Great GBP/USD Strategy for Swing Trades

Quoting ChowClown

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...price now taking a breather on the LRI sell side (right side)...FXCM's ChartStation LRI figure currently printing 1.9836. Does look like a bull flag (or similar) on the 4hr, so my money's still long....

Using the LRI slope change looks useful for getting in earlier on a trend change, before the LRI/50ema cross - will be interesting to test both variants.

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Quoting hoss

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No signals in the near future. We are waiting for another cross of the 50 ema which looks like it could be a while!

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inputs: shortEMALength(4), mediumEMALength(13), longEMALength(50), dollarStop(500);
vars: KLineDaily(0), DLineDaily(0), shortEMA4hr(0), mediumEMA4hr(0), longEMA4hr(0);
KLineDaily = SlowKCustom(High, Low, Close, 14) of data2;
DLineDaily = SlowDCustom(High, Low, Close, 14) of data2;
shortEMA4hr = xaverage(open,shortEMALength) of data1;
mediumEMA4hr = xaverage(open,mediumEMALength) of data1;
longEMA4hr = xaverage(open,longEMALength) of data1;
if shortEMA4hr > longEMA4hr and mediumEMA4hr crosses above longEMA4hr {4hr setup} and
KLineDaily > DLineDaily then buy 1 contract next bar at market;
if marketPosition = 1 and shortEMA4hr crosses below mediumEMA4hr then exitLong("LX emacross") at market;
if shortEMA4hr < longEMA4hr and mediumEMA4hr crosses below longEMA4hr {4hr setup} and
KLineDaily < DLineDaily then sell 1 contract next bar at market;
if marketPosition = -1 and shortEMA4hr crosses above mediumEMA4hr then exitShort("SX emacross") at market;
setStopContract;
setStopLoss(dollarStop);

Quoting TiKin

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The market has travelled to the right side of LRI what counts the most is when full candles close on the right side of the LRI and more dramatic is when the LRI stars changing direction, which is not the case for now and the LRI still points North.

OK Chow, this is important, I have checked another chart package (Net Dania, same as FXCM) and the hours are local, which means that if I am in Canada and you in Asia, we will get different readings of the LRI. Right now, a 4H candle has closed on the sell side of the LRI on Net Dania but not on MT4 and that tells me that what at first seems a drawback of MT4 with it's fixed hours, does actually seems to be a better setup as we all have the same reading no matter our geopraphical location

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Quoting oei168

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so,do you mean, the price will go down again ??
and what do you mean, there isn't much resistant ?? so the price will shoot up or..tend to go to support area ??

thanks..

im sory ..im a little bit confused

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Quoting VyNNeR

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Dear oei168,

Not much Resistance on the upside means, cable has not much area of concern on the upside.
My bias is up, but of cos market can do anything.
I also just received a long signal from forexproalerts, tight stop and risk reward ratio is good for the upward too.

I would think the trend is up now and i would also prefer to trade with the trend and never trade against the trend.
Trend is our fren.
It might retrace but its still upward bias.

Hope this clear some of your doubts.

VyNNeR

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Quoting MegaPips

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VyNNeR, Yesterday, on post 742, you were telling that you may stay out of this trade as daily stoch is not in favour and you wouldn't go against the bigger trend - meaning trend was down. But now you are indicating that in your view, trend is up (post 767). Could you please clarify this? Which timeframe you take as the bigger trend? If you think the trend is up now, when did this occur? Thanks.

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Quoting VyNNeR

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Dear MegaPips,


Anyway i did stick with my system and i did stay out of this previous long signal but im still trading other tools to get some intraday pips.

The reason i comment on the trend is up because i did see some of you guys actually trade that long signal despite its against my filter on this swing trade.


VyNNeR

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Quoting VyNNeR

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Dear MegaPips,

This swing setup strategy is what we call a system.
Systems will generate profits for us in the long run as long as we are consistent and persistent.

But we must also know that in FOREX market changes their sentiment with only a few candles despite what time frame you use.

Generally i look at daily, 4hours, 1hour and 15 mins to get the general directions.

Anyway i did stick with my system and i did stay out of this previous long signal but im still trading other tools to get some intraday pips.

The reason i comment on the trend is up because i did see some of you guys actually trade that long signal despite its against my filter on this swing trade.

Nothing wrong with it. Remember the first post on this thread is just a basic setup. On a lot of cases, i do also take profit out of the table before the MAs recross again.

I do not want to confuse ppl who wants to follow this system.

As time goes by, you will understand more on strong Resistance and Support and therefore you can gain more pips with taking profits along the way.

Hope this helps.

VyNNeR

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Quoting TiKin

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The market has travelled to the right side of LRI what counts the most is when full candles close on the right side of the LRI and more dramatic is when the LRI stars changing direction, which is not the case for now and the LRI still points North.

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Quoting mattfx

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Smarti,

These results have been calculated after confirming the cross of 13 ema / 50 ema and then enter at the open of the next four hour candle. So it is according to the rules, correct me if I am wrong, the cross is confirmed by the closing of the four hour candle. We need a closed candle to confirm this cross and then enter on the open of a new four hour candle. This is how I have interpreted the rules of this system and provided analysis in my previous post. I used JoshDancers expert indicator to assist for the past analysis. I have disregarded the stochs, for the purpose of the analysis, I have also examined how each trade would be if let go to the max stop of 50 pips, the results basically cut the return by about 50%, so not bad for a purely mechanical system, which is, as you appear similarly looking for, a system that frees up computer time ?

good trading
mattfx

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Quoting VyNNeR

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Dear all

I took only about 10 pips profit from the long.
And currently im short on GU from 19835.

VyNNeR

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Quoting ChowClown

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Price has now been on the sell side of LRI for 20+hrs and the LRI is now beginning to flat line/reverse slope, but isn't confirmed yet (end of current 4hr candle with FXCM's ChartStation is 13:00 BST).

1.9835 holding as support for the last 8 hours, so my profits are locked in around that level for now.

We should perhaps start a new thread for the LRI, rather than cluttering this one.

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