Quad Candle System

Thanks Masterrmind
It's been many years since I posted - but your thread, trade strategy and thoughts have brought me out of retirement.
I am hoping to add my thoughts directly with your strategy, if you see something in my post that's not within your strategy please let me know.
Have a great evening and let's make 2020 a successful year....

EUR/CHF daily trade update: Long entered @ 1.0890

Price has dropped -20 pips so far with the weakness of EUR/USD.
I made notations on the chart showing areas of support that could be tested again this week.
If price breaks lower there are several support levels that could be tested.
I have a 65 pip target and stop on this trade.
I will let this trade ride out allowing EUR buyers or sellers time to decide : )

CHF/JPY daily trade update: Short entered @ 111.39

Price is holding in the upper range on this pair with USD/JPY ranging in a tight consolidation area for several weeks.
I made several notations on the chart showing areas of resistance, this pair could push the highs as well as fall back to the previous resistance areas I marked as pullback areas.
I have a 65 pip target and stop on this trade.

Have a great day!

NZD/JPY Analysis:

This pair is nearing a strong resistance/support area as shown on the weekly and daily charts.
You can see Masterrmind's "Upper Octive extreme zone" is where price has made numerous pivots.
Swing move averages from August 2018 is 682 pips, we are 70 pips from reaching that average with this bullish up-swing.
Once price rolls over and gives a stronger bearish candle on the daily I will be waiting for a "Quad Candle Signal" to short this pair.

Happy Holidays!
Monarch

AUD/USD Analysis:

Price is nearing Masterrmind's "Upper Octive extreme zone."
You can see by the notations on the chart that price has climbed in steps toward the "Wick Zone" from December 2018.
I am expecting price to climb towards the recent daily highs with resistance in the head lights.
I am currently waiting for a second red candle which will give us a "Quad Candle Signal" to enter short.

Monarch

CAD/CHF Analysis:

You can see for the past 3 years this pair has been in a range of 900 pips.

Price is currently in Masterrmind's "Lower Octive extreme zone."
Once we get the "Quad Candle signal" then Longs are on the table.

This will be my last post on this thread.

I do not want to presume to have the answers to this system and I will let Masterrmind have the thread back : )

Cheers, Monarch.

my same analysis :-)

Thanks for the many great posts Monarch.

Participation such as what you have shown is what keeps the interest going so well done.

Masterrmind............

QCS_MasterOctive_Basic_v1.01

Basic version (default)

Now switch off Master Octive Prices and turn on Display QCS setup

Would going long off that Quad Long have been the right move considering its relative positioning to the Master Octive Trading Frame ?

If you went long what would have been your target ?

Welcome to the world of QCS trading .... traders that think before they engage !

ps. Basic version with the QCS setup may become available in early January provided trader interest is there.

Masterrmind............

Masterrmind - Thank you for the continual explanation of your strategy and the welcoming to the thread
After going back thru the thread and reading and studying your concepts I believe I misunderstood and was one sided on my views of how to enter trades.
I have been going over the 30 pairs of daily charts trying to find the ideas behind your trade setups.
Charts that I post will be based specifically to your strategy and I will keep my unrelated notations off the charts.
One thing of note-during extensive back test of each pair I am removing those pairs that are not performing and have large consolidation area not giving trade setups.

Thank you.
Monarch

Excellent !

The key word here is 'study'.

Study here means to open several D1 charts across multiple symbols and perform a basic analysis of which symbols tend to perform 'better' with respect to the Quad Candle patterns (Long or Short setups).

It does not take too long to realize that in general some pairs perform better than others.

Some symbols might be going through a whipsaw stage of relatively smaller ranges and in this case perhaps a 1RR or 2RR for the target is preferred.

Traders must know their symbols well ... the charts can tell many things.

However, the markets do change meaning the high performing symbols of the past might become the lesser performers into the short to medium term.

So traders need to keep track of this information, its highly valuable.

There is far more to the Quad Candle System than what first appears.

The basis of the Quad patterns is simply to act as a perceived rolling over of price and an initial trigger suggesting that the current trend might be finishing and a reversal likely.

A low risk initial entry allows our trades plenty of breathing space on a D1 chart and then we accelerate growth on favorable progress as the market moves in our direction by adding in incrementally higher volume entries.

I'm always open to debate on this thread however, since I know and I've shown that the QCS methodology works on a live account, the main areas I see for debate/improvement talks is in specific trade management strategies.

Masterrmind..............

AUDJPY (example only)

Not a Quad pattern but price is pushing up hard into the Master Octive Upper Extreme Zone.

A short off this PA would be viewed as aggressive since no rolling over of price has occurred.

Nevertheless, with additional confluence traders might be inclined to short this pair with much lower relative risk (eg 0.5%/1.0% of account equity).

Recall, that shorts from the Upper Extreme zone (close to the OPL_TOP level) should only apply a stop of 1 Octive Gap and not more.

Masterrmind.............

AUDJPY (... continued)

Risk ~0.5% (issue here is that price does not have to move too much further up the chart to take you out !).
Target ~3.0% (nice potential gain but how likely is the AJ to drop ~500 pips and more so how long is this likely to take considering this time of the year).

Hint: Try to keep the targets firstly within the Master Octive Trading frame, secondly within 'recent' PA and thirdly within a 1to1 Harmonic projection.

Masterrmind.............

AUDJPY (... zoom out)

Harmonic completes almost on top of the stop !

However, according to the QCS rules that stop shown on the chart can be 78.1 pips (1 Octive Gap here) above the OPL_TOP price level so I have a few more pips that can be added to the current stop shown (its based off current bid price).

Just shy of another 12 pips, question is will that help here !

Masterrmind...............

NZDJPY

Another example...

This one I'll leave up to the trader to analyze !

Masterrmind.............

USDCHF

Masterrmind..............

USDJPY

Octive Short signal.

Most logical initial target would be at 1RR, not because its the first level down but because PA has shown us that 2-3 Octive Gaps is the most likely pullback to occur on this symbol.

It also might suggest that should price decide to pullback in our favor (if we were short) then applying a trailing stop is also worthy of consideration.

2RR as a SL makes good logical sense since it places the stop line just outside the OPL_TOP level.

I'll leave the traders to explore whether or not this symbol is worthy of further analysis.

Masterrmind.............

Gold


Traders will notice the 'big' difference in terms of potential gains between the 1K and the 10K accounts.

The 1K account is to show traders here that smaller risk capital can be successfully applied and over the longer term may lead to greater gains in equity.

ps. the 10K funds may be transferred into a new account for a January 2020 fresh start.

pps. note that the 1K account will continue its journey as stated previously for at least 12 months (Oct 2020) on this forum.

Masterrmind..............

Correction.

This is NZDUSD.

Masterrmind........

AUDUSD

Example using a pending order (Sell Limit order) setup from the thick green colored line (Entry Level in the indicator).

This type of entry might get you into the trade at a great price but at the expense of not waiting for signs that price is starting to roll over.

If I used such an entry I would apply a lower initial risk than normal provided the account was sufficiently funded to trade at least minimal volume.

Explained a better way, what I'm saying is that if the SL at minimal lot size was greater than lets say 50% of the 'normal' risk then I would not trade it and if I did trade it very close monitoring of price nearer the entry level would be a must.

The Octive Gap on this pair is 61 pips making a maximum SL of 2 Octive Gaps 122 pips about 0.9% on a 1.4K account but a drop in Equity below 1K would see the risk extend beyond 1.22% which is not really an issue depending on actual equity at time of entry.

Not all symbols exhibit the same trading ranges and therefore Octive Gaps may be larger or smaller than the 61 pips shown on this chart.

In the case where OG's are >= 122 pips keep in mind that on the majors risk will be about 1.22% per 1 Octive Gap.

If recent PA means that a 1 OG Stop would be above this area in a short setup then all well and good, however, if it means that a 1 OG stop gets placed within recent PA then its a different issue since the market likes to make runs that re-test highs or lows as the case may be.

This might then tempt the trader to apply a 2 OG stop at lets say 244 pips which on a 1K account is about 2.44% risk which may not be ideal on an aggressive or pending order type entry meaning it is likely to be a 'border-line' setup at best.

My setup approach may differ based on the Gain in Equity shown in the trading account.

If the account is a new one then I'll tend to opt for high level setups as far as QCS methodology is concerned.

For example, imagine if you started at 1K and traded all the 'best' setups you could and over 6 months you have doubled account equity (very possible by the way!) so now you have 2K.

Its logical to take a lower risk entry for a major potential gain on an account that is tracking well compared to a fresh account with zero gain or an account that is struggling.

This is not to say the trader can now be a little careless, absolutely not, rather it is suggesting that the trader search for additional setups and trade them at slightly lower initial risk than QCS guidelines.



Masterrmind...............