Naked Gun trading system was inspired from the "Naked Forex : High-Probability Techniques for Trading without Indicators" Book by Alex Nekritin and Walter Peters, 2012.
The system idea is to trade specific reversal candle stick patterns at support and resistance (S/R) zones.
The corner stone of the system is the support and resistance (S/R) zones.
These zones are areas on the chart where price reversed repeatedly.
The importance of a zone increases with the number of times it was respected as as S/R zone.
It is recommended that we find these zones using the line chart on a higher time frame, so if you are trading the daily chart you will find these zones on the weekly chart.
The line chart reveals zones easier than candle stick or bar charts, because the zones will be identified by repeated bends in the line.
The found zones should be spread out at fair distances, as they represent critical areas on the chart, and price does not reach these critical areas so often.
I will add example charts with identified S/R zones in my next posts.
Forum on trading, automated trading systems and testing trading strategies
Something Interesting to Read February 2015
Sergey Golubev, 2015.02.16 10:11
Most forex traders lose because they persist in believing three myths
of successful trading:
Long before computers
and calculators, trading was handledwithout complex technical analysis
and indicators. Trading was old school - based on using only price
charts - and it was simple, profitable, and easy to implement. In Naked
Forex, they show you how to successfully trade this way.
lively, three-part book lays out the authors' techniques indetail:
Engaging and informative, this practical guide touches on many provocative topics, including:
Is it possible to outwit some of the most determined,intelligent, and well-resourced traders in the world? Find out whatit takes
The concept of "zones" and the seven most important things youneed to know about them
Six key stages you must address for every trade
Are you a runner or a gunner? When it comes to exiting a tradewith money, it's important to know
The one secret expert traders all share, why boring is good, andsix steps to becoming an expert
Why understanding yourself is paramount. What is your attitudetowards money? What are your biases? Find out how to find out
trading is liberating, exhilarating, and frees you to focus on markets,
instead of the indicators, say Nekritin andPeters. Follow their
proprietary techniques to profitability with Naked Forex.
My plan is to design, develop, code and test a complete system based on naked forex.
The most tricky part and most important part is the S/R zones.
But first let me summarize entries and exits of the system.
With all these patterns, Entry is always via a pending stop order few pips above/below the pattern.
I will provide detailed description and recent chart examples on these candles/patterns later on after we cover the S/R Zones.
This is "my" view on S/R Zones on current GBPUSD H4 Line chart.
I'll be grateful if you share "yours" because the target of this stage is to find a "systematic" way of defining S/R Zones in order to study the possibility of automating them.
And this is how they appear on H1 Candle Stick Chart.
The 2 dotted lines are S/R zones missed from the H4 chart.
How Nice !
GU potential trade. (Check previous charts).
I don't see good activity on MQL forums.
So I will pause here and continue this research on my own.
?? - What do you expect?
I think most of the readers don't know that interesting system - so they are just reading.
Just a few responses doesn't mean nobody is interested.
Show some trades: before and after entering, stops and targets and the final exit on higher and lower timeframes..
I was expecting something like this http://www.forexfactory.com/showthread.php?t=624820, just started today.