Hello Merlin and the other forex experts,
I have been lurking in this forum for a while and like the friendly atmosphere.
I am a newbie and have been looking at various systems to trade forex in a mechanical manner without getting my emotions involved. I have been looking at breakout systems, where I can place orders and not look at them for the rest of the day.
Here is one system I have been looking at for use on the Euro USD pair, but would like Merlin or some other expert test it. It would be a great help.
1. The OHLC is based on 5pm EST - the day starts at 5 pm EST and ends at 4:59:59 EST and the OHLC is based on the prices within this time period.
2. After 5 pm EST, calculate the following based on the OHLC of the day's data:
a) If Close < Open then (High + 2 * Low + Close) = X
b) if Close > Open then (2 *High + Low + Close) = X
c) if Close = Open then (High + Low + 2 *Close) = X
Then, calculate
Resistance = X - Low
Support = X - High
3. At 8am EST next morning, check if the price and Hourly RSI (14). If the price is between the Resistance and Support Values, then do the following based on RSI values -
a) If RSI is above 50 place a buy stop (Good for Day Only) 5 pips above Resistance, or
b) If RSI is below 50 place a sell stop (Good for Day Only) 5 pips below Support.
The following are the possible exits:
i) A stop loss of 50 pips
ii) A profit target limit order of 150 pips
iii) Exit at 5 pm EST is neither of the above was hit during the day.
It should be fairly simple, and the projected values are from Demark's work, for people who are familiar with his work.
Thanks a lot,
Julie
I have been lurking in this forum for a while and like the friendly atmosphere.
I am a newbie and have been looking at various systems to trade forex in a mechanical manner without getting my emotions involved. I have been looking at breakout systems, where I can place orders and not look at them for the rest of the day.
Here is one system I have been looking at for use on the Euro USD pair, but would like Merlin or some other expert test it. It would be a great help.
1. The OHLC is based on 5pm EST - the day starts at 5 pm EST and ends at 4:59:59 EST and the OHLC is based on the prices within this time period.
2. After 5 pm EST, calculate the following based on the OHLC of the day's data:
a) If Close < Open then (High + 2 * Low + Close) = X
b) if Close > Open then (2 *High + Low + Close) = X
c) if Close = Open then (High + Low + 2 *Close) = X
Then, calculate
Resistance = X - Low
Support = X - High
3. At 8am EST next morning, check if the price and Hourly RSI (14). If the price is between the Resistance and Support Values, then do the following based on RSI values -
a) If RSI is above 50 place a buy stop (Good for Day Only) 5 pips above Resistance, or
b) If RSI is below 50 place a sell stop (Good for Day Only) 5 pips below Support.
The following are the possible exits:
i) A stop loss of 50 pips
ii) A profit target limit order of 150 pips
iii) Exit at 5 pm EST is neither of the above was hit during the day.
It should be fairly simple, and the projected values are from Demark's work, for people who are familiar with his work.
Thanks a lot,
Julie