Hi to all my friends out there trying to learn to trade intraday.
INTRODUCTION
Going to purchase expert advisors from vendors without knowing the strategy that was built in the EA is like building a house without foundation. That is why many of them are percieved not to work because the working strategy is not understood. So I believe it is important that we are on the same page of the manual system before building an EA.
MY SYSTEM
I have developed a system which caughts the intraday swings of GU on the 30 min chart (can work on other pairs but works best on GU).
Now in creating the system, we must understand that the market ranges 70% of the time between support and resistance levels. Until there is a fundamental driver to move price to the next level, where new support and resistance zones are formed.
The second thing we must understand that a lot of traders use pivot points as supports and resistance, stops and exits. This we must include in our system.
We must also use an indicator to identify the markets turning points as it moves from support to resistance and back. Consequently, the Gann period 5 and SMA 5 would be quite approipate
We need an oscillator to identify over bought and over sold conditons where the market is likely to turn so we borrow swingman trix and a stoch set at 833 (actually the swingman trix is similar to the stoch and gives the arrow when the stoch crosses 50)
It is also important for us to know the Average Daily Range so we know when price has done its daily range and due for a retracement.
System Update 25/5/2010
Due to current market conditions we have adopted a 7sma and 7 gann setting for the 30min tf, which has proved very profitable. If you miss the initial entry, you can wait for price to pullback between the gann and sma to enter the prevailing trend or use the 5 min chart accordingly.
System Update 23/6/2010
The System has been consistent with the 7 sma&gann,trix and pivot points on the 30min tf
System Update 23/11/2010
The system is traded using the 8sma and 8 gann with the QQE indicator to filter trades on either the 15 or 30 min tf. Happy trading
System Update 23/11/2011
While the core of the system has proved robust intraday, the system has been adapted to the daily charts (Gann 8, SMA 8) and has been very successful with less intraday stress.
INTRODUCTION
Going to purchase expert advisors from vendors without knowing the strategy that was built in the EA is like building a house without foundation. That is why many of them are percieved not to work because the working strategy is not understood. So I believe it is important that we are on the same page of the manual system before building an EA.
MY SYSTEM
I have developed a system which caughts the intraday swings of GU on the 30 min chart (can work on other pairs but works best on GU).
Now in creating the system, we must understand that the market ranges 70% of the time between support and resistance levels. Until there is a fundamental driver to move price to the next level, where new support and resistance zones are formed.
The second thing we must understand that a lot of traders use pivot points as supports and resistance, stops and exits. This we must include in our system.
We must also use an indicator to identify the markets turning points as it moves from support to resistance and back. Consequently, the Gann period 5 and SMA 5 would be quite approipate
We need an oscillator to identify over bought and over sold conditons where the market is likely to turn so we borrow swingman trix and a stoch set at 833 (actually the swingman trix is similar to the stoch and gives the arrow when the stoch crosses 50)
It is also important for us to know the Average Daily Range so we know when price has done its daily range and due for a retracement.
System Update 25/5/2010
Due to current market conditions we have adopted a 7sma and 7 gann setting for the 30min tf, which has proved very profitable. If you miss the initial entry, you can wait for price to pullback between the gann and sma to enter the prevailing trend or use the 5 min chart accordingly.
System Update 23/6/2010
The System has been consistent with the 7 sma&gann,trix and pivot points on the 30min tf
System Update 23/11/2010
The system is traded using the 8sma and 8 gann with the QQE indicator to filter trades on either the 15 or 30 min tf. Happy trading
System Update 23/11/2011
While the core of the system has proved robust intraday, the system has been adapted to the daily charts (Gann 8, SMA 8) and has been very successful with less intraday stress.
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