DislikedHad 5 wins and 1 loss today for +10pips. Third winning day in a row. I'm still not quite sure why this works, maybe this system takes advantage of momentum pushing through support or resistance? Is that the edge?Ignored
- Joined Jul 2013 | Status: Gone | 1,106 Posts
Hello everyone. Lyall is an old friend of mine and he suggested I look at this system.
This system appears to be driven by pivot points. Using zigzag you can find intraday pivot points to place trades against. Personally, since this is all you are using, and you are not trading the actual zigzag but rather a point above/below the previous zigzag, I would not necessarily use zigzag points. I would divide the candles by market hours and use the high/low of the market session as the pivot point. This will provide you less false signals as a newbie. Since BOLOSO is most effective on trend trades, you want to have the high and low as far apart as possible. It also seems you are scalping, or predetermining your profit, and not allowing the market to dictate your exit. This is another reason to have a wide space between the highs and lows.
"Price action" is some type of catch word marketers use that really means nothing. Well, it means the market is open and people are trading, duh. Second, nearly every indicator repaints, LOL, because they constantly adjust to open/close/midpoint/whatever, of the candle or time frame. Observe a moving average. If it did not repaint, it would be a straight line. Some indicators, like a zigzag, adjust with a lower "n", or sample size, and are mistakenly labeled as "repainting". To your utter dismay and most obvious reason for failure, nearly every indicator in existence is written to a moving average or a moving average array. There is no "magic" moving average that will bring you consistent profit, therefore there is no "magic" indicator either. Every indicator that uses a moving average to determine its structure will repaint or reset on every "price action" (or trade) that causes the market to move. It is how the math inside the indicator works. Each "price action" is used to calculate the picture you see. The "period" or "n" or "sample size" is the number you use to adjust the smoothing of the "price action".
The difference between one indicator and another indicator is usually the range that defines the movement of the price within the sample size you select. For instance, if you place a 14 period moving average, 14 period stochastics, 14 period RSI, and 14 period CCI on your chart at the same time...here is what will happen. When the price goes above the 14 moving average then the line on the stoch indicator will go above the 50 level line, the line on the RSI will go above the 50 line, and the line on the CCI will go above the 0 line. Ta da! All the same information, just 4 different ways to see it. How many indicators are you looking at on your charts that are telling you the same information?
I am not an institutional trader, which is a fancy way of saying I do not trade by horizontal line breaks and profit targets, ie, like this system, and every banker trained trader in the world. I use an entirely different method that involves higher math calculations.
Suggestions:
1. In addition to whatever you are using, download TD Points and Line Auto. This is an automatic trend line drawing tool that also gives you target points when a trend line is broken. Your current system uses horizontal trend lines, whether you realize it or not. This tool will give you the additional slanted ones. Another thing you will notice about this tool is it will show you the flags/pennants/triangles being painted. Ever wonder why it appears the market is collapsing? You will find on some time frame that price is being contained by the trend lines this indicator drew. Imagine how nice it is to know you can sit out of the garbage and wait for the trend line break. Just one way to use it. It will also keep the trend line break in effect until it senses price movement in the other direction that is valid enough to make it reset the trend lines. Hmm
Finally, there is only ONE indicator that every trader in the world sees the same signal with. Trend lines.
2. In your spare time play with some indicators and try to find not only an indicator, but also its bool settings that will "mostly" tell you if price will stop at a pivot line or go through it. This will help you stay in the market more than 15 pips.
3. Try to determine equilibrium for your currency and time frame. This is usually a moving average that price gravitates toward.
In my opinion, effective and prosperous trading is as easy as this:
1. Find equilibrium.
2. Find a tool to track price as it moves upward and downward from equilibrium.
3. Find the apex of the upward or downward move.
3a. Pivot points make great apexes if they are in the neighborhood.
3b. Use your tool to make a best guess of whether or not price will stop on the pivot point.
4. Pay attention to major news releases as they can cause the market to move opposite your signal.
Your system is close to being effective, but still lacking the apex finding. Once you do that, you will become very rich
Obviously I cannot tell you that value or tool. It is like giving away a car, but only the person behind the wheel wins it. 10,000 people cannot sit behind the wheel at the same time. So it is with my system since I trade 1M charts. I cannot imagine 10,000 competing for the same signal on a 1M chart. It simply cannot be done.
I hope you understand my advice. I never set targets. I merely track the market and go with the flow. Though I trade a bit different than this system, I recognize the key element and it is important. Pivot points restrict countries from being bankrupted. Depending on your pivot point tool, and preferred trading time frame, price usually is bound by the upper and lower pivot lines. Each day those lines tend to collapse until a point comes when they must be redrawn. This is when the big breakout occurs that gets media attention. You and I know it is merely a reset to the control limits, but people get wild with excitement, lol.
Sorry I cannot be more help. Personally, I make a lot more money when price ranges, than when price trends. This is why you should work to find the apex of equilibrium. Best of Luck to all of you!
This system appears to be driven by pivot points. Using zigzag you can find intraday pivot points to place trades against. Personally, since this is all you are using, and you are not trading the actual zigzag but rather a point above/below the previous zigzag, I would not necessarily use zigzag points. I would divide the candles by market hours and use the high/low of the market session as the pivot point. This will provide you less false signals as a newbie. Since BOLOSO is most effective on trend trades, you want to have the high and low as far apart as possible. It also seems you are scalping, or predetermining your profit, and not allowing the market to dictate your exit. This is another reason to have a wide space between the highs and lows.
"Price action" is some type of catch word marketers use that really means nothing. Well, it means the market is open and people are trading, duh. Second, nearly every indicator repaints, LOL, because they constantly adjust to open/close/midpoint/whatever, of the candle or time frame. Observe a moving average. If it did not repaint, it would be a straight line. Some indicators, like a zigzag, adjust with a lower "n", or sample size, and are mistakenly labeled as "repainting". To your utter dismay and most obvious reason for failure, nearly every indicator in existence is written to a moving average or a moving average array. There is no "magic" moving average that will bring you consistent profit, therefore there is no "magic" indicator either. Every indicator that uses a moving average to determine its structure will repaint or reset on every "price action" (or trade) that causes the market to move. It is how the math inside the indicator works. Each "price action" is used to calculate the picture you see. The "period" or "n" or "sample size" is the number you use to adjust the smoothing of the "price action".
The difference between one indicator and another indicator is usually the range that defines the movement of the price within the sample size you select. For instance, if you place a 14 period moving average, 14 period stochastics, 14 period RSI, and 14 period CCI on your chart at the same time...here is what will happen. When the price goes above the 14 moving average then the line on the stoch indicator will go above the 50 level line, the line on the RSI will go above the 50 line, and the line on the CCI will go above the 0 line. Ta da! All the same information, just 4 different ways to see it. How many indicators are you looking at on your charts that are telling you the same information?
I am not an institutional trader, which is a fancy way of saying I do not trade by horizontal line breaks and profit targets, ie, like this system, and every banker trained trader in the world. I use an entirely different method that involves higher math calculations.
Suggestions:
1. In addition to whatever you are using, download TD Points and Line Auto. This is an automatic trend line drawing tool that also gives you target points when a trend line is broken. Your current system uses horizontal trend lines, whether you realize it or not. This tool will give you the additional slanted ones. Another thing you will notice about this tool is it will show you the flags/pennants/triangles being painted. Ever wonder why it appears the market is collapsing? You will find on some time frame that price is being contained by the trend lines this indicator drew. Imagine how nice it is to know you can sit out of the garbage and wait for the trend line break. Just one way to use it. It will also keep the trend line break in effect until it senses price movement in the other direction that is valid enough to make it reset the trend lines. Hmm
Finally, there is only ONE indicator that every trader in the world sees the same signal with. Trend lines.2. In your spare time play with some indicators and try to find not only an indicator, but also its bool settings that will "mostly" tell you if price will stop at a pivot line or go through it. This will help you stay in the market more than 15 pips.
3. Try to determine equilibrium for your currency and time frame. This is usually a moving average that price gravitates toward.
In my opinion, effective and prosperous trading is as easy as this:
1. Find equilibrium.
2. Find a tool to track price as it moves upward and downward from equilibrium.
3. Find the apex of the upward or downward move.
3a. Pivot points make great apexes if they are in the neighborhood.
3b. Use your tool to make a best guess of whether or not price will stop on the pivot point.
4. Pay attention to major news releases as they can cause the market to move opposite your signal.
Your system is close to being effective, but still lacking the apex finding. Once you do that, you will become very rich
Obviously I cannot tell you that value or tool. It is like giving away a car, but only the person behind the wheel wins it. 10,000 people cannot sit behind the wheel at the same time. So it is with my system since I trade 1M charts. I cannot imagine 10,000 competing for the same signal on a 1M chart. It simply cannot be done.
I hope you understand my advice. I never set targets. I merely track the market and go with the flow. Though I trade a bit different than this system, I recognize the key element and it is important. Pivot points restrict countries from being bankrupted. Depending on your pivot point tool, and preferred trading time frame, price usually is bound by the upper and lower pivot lines. Each day those lines tend to collapse until a point comes when they must be redrawn. This is when the big breakout occurs that gets media attention. You and I know it is merely a reset to the control limits, but people get wild with excitement, lol.
Sorry I cannot be more help. Personally, I make a lot more money when price ranges, than when price trends. This is why you should work to find the apex of equilibrium. Best of Luck to all of you!
You cannot be extraordinary by being normal