications

    Yes, other factors within technical analysis all have their Day in the Sun or 15 Minutes of Fame. But, trading with the wind at your back and utilization of support and resistance levels always trump any other squiggly lines you’ve plastered all over your chart.

    Strength (SS) constitutes almost 20% total within the 5NITRO+ formula. The strength levels from 0-9 represent current price in relation to varied degrees of support and resistance from either current or higher time frames dependent on time frame loaded.

    To learn more about strength within 5NITRO+ and the other constituents of the formula and their coefficients, view the 5NITRO+ Formula Page

    Every Technical Analysis Tool Works Some of the Time

    While different TA may seem to work at different times, there is far too much risk in selecting the correct one at any given moment. In addition, there are just far too many to choose from and interpretation can vary dependent on different situations and in relation to others’ behavior.

    Browse BabyPips.com

    There are literally thousands of systems and complete trading strategies based solely around a single technical analysis tool or indicator such as Bollinger Bands.

    Years upon years of words, modified .mq4s, secret templates, and screenshots always of success never failure. All devoted to a single TA discovery represented as the Holy Grail.

    Each thread of 500+ posts contains traders of like-mind that all believe that particular technical analysis finding is the key to windfall profits. It may be. But applied when? Applied in hindsight at the time that it actually worked when all the planets aligned?

    Same goes for Keltner Channels, Donchian Channels, Envelopes, Fractals, Coppock Curve, Elliot Wave, Ichimoku, Acceleration Bands, Fibonacci Levels, etc, etc, etc, etc, etc, etc, etc, etc, etc.

    Yes,  everything works some of the time.

    Put enough lines on a chart and price will inevitably bounce or reverse from one of those lines … or come close to

    Frequent and long term reliability of exact technical levels is a fantasy notion. The sooner we begrudgingly let go of this idea that have bees constantly sold to us since the first time we searched Google for “Trade Forex”, the sooner a sustainable trading career actually becomes possible.

    Though, each trader does need to reach this discovery on their own however. Unless we work through and disprove each and every theory and idea based primarily on some technical method or indicator output, it is nearly impossible to move forward.

    It is nearly impossible to ignore the ideas that tend to always pop up and remain in our forethoughts until we act. Adding to this near impossibility are the continual bombardment of spam, discussion forum posts, and now magic indicators and EAs at the bottom of our Metatrader platforms. They are all relentlessly shouting how everyone is becoming wealthy simply from ‘Buying every time price hits a certain technical level’. Or better yet, ‘Buying a robot that does it for them on autopilot while they sleep’.

    Real Capitulation,  Not Simulated

    And while most newer traders roll their eyes whenever they hear or read someone claim there is a need for at least two to three years of constant demo account trading, in reality this is the absolute minimum time requirement.

    Sorry dreamers:(

    These fantasy technical analysis notions and EA dreams need to be worked through thoroughly and completely. It takes time to do this. If we are able to trade 13 hours per day and ~286 days per year then two to three years is about right. If we trade while maintaining a day job or any other requirement that distracts our full attention then four to five years is more realistic.

    Try to keep in mind what was mentioned at the onset of these trading pages that a long term successful career in trading is arguably one of the most difficult prospects that exists in this world. Add to this difficulty that presumably none of us are employed at the trading divisions of large banks. Or at a Hedge Fund. Or at any other large trading institution. Our operational resources are relatively limited. Our trading capital is relatively limited.

    An engineer requires four to six years of constant education and working experience. A surgeon requires six to ten years of constant education and working experience.

    How illogical and insane is it to believe nearly anyone with a computer can become wealthy simply from buying an FX pair whenever price hits or crosses a certain technical level, day after day?

    We need to obliterate these ‘get rich quick by discovering and exploiting hidden technical glitches’ ideas from our minds once and for all before we can move forward. Unfortunately however, this seldom can happen via demo accounts.

    Real Money Needs to be Lost

    Think this notion is insane? Think instead a trading education can be gained entirely free? What is a four year degree from M.I.T. worth? How much do Surgeons pay and sacrifice for their six to ten year medical school education?

    Real money needs to be lost as the result of each EA we download and run on real accounts. Real money needs to be lost as the result of each modified Indicator and Template system we whimsically download from Baby Pips.

    Less Preciseness,  Less Influence,  Less Reliance

    Work backwards. What is really the only way that some type of technical analysis tool can be always relied on? Expand the range of it. Expand the decision area.

    Relying on exactness will inevitably destroy an account

    Do not expect that exactness or precision can be reliable. Because again, this is not a previously programmed video game. Markets are a product of Human Beings with free will.

    Larger Picture

    Price Trend, Supply & Demand, and Support & Resistance … have been the #1 indications dating back to 200 B.C.

    There is no deliberation or confusion of selection or variable interpretation when it comes to analysis of trend trading. Trend is either moving up, or it is moving down.

    Sometimes because of our selected chart zoom or periodicity that may make live trading and position management more clear, we are not always fully aware of what the prevailing trend actually is.

    In other words, we are “Missing the Forest for the Trees”

    In addition, the hundreds of TA tools and indicators can also become trees, clouding our views and perception.

    The job of 5NITRO+ is to always present the user with The Forest at any given moment. The Larger Picture.

    5N+ attempts to analyze with multiple modes of action while making use of many technical indications, support & resistance levels, and multiple time frames. In achieving this, it provides the user with a clear and full market bias picture specifically for each chosen time realm and time outlook.

    Whole is Greater Than Sum of Parts
  • 5N+ produces a single aggregate percentage from large amounts of data
  • 5N+ utilizes up to (146) parameters across up to (7) time frames at once
  • 5N+ (28) pair templates are utilizing (196) time frames worth of data
  • 5N+ utilizes multiple modes of action
  • 5N+ reduces the risk of any single technical indication alone causing failure
  • 5N+ reduces the risk in choosing the correct technical indication for any given situation
  • 5N+ reduces the risk in choosing the correct guiding time frame for any given situation
  • 5N+ diminishes the importance or authority of any single technical indication
  • 5N+ in doing so, increases the importance and authority of the compilation   … The Trend
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    Summary of Instructions:        There Are No Instructions

  • Work
  • Learn
  • Avoid FIFO
  • Create variance
  • Diversify entries
  • Diversify exiting
  • Decrease lot sizes
  • Decrease risk susceptibility
  • Increase total lots
  • Increase hold times
  • Increase time frames
  • Increase take profit per
  • Increase instrument pool
  • Create your own advice
  • Create your own trading manual
  • There are no exact rules
  • There are no steps to follow
  • This is not a complete system
  • This is not a complete strategy
  • Sometimes, 5N+ may have a 30% influence on personal decisions
  • Othertimes, 5N+ may have only a 3% influence on personal decisions
  • Do not reverse-engineer entire trading methods around 5NITRO+
  • [1] Organically-engineer trading around ‘Clearing Your Take Profits’
  • [2] Then, add 5NITRO+ for extra Information, Confirmation, Confidence, and Clarity

  • 5NITRO+ Trading Page 1  ( first )
    5NITRO+ Trading Page 2 ( back )


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