Bringing It All Together With Anchors

7/29/2019 Bringing It All Together With Anchors

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BringingItAllTogetherWithAnchorsJohnF.Carter,TradeTheMarkets.com

1. EverythingIveevertalkedaboutcanbeamplifiedwiththeuseofanchorcharts.

2. ThisworksbestwiththeTTMTrendandalsowiththeTTMSqueeze.

3. Itsallaboututilizingmultipletimeframestostayonthepathofleastresistance.

4. Thismeansasignalthattellsyoutopassontradesetupswithalowerprobabilityofworking.

5. Letstakealook...1www.tradethemarkets.com


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2 www.tradethemarkets.com


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TTMTrend HowItWorks


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QuickRecaponTTMTrend SuperiortoSingleBar analysis. Refersbacktotheprior6barstocollect

extendeddataonorderflow.

Bluebarsindicatesustainedbuyingpressure,indicatingthattheaverageclosingpriceoftheprior6barsisintheupper50%ofthetradingrange. (Sellingpressure=lower50%)

Redbarsindicatesustainedsellingpressure.4www.tradethemarkets.com


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8/21EMACROSSBASICS


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QuickRecapon8/21EMACross Describedindetailinmybookasthe

PropulsionPlay. Greatwaytogainasolidentryintoa

downtrendingor

uptrending

market.

Enteronretracementstothe8EMA. Getjustinfrontofit. 21EMAMakesagoodtrailingstop. Workswellwiththesqueezeplay.

6www.tradethemarkets.com


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RecaponPropulsionPlayIndicator BlueandRedBarsareNOTbasedontheTTM

Trend.

BlueBars=8/21EMAarecrossedhigher.

RedBars=8/21EMAarecrossedlower. GREENDOTisfirstretracementtothe8EMA

afteracrossandrepresentsanENTRYPOINT. MAGENTADOTSrepresentatrailing21EMA

stoploss.8www.tradethemarkets.com


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ANCHORS

Letstakealookathowtofilteroutthetradesthathavealessthan50%chanceofworkingoutinyourfavor.

First,letslookatthekeytimeframesIuse,startingwithpositiontradesallthewaydowntoscalping.

NOTETHETRENDoneachtimeframe!9www.tradethemarkets.com


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HowToPlayThis?1. Anchorchartsarethekey usingahigher

timeframe(orevenmultiplehighertimeframes)topickandchoosewhichentriestotakeonthesmallertimeframe.

2. Keyiswhichonestofocuson whichanchorstouseforwhichtradingcharts.

3. Alsoyouwanttomakeiteasytofollow. HereisthewayIusedtodoit.21www.tradethemarkets.com


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HowToPlayThis?1. Asanexample,usingthemonthlychartasan

anchorfora5minutechartisreallyawaste.Youcouldgomonths,evenayear,withoutgettingasignalona5minutechartthatisreferenceamonthlychartasananchor.

2. Amonthlychartisagoodanchorforaweeklyor

even

a

daily

chart,

but

nothing

below

that.



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HowToPlayThis?1. TheseriesofchartsIvegivenyouarethebest

nextstep

up for

anchor

charts.

That

is,

for

a

5

minutechart,a15minutemakesagoodanchor,etc.

2. YoucanFILTERTHISEVENFURTHERbyusingmultiplelevelsoftheseanchorcharts.

3. Forexample,withthe60minutechart,insteadofjustusingthe120 addthe240andthedailyand

even

the

weekly

if

you

want.4. Morereferencesequalsfewersignals but

strongerones.23www.tradethemarkets.com


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AnchorCharts:Weekly,Daily,240min, and120minWaitingforalignmentinthese4totakesignalsonthe60minute


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Forthebestsignalsonthe60minutechart,waituntiltheTTMTrendonTheother4chartsareallthesamecolor(letssayBLUE). ThenwhenThe

60

turns

blue

IN

ALIGNMENT

WITH

THE

OTHER

FOUR

CHARTS,Younowhaveaveryhighprobabilitybuysignalonthe60minchart.


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Tellthe60MinuteChartToReferBacktoUpto5AnchorCharts


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MiddleChart:Blueisinalignment withanchorchartsGreyBarsareoutofalignment withanchorcharts.

Besttradesareinalignment withanchorcharts(blue)Ifanchorsarered,thenthetradingchartwillhavered/greyinsteadofblue/grey


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JusttoMakeSureWeUnderstand1. Greymeansyourtradingchartisnotin

alignmentwithyouranchorcharts.2. Ifthebarsaregray,itmeansitsprobablya

goodideatopassonanewentrysignal.3. ButturningtogreyisnotnecessarilyanEXIT

SIGNAL youcanstillmanageyourtrade.4. Forexample,ifitturnsgray,andyouareina

trade,useatrendlineormovingaverageasatrailingstop.



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WhenthebarsturngreyitdoesntnecessarilymeanclosealongButIdoconsideritasignaltoNOTENTERANEWSHORT.Usingatrendlineormovingaverageisfinetomanagetothetrade.


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JusttoMakeSureWeUnderstand1. Themainpurposeoftheanchorchartisto

FILTERpotentiallybadsignals.2. Thismeansweenduptakingfewertrades,

buttheoneswedotakeareinthedirectionofabiggertrend.



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YoucanuseTTMTrendAnchortoFilterSqueezesoranyothersignals.Thisisaregular144TickchartwithNOANCHORattached.


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Dailychartwithmonthlyasanchor


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144Tickchartwith60minasanchor


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60minchartwithdailyasanchor


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JusttoMakeSureWeUnderstand1. Youcanusemanypossiblecombinations.2. 5minutetradingchartwitha60minanchor.3. 144ticktradingchartwitha5minanchor.4. 144ticktradingchartwitha5and60minanchor.5. Dailychartwithaweeklyandmonthly

anchor.6. Hundredsofpossiblecombinations.



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JusttoMakeSureWeUnderstand1. Butwhenitcomesdowntoit,simplerreally

isbetter.2. A60minuteanchorindaytradingwillkeep

youontherightsideoftheorderflow.3. Ifyouarescalping,itsoktousea144tick

witha5minuteanchor buttrymixingina60minutechartaswelltotrythesignals.



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TheseAll

Work

Well

1. 144TickandBelow:5minutechart2. 512tick:5and15minutechart.3. 5minutechart:60minutechart4. 15minutechart:60&120minutechart5. 60minutechart:120&240andtryDailytoo.6. Togetlessfrequentbutstrongsignals,addmore

anchors.

7. Example:144tickreferencebackto5min,10min,15min,30minand60min. NOTASMANYSIGNALSbuttheonesyougetwillbesolid.

8. Thisisanexerciseinbeingpatient.39www.tradethemarkets.com


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TheseAll

Work

Well

1. Currencies(FuturesandForex).2. Marketsthatactivelytrade24hoursreally

respondwelltohavingthe60,120and240minutechartsasanchors.

3. Youdontneedalloftheseformarketsthatdontactivelytrade24hours.

4. Forexample,stockindexestrade24hours,buttheyarentACTIVEovernight.



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Justto

Make

Sure

We

Understand

1. AlthoughyoucanTRADEoffatickchart,youcannotuseatickchartasananchor.

2. Allanchorsmustbeintervalcharts.3. Allchartswithinyouranchor,includingthe

tradingchart,mustreferencethesameamountoftimeback.

4. Itdoesntmatterwhatitis,aslongasitsconsistentacrossallcharts.


If you select 120 days back on one chart make sure it says that on all


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Ifyouselect 120daysback ononechart,makesureitsaysthatonallChartswithinthatanchorgrouping.


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Times1. AlthoughyoucanTRADEoffatickchart,you

cannotuseatickchartasananchor.2. Allanchorsmustbeintervalcharts.3. Allchartswithinyouranchor,includingthe

tradingchart,mustreferencethesameamountoftimeback.

4. Itdoesntmatterwhatitis,aslongasitsconsistentacrossallcharts.43www.tradethemarkets.com


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TTMSqueeze

Anchor

1. EverythingIjusttalkedaboutinregardstotheTTMTrendAnchorappliesthesametotheTTMSqueezeAnchor.

2. Letstakealook...



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TTMSqueeze

Anchor

1. TheSqueezeAnchorissetupexactlyliketheTrendAnchor.2. Whatsreferencedisthehistogram.

3. Example:Dailychartisyouranchor,5minutechartisyourtradingchart.

4. Ifthesqueezehistogramonthedailychartisblue,thenanyredhistogramsonthe5minutechartwillgreyout becausetheyarentinalignmentwiththedailyhistogram.



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FirstsetuptheTTMSqueezeAnchoronboth


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p q

Thedailychartand5minutechart.


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Next,onthe5minuteChart,goinandformatTheTTMSqueezeAnchorSothatitisreferencingBacktotheDailyChart.Yes,youcanreferenceMoretimeframesifyouWish,upto5total.Remember,youcantReferencebacktotickChartsbutyouCANTradeoffthemandhaveThemreferenceintervals.Finally,remembertosetAllofyourchartsinthisanchorchain totheSame#ofdaysback.


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The Difference Between TTM Squeeze


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TheDifferenceBetweenTTMSqueezeandTTMSqueezeAnchor?

1. TheTTMSqueezeAnchorandtheTTMTrendAnchorAREthesamethingastheTTMSqueezeandtheTTMTrend.

2. Thatis,youcanplacetheanchor versionsonachartbythemselveswithnoinputs,andtheywillactlikeanormalTrendorSqueeze.

3. Then,ifyouDOwanttoreferenceanchorcharts,theseindicatorshavetheaddedabilitytodothatviatheirmultitimeframeinputs.


Uselimitorders!


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Limitorders=plannedouttradesMarketorders=impulsetrades


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BookreleasedJanuary,2006


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Bringing It All Together With Anchors