POP Day Trading System

This system is applied to only 12 Major Fx pairs (AUDJPY, AUDUSD, EURAUD, EURGBP,EURJPY, EURUSD,GBPJPY, GBPUSE,NZDUSD, USDCAD, USDCHF, USDJPY) by me (However all 28 Majors Forex Pairs can be traded)and is based on moving averages only with top down analysis approach starting from daily chart down to 15 M chart (ENTRY CHART).
The main premise of the system is to find that part of trend (picture of power, word taken from discussions of Oliver Velez) which is clear in its direction and discard rest of the moves being the picture having no power.

Lets Start from daily chart First and build it brick by brick down to 15M Chart

Daily Chart
Place 200SMA and 20 EMA (That is all for daily chart)
It could have four situations
SKY- When D20E is above D200S and price is above D20E
BOTTOM-D20E is below D200S and price is below D20E
CEILING-D20E is below D200S and price is above D20E
SURFACE-D20E is above D200S and price is below D20E
These are four types of situations we will consider in our analysis down the TFs till 15M

Please be patient, we will develop it slowly and gradually till 15 Chart for better and comprehensive understanding

Now 4H Chart
place 20EMA MTF version of daily chart moving average on 4H chart. Only this single moving average
that is all for 4H chart

the purpose of doing this is to see zoomed in version of daily chart with 20EMA and that is all
Till now we have identified the setup (SKY, BOTTOM, CEILING, SURFACE) and seen its zoomed in version on 4H chart

Now 1H chart
MTF 20EMA-same daily 20EMA
80 EMA
GMMAs (optional)-as they provide general visual direction and have nothing to do with entry
that is all, please find templates for all three charts attached below

Now 15M charts-2 charts to be prepared
indicators and templates are attached below please
after this will post rules of setups (Four) and entries

Total charts for any currency pair are five
daily, 4H, 1H, 15M, 15M
this will clearly guide the process of top down analysis and will find picture of power for any of the four setups

NOW RULES FOR IDENTIFICATION OF SETUPS

SKY

1.4H20E above D20E above D200S
2.1HGMMA-STMAs above LTMAs (Short term moving averages above long term moving averages)
3.15M50E above 4H20E
4.5/10 MACD +Div or crossed up zero line
CEILING
1.4H20E above D20E below D200S
2.1HGMMA-STMAs above LTMAs
3.15M50E above 4H20E
BOTTOM
1.4H20E below D20E below D200S
2.1HGMMA-STMAs below LTMAs
3.15M50E below 4H20E
4.5/10 MACD -Div or crossed down zero line
SURFACE
1.4H20E below D20E above D200S
2.1HGMMA-STMAs below LTMAs
3.15M50E below 4H20E
4.5/10 MACD -Div or crossed down zero line
COMPLETE PICTURE OF POWER LIES IN PRICE ACTION THAT FITS THESE RULES, LET THE REST TO GO
FOR ENTRIES OR TRIGGERS WE NEED SEPARATE SET OF DISCRETIONARY RULES DEPENDING UPON EACH TRADER

That is all about System
Now we can discuss all setups one by one and how to perform top down analysis. Collective Wisdom Of FF traders is far greater than any individual trader. So lets begin healthy discussion for better learning and understanding of this system

For general setup illustration on daily chart-one thing i just forgot to write is that trade would never be entered towards daily 20ema under any circumstances related to price action. There would be many times tempting situations to do that

Thanks for this nice system! Just one question, i noticed on the macd indicator it says h4 but i looks like its the normal 5/10 macd of the actual TF. Is this correct?

Thanks,

Klausi

Yes you are right, its just normal TF indicator being used in 15M TF only, it is not used in any other timeframe. Used in both 15M Charts with same settings and little color tweak

With a single glance one can make out what one need to do next week or day and what direction to follow. This is for 12 pairs, however it can be done for all 28 pairs majors and best setup can be picked out of them. then stalk and wait for exact entry in the same direction in 15M chart

In order to put these four setups in perspective, one has to consider 200SMA as sea surface and then all four setups will be clear in mind.
SKY- going up from sea surface
BOTTOM-Going down below the sea surface towards sea bed
CEILING- rising from bottom to sea ceiling
SURFACE-falling from sky to sea surface

Another view of same system on tradingview.com
15M Chart

Very interesting! Subscribed! Go on!

can we have indicator to show top two open interest plot on mt4 chart

I could not get what the query is. Can you please reword it. A humble request is that this thread is only dedicated to this specific trading system, so posts may please be relevant to the same thread and topic.

Please elaborate the question little bit

Next Week onward, live trades will be posted here along with reasons of entry and exit. I take one to three trades Max a week and all will be posted here along with reasons as per the system

Great! Thanks for your effort. I will download the indicators and take a look.
Could you also describe the details of entry and exit rule?

Thanks
maple

hope to see how you use your ma charts for entry and exit............... thanks for your time