Trading is hard work. Dnt let anyone tell you any different. There’s no free lunch!!.. A lot of screen time is required, a lot of studying is also required (understanding the fundamentals). There are just three things I think any trader needs:
· A trading plan
· Discipline to follow that plan
· And the Holy grail >>>>Money management
Learning money management can be a very EXPENSIVE lesson. I could give you my trading background, how its been brutal, and how I’ve found meself making the same mistakes….Most people who have traded for more than two years have similar stories, so I’ill cut to the chase. Firstly, I dnt think any profitable, enduring trading system can be based on the chart from one time frame, except you are considering H4 charts and above. I am starting this thread to share something I learnt awhile ago, and forgot…and learnt again...
This setup uses a lot of MAs, CCIs and MACD (my personal favorite).
It uses the H4 and H1 charts. Yeah, its not so simple, but not so complicated either. We need these various charts for confirmation. The signals are taken off the H4 and H1 charts, entries are taken off the H1 chart.
I didn’t develop this strategy; I simply made a cocktail of two. Thanks to Zak Llyod for this school of pimpology, and Capito for his CICR setup. You will need a broker with currency index charts, I recommend LiteForex. A demo account with them will give you enough access to the charts you need.
Pairs: GBPJPY, EURJPY, USDJPY, EURUSD AND GBPUSD
H4 chart
Indicators: macd, heiken ashi and frasma indicator.
H1 chart
80EMA, 50SMA, 20EMA, 5EMA, CCI (21), CCI (5), CCI (84), NB MACD Indicator.
Step 1. Check H4 chart for a macd cross eg GBPUSD. If a cross up is seen, check the GBP Index for a corresponding macd cross upwards, and a bullish heiken ashi candle. The candle closing above the frasma line is good but optional.
Step 2. If we have a ‘potential’ buy signal in H4, we switch to the H1 chart. CCI 5, 21 and 84 should be above zero, with an hourly candle closing above all the MAs, and NB MACD above the zero line. This gives us a buy signal.
I recommend letting the trade run for at least 12hrs to let the signal ‘prove’ itself. This setup is quite reliable. Of cos, we may have some false signals, that’s the whole idea behind checking the currency index to ascertain its weakness or strength..
Exits:
A reverse signal
A macd H4 cross that opposes the signal
trader's discretion
Wow!!..that felt like a lot…I hope the screen shots are more explanatory.
The stop loss should be about 20 - 30 pips below/above the recent swing low/high.
its a solid strategy, but i would not risk more than 5% of the bank.
· A trading plan
· Discipline to follow that plan
· And the Holy grail >>>>Money management
Learning money management can be a very EXPENSIVE lesson. I could give you my trading background, how its been brutal, and how I’ve found meself making the same mistakes….Most people who have traded for more than two years have similar stories, so I’ill cut to the chase. Firstly, I dnt think any profitable, enduring trading system can be based on the chart from one time frame, except you are considering H4 charts and above. I am starting this thread to share something I learnt awhile ago, and forgot…and learnt again...
This setup uses a lot of MAs, CCIs and MACD (my personal favorite).
It uses the H4 and H1 charts. Yeah, its not so simple, but not so complicated either. We need these various charts for confirmation. The signals are taken off the H4 and H1 charts, entries are taken off the H1 chart.
I didn’t develop this strategy; I simply made a cocktail of two. Thanks to Zak Llyod for this school of pimpology, and Capito for his CICR setup. You will need a broker with currency index charts, I recommend LiteForex. A demo account with them will give you enough access to the charts you need.
Pairs: GBPJPY, EURJPY, USDJPY, EURUSD AND GBPUSD
H4 chart
Indicators: macd, heiken ashi and frasma indicator.
H1 chart
80EMA, 50SMA, 20EMA, 5EMA, CCI (21), CCI (5), CCI (84), NB MACD Indicator.
Step 1. Check H4 chart for a macd cross eg GBPUSD. If a cross up is seen, check the GBP Index for a corresponding macd cross upwards, and a bullish heiken ashi candle. The candle closing above the frasma line is good but optional.
Step 2. If we have a ‘potential’ buy signal in H4, we switch to the H1 chart. CCI 5, 21 and 84 should be above zero, with an hourly candle closing above all the MAs, and NB MACD above the zero line. This gives us a buy signal.
I recommend letting the trade run for at least 12hrs to let the signal ‘prove’ itself. This setup is quite reliable. Of cos, we may have some false signals, that’s the whole idea behind checking the currency index to ascertain its weakness or strength..
Exits:
A reverse signal
A macd H4 cross that opposes the signal
trader's discretion
Wow!!..that felt like a lot…I hope the screen shots are more explanatory.
The stop loss should be about 20 - 30 pips below/above the recent swing low/high.
its a solid strategy, but i would not risk more than 5% of the bank.
Attached Images (click to enlarge)
..
...as always, i am waiting for UJ to lead the way, once the UJ starts to drop, the other yen pairs will drop like bricks..imho..
