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  1. #1
    Veteran Member Ronnel's Avatar

    Ronnel's Trading Wheels !!!

    Konichiwa my fellow traders

    Are you pulling your hair and starting to get bald because you can’t figure out how to draw Support and Resistance manually and effectively? Are you losing sleep because you can’t figure what trend it is? Is your nose bleeding because you can’t understand where the oversold and overbought areas are? Are you starting to get constipated because you keep hearing Price Action but don’t know crap about it? Or maybe you just want to be super sexy like me and trade “NAKED” in the future??? Worry not because I have the right snake oil for you for only $5 and for another extra $5, me love you long time… HAHAHA!!!

    No “me not love you long time” but instead I will share with you something even better which is a strategy, a system, a collection of techniques that I have personally invented (set up), traded with and learned with. Like all strategies, this is not a holy grail and to be honest that if you haven’t done your homework my strategy will bite your dongle. But why I’m sharing this is because I have noticed that there are many who lacks the skill and confidence on drawing S/R and trendiness plus this will guide you how to plot Main S/R and Moving S/R. You will also learn how to detect where the trend is and will also give you an idea of seeing overbought and oversold areas even without indicators. This is the same chart that I teach my student how to take a dip-see before they dive in to naked charting but most of them are still using the same setup for their live trading maybe because they like it a lot or too shy to go naked (maybe have a tattoo of their ex somewhere, HAHAHA!)

    A piece of warning, I don’t spoon feed, I won’t give how I calculate expiry here using my method because that’s another topic. I also won’t spill how I enter trades especially when I’m using Price Action or Candlestick Analysis because again that’s another topic too but you’ll see some of the entries and it’s up to you to study them. These are just the the basics of my strategies but I know that one can learn from it fast and easy.

    I have used my strategy intensively on both paper trading and live trading. I don’t use this anymore but it was one of my strongest or if I may say my best strategy that helped made me shift to fully naked charting. You may be thinking what is this handsome guy saying??? What is fully naked charting??? Fully naked charting is a style of charting where we don’t use any indicator and combine Price Action with Candlestick Analysis with the aid of S/R Lines, trendiness, formation patterns, angles, and all that extra funky sounding crap that goes with it… To make it short, I suck using indicators so I just shifted to naked charting, HAHAHA! And if you want to learn more of how I do naked charting, I suggest that you read and UNDERSTAND!!! the naked charts that I have shared in my diary.

    I have prepared pictures because a photo can speak a thousand word (plus I flunked English 101, lol). My strategy is based on Candlesticks, Ichimoku Kinko Hyo but only using Chikou Span, CCI and one Moving Average. Lots of S/R Lines and Lots of Trendlines. If you want to study Old School Ichimoku Kinko Hyo through me, just honk and I’ll try to find some time. You can also catch me in the Skype Group if you have further questions.

    So let’s oil the snake

    CCI: 21 (CCI rule is to buy at -100 and sell at 100) but if you take it too literally it will bite you!
    Moving Average: period =7, Exponential
    Ichimoku Kinko Hyo’s Chikou Span’s setting: Normal (and do not touch it or you’ll get wrong plotting points!!!)
    Study the yellow boxes and why I placed them there




    Look ma, no hands!
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    Open Navigator. Add CCI 21 and make it Red. Click and drag Moving Average and drop it on the CCI window, make it Dodger Blue with setting of 7 Exponential.


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    Go to Navigator. Insert Ichimoku Kinko Hyo. Go to Colors. Set everything to NONE. Go to Chikou Span and set it to Dodger Blue. Don't change the setting or trendline plotting if doomed!


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    On the right side of you chart find the top most and the bottom most peaks and plot a horizontal line.
    Since we are using an example on hindsight, if you want to see where Chikou Span is pointing all you have to do is count 26 candles before the candle that you are looking at and that point should be where Chikou Span was during that time.


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    Notice the direction of the arrows.
    Last edited by Ronnel; 03-13-2016 at 10:15 AM.

  2. Thanks Lelyz9 thanked this post
  3. #2
    Veteran Member Ronnel's Avatar
    Notice tip of Chikou Span and where it's pointing at. Check CCI. Engulfing candle.
    Same entry point but you have 3 choices where to aim for expiry. Visually decide the amount of force shown by the present candle and aim for your target.
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    The long arrows represents the angle made by Chikou Span. The White Horizontal Trendlines represents the overbought and oversold areas. The Price Tags that I places are good entry areas using Candlestick Analysis or Price Action. Also check the boxes and why I placed them there.
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    The Horizontal Trendlines and the boxes shows Overbought and Oversold areas. These areas are your Moving S/R for that specific time.
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    I removed Chikou Span and changed candlesticks to LINE CHART, then I added a Simple Moving Average with the setting or 7 (you can also use Exponential).
    Notice how Price and Moving Average looks similar to CCI with Moving Average. Notice when the lines crossed
    Actually I have also traded this before both on Paper trading and live trading during my training and it taught me well on how and why CCI and Moving Average reacted that way to Price.
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    Last edited by Ronnel; 03-13-2016 at 09:52 AM.

  4. #3
    Veteran Member Ronnel's Avatar
    We are now comparing Line Chart vs Candlesticks. This will give you a clear comparison why we should not adjust the setting of Chikou Span and just use the default setting. Notice how I plotted the trendlines. The angle made by the trendline is the direction of the trend at that specific area.
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    This is a good example if you guys like plotting Main Support and Resistance using a higher time frame chart. Plotting S/R on a higher time frame chart is said to be stronger than plotting it on a lower time frame chart like M5 or M1. I used the peaks of Chikou Span to plot my Support and Resistance Lines, now these are your main S/R.
    You can use Daily, 4 hrs, 1 hr, whatever... but remember that if you plot on a daily chart and go down to M1 to enter a trade, chances are you may not even see where those Strong Support and Resistance Lines are. You just have to adjust to what best suits your strategy.
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    For me I only use 1 chart for everything and I plot all my lines and do my analysis on that same chart. Sometimes I don't even plot lines at all but that is because I constantly shift from one naked strategy to another but that again is for another topic...




    This is my main chart but if you compare the white lines that I have plotted and compare it to the Trading Wheels Strategy, the concept is all basically the same but just got a lot more simple. I'm not against indicators in anyway but sometime we do put lots of indicators on our charts that we could barely see Price and this could clog up our trading judgement. Then we plot S/R and trendlines over that garbage chart and we get garbage results. I urge you to learn how to properly plot S/R and Trendlines because you will be using those areas to trade for bounces, reversals or continuation. Add the stuffs, skills and concepts that you have learned here to your favorite strategy and maybe you'll see some improvement. Treat this like bicycle trading wheels and remove it when you can ride on two.
    Happy Trading!
    Attached Thumbnails Attached Thumbnails 10.jpg
    Last edited by Ronnel; 03-13-2016 at 09:47 AM.

  5. #4
    Veteran Member Ronnel's Avatar
    I'm having major problems trying to post this because the attachment I added last night went haywire and could not be properly displayed. I'll try to do some editing and see if I can get this fixed...
    Last edited by Ronnel; 03-13-2016 at 09:49 AM.

  6. #5
    Active Member denfion's Avatar
    Thank you Ronnel for your very detailed explanation. I will be studying your trading wheel for now to improve my weakness !

  7. #6
    Active Member denfion's Avatar
    The trading wheel is a very good way for any newbie to understand the importance of Support and Resistant. As a super newbie like myself, there are many times that when you open up the chart, trying to figure out the strong S/R, but you just can't! There are many areas that were having good price retracements but you just don't know where it should be putting at. There are also many times that several Supports or Resistant lines are very close to each other, and when you trade live, there is no way you can tell which line will be used by buyer/seller to reject the price, and the indicators cannot tell you the answer too.

    In my opinion, by learning the basic and techniques from the "Trading Wheels", you will learn and gain the ability to plot the S/R without hassle. Chikou Span is such a perfect tool for the newbie to find the peak and the bottom without being confused by all the candles and their wicks, so you don't need to ask yourself, should I plot the line on the body, or the wicks, or in between. Let the Chikou Span help you.

    For CCI, although I'm not fully understand why Ronnel picked this rather than other indicators such as RSI and Stoch, but I will research the concept of the CCI, and I'm sure when I know the concept, I will then understand why. Same as other indicators that being used by other people. Study them and find the differences.

    I will be updating my diary when I have time so show how I'm getting along with the concept of the Trading Wheels, how to apply it in live trade, why I win and lose. At the same time I will be studying the stories behind the indicators and share with others so that you can get a better understanding of them.

    In the mean time for the rest of us, lets practice with the concept and use it with your trading. And you will find out that the concept can be applied for all trading styles, both short term and long term.

  8. #7
    Senior Member Lelyz9's Avatar
    R Sensei, is there Ronnel's Training Wheels? Or is it the same one with this thread?

  9. #8
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by denfion View Post
    The trading wheel is a very good way for any newbie to understand the importance of Support and Resistant. As a super newbie like myself, there are many times that when you open up the chart, trying to figure out the strong S/R, but you just can't! There are many areas that were having good price retracements but you just don't know where it should be putting at. There are also many times that several Supports or Resistant lines are very close to each other, and when you trade live, there is no way you can tell which line will be used by buyer/seller to reject the price, and the indicators cannot tell you the answer too.

    In my opinion, by learning the basic and techniques from the "Trading Wheels", you will learn and gain the ability to plot the S/R without hassle. Chikou Span is such a perfect tool for the newbie to find the peak and the bottom without being confused by all the candles and their wicks, so you don't need to ask yourself, should I plot the line on the body, or the wicks, or in between. Let the Chikou Span help you.

    For CCI, although I'm not fully understand why Ronnel picked this rather than other indicators such as RSI and Stoch, but I will research the concept of the CCI, and I'm sure when I know the concept, I will then understand why. Same as other indicators that being used by other people. Study them and find the differences.

    I will be updating my diary when I have time so show how I'm getting along with the concept of the Trading Wheels, how to apply it in live trade, why I win and lose. At the same time I will be studying the stories behind the indicators and share with others so that you can get a better understanding of them.

    In the mean time for the rest of us, lets practice with the concept and use it with your trading. And you will find out that the concept can be applied for all trading styles, both short term and long term.

    Actually this is not really for newbies but intended for intermediate and higher but if a newbie learns this, then he gains the extra edge that can boost his charting skills and skip the extra hair pulling and stop looking dumb especially to the eyes of the more experience traders who have strong foundation.

    About your question on CCI, I chose it because it's easier to the eyes and moves like a cheap B-movie actor who over acts the role (I looooove cheesy B-movies!!!). The movements are huge and peaks can be easily detected. You don't have to be a rocket scientist to see where the peaks are located. RSI can be compared to a veteran actor with more finesse. And Stochastic is like a muscle man action star who wields two M60 machine gun (when combined with MA) and talks like Rambo... CCI, RSI and Stochastic are very good indicators. I've tried switching and testing them using different students and I noticed that CCI does the job very well especially for newbies since only a dummy will not be able to see the peaks it has made.

    Remember that Trading Wheels is focused and intended to strengthen a chartist's trading foundation and not some kind of funky strategy. Yes this can be a very strong strategy too, but try giving a good strategy to a dumb trader who lacks the basics and I'm sure that he'll mess up. The problem most traders face is that many lacks the educational foundation they really need for trading. Strategies are everywhere, some good and really bad but to be honest, give me a really shitty strategy and I'm sure that I can make it work and the reason behind that is because I will easily detect the BS and and will not follow it blindly (strong educational foundation...).

    I hope that you will learn and master the concepts Trading Wheels is trying to teach you. Once you are done with it, ditch the training wheels and ride your trading bicycle on two

    Here are two screenshots that probably can answer your question...

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    I forgot to change the description Line to Candlesticks with Moving Average...
    Last edited by Ronnel; 03-22-2016 at 01:40 PM.
    Duct Tape can't fix OTM

  10. #9
    Legendry Member Okane's Avatar
    Trading wheels... You shouldn't be trading while riding a motorcycle Ronnel. lol.
    Live Webinar: Hidden Content
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  11. #10
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by Lelyz9 View Post
    R Sensei, is there Ronnel's Training Wheels? Or is it the same one with this thread?

    Training Wheels and Ronnel's Training wheels are basically the same.... Ronnel's Training Wheels is the original tutorial mini-book that I pass to my students. I'm just sharing a diluted version here because the next is for traditional candlesticks analysis, the next is for for purely naked charting, the next is for advance trendlines and moving S/R, the next is for patterns, ZigZag, trend detection, plotting for future targets and exits, the next is how to trade them, and the last is how to put them all together and how to actually apply it in trading...

    Who is R Sensei??? I don't remember that I had a nick name
    Last edited by Ronnel; 03-23-2016 at 02:32 PM.
    Duct Tape can't fix OTM

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