Forum on trading, automated trading systems and testing trading strategies
PriceChannel Parabolic system
newdigital, 2013.03.22 14:04
PriceChannel Parabolic system
PriceChannel Parabolic system basic edition
Latest version of the system with latest EAs to download
How to trade
The settingas for EAs: optimization and backtesting
GoMarkets broker, initial deposit is 1,000
Alpari UK broker initial deposit is 1,000
RoboForex broker initial deposit is 1,000
There are some people who are asking - "Where to start? This website is very big one ... how can I start with MT5, signals and the market?" ... well ... start with the following :
newdigital, 2013.12.23 16:51
you should read and read ...
and read articles.
No any personal consultant here sorry ... people may help but just for some concrete questions.
newdigital, 2014.05.21 12:44
Three Ways to Trade Support and Resistance (based on dailyfx article)
One of the more difficult concepts within Technical
Analysis is grasping the premise of support and resistance. There are
numerous ways to identify these levels, and even after identified, there
are a plethora of ways of integrating and trading with them.
In this article, we’re going to show you three ways that traders can properly integrate these levels.
Risk Management/Stop Placement
While this may be the least ‘exciting’ of the three
ways to integrate support and resistance, this is also probably the most
Stop-loss orders help traders prevent blowing up
their entire accounts on just one or two bad trade ideas. We’ve looked
at the importance of stops, and further, risk management in numerous of
our previous articles.
Support and resistance can help traders to define their risk amounts for any individual position.
Let’s say that a trader wants to buy in a range, and
if that range doesn’t continue, they want to close out the position
quickly in an effort to mitigate the loss.
In this case, it makes sense to place the stop for
the long position below support so that once support becomes violated,
the stop-loss can close the position and the trader can look to avoid
taking a larger loss.
Support and resistance can help with stop placement:
This can also work for reversal plays.
If a trader is looking to buy a bullish reversal, they can look to the
low that was established before the reversal began; and they can place
their stop there. This way, if the reversal doesn’t pan out, and if
prices do continue moving in the previous trend-side direction, the
position can be closed as traders look to mitigate their loss.
The exact opposite would be the case for short
positions, with traders looking to place stops above resistance so that
should the market continue rising; the short position can be closed with
a minimum of a loss.
Determining a Market’s Condition
We’ve all heard it since we were young: Buy low, and sell high.
If only matters were that simple.
What constitutes ‘high’ and what constitutes ‘low?’
After all, these are very relative matters, and low in a market today
might be sky-high a week from now.
This is where support and resistance come into play, and this is why finding strong, confluent levels can be so beneficial.
Think about why support or resistance may come into a
market: The only real reason is due to an influx of buyers or sellers
at a particular price level.
Let’s say that we’re expecting support at a price of 1.6750 on GBPUSD; which is a psychological level
in the currency pair. As prices move lower towards this expected
support level, buyers begin coming into the market in anticipation of a
future support level being so close. As prices move closer and closer to
this level of support, more and more buyers notice this ‘perceived
value’ in GBPUSD and they also look to enter in long cable positions.
The exact low of the move is considered a ‘price action swing.’
Eventually, the number of buyers in GBPUSD outstrips
the number of sellers, and this is what creates a reversal in the
market as the higher level of demand takes over smaller level of supply.
This is how price action works, and it happens in short and long-terms alike.
Price action will also help traders see support and resistance in trending markets and ranging markets as well.
In trending markets, prices will generally make
‘higher-highs’ and ‘higher-lows,’ or ‘lower-lows’ and ‘lower-highs,’
while ranging markets will generally display more stable levels of
support and resistance. The example below in USDJPY shows both of these types of environments on the same chart.
Current price relationship with Support/Resistance can define the market’s condition:
After the market condition has been identified, traders can then move on to the next step of placing the trade.
After traders have been able to allocate risk and
grade market conditions using price action with support and resistance,
they can move on to the next logical step in looking to place trades and
Remember that future prices are unpredictable.
Implementing support or resistance simply gives us the possibility that
support or resistance may
hold; and if it does in-fact hold, then traders can look for rewards or
profits that are significantly larger than the amount they had to risk.
If a trader is looking to buy an up-trend, they want
to look to do so cheaply. So they can simply wait for prices to retrace
a portion of the up-trend until a support level comes in to the market.
This support level can be a psychological level, or a Fibonacci retracement, or a pivot point; better yet, this support level can offer confluence from multiple types of support/resistance analysis.
After price action has exhibited that the
retracement may be over, the trader can look to enter long with a stop
below the support level. This way, if the up-trend doesn’t continue
coming back in the market, the loss can be mitigated. But if the trend
does come in, then the trader can look to profit two, three, or four
times the amount they had to initially risk entering the position.
The image below, taken from the article, shows how traders can look to buy after this ‘higher-low’ was made in the up-trend.
Price action can be used to enter positions in trending markets:
But what if the market isn’t displaying a bias?
In the image below, we illustrate how traders can
use price action along with support and resistance to build a
range-strategy in a market devoid of any significant trends.
Price action can also be used to enter trades in ranging markets:
Indicators: Simple Scalping System
newdigital, 2014.05.22 08:45
The Scalpers Checklist (based on dailyfx article)
Traders should have a checklist to consult prior to making any major
trading decisions. These steps are critical for Forex scalpers as they
often have to make these choices on a moment’s notice. To help with the
process it can be helpful to keep a checklist and determine your options
prior to approaching the market. Today we will review the scalper’s
checklist. Let’s get started!
Identify Market Conditions
The first task assigned to day traders and scalpers is to identify
market conditions. Is the market trending or ranging? Is the volatility
of an asset low or high? These are both important questions that should
be answered prior to entering into a new trade idea. Not only will this
help Forex traders which currency pair to trade, but also help determine
their strategy. Every scalper and day trader should check this off
their list, prior to considering any market entries!
Choose a Strategy
Once market conditions are found, traders need to identify a strategy
that is congruent with the market. If you are trading a trend, you will
need to not only find market direction but also decide if you are going
to trade a retracement, momentum or breakout strategy. In lack of a
trend, traders again need to decide how to approach pricing patterns,
support & resistance values, as well as potential breakouts. With so
many strategies to choose from, it is worth taking your time and doing
your due diligence prior to checking this off your scalping list.
Plan Your Entry
Next traders need to select how they are going to enter into the market.
Typically traders need to first determine if they will trade with
market orders or entry orders. Market orders allow you to trade
immediately if conditions are met and you are immediately in front of
your trading terminal. Entry orders can be used and will execute at a
designated price even if you aren’t watching the market.
Once this is decided, traders need to evaluate which indicators if any
will be used for trading. In the event an indicator is added to the
graph, prior to execution, plan on its use and know its strengths as
well as limitations. When you are 100% certain on your entry triggers
then you can proceed to the next portion of the checklist.
This point of our check list goes beyond the simple placement of stop
and limit orders. Scalpers must carefully consider how much they should
risk on each trade. At this point specific questions should arise. How
many pips are you risking per trade? What is your average profit target
per trade? How does a stop order being executed equate to a loss on my
While no trader wants to take a loss it is paramount to determine these
values prior to scalping. Once these values are set, you can mark this
point off your checklist. Now all you have left is to hold yourself
accountable to your trading decisions.
Log the Results
Traders, especially short term scalpers, have a tendency to always be
looking for the next trade. While looking for trading opportunities
isn’t a bad thing, we should also remember to go back and review past
events. Keeping a trading log can help us establish market patterns and
reflect if your strategy is working in current conditions.
To help with this process, traders should note, why, when and how they
entered into a trade. If your strategy is working, stick with it and
keep your original strategy rules. If you’re trading is not working out
as planned, with a log you can identify what must be changed and make
While this checklist may seem daunting at first, these are all important steps to consider before scalping.
How to Start with Metatrader 5
newdigital, 2013.09.20 08:21
newdigital, 2014.05.23 17:02
Should You Exit Your FX Trade On Strength Or Weakness? (based on dailyfx article)
“You can’t control what the market does, but you can control your
reaction to the market. I examine what I do all the time. That’s what
trading is all about.”
-Steve Cohen, Hedge Fund Manager
In my experience, the more years a trader has under their belt, the more
attention they pay to the exit on their trade. It’s not that the entry
isn’t important, it’s just that there’s a direct profit impact based on
your exit. This article will breakdown two methodologies for exiting
your forex trades so that you can choose the one that aligns best with
your personality & goals.
Why Traders Neglect the Exit
As a trader, it’s easy to focus on entering the trade. After all, you’ve
got to be in it to when it and the only way to be in it is to find an
entry. And when it comes to entering into a trade, your mind is likely
to race to different outcomes about whether or not this trade will be a
home-run that “can’t fail” or whether you’re not 100% sure on the trade
and therefore, should either hold-off or enter with a smaller trade
size. For what it’s worth, regardless of your analysis, the second
attitude used as an example is the healthier approach
However, it’s probably best to take the pressure of yourself regarding
the entry. Why? Because, you likely will get at best a decent entry
unless you’re counter-trend trading. It’s an irony or paradox of trading
that most new traders fret about the entries but where they decide to
exit is the most crucial point.
Two Exit Approaches
This part is simple. As far as I’m concerned, there are only two ways
that you can decide to exit a trade (well, three if not having a plan is
a way to exit). The first method benefits short term traders and that
is exiting on strength in the direction of your entry. Therefore, if
you’re buying, you can look for clear resistance points or other methods
to exit when others are jumping in. The drawback to this methodology is
that you could be exiting as the move is just getting started.
The second method is to the benefit of swing style or longer term
traders. The preferred exit methodology for longer-term traders is to
exit on weakness or a correction in the trend that you’re entering.
Exiting on weakness has two distinct drawbacks and that is you either
get taken out on a wick low before the trend resumes and / or, you find
yourselves leaving a large portion of your paper profits on the table.
Specific Tools for Both Exit Strategies
We just discussed that you can either decide to exit your trades on
strength or weakness. To exit on strength, here are a few methodologies
you can use that I’ve found favorable over the years:
My preferred methodology is Pivot targets. In a normal uptrend, I’ll
look to exit at the weekly R1 level and in a strong uptrend, my
preferred exit is the R2 (reversed for downtrends with S1 & S2). The
other two methods have been used successfully by many traders.
Emotionally, I believe it’s harder for new traders to exit on weakness.
The reason is that it’s easy to beat yourself up for letting so much of
your paper profits go away. In order to be comfortable exiting on
strength, it’s best to not look at the chart after you exit for a few
hours because you don’t want to beat yourself for taking money out of
the market. That’s what we’re doing here in the first place!
newdigital, 2013.05.12 16:25
This is the thread about Brainwashing system. We will start with original version of this system and will improve it later.
Just something about the history. There are 3 famous signals system (manual trading systems based on signal indicators): Asctrend, BrainTrend and Brainwashing. First two system were already explained and developed by indicators and EAs. So, we are going to discuss the last signal system: Brainwashing.
Just for information:
Manual Trading statements
Second version of this manual trading system and for now - asctrend indicator together with NRTR indicator
First version of AsctrendND EA.
Next version of AsctrendND EA (verion 1.02) with TrendStrength filter added.
How To Create Your Own Mmanual Trading Signal System Based On Indicators From MT5 CodeBase - Instruction For Non-Programmers
Can we read news in news tab ?
newdigital, 2014.06.01 14:13
May be - it is not fully related to this topic sorry, but there is good article:
Building an Automatic News Trader :
states, a news trader is "a trader or investor who makes trading or
investing decisions based on news announcements". Indeed, economic
reports such as a country's GDP, consumer confidence indexes and
employment data of countries, amongst others, often produce significant
movements in the currency markets. Have you ever attended a U.S.
Non-Farm Payrolls release? If so, you already know that these reports
may determine currencies' recent future and act as catalysts for trends
newdigital, 2014.06.03 11:51
Follow The Fractal Tool Toward Better Breakout Entries (based on dailyfx article)
Let’s start with an introduction to fractals. The actually are applied
to trading from nature and not the other way around. It may be helpful
to know that fractals are effectively a way of looking a sub-sets of
large pieces of data to understand what developments are being created
in real-time. From a trading / market perspective, fractals are an
indicator highlighting the chart’s local highs and lows where the price
movement reversed marking a 5-bar high or low. These reversal points are
called respectively Fractal highs and lows.
The Hand is a Perfect Fractal
Before we take this natural reoccurrence to the market, you should see
how your hand, with fingers pointing up is the perfect up fractal and
with your palm facing you, is a perfect down fractal. A Market swing
Fractal shows a price extreme in the middle of 5 bars whereas an up
fractal has the middle bar with a highest high in the middle with two
lower highs on the left and two lower highs on the right. A down fractal
will have a low price extreme in the middle bar of a 5-bar sequence
with the higher lows on the left and two higher lows on the right.
How Traders Can Use Fractals
Volatility is a key determinant to trading opportunities. One of the
common triggers that volatility is in play is when a prior high or low
is taken out and a new trend begins. Fractals can be applied to the
chart so that you can see when a recent key level has broken which can
lead to a price-action trading opportunity.
Fractals revolve around price action highs and lows and can easily
pinpoint places for a breakout entry or tight price action based stop.
Fractals can be used in a variety of ways. Most commonly, traders will
look for a bar to close above a prior up fractal to show an upside
breakout or a close below a prior down fractal to signal a downside
breakout that is potentially worth trading. Another positive aspect is
that when you have a comfortable view of a strong trend in play, you can
use fractals as a trailing stop from a prior counter-trend move which
made a fractal.
Real-Time Fractal Set-Up
For purpose of review, fractals mark price changes or pivots in the
market. For reasons known or unknown, they are reaction points that can
help you spot key places to place an entry order or stop. From a
trader’s stand-point, they allow you to enter on a confirming view of
your analysis vs. a hunch that a market is oversold or overbought and is
time to enter like this trade set-up on the Australian Dollar.
A Fractal Based Entry on AUDUSD :
Every trader should embrace the following seven words:
I don’t know what will happen next
This isn’t meant to disregard your analysis but tell a simple fact about
trading. Anything can happen in the market place and an infinite number
of possibilities are plausible. As a trader, we can develop a strategy
with set rules that work with our psychology to give us an edge but it
will not predict the future. Therefore, we can use fractals as a trigger
to put us into a trade or out of a trade and we may not know if the
trade will end in a profit but we can now that we’re only acting on
newdigital, 2014.06.04 12:44
Gold Presses Fibonacci Wave Relationship
Triangles are consolidation patterns that allow prices to trade sideways
in an effort to alleviate overbought and oversold pressures. In the
case of gold, it has been working its way lower for the past three years
and needs to consolidate those losses, which it has been doing in the
Elliott Wave triangles are made up of five waves inside the triangle
with each wave being contained inside the previous wave. In the
idealized example above, notice how wave ‘B’ ends BEFORE the beginning
of wave ‘A’. Notice how wave ‘C’ ends BEFORE the beginning of wave ‘B’.
This continues until prices squeeze together in five waves (A-B-C-D-E)
then they eventually explode.
In the same idealized example above, it appears gold is closing in on
the end of the ‘D’ wave which should yield a bounce higher in wave ‘E’.
wave ending near $1235 per ounce. Both wave relationships are expressed
through alternating waves having a fibonacci relationship in length.
First, inside the green ‘D’ wave, you’ll see we have a blue a-b-c
sequence. Many times, the length of wave ‘c’ will have an equality or
fibonacci relationship to the length of wave ‘a’. In the case for gold,
the length of blue wave ‘c’ equals blue wave ‘a’ times 61.8% at $1235
Secondly, green wave ‘B’ and green wave ‘D’ are alternating waves. If
you take the distance of green wave ‘B’ and multiply it by 61.8% and
project it for a distance on green wave ‘D’, it yields a price target of
$1235 per ounce.
So we have two different alternating waves pointing to the same price
target. This means there will likely be a reaction higher near $1235. If
$1235 does fail, look to $1190-$1200 providing significant support.
The price target to the upside in this scenario would be $1340-$1390. So
there is enough room to the upside to position towards the long side of