The Paradox System

Thankyou for taking the time to teach us all Dove.

I'm back at the house on my desktop set at 1600x900. Are these charts correct?

H1



H2



H4



Dly

Everything you need to trade the Paradox is in this thread. For those who really want to learn it you should read through dove's posts two, three, or more times. Find a couple entry types that you can readily identify on a regular basis and master those. At that point if you feel the need to go deeper study and observe. The insight will come.

They are from the forex.com MT4 demo.

Thanks for trying to help, but I get the feeling you're talking about a different simulator, Soft4FX Forex Simulator, and not the LFH_Trading_Simulator_3.

Not sure your 4 hour fibo is correct spdz

Can you post a H4?

It's because of the weekend the FIBO is off. Your FIBO settings will be right once you right-click and hit Renew.

Check Doves last tutorial on the previous page, he has all four charts posted; and as mentioned could be a weekend thing

Here is the H4 that I have:

Hi OneZed,

Nope; I have both. I am speaking definitely about the LFH sim. I just tried it again right this minute. H1 & H2 is working a treat.
kind regards,

Joe

Every thing is correct accept for the Fibos on each chart. Are you using the correct Fibo with this system.

Mark - do as this trader had suggest and hit "Refresh" on each chart and that should do the trick.

Yes all on the screen comes from here.

Will do.

I decided to finish the tutorials with Up and Down scenarios of the Trend Variables. And on this journey I will take it from to bar bar as to gain a grater understanding. There will be three Tutorials with three separate postings To begin with I will start with the short trend..



How do I know this will be a downtrend?

To begin with the BB Hit with the BB flat. This also means with a flat BB hit the market will travel to the lower BB for a hit. Then you have DB/SAR and both Divergences is an automatic reversal with the BB hit. But you have a problem for any short because of EMA and the Parabolic supports. With and Automatic reversal you would think entered the Short and wait on support to be eliminated. Which means you have no idea how long that will take; UNLESS - you actually pulled the trigger at the Band itself. Then you have a trade without risk



Moving on you can see in the visual you finally have an opportunity showing for an entry with the EMA arrow on Top with the MACD arrow on the bottom for a short. On the next bar was entry short below EMA with the Parabolic flip. Take note of ROMAR support. Here is the rule for ROMAR:

Once you have White and Smooth crossing Purple and on the same bar you get the Parabolic flipping you then have and entry (as showing). EMA is in a slider and on the next bar EMA will cross Purple with White and Smooth crossing. This scenario is a long term trend down below ROMAR. Looking at this visual you can see into the future and what is to hasppen.



On the Next bar EMA crossed Purple going below ROMAR and hits the lower BB.

The Market is now blow ROMAR and will retrace back to ROMAR resistance: (the reason for resistance is because of the 4 Horsemen is now in a downtrend) with the hit on the BB will place the market for a hit on Smooth.



OK - on this screen shot you have the Smooth Hit. You also have ROMAR crossing Purple heading for EMA to become resistance. Also take note the Standard Divergence had hit the lower bar at the BB. This means on the next next lower bar it will bring out the Hidden Divergence. Also take note the DB/SAR are both still on top even though the DB is showing on this picture; it is still on top. Because the SAR is still on top with the DB; means it did not show for the small retrace. With Divergence showing on the next lower bar will end the trade.



As you can see the trade had ended at the bottom of this downtrend Variable.

The rules for this downtrend Scenario:

1 - Never, ever trade against Support for the Short; or trade for the Long against Resistance.
2 - Entries in trends are below EMA for the Short; and above EMA for the Long.
3 - Always show patience. Always wait for the right opportunity.
4 - ROMAR becomes both Support and Resistance once the Parabolic becomes the power.
5 - All trends begins with the DB and SAR on the same BAR with Divergences.

This trade was 100 pips from the BB Hit and roughly 70 pips from entry.

From this downtrend I will move right into the uptrend:



On this screen shot you have the DB/SAR with Divergences for an entry long. You also have EMA, Parabolic, and ROMAR as Resistance. The scenario for this long (a rule) is an OPEN bar above EMA. This will eliminate an EMA slider. That is the very first rule that you must apply before the trigger is pulled.



A couple bars later you are visualizing a closing bar above EMA.



On this screen shot showing the open above EMA. This is very import and also a rule for both up and downtrends. This rule has to do in the way White and Smooth crosses Purple. And this rules does not apply to ANY SLIDERS. Only with reversal.

And the rules is: White and Smooth must cross Purple (separately) on the same bar with the open above EMA (as showing). This will give both White and Smooth crossing one another on the next bar; with EMA also crossing Purple on the next bar. Also take note with this scenario; both ROMAR and the Parabolic as resistance will be eliminated.. Bury this image into your memory.



On this screen shot you are seeing exactly as I said it would do. White and Smooth crossing one another with EMA crossing Purple. With this scenario also eliminates ROMAR as Resistance and the Parabolic. This will continue north with ROMAR crossing EMA, and the Parabolic flipping as support for the next Divergences on top.

Traders - The Paradox will never fail in the visuals. It will do the same thing over, over, and over again with the right scenario (rules) accordingly with the Variable you are trading.



On this scree shot you have the Standard Divergence attached. This means a retrace to Smooth. Since the SAR did not attached is the reason for Smooth being the target.



Smooth was hit and the next move is up above the Standard Divergence to bring out the Hidden which will also be the ending of the trade.



This is where the most important rule of all comes in: NEVER, EVER GET GREEDY.

On this screen shot was where the Standard and Hidden had attached with the DB/SAR (where the Arrow is showing on the chart). That was the ending of the uptrend. It bumped up a few more pips from there; but still was the ending. The next moves is a reversal for the downtrend.

With this trade was just over 140 pips from the bottom of the Divergences to the top of Divergences where the trade had ended. From entry was just under a 120 pips of where the trade had ended. If you ever get greedy with the Paradox (you can be sure) the Paradox will take your profit from you.

Learn how to trade from top to bottom and vice-versa. To make it easy for you. All Trend trades are from Divergences to Divergences.

I am going to show you traders how I trade which is long term. I have another system with the basics but was built for long term. In using the Paradox, (without long term), I still can trade long term. So I will be using the Paradox in showing this trade.



The Fibo was on Top with Divergence, DB/SAR



This trend was taken long term on Monday after 17:00 ET going into Tuesday the 5th of this month; and ended Thursday after 17:00 ET going into Friday the 8th. before closing. My entry is where the EMA arrow is showing with the open above Purple. The total pip count on this trade is:

Pip count is to the nearest rounded number.

160 First entry
75 Second entry
40 Third entry
38 Forth entry

And how did I accumulate so many pips? Very easily trading long term. In using the SAR is how I did it. Every time the SAR breaks away I take another entry short from the top of each SAR back into the trend. And doing this I entered with an amount 2% of my leverage. In the States we are not allow hedging. But we can enter another entry in the same direction. We also have the rule of first in and first out. So I had to be sure I was at my computer for the bottom of the Fibo to take my first entry. Then I can followed the sequence of each trade entry in taking profit. This way the TP is in sequence with entry first in and first out.

So everyone can understand where the Fibo bottom was located I will draw Gold lines for both top and Bottom



This is the location of the both Top and Bottom with entry short.



Second location of the Bottom Fibo with the SAR showing the short. You also have EMA/Parabolic very strong with the trend; and ROMAR heading out of the trading area.



Third location of the Bottom Fibo with trend still very strong for the short. Take notice of the lower/low of the SAR. This is very important because once the SAR gets above the last SAR TOP, hitting a Parabolic is when I know the ending of the trend has ended. This is a scenario with the Parabolic and the SAR.



We are seeing another lower/low with the Fibo and top of the SAR is lower/low from the previous SAR.



This traders is what I was looking for. A Parabolic hit with the SAR. The next Fibo low will be the ending of this trade. You will have the DB and SAR, with Divergence to end the trade. The only reason I know the ending is because of the SAR hitting the Parabolic. Each and every scenario will tell you a story before it even happens.



Here is the Bottom of this trend. I took profit for each entry in sequence with the bar retracing off the the bottom. From this point the market will reverse. Also take notice I strictly used the H2 as a stand alone chart. The H2 was built as the only chart needed for trading. But because of trading in the moment for traders who are learning - the H4 and Daily is needed.

Now you know how I trade. And this kind of trading takes years of practice and knowing exactly what will happen before it even happens. In other words - if you cannot trade in the moment then long term trading will never be for you.

WOW Great tutorials Dana!
Thank you!

Trading plan for
2019-02-24
News. No Red news

Daily;
ROMAR- Res
EMA- Sup
PSAR- Sup
EMA arrow- UP
MACD arrow UP
Fib- Red
Notes Market still above 23.6. DB with SAR at the top of fib, about 60 pips from 23.6. Consolidation with 23.6 support and ROMAR/top Fib as resistance.

4H;
ROMAR- Sup
EMA- Res
PSAR-Res
Fib- Red
Notes; BB flat with ROMAR out of the trading area. DB at top of fib, SAR at 125.352. Consolidation with ROMAR support


2H;
ROMAR- Sup
EMA- Res
PSAR- Res
EMA arrow- Down
MACD arrow- Down
Fib-Red
Notes; PSAR flip again confirming that the bottom of the fib will be hit. The fib will turn to green on the next bar. DB at 125.764, SAR at 125.313. Consolidation with ROMAR support


Reference
1H;
ROMAR-Res
EMA- Res
PSAR-Res
EMA arrow- Down
MACD arrow- Down
Fib-Green
Notes; Ranging with ROMAR in the center



Final notes; The market is in Consolidation and still above D1 23.6, and working from resistance.
Projected entry;
What I believe might happen is. The H2 will hit the bottom of the fib, The D1 SAR might pop in at 23.6, H4 DB might connect down with the SAR. And if Im referencing the H1 correct in ranging, then we will have a trip up to the top of the D1 fib.
There is a lot of risk as the H2 PSAR has flipped. And H1 EMA x ROMAR to name a few. But with what I have learned about the D1 23.6 and the open above it then this should be a safe trip apart from the PSAR resistance.