Hi all
I've been working on a system over the last week or so and was hoping to get some feedback on it. Especially if I've missed anything important.
It's based on a 5min version of cornflower but the ema values aren't too important (works jsut as well with 5/13/21/55 ema)
Thanks
Below are my notes about the system:
Set-up
EMAs: 8 (green), 12 (purple), 24 (aqua), 72 (red)
BB: (14, 2.0) grey/white
MACD: 5, 12, 26
CCI: 14
Plus on Metatrader (Black background):
ZigZag orange
Cam lines (H and L)
Andrews’ pitchfork (white)
Signal bars v5 (for range and movement hints)
i-paramonworktime (blue)
Rules:
*Trading times 8am to 5/6pm
*For buy must be higher lows and for sell, must be lower highs – follow the trend (zigzag lines help with this).
*If it is a reversal must wait for reversal signal no matter how fast the price begins to move – eg 123 break out, double top/bottom, higher bottom (buy) lower top (sell) and then wait for other signals to confirm entry timing.
*Draw Andrews’ pitchfork(s) using previous highs/lows (can have more than 1 set per pair). Use previous 12/24 hrs data. Always redraw as new highs and lows become evident.
*Trade off 5min chart and look for entry on 1 min chart if needed otherwise can enter on 5min
*For buy 72 ema must be below price, for sell it must be above price.
*Buy - best entry when price just moved through central bb line and 8 and 12 emas in one bar. This bar must not be large compared to previous 1/2 bars and can’t cover the whole recent range in 1/2 bars. CCI above 50 and macd above zero.
*Use 1 min chart when move over bb and 8/12 emas was large or it is a quick move and retraces to the 8/12 ema but not the bb. In this case, look for price crossing over bb and 8/12 emas on 1 min chart.
*Sell – opposite of buy.
*Watch for CCI and MACD divergence/convergence – if in trend direction shows trend is getting weaker (expect correction) if on correction main trend should resume soon.
*In a trend cci must come from an oversold position (if buying) or an overbought position (if selling) and divergence would be good – ie. Retrace has finished
*Can draw trend lines on cci/macd to show when old trend finished or new one has started. Good for drawing lines on retrace and break could signal entry.
*Use fib retracements/extensions for turning points on retrace (50 is main one but can also and potential targets
*The Cam lines also help with targets – use Andrews pitchfork and look for any overlapping Cam lines.
*For exits can use trailing stop on last high/low, fib extension/cam lines/trend lines (Andrews pitchfork) combined and look for divergence/convergence on cci/macd and candlestick patterns)
Always look at the bigger picture to see what’s happening overall with the pairs – this can be done by zooming out on the 5min chart to see highs, lows and general trend. Another thing to do is look at the 30min/1hr/3 hr charts to see the bigger picture and to see long term where the price is likely to go (eg is the price near 50%retracement). These can cause big movements quickly as higher tf support/resistance breakouts are more drastic.
I've been working on a system over the last week or so and was hoping to get some feedback on it. Especially if I've missed anything important.
It's based on a 5min version of cornflower but the ema values aren't too important (works jsut as well with 5/13/21/55 ema)
Thanks
Below are my notes about the system:
Set-up
EMAs: 8 (green), 12 (purple), 24 (aqua), 72 (red)
BB: (14, 2.0) grey/white
MACD: 5, 12, 26
CCI: 14
Plus on Metatrader (Black background):
ZigZag orange
Cam lines (H and L)
Andrews’ pitchfork (white)
Signal bars v5 (for range and movement hints)
i-paramonworktime (blue)
Rules:
*Trading times 8am to 5/6pm
*For buy must be higher lows and for sell, must be lower highs – follow the trend (zigzag lines help with this).
*If it is a reversal must wait for reversal signal no matter how fast the price begins to move – eg 123 break out, double top/bottom, higher bottom (buy) lower top (sell) and then wait for other signals to confirm entry timing.
*Draw Andrews’ pitchfork(s) using previous highs/lows (can have more than 1 set per pair). Use previous 12/24 hrs data. Always redraw as new highs and lows become evident.
*Trade off 5min chart and look for entry on 1 min chart if needed otherwise can enter on 5min
*For buy 72 ema must be below price, for sell it must be above price.
*Buy - best entry when price just moved through central bb line and 8 and 12 emas in one bar. This bar must not be large compared to previous 1/2 bars and can’t cover the whole recent range in 1/2 bars. CCI above 50 and macd above zero.
*Use 1 min chart when move over bb and 8/12 emas was large or it is a quick move and retraces to the 8/12 ema but not the bb. In this case, look for price crossing over bb and 8/12 emas on 1 min chart.
*Sell – opposite of buy.
*Watch for CCI and MACD divergence/convergence – if in trend direction shows trend is getting weaker (expect correction) if on correction main trend should resume soon.
*In a trend cci must come from an oversold position (if buying) or an overbought position (if selling) and divergence would be good – ie. Retrace has finished
*Can draw trend lines on cci/macd to show when old trend finished or new one has started. Good for drawing lines on retrace and break could signal entry.
*Use fib retracements/extensions for turning points on retrace (50 is main one but can also and potential targets
*The Cam lines also help with targets – use Andrews pitchfork and look for any overlapping Cam lines.
*For exits can use trailing stop on last high/low, fib extension/cam lines/trend lines (Andrews pitchfork) combined and look for divergence/convergence on cci/macd and candlestick patterns)
Always look at the bigger picture to see what’s happening overall with the pairs – this can be done by zooming out on the 5min chart to see highs, lows and general trend. Another thing to do is look at the 30min/1hr/3 hr charts to see the bigger picture and to see long term where the price is likely to go (eg is the price near 50%retracement). These can cause big movements quickly as higher tf support/resistance breakouts are more drastic.
kidding