This is the first thread Iíve started and it will probably be my last, as this is the only system I use. Iíve gained a lot of knowledge during my time trading Forex and most of it was gained here at Forex Factory. Itís the best site for Forex on the internet, and I want to pay it forward a little.
This Entry Signal can be used as a stand-alone system, or as a confirmation to your own systems. Itís simple and itís accurate. I wonít be posting Take Profit or Stop Loss rules. These are left up to your individual trading styles.
Donít start asking for proof of success with this system. It is successful, but everyoneís trading style is different. Two people can trade the exact same system and come up with completely different results. Some are more aggressive traders, some are playing with scared money, etc., etc. If it is of interest to you then test it out, and use it if the results are good. If it isnít of interest, then find something that is.
I am not on this site, or many others, very often anymore so if there are questions it may take a while for me to get back to you. And I donít really see why there should be questions anyway, as it is simple enough to follow.
I am posting two templates. The first is without the window indicators, which is really the only chart you need. The second is with a couple of window indicators.
The chart is made up on an LWMA and Bollinger Bands, and the two window indicators are MACD, and a CCIchannel. With all of them the price is set to OPEN, which is my preference. I know most people like to use price set to CLOSE, but none of these indicators repaint Ė not during the candle and not after it closes. Wherever they are at the open of the candle is where they stay.
Some of the settings may look a little strange. For example, there are two BBs on the chart with only 1 line each. That is because I like different colors for the two lines. Any and all of the strange settings can be contributed to my weird quirks.
Personally I donít use the window indicators much Ė only when I feel more confirmation is needed. The MACD and/or CCIchannel being overbought or oversold is extra confirmation. What I mainly look for on the CCIchannel is for the CCI line to be OB or OS and the purple line (short entry) or green line (long entry) to be coming out of it.
The CCIchannel indicator has an alert, with arrows on the chart, but I donít use them. You may want to so Iím posting the original indicator with arrows as well. Just adjust the settings as I have for the indicator without arrows.
Both of the window indicators that I use belong to Mladen. As an added note I want to thank him for all he has done to help people, on this site and others. He, more than any other, is responsible for me progressing in this very difficult trading field. Iíve never seen an unhelpful Mladen post.
There are two non-essential indicators on the charts Ė the daily range and the current spread. Those indicators are provided for you as well.
One other thing - when the chart is flat I donít recommend trading for everyone. But you can still take some nice, quick profits if youíre paying attention.
Here are the two templates:
Entry Signal 1
Entry Signal 2
Entries are signaled as follows:
BUY Ė when the golden LWMA line moves away from the green BB line, a long entry is indicated
SELL Ė when the golden LWMA line moves away from the purple BB line, a short entry is indicated
Thatís it. Yes, there are some false signals; no indicator is 100% perfect, but this entry signal is very accurate.
I use a 4 hour chart but Iím sure you can adjust the indicators to use it on any time frame.
You are welcome to add indicators or try to improve the system. Personally, Iím happy with it just as it is and I doubt I would make any changes, but others may find some changes helpful.
God bless, and happy trading.
DYNAMIC Breakout Daily Range_v10 b.ex4
DYNAMIC Breakout Daily Range_v10 b.mq4
Entry Signal 1.tpl
Entry Signal 2.tpl
Thank you for posting. 4H is my top TF. This seems to be simple. Most traders likely wont try the strategy, us humans like to complicate things. Best of luck in your trading.
I'm using my phone to view this post as well as to trade. Could you, possibly, give details/particulars of the indicators mentioned in your post and may be post screenshots directly to enable me and others in my shoes to understand and follow the system?
MACD Ė what I look for here is Overbought, Oversold, and crossing the zero line. Those are the important points for this indicator. Another thing I look at is the direction of the bars. I want the current bar to be further along in the trend direction than the previous two bars. And I would want the difference between the bars to be significant rather than barely noticeable.
CCIchannel - weíve got the CCI line (golden), the short trend line (purple) and the long trend line (green). Youíll notice that one of the two trend lines will often go behind the CCI line, leaving only one trend line visible. That is a strong indicator for me. If the only live visible is the green, then thatís a strong uptrend; and vice versa.
Two notes Ė
1. As I said in the first post, I donít use these two indicators often but when I do, the CCIchannel is the one I would like at the most.
2. The way I use the indicators may not be the way most people use them.
For the chart indicators, the MA line is the most important to look at. As weíll see in the examples, the MA pulls away from one BB line and draws close to another when a trend is changing. The other thing that is important is the angle of all three lines, but mostly the MA line (the MA changes direction before the BB lines).
If the angle of all three lines are aiming sharply in one direction, I ignore everything else Ė thatís a strong trend.
Now letís look at a couple examples from the same chart. (I trade mostly the GBPJPY and GBPNZD charts.) Hopefully this screenshot shows up.
(I've saved the chart picture to my desktop and then hit "Upload from Device", then "Insert". Last time I tried "Upload Screenshot" but it said to hit CTL V and then told me there was nothing in my clipboard. I've never loaded one, so if someone can tell me what I'm doing wrong I would appreciate it).
Example 1 is on the GJ chart on 9/2/19 at hour 16 (9am my time, EST)
1 - Notice that the MA line is starting to pull away from the green line and has changed from a downward direction to flat.
2 - The MACD has turned up but is not further along than the 2nd bar back.
3 - Both trend lines are visible in the CCI channel.
An aggressive trader might enter at this point just based on the MA line pulling away. Personally I would like to see the MA line starting to aim in the direction of the trade Ė upward.
Now look at the next candle, hour 20 Ė 1pm EST.
1 - The MA line is continuing to pull away from the green line
2 - The MACD is crossing zero and is further along than the previous two bars
3 - The purple trend line in the CCI channel has just moved behind the CCI leaving only the green line visible.
This is a strong indication from all the indicators of an uptrend forming, and it is a solid entry point for a long trade. A more conservative trader might want to wait for a minor retracement at this point but sometimes that will mean missing some, or most, of the trade.
I would enter at this candle, 1 pm. My stop loss and take profit varies. The SL is usually the green BB line in a long trade, purple in a short trade, and I add some pips for the spread. USUALLY. My SL is always subject to change. And the maximum I usually set my SL at is 50 pips plus spread. That too is subject to change.
My take profit depends on a lot of factors. If I donít think I can get more than my SL then the risk is too great and I wouldnít enter. If Iím going to bed I will tighten up both the SL and TP. If Iím awake and within earshot of the computer I will set alerts at different levels and change (or exit) the SL and TP as those alerts are hit.
Example 2 is a little different. Example 2 is 8/30/19 at hour 4 (9pm)
1 - The MA line is moved away from the purple BB and has turned downwards. Thatís a good signal.
2 - The MACD is moving downward and is near the zero line. The current bar is below the previous two but it isnít a lot further along. Itís not as strong as it could be.
3 - In this case the purple line is just coming out of the CCI line, with the green line still visible. One of the lines coming out of the CCI is also a good signal, but not as good as the opposite line going behind the CCI.
The concern with this trade is that weíve been in a flat market for a while. You may not be able to see it on the picture, but the market has been fairly flat for a couple weeks. We donít know if it will be continuing or not. This would be a case where I rely on the window indicators for extra confirmation, and I would want them to be very strong in favor of the trade.
So, if I took an entry at this candle or the next one I would be looking for a smaller TP and SL than normal. The other factor that is in play here is that this is Friday. I donít carry trades over the weekend, and I usually donít enter a trade on the last two candles of the week. So this is very near to my end-trading time. If it was earlier in the week I might take the trade, but being so close to the weekend I would pass here.
Hopefully all that helps to explain some of the things that I look for with this system.
Wow, the chart loaded. That's surprising.
Is the CCI channel BB-based?
what is setting on LWMA and on the BB?
In the meantime, here is a web page on using a CCIchannel strategy on its own. Again, I use the indicator a little differently than it's designed for:
One BB is set to 5 period, 1 deviation, Open with a level at 0.8, color Purple
The other BB is set to 5 period, 1 deviation, Open, with a level at -0.8, color ForestGreen
If you pull up the Indicator List you can look at the parameters for each of them.
oordjb, thanks for sharing your system, just a couple of questions,
have you tried trading this system on other pairs and GJ and GN were the most profitable for you or do you just like trading these two
I see you are in Florida do you trade U.S. session mostly or are you like me and enjoy not sleeping (haha) and try to
trade London session also, I'm in Texas.
The problem is I enjoy sleeping too much, lol. You're in Texas so you are one or two hours behind me. So the early hours might be a little better for you but not much. I try to stay up until 2 or 3 but I usually don't make it. I at least get to see the 1 am candle. For me, 8 am in England is 3 am and I just don't see it that often. The London session is obviously the best with the most movement on the 1 am and 5 am candles est, but I need my sleep.
When I shut down at 1 or 2, I make a decision on what to do with trades. Unless the setup looks really good I normally don't set limits and stops - I'm either in a trade at that time or I'm out. If I'm in a trade then each situation is different. If I'm well enough in profit and the chart looks good then I might let it run for profit. I would then put in a SL at BE or better (depending on the profit level at that time). If I'm in the red with a trade, I will set a tighter SL and usually a tighter TP before going to bed.
Remember, sleep is good.
I think this is a great system and I might study some more to apply to my trading system.
FYI, I have added my own TSR indicator which is a customized TSR indicator with arrows.
Setting for TSR-Signal I use is (7,3,0)
Basically, when TSR-Signal is crossing Golden line, it is Signal to enter.
Combined, it seems it provides a very accurate entry signal.
When BB channel is narrow (squeeze), we would avoid entering in this system.
Take a look if this is something we can use for our benefit.
Two questions I would have is does it repaint, and is it set to Open or Close on your chart.
Originally, this indicator was called HMA ( Hull Moving Average) indicator
And I picked up from some place where it was a bit modified and I added alert/email with a minor change on marker position.
I don't think it is repaint. I picked up this indicator and just added alert and email with a minor changes.
It seems it is applied to Price_Close but it is configurable.
it has option of changing period, method, and price where default is linier-weighted averaging and using close price.
Take a look..
Beautiful trading system,thank you for oordjb for you input,I have applied to my platform.I can use this with my price action pattern for really accurate conformations
My problem right now is that the band that i saw on my trading platform isnt adjustable to -0.8. Also, i could get the LWMA indicator. I wouldn't mind if you can help me out on this two.
- Thank oordjb for sharing his system, which is interesting.
- Saying to bluerain, that it seems to me that addon will lead to many false signals on retracements on a pair that is trending.
So, phemmy, from your questions, I gather you're a newbie with mt4...
I am not much of a poster here at forexfactory, but here it goes:
You either load oordjb's templates (chats - templates - load templates...or the corresponding button) and then you can see the parameters of each indicator (charts - indicators list ...or right click on the chart)
Or you insert the indicators one by one:
- I did not understand if you got the LWMA, if you did not...it's the linear weighted ma
- The bollinger bands...on the parameters tab: period 5, deviation 1, apply to open, style: none; on the levels tab, for the upper purple click add, put 0.8 and style purple; for the lower one, you have to load another bollinger band indicator, do the same except on the levels tab you input -0.8 and style darkgoldenrod
Hope it helps
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