week27 triggerpoint channel theory on earlier entries ( USDJPY case studies)

I did not have a position on this but i was thinking about the 5 rules on triggerpoint system.

Channel
123 breakout
MACD color change
MA crossover
MACD price divergence

5 criteria, which one is most important to me personally?

1. Channel – skeleton and structure of trade
2. MACD price divergence, tells me when price is about to turn.
as for MA crossover and MACD color change , it is not so impt in my context
finally 123 breakout is to ensure price moveability.

However in my context of trading knowledge, I am now working on an even earlier entry as I have some decent knowledge of SAR using key levels n fibs. Hence i believe i can adapt these triggerpoint criteria to my existing levels to create a modified entry point

From this USDJPY m15 chart, I might have come up with the first prototype of a modified ED entry.

The criteria of this trade was ;
1. strong overhead resistance on the h4
a) pure practitioner of triggerpoint sysem would have longed on this. but terraseeds students would have taken heed of the 3 weeks low resistance.

2. Clue no.2 suggests on h4 this downslope channel does not show price divergence yet and hence may not be ready for a reversal.

3. taking the heed of resistance above, i therefore look at this as a small bear flag instead, turning my bias to short.

However in recent weeks, I feel what has been groundbreaking for my trading style will be using channels as the veto trigger, instead of LTF 1234, which has not worked well for me in the past.

To be specfic, my Lower time frame triggers now are:

1. ED Channel – NOT trendlines alone.
2. Price/ MACD divergence

All trade bias are of course supported by
-big picture analysis , knowing if I am playing for trend trades or counter trend
-h4 boxes setup,
-fractal patterns play eg. channel within channel ,
-or shoulder within shoulder. etc.

The breakthrough however, is adding that exact n definite trigger to my trades, which is a key difference.

Even for limit trades, it has become more structured now with the use of
” Buy High Sell higher” strategy.

Chart on USDJPY m15

week27 USDJPY m15 theory on earlier channel entry 020714

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