Hi all,
Well I have been doing this on and off for the last year on my blog, but am finding it hard to maintain 4 websites on various topics all at the same time, so I thought why not move my trades here with the friendly folk of FF.
My system uses a few different indicators, it is one that has been a while in the making, but has proved successful over the last year of trading. Ok first a chart before the explanation:
Ok here is a rundown of each indicator, some other information, a link to download it for MT4 if they don't come standard, as well as how I use them:
Bollinger Squeeze (more information | download)
Settings: 20,2,20,1.5,10
The bollinger squeeze is the foundation of my entry warning system, I enter generally only during blue zones, i.e. when a blue dot appears. I do not however use the common method of waiting for the first red dot after the blue, but attempt to pre-empt the move early on. This makes it more risky but more rewarding, the remaining indicators aid me in reducing risk.
CCI (more information | comes standard to MT4)
Settings: 50 applied to Closing prices
If the bollinger squeeze is my warning a trade is looming, the CCI is my trigger. I use the CCI as a signal when to enter in the direction I have chosen. So, for example if I have chosen to go long based on the rainbow MMA, bollingers and price action, then I wait for the appropriate long signal from the CCI. This could be things like a zero line bounce, a 100 cross, slingshots etc. More on that as I place my trades.
Bollinger Bands (more information | comes standard to MT4)
Settings: 20,2 on Close
In a way I am doubled up as the Bollinger Squeeze also uses the Bollinger bands combined with Keltner channels to give it's signals, however I use it to aid me on picking a correct level to enter a trade, or show where I may have to wait for price to rest before taking a trade if seems exhausted.
Two Simple Moving Averages (more information | comes standard to MT4)
Settings: 200 and 50
I keep two simple moving averages on my chart, and I use them solely to show resistant and support areas. The 50 SMA serves as another possible entry level, the 200 SMA as a warning not to trade long just below it, or short just above. Also used for confirmation of signals. I do not at any time use it as a crossover signal.
Rainbow Multiple Moving Average (download)
Settings: None
This visually attractive indicator is 88 different Exponential Moving Averages, ranging from the 2EMA up to the 200EMA in slowly increasing increments. As I have stated elsewhere I confess wholeheartedly that it is of no more use to me than another MMA indicator called the Guppy Multiple Moving Average (more information | download) but it just looks good, and if I have to look at the screen for so long then bugger it, let's make it attractive to look at.
In terms of use, I use to the MMA's to show me underlying market conditions. If they are scrunched up together, I know we are in ranging conditions and adjust my entries accordingly, if the spread apart and in color sequence then we are in an established trend, if we are in colour sequence but compressed, we could be in a weak trend etc.
Candlesticks
Ultimately in the end candlesticks are what get me in and out of a trade. I look for formations around areas of interest formed by the BB and SMA's and look for them to confirm CCI signals.
Fibonacci Retracements and Extensions
You will find these on my charts, especially the 161.8 extension as a profit target for times I cannot monitor the trade (such as when I am sleeping), and retracements to determin confluence points with the above indicators. The 78.6 retracement is a common stop loss placement area for me.
Ok to finish up for now here is another chart with some entry and exit areas marked, I will give more thorough explanation of entry and exit points as I post my trades in upcoming days. Happy trading!
Well I have been doing this on and off for the last year on my blog, but am finding it hard to maintain 4 websites on various topics all at the same time, so I thought why not move my trades here with the friendly folk of FF.
My system uses a few different indicators, it is one that has been a while in the making, but has proved successful over the last year of trading. Ok first a chart before the explanation:
http://img72.imageshack.us/img72/4368/setup5yh.gif
Ok here is a rundown of each indicator, some other information, a link to download it for MT4 if they don't come standard, as well as how I use them:
Bollinger Squeeze (more information | download)
Settings: 20,2,20,1.5,10
The bollinger squeeze is the foundation of my entry warning system, I enter generally only during blue zones, i.e. when a blue dot appears. I do not however use the common method of waiting for the first red dot after the blue, but attempt to pre-empt the move early on. This makes it more risky but more rewarding, the remaining indicators aid me in reducing risk.
CCI (more information | comes standard to MT4)
Settings: 50 applied to Closing prices
If the bollinger squeeze is my warning a trade is looming, the CCI is my trigger. I use the CCI as a signal when to enter in the direction I have chosen. So, for example if I have chosen to go long based on the rainbow MMA, bollingers and price action, then I wait for the appropriate long signal from the CCI. This could be things like a zero line bounce, a 100 cross, slingshots etc. More on that as I place my trades.
Bollinger Bands (more information | comes standard to MT4)
Settings: 20,2 on Close
In a way I am doubled up as the Bollinger Squeeze also uses the Bollinger bands combined with Keltner channels to give it's signals, however I use it to aid me on picking a correct level to enter a trade, or show where I may have to wait for price to rest before taking a trade if seems exhausted.
Two Simple Moving Averages (more information | comes standard to MT4)
Settings: 200 and 50
I keep two simple moving averages on my chart, and I use them solely to show resistant and support areas. The 50 SMA serves as another possible entry level, the 200 SMA as a warning not to trade long just below it, or short just above. Also used for confirmation of signals. I do not at any time use it as a crossover signal.
Rainbow Multiple Moving Average (download)
Settings: None
This visually attractive indicator is 88 different Exponential Moving Averages, ranging from the 2EMA up to the 200EMA in slowly increasing increments. As I have stated elsewhere I confess wholeheartedly that it is of no more use to me than another MMA indicator called the Guppy Multiple Moving Average (more information | download) but it just looks good, and if I have to look at the screen for so long then bugger it, let's make it attractive to look at.
In terms of use, I use to the MMA's to show me underlying market conditions. If they are scrunched up together, I know we are in ranging conditions and adjust my entries accordingly, if the spread apart and in color sequence then we are in an established trend, if we are in colour sequence but compressed, we could be in a weak trend etc.
Candlesticks
Ultimately in the end candlesticks are what get me in and out of a trade. I look for formations around areas of interest formed by the BB and SMA's and look for them to confirm CCI signals.
Fibonacci Retracements and Extensions
You will find these on my charts, especially the 161.8 extension as a profit target for times I cannot monitor the trade (such as when I am sleeping), and retracements to determin confluence points with the above indicators. The 78.6 retracement is a common stop loss placement area for me.
Ok to finish up for now here is another chart with some entry and exit areas marked, I will give more thorough explanation of entry and exit points as I post my trades in upcoming days. Happy trading!
http://img63.imageshack.us/img63/1279/setup25ir.png
*NOTE IF THE ABOVE DOWNLOADS DO NOT WORK, ATTACHED IS A BUNDLE OF ALL THE INDICATORS, AND MY TEMPLATE.
Attached File(s)
Akuma99 CCI Squeeze.zip
14 KB
|
4,113 downloads
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Uploaded May 9, 2006 1:18am
You can quit and they won't care, but you will always know.