Trading Made Simple(r)

GBPAUD M15

GBPJYP trend reversal soon?

After a sustained up-move, GBPJPY seems to be taking a halt at the top of the rally & forming a head and shoulder formation, which is a bearish trend reversal pattern. These patterns are most effective especially when they are preceded by a good rally, which is really the situation in our case.

H&S Levels:
The neckline of the pattern is at 216.36 and the highest point on the Right shoulder is at 217.41, top most point on the pattern is at 218.01 and the distance between head & the neckline is essentially our target projection on the downward direction after the breakout.

Trade I am looking forward to:
we can wait for the breakout of 216.36 and then create a short entry with SL of 217.410 for the target of 214.7

summary: Wait for the breakout of the neckline for fresh sell entry.

For Educational Purposes only, Not an Investment Advice, Always use strict Risk management measures.

Regards CrazyTrades247.

Gold(XAUUSD) Today's outlook & trade setup

Yesterday we saw a spike on gold, which came after the CPI data release. Price has retested the 4104 level and has retraced again, since the overall trend was weak this was no surprise. Trendline rejecting the price up-move again, adds up to our conviction for the bearish side. Currently on smaller timeframe price is consolidating in a sideways direction.
Immediate support is at 4020 and 4040 is acting as a resistance.

summary: Selling trades should be preferred, wait for the clean breakout below support for fresh entries.

For Educational Purposes only, Not an Investment Advice, Always use strict Risk management measures.

Regards CrazyTrades247.

I am under impresion of you analysis. I am sure you should open your own thread on FF forum. I belive you will collect huge amount of visitors and readers.
But since then i would like to prompt you to stop posting the same content on many threads. Maybe you dont know it but this way you show disrespect to thread creators like RH. There are few persons who deserves for respect on FF. One of them is RH.

ANother day, trusted but realising at the stage, TP/SL is more important for my understanding. 1RR for now and building on a small account instead of demo.

Hello Robinhood,


First, a genuine thank you again, being such a humble and helpful person sharing your experience and knwoledge in the communit and helping traders better understand and evolve this method.

I am extremely sorry for asking these as I am trying to build something and will help me a lot.

I'm putting real screen time on the RSOR every day. For context, I mostly day trade the DAX (Ger40) on the 5 minute chart, glancing at higher timeframes for direction. Rather than ask piecemeal, I've written out my understanding of the RSOR (from Post #11,434 onward) and grouped my questions. If you could confirm or correct each part, it would help me a lot. I've kept strictly to your RSOR posts so I'm not mixing in the older RSO ideas.

1. The convergence "secret" (my main question)
On your TQQQ 3-min chart you wrote: "When all 3 lines in the RSOR all 'Converge' together (or get VERY close), it often signals a good move in the direction that they are pointing in," and you marked two magenta boxes.

1. (a) Is "VERY close" purely by eye, or is there a rough guide for how tight the 3 lines need to be?
2. (b) Does it matter where they converge — in the green zone, the red zone, or the purple 40–60 zone (Post #11,607) or is it valid anywhere?
3. (c) Does what happened before matter? e.g. should the dark blue RSI have flatlined at 100/0 first (Posts #11,471 / #11,507) for the convergence to "count"?
4. (d) For "the direction they're pointing," do you read that mainly off the dark blue RSI, the cyan line, or all three agreeing?

On the cyan line in your two boxes specifically:

1. (e) In both boxes, the cyan 34-10-3 line looks like it was only around 50 (or below) — not up above 60. In Post #11,471 (your One Best Kick) you said for Longs you want cyan above ~60 and angling up. So is the convergence a different signal that does not need cyan above 60 i.e. it can be taken with cyan merely around the 50 area?
2. (f) In Box 1 (the long), the move went up even though cyan was only ~50. Were you reading that as a turn out of the middle, rather than a strong, trend continuation? If so, how do you tell a convergence that will turn from one that just chops around 50?
3. (g) Does the cyan line's slope/direction inside the box matter more than its level? (In Box 1 cyan looked like it was flattening/curling up;in Box 2 it was rolling down through 50.)
4. (h) In Box 2 (the short), cyan was around 50 and falling, for a convergence short, is cyan "near 50 but falling" enough, or do you still prefer it lower?
5. (i) When cyan is only ~50 and fairly flat, do you trade the convergence in the direction all three lines point, even if the cyan trend line itself isn't yet confirming that direction?
6. (j) Bottom line: is the convergence a stand alone signal, or do you still need one of your other RSOR conditions (cyan trend, or the dark blue flatline/50-cross) to agree before you take it?

2. Settings — confirming I'm current
Post #11,608: Orange = 8, 3, 3, EMA (%D only); Cyan/Light Blue = 34, 10, 3, EMA (%D only); Dark Blue = RSI(4) of the 14 EMA. Is this still your standard? And do you still adjust the RSI→EMA per instrument (Post #11,478), the way you varied them in Post #11,552?

3. The three lines' roles (RSOR) — is this right?

1. Cyan (34-10-3) = the trend/strength line — for Longs you want it above ~60 and angling up (Post #11,471).
2. Orange (8-3-3) = mostly exits, also divergences (Post #11,471), and crossover entries (Post #11,486).
3. Dark blue RSI(4) = the trigger line that flatlines/pegs at 100 or 0 (Posts #11,471 / #11,507).

4. Zones — confirming (Post #11,607)
Red 0–30, Green 70–100, Purple 40–60. Correct? And is the Purple 40–60 what you mean when you refer to the "50 zone"?

5. Entries — separate setups, or the same idea?

1. (a) "One Best Kick" (Post #11,471): cyan above ~60 and angling up, and the dark blue RSI flatlines at 100 → dips any amount → returns to flat 100.
2. (b) Dark blue crosses the 50 area after just leaving an extreme (the red or green zone) and crossing toward the opposite zone (Post #11,607).
   Do you treat these as two different entries, or the same trade seen two ways?

6. Exits (RSOR)

1. Your ALWAYS exit: the dark blue line goes from flat to not-flat (Post #11,533) — still your default on every trade?
2. The five orange-line exits (Post #11,471: orange back below 90 / 80 / 70; orange crossing down through the cyan line; the dark blue RSI crossing below 90) — do you pick one by feel each time?
3. The zone-leave exit: the dark blue line "leaves" the zone it's currently in (Post #11,607).

7. Divergence (RSOR)
You've said you use the orange 8-3-3 for divergences (Posts #11,471 / #11,486) and that divergences can lead price (Post #11,490). Within the RSOR, do you use an orange divergence to enter, to exit, or both?
8. Timeframes
Day trading, you take the entry signal only on the timeframe you're trading, but monitor 2–3 higher timeframes and try not to trade against them — and since the lower timeframe turns first, you weight it most (Posts #11,616 / #11,665). Right?

I know you've always framed this as a method, not a rigid system that comes mostly from screen time, I'm just trying to make sure I'm studying the correct pieces.

Thank you again for your time and generosity.

Stay Blessed always.

Trades today, closed paypal after big divergence, and etsy because i already reached my daily goal. Entries triggered purely by fundamentals, both stocks on play today, strong vs spy and high relative volume.

Mazibee,

I more than anyone in this thread truly understand the time and the effort you just put into creating your post, BUT I am leaving for vacation for a few days and just don't have the time or the energy to answer all that you've asked in detail. But before I leave...

1. CLOSE. It's no trick to it, we can all tell when the lines are "close" and that's all I need. This set-up does not always works, but other times it is very good.

2. Ideally, I want the Cyan's line pointing in the direction of my trade and yes your settings are what I use most often.

3. Correct

4. Correct

5. Two different entries

6. I exit in multiples ways, it all depends on the situation.

7. MOSTLY for divergences, but sometimes for exits.

8. Correct.

enjoy your vacations!

Extremely thankful to you Robinhood.

The fact that you took the time to answer at all, right as you're heading for vacation, means a lot to me. That says everything about the kind of person you are and why this thread is what it is.

And please don't give it a second thought, your short answers already cleared up the single most important thing I was stuck on.

Point 2 ("ideally I want the Cyan line pointing in the direction of my trade") answered the heart of my whole question about the two boxes in one sentence.

That alone gives me plenty to study and screen time to put in. So there's absolutely no rush.

In the meantime I'll do exactly what you always tell us to do
Keep the RSOR on every chart, keep watching it, and let the "lightbulb" turn on the way you described.

I'll be reading and observing quietly while you're away.

Whenever you're safely back and only if time and health permit, I'd be grateful if you could give my questions a seriatim (point-by-point) reply. It would be an enormous help to me and, I suspect, to a lot of the quieter readers here too. But that's for another day as your rest and family time comes first.

For now, please just switch off and enjoy every minute of it. You've more than earned it. Safe travels, recharge fully, and come back rested.

Enjoy your vacation, RobinHood.

Stay safe, stay well, and stay blessed always.

Hi,
I see you're looking for the best possible setup, the mathematically perfect one, just like I am. But is that really possible?
What do you think is wrong with this setup?

It looks okay to some extent, depending on the entry, stop loss (SL), and take profit (TP). However, if I wait for all three signals to align, I'm already too late.

XAUEUR M30

XAUUSD M30

AUDJPY M5 BUY

I am working on a signal system that can reduce my screen time while hopefully keeping or even improving the success rate.
Here is a SUPER buy signal with all conditions met and 2xRR achieved.

Please note: I exited at 1RR because I was offline and couldn't monitor the trade (this is still work in progress), but you could keep the trade open until RSOR goes flat, or until your own exit condition is met.

I am open to suggestions and improvements.

Thank you @RH

P.S.

I can see all conditions met on the US100 chart as well, but my EA didn't catch this signal and I am working on it. I need fewer but better signals, though.

Gold M5

GBPAUD M30

USDHPY M30