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-   -   Simple, proven and profitable S/R system (https://www.forexfactory.com/thread/587476-simple-proven-and-profitable-sr-system)

HCooper Apr 18, 2016 5:16am | Post# 1

Simple, proven and profitable S/R system
 
2 Attachment(s)
There are a lot of various trading systems on the internet, but most of them are unusable and mainly not profitable in the long term. For this reason, I would like to introduce my (proven and profitable) trading system utilizing the S / R zones.

I can definitely recommend the system to everyone, because it is very simple, but a very very profitable!

It's just amazing how so simple trading system can be profitable. So here the saying below is really true:

Simplicity is the ultimate sophistication (Leonardo da Vinci)

The system is built on a powerful indicator showing important S / R zones, which I found on the internet. So all credits go to the author. Over the years that I trade, I have not seen any better indicator on the S / R zones.

1) Firstly Id like to tell you more about the indicator for the important support and resistance zones, which I use in this system. The indicator shows the resistance and supports on the high quality price zones only. So the indicator doesnt draw a lot of the zones, but it draws only the imporant ones.
However, its main advantage is that it also shows us the quality of resistance and support zones. Or rather, how many times the market tested a given zone (S / R). Here, logically, the more times the market tested the zone, the zone will be stronger and more valid.

sr_zones.ex4
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Name: SR.png
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Settings of the indicator

The indicator has more settings, but the Factor and zone_extend are the most important for us:

a) Factor = how strong S / R zones should the indicator show (default 0.5)
b) zone_extend = whether the indicator should connect near S / R zones together (default false)

2) The whole trading system can be traded on any market and any timeframe (which is a big advantage). The lower the timeframe you choose, the more you will receive signals (more trades), but logically the trades will be shorter (faster opened and closed). It is up to every trader to choose the trading style that suits him.

The trading system is very simple and consists in the search for strong S / R levels (those which have been tested by the market at least once, but ideally 2 to 3 times).

Once the price hits the strong S / R zone (previously tested by the market), I open a trading position against the direction of the market (I use limit orders). Then I hold the trade until the price reaches the opposite S / R zone.

Buy trade:
Price reaches the strong support (must be tested at least once). At that moment, I am opening the buy trade. I set TP below the closest resistance. The SL is the same amount of pips from the entry price as TP - so I simply use RRR ratio 1 : 1.

Sell trade:
Price reaches the strong resistance (must be tested at least once). At that moment, I am opening the sell trade. I set TP above the nearest support. The SL is the same amount of pips from the entry price as TP - again, I simply use the 1 : 1 RRR ratio.

Final info:
The indicator shows only the strong S / R zones. Not like other S / R indicators, which are drawing S / R zones everywhere That's why I like the indicator a lot, and I also recommend you to zoom out the chart little bit to see all zones. For intraday trading, I recommend to choose M5 or M1 chart. For swing trading I like H1 chart the most.

With this indicator, of course, you can trade any other trading system. The system described above is only my the most simple variation of the system. I also trade the previously untested S / R zones, but this style is much difficult and requires more experience (I will show also a couple of these trades in this thread). Of course, if you will change the trading strategy, its 100% up to you.

I have also my second thread here. These are currently my two the best, most useful and profitable trading systems. I will keep watching and posting to both threads.

Coop

swetrader Apr 18, 2016 5:34am | Post# 2

Interesting and thank you for the system. How long time have you been trading this system?

HCooper Apr 18, 2016 5:41am | Post# 3

Interesting and thank you for the system. How long time have you been trading this system?
Thank you I trade the system for roughly 3 years profitably. Before that I was going through the period of learning / losses etc. But the last 3 years are stable for me.

swetrader Apr 18, 2016 5:47am | Post# 4

{quote} Thank you I trade the system for roughly 3 years profitably. Before that I was going through the period of learning / losses etc. But the last 3 years are stable for me.
Nice! I will definitely follow this thread. Will you post more chart examples? Just got my Metatrader setup with the indicator.

Matrix8756 Apr 18, 2016 5:53am | Post# 5

Also Sup-Dem ??

Stubborn Apr 18, 2016 5:59am | Post# 6

I really appreciate your effort and intentions to help people get a profitable trading strategy.
However can you please show us some stats based on this method before we jump in to follow this system.
Any demo/TE/etc.

HCooper Apr 18, 2016 6:17am | Post# 7

1 Attachment(s)
{quote} Nice! I will definitely follow this thread. Will you post more chart examples? Just got my Metatrader setup with the indicator.
Cool - of course, I will share more chart examples soon. Today was a nice opportunity on GBP/USD.

Click to Enlarge

Name: GBPUSD_ecnM5.png
Size: 35 KB

HCooper Apr 18, 2016 6:19am | Post# 8

Also Sup-Dem ??
Welcome here - could you please explain your question in more detail?

Stubborn Apr 18, 2016 6:20am | Post# 9

{quote} Welcome here - could you please explain your question in more detail?
I guess it means results on a demo account to support this strategy.

HCooper Apr 18, 2016 6:27am | Post# 10

I really appreciate your effort and intentions to help people get a profitable trading strategy. However can you please show us some stats based on this method before we jump in to follow this system. Any demo/TE/etc.
Thanks men I donīt trade the system on the demo acc anymore - but I will show some live / real results soon. But first things first, I would like you to believe in the core / concept of the system. If you will see that the system doesnīt suit you and you would like to learn it only based on the results - you will not be profitable with this system. Simply choose the system that you like, that will suit you and that makes sense to you. Results are only the top of all and traders have always start from the beginning.

HCooper Apr 18, 2016 6:28am | Post# 11

{quote} I guess it means results on a demo account to support this strategy.
Oh, OK Iīve answered above

swetrader Apr 18, 2016 6:49am | Post# 12

{quote} Cool - of course, I will share more chart examples soon. Today was a nice opportunity on GBP/USD. {image}
Looks good. What FX pairs are you trading?

HCooper Apr 18, 2016 7:01am | Post# 13

{quote} Looks good. What FX pairs are you trading?
I like majors the most - EUR/USD, GBP/USD and USD/JPY.

Anusragger Apr 18, 2016 7:04am | Post# 14

This supdem indy looks ok in hindsight. Zones which are broken are removed. Now it looks as if every painted zone holds. But all the other ones are just deleted.

HGFx Apr 18, 2016 7:11am | Post# 15

how do you know when a tested zone is weak or invalid e.g nzdchf 30m is on its 4th test now. do we sell it to test the system??

EeZeeTrader Apr 18, 2016 7:11am | Post# 16

Hi HC

I've also had the idea in mind to only trade S/R zones.
I would've manually entered my S/R zones but will definitely verify my S/R levels with the indi you provided.

Thanks for indi btw.

Knez Apr 18, 2016 7:23am | Post# 17

This supdem indy looks ok in hindsight. Zones which are broken are removed. Now it looks as if every painted zone holds. But all the other ones are just deleted.

yes, agree, once broken S/R zones disappear from the chart.

HCooper, how you deal with that?

shrips Apr 18, 2016 7:23am | Post# 18

This supdem indy looks ok in hindsight. Zones which are broken are removed. Now it looks as if every painted zone holds. But all the other ones are just deleted.

Well thats right, why have a highlighted zone on the chart that has been broken?

The point of the indicator is to only show areas that have been tested and proven.

HCooper Apr 18, 2016 7:48am | Post# 19

This supdem indy looks ok in hindsight. Zones which are broken are removed. Now it looks as if every painted zone holds. But all the other ones are just deleted.
Yes, the zones that are broken are removed as they are not actual anymore. Thatīs way I trade only the zones that were at least once or more times tested.

If I trade the zones that were not tested (I mentioned this only in the end of the first post and will write about it later), I need a confirmation that the market is reversing - I need to see the market reaction / movement / momentum. However, as I wrote, this is much more difficult and it requires a lot of experience.

HCooper Apr 18, 2016 7:52am | Post# 20

how do you know when a tested zone is weak or invalid e.g nzdchf 30m is on its 4th test now. do we sell it to test the system??
The indicator shows everything - whether the zone is untested, weak or verified etc. Yes, this could be a valid entry. However, the nearest support where should be TP is quite near, and I donīt trade NZDCHF, but I believe that the system will perform on NZDCHF well too.

HCooper Apr 18, 2016 7:54am | Post# 21

Hi HC I've also had the idea in mind to only trade S/R zones. I would've manually entered my S/R zones but will definitely verify my S/R levels with the indi you provided. Thanks for indi btw.
Nice S/R zones are very powerfull tool, S/R zones together with market momentum tell us the story.

HCooper Apr 18, 2016 7:56am | Post# 22

{quote} Well thats right, why have a highlighted zone on the chart that has been broken? The point of the indicator is to only show areas that have been tested and proven.
Correct - we need to see only tested and valid S/R zones. The indi is doing a great job in this.

mades Apr 18, 2016 8:05am | Post# 23

HCooper, what means "turncoat" sup/res in indy? Possible sup-> res or vv transition?

HGFx Apr 18, 2016 8:11am | Post# 24

{quote} The indicator shows everything - whether the zone is untested, weak or verified etc. Yes, this could be a valid entry. However, the nearest support where should be TP is quite near, and I dont trade NZDCHF, but I believe that the system will perform on NZDCHF well too.
ok i have entered a trade to test it out, on demo. i noticed you use 15m tf?

EeZeeTrader Apr 18, 2016 8:20am | Post# 25

1 Attachment(s)
This is my EURUSD Daily S/R zones verified as mentioned earlier.
Not too bad what the indi does....


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Name: Capture.JPG
Size: 158 KB

HCooper Apr 18, 2016 9:35am | Post# 26

HCooper, what means "turncoat" sup/res in indy? Possible sup-> res or vv transition?
Welcome here! Correct, turncoat means that support can turn into resistance and vice versa.

HCooper Apr 18, 2016 9:37am | Post# 27

{quote} ok i have entered a trade to test it out, on demo. i noticed you use 15m tf?
Cool, let me know how it works on NZDCHF after a couple of trades. For intraday trades I use mostly M5. But I also like to watch current market situation on other TFs.

barakooo Apr 18, 2016 9:38am | Post# 28

how do I get this indicator on my platform

HCooper Apr 18, 2016 9:41am | Post# 29

This is my EURUSD Daily S/R zones verified as mentioned earlier. Not too bad what the indi does.... {image}
Nice I just love when I see the market bouncing from S/R zones with a few pips accuracy. Itīs a pleasure for my eyes.

HCooper Apr 18, 2016 9:43am | Post# 30

how do I get this indicator on my platform
Welcome here, go to MT4 -> choose file -> open data folder -> double click MQL4 ->double click indicators -> copy the indicator there -> restart MT4

HCooper Apr 18, 2016 10:28am | Post# 31

1 Attachment(s)
Here is a very nice example.

See how EUR/USD went up from the point where the indicator started drawing the S/R zone. Then there was a correction and market went down and tested the S/R zone very accurately (I highlighted it as "first test"). Then there was the second test and nice, valid and profitable entry.

Btw: the indicator counts tests only if the market closes inside the S/R zone and bounce. But similar situations are also valid for me.

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Name: EURUSD_ecnM5.png
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swetrader Apr 18, 2016 10:35am | Post# 32

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Nice example above!

Would you enter a short trade here?
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Name: Image1.png
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HCooper Apr 18, 2016 11:54am | Post# 33

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Nice example above! Would you enter a short trade here? {image}
Yes, this was a very nice opportunity with very accurate Profit-Target. The resistances turned into the turncoat supports now - thatīs exactly where we set P/T. Very nice GBP/USD opportunity

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Name: GBPUSDM5.png
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Knez Apr 18, 2016 11:58am | Post# 34

{quote} Yes, this was a very nice opportunity with very accurate Profit-Target. The resistances turned into the turncoat supports now - thats exactly where we set P/T. Very nice GBP/USD opportunity {image}

HCooper,

is your sl always same no. of pips as target or .....?

pressok Apr 18, 2016 12:02pm | Post# 35

{quote} Yes, this was a very nice opportunity with very accurate Profit-Target. The resistances turned into the turncoat supports now - thats exactly where we set P/T. Very nice GBP/USD opportunity {image}
happy green pips
chart very clean and clear direction

HCooper Apr 18, 2016 12:23pm | Post# 36

{quote} HCooper, is your sl always same no. of pips as target or .....?
Yes, I posted the strategy in the simplest form. It is the simplest way to set SL the same amount as PT and the system performs well. But it is possible to improve here and set SL above resistance or below support. This will usually improve RRR nicely

HCooper Apr 18, 2016 12:25pm | Post# 37

{quote} happy green pips chart very clean and clear direction
Thank you men I also wish you a lot of green pips!

TechnicalGuy Apr 18, 2016 4:43pm | Post# 38

Hi Cooper,

itīs your best trading system? Sounds very good. This indicator seems great.

Thx

Kubiasty Apr 18, 2016 5:10pm | Post# 39

Looks cool. Will test tomorrow XD thanks.

chrisxhernan Apr 18, 2016 7:59pm | Post# 40

HCooper,

A week ago you started a thread with a different trading system that you have stated you concluded after many years (see link below)... So, how many systems do you trade?

http://www.forexfactory.com/showthread.php?t=586713


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