What do you place your lines with at the limit, high, and magic number?
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DislikedHi Kharvell,
First of all i would like to thank you for sharing your trading method. It seems to be easy but in the same time very profitable and accurate. My question is when is the moment of entry? In the same candle in which the magic number is reached or the next candle after the magic number have been reached.(of course if the RSI is not pointing right we will wait for the next candle) Hope I made myself understood taking in to account that English is not my mother tongue.
Thnx again for sharing your ideas.Ignored
QuoteDislikedWhat do you place your lines with at the limit, high, and magic number?
Dislikedcesarnc
In order to go long, a Pivot Low should be in place; the last pivot low which I can see has been on the 11th Jan and you should have gone long on the 12th.
The method which you are trying to implement is "the break of previous day's high" which is a different issue.
Of course kevin will explain the situation as he is the author.Ignored
DislikedKharvell,
One strategy that I have been using for entry (I bracket the 10pm EST sideways market, when available) is to enter the market with 2 units. I set one with a limit that is the same distance from the enterance and the stop. I set the other unit with the same stop and no limit. If the price goes in the intended direction for 30 pips and hits my limit on unit one then turns around and goes back down 60 pips and hits the stop on the other unit I brake even. However if it continues in the original direction then I'm left with one trending unit and an additional 30 pips already banked. Occasionally if it is a strong move I will move my stop to brake even after the limit is hit so the worst I can do is +30 pips.
Stop loss size depends on the currency pair.
Does this make sense?
If both units get stoped out I loose 60 pips.
(1 unit is whatever size lot you use)Ignored
QuoteDislikedFirst of all I would like to thank you for the quick and comprehensive answer. Now the entire picture is clear (I guess :-) ) . To answer your question my native language is Romanian.
Thank you again for sharing your method and the patience that you have shown to all of us.
QuoteDislikedThink i missed something along the way here what or how are u getting this pivot low would 1.9590 area not be considered a pivot low ?
Disliked
Ok, I thought of a new way maybe to ensure understanding pivots:
Pivots are alternating. With that being said, you can't have another low pivot until you have a high pivot. So we had a low pivot on Jan 10th, this indicates to look for a high pivot. As you can see, the high's just keep goin' up! Therefore, no high pivot QUITE YET, meaning NO LOW PIVOT YET
Hope this is clear.
KevinIgnored
DislikedSoooo your looking for a new lower high to find a new higher low pivot ? Or the reverse would be a new higher low to find a lower high pivot ! Think that makes sense or else i'm just totally confusing myself and everyone else !! Suppose if you could find a chart to show what you mean it'd save a thousand words, if u have time that is ?Ignored
DislikedBilly,
You are complicating things . I am whippin' out this chart again in hopes that you might get it. When a LOW pivot point appears like the one featured below, you will then go into HIGH pivot mode where you are watching for a high pivot. This entails looking at the high values from then on. When you find the high values are no longer increasing, this should be a red flag that it could POTENTIALLY be a high pivot. If it is indeed a high pivot, then you go into LOW pivot mode, where you look at the lows using the same process. This is what I mean by alternating High and Low pivots.
Hope this makes sense,
KevinIgnored
Quoting kharvellDislikedAnd it looks like USD/CHF is going to be a while, but if I were you, I would maybe look into entering the next trade with me But then again, I am me, and you are you, so just do what you want to do.Ignored
DislikedNot gambling yet, but I am liking the system.
EUR/JPY Long since Tuesday. + 130pips.
Thanks Kevin
How about Long EUR/USD soon????Ignored
DislikedAny gamblers out there? Strong green candle today, I went ahead and bought USD/CHF @ 1.2521
Trades:
Long GBP/USD @ 1.9643 S/L 1.9606 = 31 PIPS
Long AUD/JPY @ 94.87 S/L 94.42 = 72 PIPS
Long USD/JPY @ 120.68 S/L 120.18 = 73 PIPS
Long USD/CHF @ 1.2521 S/L 1.2416 = 2 PIPS
Ignored
DislikedKharvell,
I just discovered this thread and read through all the posts last night, and thought I had your system down.
However, this post confused me. Would you explain where the pivot low is that created the buy for gbp/usd at 1.9643. I don't see it, so I must be missing something. Also, just to make sure I have this down correctly, is the stop of 1.9606 based on the low of 1/17?
Thanks for your help.Ignored
DislikedThis one is dedicated to Dobbie, who told me I ought to make a guide describing my methods. While theoretically I could take this system and make money off of it, I'd rather see everyone benefit. If you should so decide to claim this method as your own, so be it, and I hope you can sleep soundly at night! I would like to have credit for this though.
Just as a precursor, what this method COULD do for you after 6 months of backtesting:
GBP/USD 1903 PIPS
USD/CHF 1061 PIPS
AUD/JPY 692 PIPS
USD/JPY 891 PIPS
As of now, I have started forward testing this week and am currently up about 700 PIPS in one week, which has admittedly been just a lucky catch. If I were to use my method (which I am), I would stick to volatile pairs.. i.e. GBP/USD.
So now that you know what this system COULD do, here is HOW it works:
First, get out your handy dandy Daily Chart(GBP/USD)
Then look for pivot points! Pretty easy, I know... But some of us may not know what pivot points look like, so let me describe them to you:
A price will hit a minimum or a maximum.
After that minimum or maximum, you must wait for the price to extend below the LOW (for maximums) and above the HIGH (for minimums). I usually use the spread.
A real world example:
GBP/USD
On November 16th, 2006 it reaches a Minimum of 1.8831
So, we observe the HIGH of that day, which happens to be 1.8966
We then add the spread to this, which for OANDA, the spread is typically 3.
Our magic number is 1.8969!
Now, the other part of my system...
RSI
Set an RSI(10) on your graph. I would draw 2 extra horizontal trendlines on your RSI at 40 and 60.
Now there are several scenarios(rules) that will indicate whether to actually buy in our real world example:
NOTE: If a BUY scenario is not reached within 3 days(3 BARS), then we do not act upon the pivot point. That is to say there are 3 bars between the MIN/MAX day and today.
If our magic number 1.8969 is reached and the RSI(10) is sloping UP, ABOVE 50, then we BUY.
If our magic number 1.8969 is reached and the RSI(10) is sloping UP,
JUST came from 30, and now ABOVE 40, then we BUY.
If our magic number 1.8969 is reached and the RSI(10) is sloping DOWN,
ABOVE 50, we do NOTHING.
Otherwise, If our magic number 1.8969 is reached and the RSI(10) is BELOW 50 we do NOTHING.
We then sell out when the next pivot point exists, EVEN if it is 2 bars later.. Again this means a MAXIMUM must develop and the next bar must not exceed it, and also go below the LOW of the MAXIMUM.
NOTE: If a new maximum develops before the pivot point happens, we keep riding!
ALSO, we set the stop loss to either the minimum that we bought near or 100 PIPS, whichever is less.
Now I assume we are all intelligent and would be able to reverse everything for a sell position, but if you have any questions feel free to ask. The only major thing is using a value of 40 instead of 60 and 30 instead of 70 for the RSI(10) scenarios.
As they say here in Texas, there's no such thing as a dumb question.
Good luck to allIgnored
QuoteDislikedIs your name Kharkov from the tradestation forums, if so, I've been using the updated form of your indicator for some time now, really good stuff. For all TS Users, I have provided the code below. If not TS user, shouldn't be hard to translate. I have been using this in conjunction with other factors for some time with success on many timeframes. Here is a pic of daily with RSI Pivots(red and green dots added on). This latest version was done by some user named codetalker - really amazing at coding just about anything.
Disliked... Here is a pic of daily with RSI Pivots(red and green dots added on). This latest version was done by some user named codetalker - really amazing at coding just about anything.
Indicator..........: Power RSI Pivot by FEDSignal.com
Aplication.........: TradeSation 7.XXIgnored