Bringing It All Together With Anchors

BringingItAllTogetherWithAnchors JohnF.Carter,TradeTheMarkets.
com
1. EverythingIveevertalkedaboutcanbe amplifiedwiththeuseofanchorcharts. 2. ThisworksbestwiththeTTMTrendandalso withtheTTMSqueeze. 3. Itsallaboututilizingmultipletimeframesto stayonthepathofleastresistance. 4. Thismeansasignalthattellsyoutopasson tradesetupswithalowerprobabilityof working. 5. Letstakealook...
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TTMTrend HowItWorks
QuickRecaponTTMTrend
SuperiortoSingleBar analysis. Refersbacktotheprior6barstocollect extendeddataonorderflow. Bluebarsindicatesustainedbuyingpressure, indicatingthattheaverageclosingpriceofthe prior6barsisintheupper50%ofthetrading range.(Sellingpressure=lower50%) Redbarsindicatesustainedsellingpressure.
8/21EMACROSSBASICS
QuickRecapon8/21EMACross
Describedindetailinmybookasthe PropulsionPlay. Greatwaytogainasolidentryintoa downtrendingoruptrendingmarket. Enteronretracementstothe8EMA. Getjustinfrontofit. 21EMAMakesagoodtrailingstop. Workswellwiththesqueezeplay.
RecaponPropulsionPlayIndicator
BlueandRedBarsareNOTbasedontheTTM Trend. BlueBars=8/21EMAarecrossedhigher. RedBars=8/21EMAarecrossedlower. GREENDOTisfirstretracementtothe8EMA afteracrossandrepresentsanENTRYPOINT. MAGENTADOTSrepresentatrailing21EMA stoploss.
ANCHORS
Letstakealookathowtofilteroutthetrades thathavealessthan50%chanceofworking outinyourfavor. First,letslookatthekeytimeframesIuse, startingwithpositiontradesallthewaydown toscalping. NOTETHETRENDoneachtimeframe!
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HowToPlayThis?
1. Anchorchartsarethekey usingahigher timeframe(orevenmultiplehighertime frames)topickandchoosewhichentriesto takeonthesmallertimeframe. 2. Keyiswhichonestofocuson whichanchors touseforwhichtradingcharts. 3. Alsoyouwanttomakeiteasytofollow.Here isthewayIusedtodoit.
HowToPlayThis?
1. Asanexample,usingthemonthlychartasan anchorfora5minutechartisreallyawaste. Youcouldgomonths,evenayear,without gettingasignalona5minutechartthatis referenceamonthlychartasananchor. 2. Amonthlychartisagoodanchorforaweekly orevenadailychart,butnothingbelowthat.
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HowToPlayThis?
1. TheseriesofchartsIvegivenyouarethebest nextstepup foranchorcharts.Thatis,fora5 minutechart,a15minutemakesagoodanchor, etc. 2. YoucanFILTERTHISEVENFURTHERbyusing multiplelevelsoftheseanchorcharts. 3. Forexample,withthe60minutechart,insteadof justusingthe120 addthe240andthedaily andeventheweeklyifyouwant. 4. Morereferencesequalsfewersignals but strongerones.
AnchorCharts:Weekly,Daily,240min,and120min Waitingforalignmentinthese4totakesignalsonthe60minute
Forthebestsignalsonthe60minutechart,waituntiltheTTMTrendon Theother4chartsareallthesamecolor(letssayBLUE).Thenwhen The60turnsblueINALIGNMENTWITHTHEOTHERFOURCHARTS, Younowhaveaveryhighprobabilitybuysignalonthe60minchart.
Tellthe60MinuteChartToReferBacktoUpto5AnchorCharts
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MiddleChart:Blueisinalignment withanchorcharts GreyBarsareoutofalignment withanchorcharts. Besttradesareinalignment withanchorcharts(blue) Ifanchorsarered,thenthetradingchartwillhavered/greyinsteadofblue/grey
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JusttoMakeSureWeUnderstand
1. Greymeansyourtradingchartisnotin alignmentwithyouranchorcharts. 2. Ifthebarsaregray,itmeansitsprobablya goodideatopassonanewentrysignal. 3. ButturningtogreyisnotnecessarilyanEXIT SIGNAL youcanstillmanageyourtrade. 4. Forexample,ifitturnsgray,andyouareina trade,useatrendlineormovingaverageasa trailingstop.
Whenthebarsturngreyitdoesntnecessarilymeanclosealong ButIdoconsideritasignaltoNOTENTERANEWSHORT. Usingatrendlineormovingaverageisfinetomanagetothetrade.
1. Themainpurposeoftheanchorchartisto FILTERpotentiallybadsignals. 2. Thismeansweenduptakingfewertrades, buttheoneswedotakeareinthedirection ofabiggertrend.
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YoucanuseTTMTrendAnchortoFilterSqueezesoranyothersignals. Thisisaregular144TickchartwithNOANCHORattached.
Dailychartwithmonthlyasanchor
144Tickchartwith60minasanchor
60minchartwithdailyasanchor
Youcanusemanypossiblecombinations. 5minutetradingchartwitha60minanchor. 144ticktradingchartwitha5minanchor. 144ticktradingchartwitha5and60min anchor. 5. Dailychartwithaweeklyandmonthly anchor. 6. Hundredsofpossiblecombinations.
1. 2. 3. 4.
1. Butwhenitcomesdowntoit,simplerreally isbetter. 2. A60minuteanchorindaytradingwillkeep youontherightsideoftheorderflow. 3. Ifyouarescalping,itsoktousea144tick witha5minuteanchor buttrymixingina 60minutechartaswelltotrythesignals.
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TheseAllWorkWell
1. 2. 3. 4. 5. 6. 144TickandBelow:5minutechart 512tick:5and15minutechart. 5minutechart:60minutechart 15minutechart:60&120minutechart 60minutechart:120&240andtryDailytoo. Togetlessfrequentbutstrongsignals,addmore anchors. 7. Example:144tickreferencebackto5min,10min,15 min,30minand60min.NOTASMANYSIGNALSbut theonesyougetwillbesolid. 8. Thisisanexerciseinbeingpatient.
TheseAllWorkWell
1. Currencies(FuturesandForex). 2. Marketsthatactivelytrade24hoursreally respondwelltohavingthe60,120and240 minutechartsasanchors. 3. Youdontneedalloftheseformarketsthat dontactivelytrade24hours. 4. Forexample,stockindexestrade24hours, buttheyarentACTIVEovernight.
1. AlthoughyoucanTRADEoffatickchart,you cannotuseatickchartasananchor. 2. Allanchorsmustbeintervalcharts. 3. Allchartswithinyouranchor,includingthe tradingchart,mustreferencethesame amountoftimeback. 4. Itdoesntmatterwhatitis,aslongasits consistentacrossallcharts.
Ifyouselect120daysback ononechart,makesureitsaysthatonall Chartswithinthatanchorgrouping.
Times
1. AlthoughyoucanTRADEoffatickchart,you cannotuseatickchartasananchor. 2. Allanchorsmustbeintervalcharts. 3. Allchartswithinyouranchor,includingthe tradingchart,mustreferencethesame amountoftimeback. 4. Itdoesntmatterwhatitis,aslongasits consistentacrossallcharts.
TTMSqueezeAnchor
1. EverythingIjusttalkedaboutinregardsto theTTMTrendAnchorappliesthesameto theTTMSqueezeAnchor. 2. Letstakealook...
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TTMSqueezeAnchor
1. TheSqueezeAnchorissetupexactlylikethe TrendAnchor. 2. Whatsreferencedisthehistogram. 3. Example:Dailychartisyouranchor,5minute chartisyourtradingchart. 4. Ifthesqueezehistogramonthedailychartis blue,thenanyredhistogramsonthe5 minutechartwillgreyout becausethey arentinalignmentwiththedailyhistogram.
FirstsetuptheTTMSqueezeAnchoronboth Thedailychartand5minutechart.
Next,onthe5minute Chart,goinandformat TheTTMSqueezeAnchor Sothatitisreferencing BacktotheDailyChart. Yes,youcanreference Moretimeframesifyou Wish,upto5total. Remember,youcant Referencebacktotick ChartsbutyouCAN Tradeoffthemandhave Themreferenceintervals. Finally,remembertoset Allofyourchartsinthis anchorchain tothe Same#ofdaysback.
TheDifferenceBetweenTTMSqueeze andTTMSqueezeAnchor?
1. TheTTMSqueezeAnchorandtheTTMTrend AnchorAREthesamethingastheTTMSqueeze andtheTTMTrend. 2. Thatis,youcanplacetheanchor versionsona chartbythemselveswithnoinputs,andthey willactlikeanormalTrendorSqueeze. 3. Then,ifyouDOwanttoreferenceanchor charts,theseindicatorshavetheaddedability todothatviatheirmultitimeframeinputs.
Uselimitorders! Limitorders=plannedouttrades Marketorders=impulsetrades
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BookreleasedJanuary,2006
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Bringing It All Together With Anchors

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BringingItAllTogetherWithAnchors JohnF.Carter,TradeTheMarkets.

Forthebestsignalsonthe60minutechart,waituntiltheTTMTrendon Theother4chartsareallthesamecolor(letssayBLUE).Thenwhen The60turnsblueINALIGNMENTWITHTHEOTHERFOURCHARTS, Younowhaveaveryhighprobabilitybuysignalonthe60minchart.

MiddleChart:Blueisinalignment withanchorcharts GreyBarsareoutofalignment withanchorcharts. Besttradesareinalignment withanchorcharts(blue) Ifanchorsarered,thenthetradingchartwillhavered/greyinsteadofblue/grey

Whenthebarsturngreyitdoesntnecessarilymeanclosealong ButIdoconsideritasignaltoNOTENTERANEWSHORT. Usingatrendlineormovingaverageisfinetomanagetothetrade.

Ifyouselect120daysback ononechart,makesureitsaysthatonall Chartswithinthatanchorgrouping.

Uselimitorders! Limitorders=plannedouttrades Marketorders=impulsetrades

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