Forex Freeway - page 2
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DeSoft, I'm still confused. It is still not automatically clear how this indicator works or how your strategy is related to it. You have throughout your explanatory notes so far said it is based on CCI 50, but are the CCI 50 levels limited to the numbers displayed on the top left or do they figure in the calculation of the lines on the right? Or are those vertical lines/ribbons based solely on MAs? I understand those lines are based on indicator levels on different time frames but which indicators? When are the lines green and when are they red? Also what are the little horizontal lines that appear on the vertical ribbons? Are they MA levels, fibonacci levels, both or something else?
Also entry is determined by break of fractal? But where is the fractal calculation? It is a separate indicator?
It is not clear. From what I can tell so far the ribbons are green above the current price and red below it and tell me nothing.
By the way did you program this?
Hi Desoft!
When or how do you take profit with this method traded from the 5 min charts?
Capablanca,
The strategy for this indicator is fairly simple. It is based on the 50 CCI on multiple timeframes. All the 50 CCI's are embedded into the indicator. According the "original" 50 CCI strategy, it stated that when the 50 CCI crosses the zero line then a new trend maybe taking over. It could also be a continuation of the same trend after a strong pullback. So what I look for with the Forex Freeway indicator is a strong trend in the 4 hour 50 CCI, which is the far bar on the right. Say it is above the zero line indicating an upward trend. This is notated on the far top left as "240 min CCI level" as let's say 164.00. The long vertical bar on the top right should also be bright green indicating above zero (bright red if below 0). We would only be looking for longs at this time. The next dark green vertical bars should start to turn bright green as soon as the 60 min 50 CCI, 30 min 50 CCI, and the 15 min 50 CCI each climb above the zero line (Remember the CCI's are embedded into the indicator so you don't have to have multiple charts open). The trend should be strong enough to enter a trade when a candle closes above a resistance fractal (red on my chart). I place a stop far enough, mostly at a support fractal (green on my chart). Look on the first page for the fractal support and resistance indicator. I think in post #6.
The lines on the vertical bars are still being optimized. They should be fib numbers calulated with MA's but I still need more testing to find the best fit. That's why I am asking for input on this part.
No I did not program everything about this indicator. I actually optimized a current indicator that I had to suit my own trading strategy. The 50 CCI.
Here is a new version with out the MA's and fibs coded, so no one gets confused about the little lines anymore. Focus on the vertical bars.
DeSoft
Dan S,
When I first started trading with this strategy, I looked to grab 20 pips and close the trade. It worked very well and so I add 2 lots then 3. This was during my initial testing phase. If I feel the market is in a strong trend and has finished its retracement then I would let my profits run a lot more. You should use your own profit taking method as it seems everyone has a different one. But still, going for 20 pips with multiple lots is very effective, especiall when you have a very tight stop when using the 5 minute charts. Always use a method that fits your money management. Cheers.
DeSoft
Nice work DeSoft (again)
So when we have 4 bright green roads the 50 cci is long on all 4 time frames?
Bit of info on fractals attached for people new to them
My Picture wont load
anyhow just press the link, I did it some time ago for ST2W
Dan S,
When I first started trading with this strategy, I looked to grab 20 pips and close the trade. It worked very well and so I add 2 lots then 3. This was during my initial testing phase. If I feel the market is in a strong trend and has finished its retracement then I would let my profits run a lot more. You should use your own profit taking method as it seems everyone has a different one. But still, going for 20 pips with multiple lots is very effective, especiall when you have a very tight stop when using the 5 minute charts. Always use a method that fits your money management. Cheers.
DeSoftYes, I was thinking about hitting it for 10-20 pips with a tight stop.
Looks like a nice scalper on 5 min.
Thanks Mart-Hart,
Haven't spoken with you for awhile. How have you been? Yes, when we have four bright vertical green bars we look for a long after a fractal breakout. Short when we have four bright vertical red bars. Pretty simple, huh? It may need some more optimization, especially if an audible and visual alert is added to notify when they all line up and the trend is established. My programming skills are not up to par as some here and I was hoping for some help in this matter.
Also, this indicator only works in real time, so it can't be backtested...only forward tested like I did. Although, one way to backtest the strategy is to have four charts open with the 50 CCI applied in the specified timeframes. You will see that more often than not the trend is strong enough to carry for some good pips.
DeSoft
Mart-Hart,
The more input the better. After all, we're all trying beat the FX Monster. LOL.
DeSoft
Thanks Mart-Hart,
Also, this indicator only works in real time, so it can't be backtested...only forward tested like I did. Although, one way to backtest the strategy is to have four charts open with the 50 CCI applied in the specified timeframes. You will see that more often than not the trend is strong enough to carry for some good pips.
DeSoftA little easier way to backtest would be to apply my #MTF_CCI indicator. Then you could add a 15, 30, 60 and 240 CCI(50) to a single chart.
It's in the Multi TimeFrame Indicator thread, but I'll attach it here, too.
Keris