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Simple, proven and profitable S/R system

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HCooper
49
HCooper  
There are a lot of various trading systems on the internet, but most of them are unusable and mainly not profitable in the long term. For this reason, I would like to introduce my (proven and profitable) trading system utilizing the S / R zones.

I can definitely recommend the system to everyone, because it is very simple, but a very very profitable!

It's just amazing how so simple trading system can be profitable. So here the saying below is really true:

Simplicity is the ultimate sophistication (Leonardo da Vinci) 

The system is built on a powerful indicator showing important S / R zones, which I found on the internet. So all credits go to the author. Over the years that I trade, I have not seen any better indicator on the S / R zones.

1) Firstly I'd like to tell you more about the indicator for the important support and resistance zones, which I use in this system. The indicator shows the resistance and supports on the high quality price zones only. So the indicator doesn't draw a lot of the zones, but it draws only the important ones.

However, its main advantage is that it also shows us the quality of resistance and support zones. Or rather, how many times the market tested a given zone (S / R). Here, logically, the more times the market tested the zone, the zone will be stronger and more valid. 

 

You can download the indicator in the attachment. 


 

Settings of the indicator

The indicator has more settings, but the Factor and zone_extend are the most important for us:


a) Factor = how strong S / R zones should the indicator show (default 0.5)

b) zone_extend = whether the indicator should connect near S / R zones together (default false)


2) The whole trading system can be traded on any market and any timeframe (which is a big advantage). The lower the timeframe you choose, the more you will receive signals (more trades), but logically the trades will be shorter (faster opened and closed). It is up to every trader to choose the trading style that suits him.

The trading system is very simple and consists in the search for strong S / R levels (those which have been tested by the market at least once, but ideally 2 to 3 times).

Once the price hits the strong S / R zone (previously tested by the market), I open a trading position against the direction of the market (I use limit orders). Then I hold the trade until the price reaches the opposite S / R zone.


Buy trade:

Price reaches the strong support (must be tested at least once). At that moment, I am opening the buy trade. I set TP below the closest resistance. The SL is the same amount of pips from the entry price as TP - so I simply use RRR ratio 1 : 1.


Sell trade:

Price reaches the strong resistance (must be tested at least once). At that moment, I am opening the sell trade. I set TP above the nearest support. The SL is the same amount of pips from the entry price as TP - again, I simply use the 1 : 1 RRR ratio.


Final info:

The indicator shows only the strong S / R zones. Not like other S / R indicators, which are drawing S / R zones everywhere  That's why I like the indicator a lot, and I also recommend you to zoom out the chart little bit to see all zones. For intraday trading, I recommend to choose M5 or M1 chart. For swing trading I like H1 chart the most.

With this indicator, of course, you can trade any other trading system. The system described above is only my the most simple variation of the system. I also trade the previously untested S / R zones, but this style is much difficult and requires more experience (I will show also a couple of these trades in this thread). Of course, if you will change the trading strategy, its 100% up to you. 

HCooper 

Files:
SR_zones.ex4 76 kb
Sergey Golubev
Moderator
95216
Sergey Golubev  

Thanks for the system.

Anyway, your indicators looks like a same one with indicator uploaded to CodeBase (same but different name) - seems both indicators had same Shved source upgraded to 600+ by different coders.

Shved Supply and Demand - indicator for MetaTrader 4

Example -

sr_zones.ex4 :


shved_supply_and_demand.mq4 :


or

sr_zones.ex4 :


shved_supply_and_demand.mq4 :


Anyway, thanks for detailed explanation about how to use it.

HCooper
49
HCooper  
Sergey Golubev:

Thanks for the system.

Anyway, your indicators looks like a same one with indicator uploaded to CodeBase (same but different name) - seems both indicators had same Shved source upgraded to 600+ by different coders.

Shved Supply and Demand - indicator for MetaTrader 4

Example -

sr_zones.ex4 :


shved_supply_and_demand.mq4 :


or

sr_zones.ex4 :


shved_supply_and_demand.mq4 :


Anyway, thanks for detailed explanation about how to use it.

Cool - thanks for pointing out! I didn't know about this one as I find my version of the indicator somewhere on the Internet.
Tobias Grosse
729
Tobias Grosse  

Hello HCooper,

how profitable is your system?

profit/loss ratio?

What TF do you trade normally?

Thanks

Tobias

HCooper
49
HCooper  
Tobias Grosse:

Hello HCooper,

how profitable is your system?

profit/loss ratio?

What TF do you trade normally?

Thanks

Tobias

Hello and welcome, I usually trade M5 chart for intraday trades, but I like to watch the situation and full "context" of the market also on other TFs.

I posted the system in its simplest form - with this system (RRR 1:1) I usually achieve 70 - 75% success rate in the long term. For traders who will get sense for the system, there is a potential to improve - for example to set SL below support and above resistance - this will significantly improve RRR.

More than posting the rules that everyone has to follow, I wanted to post the right tools / approach and my trading system. But everyone should gain experience with this and change it in the way that will suit him the best.

HCooper
49
HCooper  

There are a couple of examples - very nice opportunities on both EUR/USD and GBP/USD yesterday.

 

 

HCooper
49
HCooper  

One more example...

 

 

Tobias Grosse
729
Tobias Grosse  
Thanks, i will have a closer look ...
HCooper
49
HCooper  
Tobias Grosse:
Thanks, i will have a closer look ...
Cool! Glad to help :-) 
Dua Yong Rew
5448
Dua Yong Rew  
where is the proven?
HCooper
49
HCooper  
Dua Yong Rew:
where is the proven?

Hello, I trade the system for roughly 3 years profitably. Before that I was going through the period of learning / losses etc. But the last 3 years are stable for me.

Also supports and resistances are time-proven strategy used for many traders and institutions and it is simply the way how markets work.

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