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TraderMonty Mar 23, 2016 9:51am | Post# 1

High probability and profitable Price Action trading system
 
6 Attachment(s)
I had started trading the Forex market about eight years ago and have regularly watched the FF for many years. Literally, I could say that I grew up in Forex with the FF. I now think that its time to give something back to this highly valuable portal and its members.

In the article, I would like to pass on to FF members my most profitable trading system, which I have for many years in trading Forex. My goal is to give you the trading rules that I personally use every day in my real trading and that gives me a decent profit on my trading account.

During the time that I traded on a real account, I have tried countless different trading approaches, indicators and systems. However, I can now (after many years of trading) confidently say that this trading idea is so far the peak of my trading know-how and the most profitable approach that I have ever encountered.

In this article I will provide this approach to you and thus explain everything. However, you will have to select the most suitable money-management for the trading system and possibly experience plenty of emotions and gain major experience with this system to trade the system as profitably as me.

It is a system based on Price Action and complete analysis of market behavior.


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In this system we are using two indicators:

1) The indicator showing the important S / R levels - the indicator monitors all time-frames of the market and based on these it then draws the most important price levels. The indicator saves us a lot of time before a lengthy and sometimes not very clear illustrations of S / R levels.

You can download this indicator to MT4 below:
Important_SR_Levels.ex4

2) Time-Frames analysis. The indicator, thanks to which we have an overview of all time-frames, provides us with a full overview of what is actually happening in the market. Tracking multiple time-frames is time consuming, yet if we follow only one time-frame, then we often lose track of the overall movement and context of the market. That's the reason I use this indicator during my trading.

You can download the second indicator to MT4 below:
Time_Frames_Analysis.ex4

The system with the indicators above proved for me to be the most universal trading approach on all currency pairs and can be traded on all timeframes. Personally, I mostly trade EUR / USD on the M15 time-frame.

Entries to the market
The whole system is based on waiting for the reversals of the market on all time-frames that shows us the second indicator "Time-Frames Analysis". This will ensure that we trade in the direction of the long-term trend of the market, while in the short term, we have a well-timed entry into the market.

So, on the higher time-frames (H4, daily, weekly, monthly) I am waiting for a clear rising or falling of the market.

Conversely, on the lower time-frames (M1, M5, M15, H1) I enter after a reversal of candlesticks in the direction of higher time-frames. You can see an overview of several reversal candlesticks below.

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Exits from the market

Now I use the most useful indicator for plotting major S / R levels in the market.

If we open a BUY trade, then the Stop-Loss will be set under the first logical support nearest to the current market price, and Profit-Target will be set at the first logical nearest resistance in the market.

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If we open a SHORT trade, then I will set the Stop-Loss above the first nearest resistance to the current market price, and Profit Target will be set on the first nearest logical support in the market.

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By the word logical I mean that the S / R level must not be only a few pips away from the entry price of a trade. If that were to be the case, then we would use the second closest S / R levels in the market.

Now I have introduced you the universal trading system which will keep your trades on the right side of the market and at the same time help you enter and exit on logical price levels, which have a very high probability of success. Now it's your turn to add an appropriate money management system and gain enough experience with the system.

Monty

JMaurice Mar 23, 2016 9:54am | Post# 2

To clarify, you look for candle reversal patterns at the S/R lines drawn by the indicator, into the direction of the higher time frame trend? For example, if the H4/D1 EU is moving up, you would buy at a support line drawn by the indicator after a nice bullish candle pattern on the M15?

TraderMonty Mar 23, 2016 10:01am | Post# 3

To clarify, you look for candle reversal patterns at the S/R lines drawn by the indicator, into the direction of the higher time frame trend? For example, if the H4/D1 EU is moving up, you would buy at a support line drawn by the indicator after a nice bullish candle pattern on the M15?
Hi there! Itīs a good confirmation if the candle reversal patterns are at the S/R lines, but itīs not necessary for me. I trade the reversal patterns from lower time-frames in the direction of the higher time frames. Then I take profits at the nearest S/R lines. This strategy proved for me as a combo for profitable trades with high probability.

JMaurice Mar 23, 2016 10:05am | Post# 4

{quote} Hi there! Its a good confirmation if the candle reversal patterns are at the S/R lines, but its not necessary for me. I trade the reversal patterns from lower time-frames in the direction of the higher time frames. Then I take profits at the nearest S/R lines. This strategy proved for me as a combo for profitable trades with high probability.
Great system! Thanks for sharing!

TraderMonty Mar 23, 2016 10:17am | Post# 5

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{quote} Great system! Thanks for sharing!
Thanks! I will post some trades soon. The masterpiece in forex trading is often a patience. The market bounced nicely from resistance levels and there was also Doji candle. But MN, H4 and H1 candles tell a different story

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asgcorp Mar 23, 2016 10:21am | Post# 6

Nice system, congrats, and thanks for sharing! Would be good if you also post a few sample trades you take in real time!

TraderMonty Mar 23, 2016 10:28am | Post# 7

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Even if there could be a profitable entry - a pro trader canīt be mad because of the lost opportunity. Simply wait for the trade setup that is our time-proven combo...

Just wanted to show a little bit of background thinking. I will post the real time trades soon :-)

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TraderMonty Mar 23, 2016 10:30am | Post# 8

Nice system, congrats, and thanks for sharing! Would be good if you also post a few sample trades you take in real time!
Thanks! will do in the beginning of the next week

asgcorp Mar 23, 2016 10:33am | Post# 9

{quote} Thanks! will do in the beginning of the next week
true we got banking holidays liquidity probably going to dry up.

TraderMonty Mar 23, 2016 10:53am | Post# 10

{quote} true we got banking holidays liquidity probably going to dry up.
Correct, there are usually nice opportunities right after the holidays

brewmaster Mar 23, 2016 11:18am | Post# 11

thanks alot trader monty! This is great!!

HighFivve Mar 23, 2016 2:33pm | Post# 12

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you are a godsend TM many thanks for this jewel ..good pips

went short dax 10,009 on pin bar + ND vol Bar, 1D and wky R ..TP 1D Sup, stop above pin. 1;2 RR

Edit ; market moved 25 points down in 30 min moved SL to BE.. ;-) free trade
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profitkeeper Mar 23, 2016 3:19pm | Post# 13

Very nice, clean simple system.
Congratulations TraderMonty.
The S/R indie is the best I have come across. Did you program it?

trader333 Mar 23, 2016 6:10pm | Post# 14

Really very interesting trading system. Thx trader monty.

TraderMonty Mar 23, 2016 6:14pm | Post# 15

you are a godsend TM many thanks for this jewel ..good pips went short dax 10,009 on pin bar + ND vol Bar, 1D and wky R ..TP 1D Sup, stop above pin. 1;2 RR Edit ; market moved 25 points down in 30 min moved SL to BE.. ;-) free trade {image}
Nice one! Glad to hear that the thread helped you. It's all about making both entries and exits as probable as possible. And I don't go for hundreds of pips. Use simple Price Action, set TP on the nearest S/R level and repeat, the profits will come :-)

TraderMonty Mar 23, 2016 6:22pm | Post# 16

Very nice, clean simple system. Congratulations TraderMonty. The S/R indie is the best I have come across. Did you program it?
Thanks. Glad to hear that you like the system. No, I didn't, I found the indicators somewhere on the internet - I have only the ex4 version. I use the system with the indicators a couple of years. As this approach is time-proven now from my side, I wanted to share it with others.

earlroy63 Mar 23, 2016 6:37pm | Post# 17

Is the Time frame analysis indicator for EURUSD only?

masilva Mar 23, 2016 7:14pm | Post# 18

Thank you Monty for sharing the indies and your method.

I'll be waiting for your real-time examples.. thanks in advance

What session do you normaly trade?

richfreeFX Mar 24, 2016 12:01am | Post# 19

waiting for real time chart explaining..
perhaps you could share your template setting too Sir.

MeLe Mar 24, 2016 1:21am | Post# 20

Thank you Monty, it is good to see a good clean uncluttered chart.
Regards


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