Trading with range bars ichimoku cloud & awesome oscillator

Goodwill to ev.
Respects to all the traders here.
I have a thing with wanting to master the art of trading on 1M or smaller tf trading. Been following this right from that big income from small account thread. N all the other 1M chart trading strategies. Getting closer to my own strategy based on all threads I've been hunting.

My Q is, Just how do you use the power indicator exactly? How do u use it to select pairs to trade? I checked the one I'm using which is ffx universal strength indicator on mt4. When the 1H shows strength, does it mean the first currency pairs will all be a buy so look for only buy trades? Like where eur is stronger on indicator on 1H so look for only buy on all pairs where euro if at front?

How rockypoint explained the process of getting up, checking power indicator, taking up charts, tossing unclear charts, finalizing charts etc that process explanation was really helpful but the part where how the power indicator is exactly used to toss or finalize which charts to trade with, that's what I want to clarify. With due respect, I've never wanted to ever take anyone else's signals so rockypoint posting his selected charts is cool but that takes more time for me to keep tracking & finally find out exactly how rockypoint decided on the charts to trade. No offence here but it's just me guys. Other stuff I'm practicing on demo now. Really good thread & great traders here btw.

Hi,the power indicator is not an authority in itself:its a helpful tool that can point you in the direction of high probability trades.So, you cant really say because you have seen weakness/strength in something then its mandatory to chuck out this or that.Also, you need to consider the whole context eg TIME ZONES.The reason the strength indicator works so well for RP is largely due to his time zone(my own observation).When he wakes up it will be hours after London open so since London open usually sets the strength/weakness for the day, Rp will come and check what was strong/weak during London as well as beautiful/ugly charts.So when the US open begins(which is probably around 5 am or 6 am RP's time) he has an idea of what to trade based on London session tone.

Also consider PRICE ACTION and KEY ZONES eg if you opened the strength indicator yesterday before London open you would have seen AUD stronger than JPY in the previous hour.If you automatically bought AUDJPY that would be a catastrophic error because you would be ignoring the fact that AUDJPY was at key resistance.Sure enough AUDJPY began falling and the fall was dramatic in the Asian session today with all other JPY pairs.

ALSO consider ADR.AUDJPY fell so much in the Asian session today that it has probably reached ADR for the whole day since its not as highly volatile as GBP and EUR pairs and if you trade it now it might not move enough or there might be whipsaw action.MIGHT.I dont use ADR but when people trade pairs like AUDJPY, most moves happen in Asia and later there is little action.

I realised a long time ago that RP makes it all look simple but i believe he is a master at price action and he combines support and resistance and doesn't just buy sell using the strength indicator minus analysis.He also buys and sells if there is SUFFICIENT probable take profit.
In other words, no matter how weak/strong something has been, its pointless to buy at resistance or sell at support.

Also, when the US Open begins, sometimes you find that price has been falling so much during London open so much that when the US session starts price has reached/is reaching the day's low and starts reversing/starts to whipsaw/starts to do nothing.So if a pair showed weakness/strength before US open its not automatic that you should just sell/buy it.

Do not assume that because the strength indicator shows weakness/strength then its an automatic buy/sell.Mark support and resistance and only sell/buy AFTER price action confirms the sell/buy.

Currency weakness/strength is not an automatic sell/buy.A reverse/retrace could be lurking.Personally i think the strength indicator is most applicable in the way RP uses it since he uses it after the biggest exchange, London has set the tone for the day as it usually does and in the US open there is ARGUABLY more continuation of what London has set.

Most of the times when currencies are sold off or bought, they retrace during the asian session only for the sell off/buy to resume during London session/US session.
Eg, lets say we have GBP weakness from London through the US session.Usually in the Asian session GBP could retrace thereby showing strength but the reversal could fail when London opens.So if you open the strength indicator and saw GBP strength and automatically bought then that can be costly since London could start selling off the GBP again.


In summary, please use the strength indicator while paying attention to KEY ZONES(S/R),TIME ZONES,PRICE ACTION,ADR,BEAUTIFUL CHARTS
Just to not complicate things, if i would pick one thing it would be to use the indicator while looking at BEAUTIFUL PRICE ACTION.

I hope this helps........

Now I understand what's happening with the power indicator & what to keep in mind before taking trades based on that indicator. It's just a probability which is an extra confirmation & not a trade taking big factor. Could work but always check those SR & ADR stuff. Those timezones stuff is epic. U know this well. It's always been problematic for me to grasp. Been testing ADR for a few weeks now. Thanks @ichikuse.

RP could you add something to it if possible? I'll add a chart with questions along the way.

Yes thats it.It helps direct your attention.On another note.If you rely on the indicator alone you will be at a disadvantage.Why?Because the indicator does not necessarily show you an instrument that is "quiet",seemingly weak,but about to explode at any given time.

Rule of thumb for me:It is a must for me to open the flying pairs ,that is Euro,GBP and gold.You are almost always assured of action and these suit my day trading style.I do not have time to check ADR or assume that ADR has been reached or maybe not...just see how eurusd,gbpjpy,eurjpy,xauusd have been moving today..explosive.Today alone EURJPY went down approximately 230 pips! Really, if i focus on such pairs i MIGHT be able to get 10 pips or so...

As a matter of fact i now trade only 9 pairs ie euro pairs,gbp pairs,gold and usdcad.I trade only the very volatile ones.
I saw a good signal on AUDNZD a few weeks ago and the pair moved 10 pips or so for about 6 hours and i had to close the trade at breakeven! That made up my mind to leave slow pairs....nothing wrong with them but they dont suit my trading style..

Many times i regret watching slow pairs only to miss big moves on the other fast moving pairs...so i had to choose...

Woke up on time for a change, still having trouble with sleep pattern.

Great RP, awesome, i cam a little late to the party en finished the gbp,jpy divergence CT for 35 pips that was it for me today. It is nice to have you back Rocky!

E/J.. the only pair I trade. Trickier this morning but OK this afternoon.

Took this EJ trade this morning for 51 pips.The system took too long to close and cost me 3 pips.Could have gotten 54 pips but im not complaining at all.
Took this trade based on divergence and i stayed despite some retracements and targeted the previous swing....(Had two small losses in GJ and GC before this..made the mistake of trading without checking the calendar first..

Well Done ichikuse nice trade.

Also in the EURJPY trade but got in much later than you for only 26 ticks.

My other trades this morning were in GBPNZD - one loser and one winner.
Initial trade hit my stop when away form the computer.
Second trade was a bit of a revenge trade [very bad] that got stopped out in the madness of the 09:30 UK news.
Net position was positive but not sure if this was good or bad.
The problem is that I still refer to my GMMA analysis on the 5 min chart that was indicating strength to the up side.

Two Aussie trades today – EURAUD & GBPAUD
I often set my profit targets at pivot points as price often tests this level then retraces.
However, sometime after a small retracement, price continues on its journey through the pivot point towards the next level.
This of course can catch you out as it did in the GBPAUD trade.

E/J one loser and couple of winners. The AO indicator seems to take second place to resistance levels and place above/below cloud thingy?

If i get you correctly,I agree that the ao takes second place.Thats how it’s meant to be.First it tells you to get ready for a probable trade and then before you take the trade you mark s/r and then trade only after the s/r level is breached.

Hi RP.You used to post gold trades in the past.Have you stopped trading gold or you still do?

Last trade. Yes still trade gold ocassionally, but been using different system.

what would be your stop loss, a reverse signal or a last swing etc. ? ty.

Hi RP. I'm having difficulty understanding exactly how you are drawing those orange lines. U seem to know when to draw a sideways trendline for a breakout trade or when to draw an SR line to trade the breakout. Also, it has to be drawn when the AO is 0 right? though I see that you don't draw it right when the AO is zero but a little higher or lower. Some others also drawing lines when AO has made a higher or lower curve above zero line. Can you help me understand how to draw those lines as ur trades become great entries when you know where to draw the lines it seems? Thanks.

I've drawn my own line where AO becomes zero. Why did you draw the lines where you have drawn? Is it cause you deduced that those SR's are better places? How did you know that?

I draw trend lines usually when a divergence is forming. My Stop are usually 15-20 pips and i reduce them as trade moves my way.

Lots of pips on the table this morning.

Here is my EURJPY trade for 72 pips.

What a great morning! EJ and GJ combined close to 100 pips and i left much on the table after i came back from a walk with my daughter......i try to post the charts later....