This is just a system that came about through experimentation from random indicators I've collected through the years. Above all else: The Gann High Low indicator attached will make you money. This thread is dedicated to filtering that output.
See the attached charts for the blue line, that at first looks like a moving average. UNLIKE a simple (or exponential) MA this seems to completely crossover a candle bar at some point giving you a very clear signal.
1) When price crosses above the blue line = BUY (Close buy:The Gann line crossing back under the price candle for at least 1 confirmed bar.
OR I personally find the best success using a Sixth's pivot line as an exit. No hard and fast rule here.
When you demo trade this method for a few days and stick to 1=hr and 4-hr charts even if you are away from your computer for sometime, you can usually get out of a trade in plenty of time because this isn't scalping.
When price crosses below the blue line = SELL (Close Sell: Opposite of above)
Then: not in any order, all important):
2) Laguerre/Fisher: I overlap these. Key point for fisher is the 0 crossover point (or close to it). This usually indicates the trend is reversing. For Laguerre, look for price dropping below .75 to go short. Rising above .15 area is a safe time for longs.
3) VSA: To fully utilize VSA you'll need to do some research to understand the indicator properly I have posted several PDFs, suffice it to say you should see some sort of VSA event (churn bar, climax, markup) show up as either a red or green bar usually on the Better Volume indicator BEFORE OR JUST AS price action crosses the Gann line. Soon, I'll post more examples of how I'm using Andy's VSA Text Bar to help in finding reversals.
4) Squalou's stairstep breakout indicator. This is optional and not always needed. You can usually get a good move when price crosses over the Gann line within the box, you'll see that on some of my screenshots. But it's not required. VSA and candle formations are more important.(Optional)
5) Balance all of the above with s/r of the sixths indicator. This makes it easy to avoid dumb trades that are low r/r and in which you are putting yourself into a position of possibly fighting the market.
NOTICE: 3 and 4 are not always required for a good trade! In the beginning try to stick to them, but after a while you will get a feel for movements and you'll see additional opportunities sometimes in spite of their conditions not being present.
I USE TRAIL STOPS. HOWEVER YOU CAN SET A NEARBY PIVOT OR ANOTHER GANN LINE REVERSAL TO BE YOUR HARD STOP
We know it works well on EU, most yen crosses and metals. Try your favorite market and let us know!
So there you have it. Will post example trades so you can see how it works better throughout the next week.
Nice thing about overlaying Laguerre on Fisher, makes it more clear when Laguerre is maxed and fisher starts to taper towards zero. This is a powerful divergence and within the context of the above is another key thing I'm looking for.
Update 3/6/12 12:57 PM: Put all indis and templates into zip file all should be there.
Included VQ, not central part of system but I like to watch
it during down candle confirmation.
Updated: 3/13/2012: Uploaded a new VSA indicator I found, please download this separately as an addendum to the core indicators. This one appears as wingding symbols above or below the candle. I will mouseover on any relevant signals it gives.
Updated: 3/27/2012: Thanks to Andrew for this killer indicator which labels the candle with a text description of the VSA formation -> VSAc BAR TEXT SIGNALS.mq4 -> http://www.forexfactory.com/showthread.php?t=348254. Unreal, I will be posting some updated examples of how I'm using it soon.
The end.
Special note to ForexHard and the Stairstep Breakout thread: I am not in anyway trying to hijack "your" system. I am simply using this indicator as a tertiary component in my trading. Please do not interpret the use of it here as an attempt to copy your thread. So accept my way of trading as a unique form of self expression. For those wanting to learn more about the breakoutbox go see ForexHard's Stairstep breakout thread by all means. By the same token, I ask all members of the Stairstep breakout thread to not fill my thread with garbage. As mentioned, the indicator is a tertiary part of my trading
See the attached charts for the blue line, that at first looks like a moving average. UNLIKE a simple (or exponential) MA this seems to completely crossover a candle bar at some point giving you a very clear signal.
1) When price crosses above the blue line = BUY (Close buy:The Gann line crossing back under the price candle for at least 1 confirmed bar.
OR I personally find the best success using a Sixth's pivot line as an exit. No hard and fast rule here.
When you demo trade this method for a few days and stick to 1=hr and 4-hr charts even if you are away from your computer for sometime, you can usually get out of a trade in plenty of time because this isn't scalping.
When price crosses below the blue line = SELL (Close Sell: Opposite of above)
Then: not in any order, all important):
2) Laguerre/Fisher: I overlap these. Key point for fisher is the 0 crossover point (or close to it). This usually indicates the trend is reversing. For Laguerre, look for price dropping below .75 to go short. Rising above .15 area is a safe time for longs.
3) VSA: To fully utilize VSA you'll need to do some research to understand the indicator properly I have posted several PDFs, suffice it to say you should see some sort of VSA event (churn bar, climax, markup) show up as either a red or green bar usually on the Better Volume indicator BEFORE OR JUST AS price action crosses the Gann line. Soon, I'll post more examples of how I'm using Andy's VSA Text Bar to help in finding reversals.
4) Squalou's stairstep breakout indicator. This is optional and not always needed. You can usually get a good move when price crosses over the Gann line within the box, you'll see that on some of my screenshots. But it's not required. VSA and candle formations are more important.(Optional)
5) Balance all of the above with s/r of the sixths indicator. This makes it easy to avoid dumb trades that are low r/r and in which you are putting yourself into a position of possibly fighting the market.
NOTICE: 3 and 4 are not always required for a good trade! In the beginning try to stick to them, but after a while you will get a feel for movements and you'll see additional opportunities sometimes in spite of their conditions not being present.
I USE TRAIL STOPS. HOWEVER YOU CAN SET A NEARBY PIVOT OR ANOTHER GANN LINE REVERSAL TO BE YOUR HARD STOP
We know it works well on EU, most yen crosses and metals. Try your favorite market and let us know!
So there you have it. Will post example trades so you can see how it works better throughout the next week.
Nice thing about overlaying Laguerre on Fisher, makes it more clear when Laguerre is maxed and fisher starts to taper towards zero. This is a powerful divergence and within the context of the above is another key thing I'm looking for.
Update 3/6/12 12:57 PM: Put all indis and templates into zip file all should be there.
Included VQ, not central part of system but I like to watch
it during down candle confirmation.
Updated: 3/13/2012: Uploaded a new VSA indicator I found, please download this separately as an addendum to the core indicators. This one appears as wingding symbols above or below the candle. I will mouseover on any relevant signals it gives.
Updated: 3/27/2012: Thanks to Andrew for this killer indicator which labels the candle with a text description of the VSA formation -> VSAc BAR TEXT SIGNALS.mq4 -> http://www.forexfactory.com/showthread.php?t=348254. Unreal, I will be posting some updated examples of how I'm using it soon.
The end.
Special note to ForexHard and the Stairstep Breakout thread: I am not in anyway trying to hijack "your" system. I am simply using this indicator as a tertiary component in my trading. Please do not interpret the use of it here as an attempt to copy your thread. So accept my way of trading as a unique form of self expression. For those wanting to learn more about the breakoutbox go see ForexHard's Stairstep breakout thread by all means. By the same token, I ask all members of the Stairstep breakout thread to not fill my thread with garbage. As mentioned, the indicator is a tertiary part of my trading
Attached File(s)
Skype: heliosphan187