Auslanco-GBP/JPY Strength Indicator strategy

Hi guys...I'm trying to put up the much needed strategy rules for my system.


Lesson-1
First I will introduce you to the two main indicators I use for my trading. It's safe to place trades just by using these two indicators after you confirm a trade according to the strategy rules.

a. The strength Indicator
b. TFT line

For VT Trader users:

Strength Indicator = Quantitative Qualitative Estimation Indicator ( Smoothing period 5) Please go to indicator properties and add a red line on the value 50.
Go to color /style on the same indicator properties and turn the LevelRSIfast to white(invisible)....

TFT = Gann HiLo Activator (period/value 10)


Free charting package VT trader- freewww.vtsystems.com

Time frames 4hr,1hr

Check list before enter a trade:

Buy signal
A).4hr chart:First confirm the 4hr Strength indicator has turned bullish( This can be either below or above the 50 line) Please note that the 4hr strength indicator doesn't have to cross over to the 50 line.

B).4hr chart:Make sure the candle has formed above the TFT line.

now once you confirm the above two features you know the short-medium term trend is bullish.

Entry:

C). 1hr charts: you only enter @ the point of the strength indicator cross over the 50 line upwards.

If you find that 1hr SI is way above the 50 line by the time you get a cross over confirmation from 4hr, that means a major retracement is due. please wait untill the 1hr SI turn bearish and go back to bullish again to enter.

d). 1hr Charts: Make sure a candle has formed above the TFT line.

Always enter @ the start of 1hr confirmation bar(second bar after the TFT crossover bar )

1hr charts entry confimation

1hr strength indicator crossover entry point for 200 pips

1hr strength indicator cross example: another buy signal 200 pips

Please note that the Sell signals are vise versa.

I will keep updating more graphics and examples in the near future.

Please practice these indicator behaviors on a demo account before you apply them on to your real money trading .

Current charts as of Sunday 5th August @ 2.53GMT (10.53EST)


4hr strength indicator still hasn't crossed down to bearish.
1 hr crossed down below the 50 line.
Both 1hr & 4hr price bars are below the TFT line

Interpretation: When I get my new chart updates on Monday Asian session I would expect the 4hr Strength Indicator to be crossed down. But the 1hr Strength indicator is way below the 50 line.My usual entry point is when the strength indicator cross @the 50 line on 1hr charts, providing that 4hr strength indicator has turned bearish already.. There for I will wait until the 1hr strength indicator cross upwards and cross downward again before I enter.. as there could be a retracemnt around to 241.40 area @ asian early to mid hours before it starts a bearish rally.

The link in post one to free vt systems does not work

Just corrected it

Hi Auslanco,

Were you just using these indicators in the past days? No need for MACD, Momentum etc?

Auslanco,

The vtsystem link you posted still don't work.
I am using the broker: www.cmsfx.com, and they are providing VT trader, too. Name sound the same, but I wnat to make sure that is the same VT you are using.

Aus

I am having trouble getting the link to work as well

Cheers

http://tinyurl.com/363r9m

4Hr Strength Indicator: crossed down (but the confirmation bar has not yet formed -next bar)
4Hr TFT: price is below the TFT line
1Hr Strength Indicator: Crossed down but way below the 50 line
1Hr TFT: the new bar is Way below the TFT line

Interpretation: Since the 1Hr S.I is way below the 50 line(my entry point is @ the 50 line crossing) I will wait until the 1hr SI cross upwards(retracement) and as it crosses back down again I may go short(if the 4hr SI is still crossed down).

We will have an awesome short(Sell) day today with a guaranteed 300 pips since the daily momentum and trend is extremely bearish.

Hi brok.. No need of any extra indicators..Once you master these two indicators , You can use the other indicators (Stoch, Momentum etc etc ) just to confirm what you see. But S.I and TFT are the main two indicators

Here's the link again Guys, (for the free VT trader charting platform )


www.vtsystems.com
or

www.cmsfx.com

Yess,, they are all built in (free) with VT

Here's a great source to learn about candlestick patterns if you are interested

http://www.actionforex.com/articles_..._200605107114/

Dear Auslanco,

I downloaded VT Navigator trading station, but I don't see "Strength Indicator". Where do you get that?

Thanks, Michael

Please read the very first post: it's called QQE

Ok, got it. Thanks