Simple System
For those of you that want a template please find attached along with the fib indicator I use in the 15 min chart.
Example of trade this morning 08.04 UK time for a quick 25 pips by 08.06 on the EUR/CHF. I trade this currency because of the volatility but the system works well on any currency or indices.
Another example for another 25+ pips. Thats me done for now - 50 pips. I will look later after the US session opens for any more setups.
It doesnt get much easier than this guys!
One of the biggest problems is noticing when the Trend magic changes colour and I have been experimenting with another indicator to give me an alarm. The Trend magic indi is based on the CCI indicator and so I have tried attaching the Double CCI woody indicator (set to 50) and that gives me an warning when the Trend Magic changes so preventing me sitting watching the screen all day. It doesnt help much with retracement trades but I cannot have everything!
Great job
Ronnieb
Thank you for sharing your trading method. Simple is always better.
thanks friend for sharing your method with all, be possible to put an alarm at the entrance?
Many thanks for your comments.
Unfortunately I wouldnt know where to start to create an alarm to signal when all the conditions are met. The only alarm I use at present is the CCI cross zero alarm.
Maybe if someone reading this who is interested enough, would like to try?
A good day for me yesterday - 100 pips before lunch 2 x 25 pips on the 15minute charts and 50 pips on the 4hr all on EUR/CHF and I then stopped trading as I dont like trading Friday afternoons - too much indescision and people closing out positions. I see that later on there was a trade set up that was a loser (due to tight ranging) and one even later that was a winner.
Nearly all systems will mess you up during tight ranging conditions. The only way to prevent being stopped out is to have such large stoplosses that it makes unviable to trade as one loser can wipe out many wins! Over the past six months when I have been dummy trading this, I have found that the EUR/CHF unlike most other pairs will nearly always make the 25 pips before reversing when in a range. It does not do so well during the far east session but then I dont trade that anyway being in the UK.
The 4hr charts dont have this problem but then not everyone is prepared for the large stoplosses involved which can be 150+ pips
side or trend
dear ronnieb
thanks for share
this system is good for trend market - how you find now we are in trend or side ??
Hi Ovidiorosado
I dont normally trade GB only for the simple reason my past personal experience has been bad - because I have found the EUR/USD will nearly always affect it, just because of the sheer volume of traders. I have been in clear and obvious buys on GB when the Eur has been going down and when it moves it has always dragged the GB with it, not permamantly but enough to stop me out. I now only trade 3 currencies on the 4hr charts, the EUR/CHF, the EUR/USD and the AUD/USD. However in answer to your question I have attached a chart of the GB which shows what I consider to be the setup bars. In the case of a buy you would then enter above the highs of those bars by the 1 or 2 pips plus the spread with the stop loss below the bottom of that bar unless it is above the Trend magic line or a small bar in which case I use 80 pips minimum. A sell would be the opposite.
I hope this answers your question ok, its just I could not quite make out on your pic where you were thinking was the setup bar.
Shabane
I wish I could tell you with certainty but until it is in a range and has been for a little while you cannot tell, by which time it may be too late because you may have already made losses on your trades. The only indicators that I know can show that to you, are Bollinger bands where they tighten down, but of course most indicators lag and only show you after the event has started or happened. There is an indicator in use that I have attached which is called the bollinger squeeze but again it is lagging and really only alerts one to the squeeze after it has started and still can show the squeeze being on whilst the price has already broken out of the range. When the bars are blue it means the squeeze is on. What usually happens after a large push up or down is a period of consolidation and this is where the range becomes restricted as the big boys gently offload and take profits but in a way that is not easily detected mainly because they dont want to be visual and they need time to prepare for the next push up or down. The trouble here is that most indicators are lagging and dont alert us the small traders to a move until it is too late by which time the big traders are already starting to close their positions and take profits usually causing the reversal and stopping us out.
Ovidiorosado
Just as a further point to note - it looks on the chart of GB as though there would have been a few trades that could possibly have gone against you. The problem is when the currency pair is in a serious range situation as it is, along with anything involved with the dollar, as all the so called experts are saying due to global uncertainty it might be worth going for smaller profits or pulling the stop in once you have gone a bit into profit.
I decide on what I am going to trade currency wise depending on how the economic situation is. For example Aus and CHF and US/Cad are trending nicely at the moment due to the uncertainty about the eur/dollar/Yen but one tool I have found quite useful to decide what I am going to trade on the 15 min charts in the past has been the Newsprofiteer strength meter which I downloaded for free from Henry Liu site. Like I say I have found for me Eur/chf has been very profitable but that may change in the future and although the spread can be larger than some other pairs it doesnt matter if it pulls in the pips
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