Please read all before attempting or asking questions. You will be blessed for reading this post.
Hey everyone. I have figured these stuff out. This whole forex theory we've all been spending so much time on. Before I start, I want to introduce myself. I am a very young graduate student from Toronto, Canada. Born in Africa. Now in Eastern NY. You won't expect someone like me to come up with this amazing strategy. Well, I didnt. I used ideas of other to formulate this system which has proven to be 90-95% accurate if traded correctly.
Before we move on, I want to make some crucial points.
I trade the longer time frames. Specifically the 4h TF and Daily. I believe that these 2 time frames are the best of all time frames because you can catch majority of movements in a trend without having to be at your computer all day. The weekly is good as well but there are certain days where people should not trade a certain direction or trend simply because of lack of volume. What I have come to discover is this. Recently, E/U and G/U have been on a downtrend for weeks and months but we still have to join it trade on the right day to maximize our profits. This whole month for example. The bulls have dominated Sunday, monday and Tuesdays during this downtrend period. Recently, It's been the bears market when it comes to trading the E/U and G/U. But if you observe, you'll see that sunday to tuesdays have been dominated by the opponent (Bulls). This is not entirely true but true enough to keep me out of taking a long term position on those days. So I've come realize that the bears usually take over starting wednesday - thursday night or friday mornings. Hence, I take my positions from the appropriate times on wednesdays till thursday nights or friday mornings. I end up making 200 pips or more some weeks on the G/U or E/U.
Now to the point:
I use the Slope direction line indicator. set one at 80,3 and the other at 14,3. Secondly, use RSI 14 and set level at 50.
Lastly, which is the heart of it all, use the Average Directional movement Index (ADX) indicator. (Please make sure you understand how to use this indicator. Set it to 14 periods and level at 25.
Work with all TF and currencies.
But best with E/U and GU. I strongly suggest these 2 currencies because they are stable.
4hr TF examples of Trade:
Rules: Long position
1. Look on daily to see trend. If slope line (12) blue and has crossed 80 (blue) means trend is up. "(I use Red and blue colors)".
2. Now we look on the 4hr time frame and wait till 12 (blue) has crossed 80 (blue) going upward.
3. Now we look at ADX and make sure it is moving upward above the 20 level line.
4. Lastly, we look at RSI and make sure it's above the 50 level line.
Then we take our position.
Short: Vice Versa but i'll explain again for all those right brain dominant individuals who are bad with instructions.
1. Look on daily to see trend. If slope line (12) red and has crossed 80 (red) means trend is up.
2. Now we look on the 4hr time frame and wait till 12 (red) has crossed 80 (red) going upward.
3. Now we look at ADX and make sure it is moving upward above the 20 level line.
4. Lastly, we look at RSI and make sure it's below the 50 level line.
Then we take our position.
Aim for 100 pips at a time or you can go for a straight 200 pips on each of those 2 currency pairs i named above (EU, GU) (Wed. - FRI) why? because Volume is at its height on those days before diminishing on midday friday.
I use the Vegas 4hr Funnel chart and/or his Daily Fibonacci Chart as Support and resistance. I use it as my TP. So please use it for my accuracy. Another alternative is to use the "center of gravity indicator".
hint: the ADX lets us know how far the swing has moved. If ADX is almost at it's "ceiling" or above 50-60, and start coming down, means the market is in ranging motion. Which means we should not trade a TF if ADX is going down. If you look at the shorter time frames though, you will see some going up on the ADX. You can trade those time frames by confirming with next higher TF but i dont recommend trading less than the 1hr TF. I personally think the 4hr is the best alongside with the Daily. But please learn to use the ADX!! backtest and demo to see how to really read the ADX indicator.
Personally, I've come to realize that the short time frames should be used for precise entry of positions not to trade. We should always trade longer TF because it's easier. Minimize your lots sizes to be able to trade 4hr or daily TFs.
Consequently, whenever our criteria's are met in our strategy, we should take our position a TF below. So i usually wait to take my position on the 1 hr TF after everything has set up on the 4hr and Daily. The reason is because, sometimes my strategy would all be ready for me on the 4hr but when I look at the 1hr, I see it in it's ranging motion which means if I take a position, i'll probable have the trade against me for a bit before going my way. So if you want to minimize your SL and have a the most precise entry, I suggest you keep going down on TFs to see if everything has set up as how u want it. Even till the 1Min TF. Thats alot of time tho. I just take my positions on the 1hr or at most the 30 min TF. However, I trade my position based on the 4hr.
One last statement. I repeat! Trade from Wed. until friday morning or Thursday night if u want to avoid the last news release of the week which during the London open and U.S. open.
Here are the links to the indicators which are not already in your platform. I know that MT4 already has ADX and RSI built in it.
http://www.forexfactory.com/showthread.php?t=43303 - Center of gravity
http://www.forexfactory.com/showthre...t=4113&page=32 vegas daily or 4h
http://www.forexfactory.com/showthread.php?t=18692 - Slope direction Line indicator.
Sorry I couldnt attach all the indicators. Very very busy. Grad School and Work and trading. W-F.
All things are possible. I have been learning forex for less than a year and I feel like a pro already. I know it takes people many, many years but I had the time months ago as a young student with no responsibilities to study, study, study. 5 hour a day. I went insane. But it's all worth it.
One last thing. ALWAYS TRADE WITH THE TREND. THEY GOT YOUR BACK!
If you use MM and trade this system right, the only flaw that I can think of is having to face a trend reversal. (ie. the last trend reversal was in December of 2009).
So please experts. Teach me how to detect trend reversals.
If you can help improve this 90%+ system, let me know. Hopefully we can aim to make it 98% or even 99%. However, we will never make it to "Holy Grail" status at a 100% accuracy. lol
Take Care,
and God Bless
Aiming for profits like Warren Buffet and Jamie Dimon combined!
Special thanks goes to "Ronald Raygun" who gave contributed in this idea, also to "emtrader" who introduced me to properly using a "Slope Line indicator" and lastly, "Mr. Vegas" for his indicators and "TCMM" from canada. I've also received help along the way from a 14 year experienced trader/friend. Thank you all. Lets work together.
Great minds think alike.
Hey everyone. I have figured these stuff out. This whole forex theory we've all been spending so much time on. Before I start, I want to introduce myself. I am a very young graduate student from Toronto, Canada. Born in Africa. Now in Eastern NY. You won't expect someone like me to come up with this amazing strategy. Well, I didnt. I used ideas of other to formulate this system which has proven to be 90-95% accurate if traded correctly.
Before we move on, I want to make some crucial points.
I trade the longer time frames. Specifically the 4h TF and Daily. I believe that these 2 time frames are the best of all time frames because you can catch majority of movements in a trend without having to be at your computer all day. The weekly is good as well but there are certain days where people should not trade a certain direction or trend simply because of lack of volume. What I have come to discover is this. Recently, E/U and G/U have been on a downtrend for weeks and months but we still have to join it trade on the right day to maximize our profits. This whole month for example. The bulls have dominated Sunday, monday and Tuesdays during this downtrend period. Recently, It's been the bears market when it comes to trading the E/U and G/U. But if you observe, you'll see that sunday to tuesdays have been dominated by the opponent (Bulls). This is not entirely true but true enough to keep me out of taking a long term position on those days. So I've come realize that the bears usually take over starting wednesday - thursday night or friday mornings. Hence, I take my positions from the appropriate times on wednesdays till thursday nights or friday mornings. I end up making 200 pips or more some weeks on the G/U or E/U.
Now to the point:
I use the Slope direction line indicator. set one at 80,3 and the other at 14,3. Secondly, use RSI 14 and set level at 50.
Lastly, which is the heart of it all, use the Average Directional movement Index (ADX) indicator. (Please make sure you understand how to use this indicator. Set it to 14 periods and level at 25.
Work with all TF and currencies.
But best with E/U and GU. I strongly suggest these 2 currencies because they are stable.
4hr TF examples of Trade:
Rules: Long position
1. Look on daily to see trend. If slope line (12) blue and has crossed 80 (blue) means trend is up. "(I use Red and blue colors)".
2. Now we look on the 4hr time frame and wait till 12 (blue) has crossed 80 (blue) going upward.
3. Now we look at ADX and make sure it is moving upward above the 20 level line.
4. Lastly, we look at RSI and make sure it's above the 50 level line.
Then we take our position.
Short: Vice Versa but i'll explain again for all those right brain dominant individuals who are bad with instructions.
1. Look on daily to see trend. If slope line (12) red and has crossed 80 (red) means trend is up.
2. Now we look on the 4hr time frame and wait till 12 (red) has crossed 80 (red) going upward.
3. Now we look at ADX and make sure it is moving upward above the 20 level line.
4. Lastly, we look at RSI and make sure it's below the 50 level line.
Then we take our position.
Aim for 100 pips at a time or you can go for a straight 200 pips on each of those 2 currency pairs i named above (EU, GU) (Wed. - FRI) why? because Volume is at its height on those days before diminishing on midday friday.
I use the Vegas 4hr Funnel chart and/or his Daily Fibonacci Chart as Support and resistance. I use it as my TP. So please use it for my accuracy. Another alternative is to use the "center of gravity indicator".
hint: the ADX lets us know how far the swing has moved. If ADX is almost at it's "ceiling" or above 50-60, and start coming down, means the market is in ranging motion. Which means we should not trade a TF if ADX is going down. If you look at the shorter time frames though, you will see some going up on the ADX. You can trade those time frames by confirming with next higher TF but i dont recommend trading less than the 1hr TF. I personally think the 4hr is the best alongside with the Daily. But please learn to use the ADX!! backtest and demo to see how to really read the ADX indicator.
Personally, I've come to realize that the short time frames should be used for precise entry of positions not to trade. We should always trade longer TF because it's easier. Minimize your lots sizes to be able to trade 4hr or daily TFs.
Consequently, whenever our criteria's are met in our strategy, we should take our position a TF below. So i usually wait to take my position on the 1 hr TF after everything has set up on the 4hr and Daily. The reason is because, sometimes my strategy would all be ready for me on the 4hr but when I look at the 1hr, I see it in it's ranging motion which means if I take a position, i'll probable have the trade against me for a bit before going my way. So if you want to minimize your SL and have a the most precise entry, I suggest you keep going down on TFs to see if everything has set up as how u want it. Even till the 1Min TF. Thats alot of time tho. I just take my positions on the 1hr or at most the 30 min TF. However, I trade my position based on the 4hr.
One last statement. I repeat! Trade from Wed. until friday morning or Thursday night if u want to avoid the last news release of the week which during the London open and U.S. open.
Here are the links to the indicators which are not already in your platform. I know that MT4 already has ADX and RSI built in it.
http://www.forexfactory.com/showthread.php?t=43303 - Center of gravity
http://www.forexfactory.com/showthre...t=4113&page=32 vegas daily or 4h
http://www.forexfactory.com/showthread.php?t=18692 - Slope direction Line indicator.
Sorry I couldnt attach all the indicators. Very very busy. Grad School and Work and trading. W-F.
All things are possible. I have been learning forex for less than a year and I feel like a pro already. I know it takes people many, many years but I had the time months ago as a young student with no responsibilities to study, study, study. 5 hour a day. I went insane. But it's all worth it.
One last thing. ALWAYS TRADE WITH THE TREND. THEY GOT YOUR BACK!
If you use MM and trade this system right, the only flaw that I can think of is having to face a trend reversal. (ie. the last trend reversal was in December of 2009).
So please experts. Teach me how to detect trend reversals.
If you can help improve this 90%+ system, let me know. Hopefully we can aim to make it 98% or even 99%. However, we will never make it to "Holy Grail" status at a 100% accuracy. lol
Take Care,
and God Bless
Aiming for profits like Warren Buffet and Jamie Dimon combined!
Special thanks goes to "Ronald Raygun" who gave contributed in this idea, also to "emtrader" who introduced me to properly using a "Slope Line indicator" and lastly, "Mr. Vegas" for his indicators and "TCMM" from canada. I've also received help along the way from a 14 year experienced trader/friend. Thank you all. Lets work together.
Great minds think alike.
Attached File(s)
Slope Direction Line Alert.ex4
7 KB
|
510 downloads
Center of Gravity.ex4
7 KB
|
482 downloads
FF Tunnel Chart.ex4
6 KB
|
468 downloads
db template.tpl
5 KB
|
451 downloads
Hidden SL.ex4
3 KB
|
470 downloads
RSI Custom.ex4
3 KB
|
470 downloads