The FSS Dashboard
This indicator is a tool to make your trading life easier and to enable you to make quicker and more informed trading decisions. It sits unobtrusively on the top right of your main chart and forms part of your trading toolbox.The FSS Dashboard will save you a lot of time and effort trying to calculate things in your head, by showing various calculations live on the screen.
It is designed for the FSS method on the 15 min. chart. I use the whole dashboard on the 15 min. chart and parts of it on other timeframes as explained in the book.
The FSS Dashboard is an invaluable tool in my trading. It comes with full instructions.
The first part of the dashboard reminds you of the currency pair you’re looking at. (See figure above). Right beneath that is an ADR calculator. This ADR calculator contains (from the top downwards):
• TD. Today’s Range. The background colour for this is normally yellow but changes to blue when the pair has reached a range of 35 pips for the day. If you check back to the Asian Session in chapter 3 I wrote, “The width of the channel must exceed 35 pips in order to begin trading that morning. This is designed to prevent you from trading in a choppy market.” With this tool you can see at a glance if you have a blue light to begin trading.
• YD. Yesterday’s Range. If YD is large often today’s range will be a lot smaller and conversely if you’ve had a couple of days of low ranges it’s possible a large range is coming.
• WADR. Weekly Average Daily Range. This is calculated over 5 days. It is absolutely essential you compare TD with the WADR and MADR. I’ve covered this before and mentioned it in my trade examples. The Room Up/Room Down calculation shows how we get an instant calculation of this comparison.
• MADR. Monthly Average Daily Range. This is calculated over 20 days. If you compare the WADR to the MADR you can tell whether the ranges are contracting or expanding. Contracting ranges will eventually burst out and expanding ranges will eventually become less volatile.
• Room Up/Room Down. This tells us how far Today’ Range (TD) has to go to get to the ADR. The ADR calculation I use is the average of the WADR (Weekly/5 days ADR) and the MADR (Monthly/20 days ADR). If the pair is in an uptrend today the Room Up figure will decrease until it gets to zero meaning TD = ADR. If TD exceeds the ADR long then the Room Up figure will be negative. It will turn red and sound an alarm. Conversely, if we are in a downtrend today the Room Down figure will decrease until it gets to zero meaning TD = ADR. If TD exceeds the ADR short then the Room Down figure will be negative. It will turn red and sound an alarm. When using the FSS method if Today’s Range is within 20 pips of the ADR, then it is unwise to trade in that direction. In other words if Room Up is less than 20 you would not take another trade long and if you were already in a long trade you would perhaps take partial profits. If Room Down is less than 20 you would not take another trade short and if you were already in a short trade you would perhaps take partial profits.
The next part of the dashboard concerns the 20 and 240 SMAs.
• P20MA. This tells us at a glance how far away price action is from the 20 sma. With the FSS method we trade only long when price is above the 20 sma and only short when price is below the 20 sma. We trade away from the20 SMA. If the P20MA is blue price is above the 20 sma and if the P20MA is red then price is below the 20 sma. In the example above it can be seen that the price action is 4 pips above the 20 sma. If you remember from chapter 11, (Countertrend trades (CTT) can be taken, that is trades where the price action is in excess of 35 pips from the 20 SMA and you trade towards the 20 SMA). Get some experience and test before you try this.
Counter-trend trades work better when divergence is present. So if you are to take a CTT then the P20MA must exceed 35.
• P240MA. This tells us at a glance how far away price action is from the 240 sma. If the P240MA is blue then price is above the 240 sma and if the P240MA is red then price is below the 240 sma. In the example above it can be seen that the price action is 26 pips below the 240 sma. Since price is 4 pips above the 20 sma then it is between both smas at this time. When both Indys are red price is below both smas and when the Indys are both blue price is above both smas. It is best when they are both the same colour and trade in that direction.
The next part of the dashboard concerns the Fractal Swing Highs and Swing Lows.
• LS. This tells us at a glance the length of the last (previous) swing. In the figure above the last swing was 34 pips. This is in the average range of swings between 30-60 pips. The LS is blue which tells us the last swing was up from Swing Low to Swing High.
• PSL. This tells us at a glance the number of pips to the last Swing Low. If the figure is blue then price is above the last Swing Low and if red then the price is below the last Swing Low. In figure aboveit shows price is 18 pips above the Swing Low.
• PSH. This tells us at a glance the number of pips to the last Swing High. If the figure is blue then price is above the last Swing High and if red then the price is below the last Swing High. Above it shows price is 16 pips below the Swing High. The yellow asterix tells us the last swing was a Swing High. It can be seen then that price has fallen 16 pips from a Swing High. Since the average size of swings is 30-60 pips in normal trading hours this swing could have a way to go yet. This is useful information at a glance. Looking at this we can glean price has fallen from the Swing High by 16 pips and is 18 pips from (above) the last Swing Low.