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Attachments: Cornflower Hourly System
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Cornflower Hourly System

  • #981
  • Sep 17, 2007 7:12pm Sep 17, 2007 7:12pm
bullrock,

After using the 4H TF charts with your ema settings side-by-side with mine, it became painfully obvious that my settings were to close together (gave me a headache looking at the chart.)

In my early days, I used a half dozen indicators (instead of price action and trend) to make my trading decisions. I eventually settled on using the MACD (for divergence and histogram divergence) and an MA or two.

I used two MACD settings for this chart. The first is 12/100/9 from TKimble's thread "12_100_9 Trending System." For the second, I used 5/13/1 from cornelius2's thread "Trading in 8 pairs." Laying the 5/13/1 over the 12/100/9 allows me to pick up the histogram divergence quickly. What I didn't expect was the 12/100/9 to cross before the 10ema crossed the 15ema (it does it on all currency pairs I follow.) I realize the MACD is not part of the Cornflower system, however, I use the divergence to help plan my entries and exits along with pivot points.

I would like to hear your thoughts on this.

Regards,
Clansman

http://www.forexfactory.com/showthread.php?t=42329

http://www.forexfactory.com/showthread.php?t=45176
Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSD 4H Chart.JPG Size: 123 KB
  • #982
  • Sep 17, 2007 11:54pm Sep 17, 2007 11:54pm
Quoting Clansman
Lever70's day job is as a college prof. I would suspect preparing for the new semester is part of the reason for no posts.
Hi everyone. Clansman is right; the start of a new term is always a very busy time for me, and I have not been paying much attention to the thread or the markets in general. There's nothing wrong with Cornflower. The system is sound and has continued to yield consistent profits. I will try and chime in more frequently. However, I have not felt a need to post regularly of late because of the excellent contributions that many of you continue to make. Please keep up your good work.

One thing: please try and avoid sending me PMs. It is hard enough to keep up with the thread, and there really isn't anything that can't be shared publicly.
  • #983
  • Sep 18, 2007 2:11am Sep 18, 2007 2:11am
Hi lever,

The point of my previous post was to point out how nobody lately - for a while now - has talked about their successes with the Cornflower. I see a lot of posts of people trying to make the Cornflower better (by using various indicators, ect.), but very, very few posts of late telling of any successes they've had with the CF system. I had found that odd because I figured people would be happily posting their successes, instead of posting of ways to make the CF work better.

I'm not making any allegations that the CF doesn't work, I'm just curious for the reasons I've stated.
"Trading is a mental sport." - Ziad Masri
  • #984
  • Sep 18, 2007 3:00am Sep 18, 2007 3:00am
Quoting Quickdraw
Hi lever,

The point of my previous post was to point out how nobody lately - for a while now - has talked about their successes with the Cornflower. I see a lot of posts of people trying to make the Cornflower better (by using various indicators, ect.), but very, very few posts of late telling of any successes they've had with the CF system. I had found that odd because I figured people would be happily posting their successes, instead of posting of ways to make the CF work better.

I'm not making any allegations that the CF doesn't work, I'm just curious for the reasons I've stated.
I know you weren't. CF continues to work. We've had a number of choppy days in the markets recently, but all you have to do is look at the current GBPUSD chart to confirm the continued viability of the system. I can only speculate as to why others are not posting about successes. I myself have not been trading, so there's my reason.

The key to trading CF successfully is the elimination of guesswork. If you can't tell for sure that the entry fits the pullback rules, stay out. The best signals occur when the 3 shorter averages fan out unambiguously. Just wait until price pulls back to the short EMAs, and then enter.
  • #985
  • Sep 18, 2007 3:51pm Sep 18, 2007 3:51pm
What's going on with all the talk about indicators recently? Have you guys not been having success with the original CF setups?
  • #986
  • Sep 18, 2007 4:11pm Sep 18, 2007 4:11pm
Hi,
Thought I would share my thoughts with you all. I started learning to trade
almost a year ago. Reading lots of books and learning from anything and everything available on the net. I love FF and all the wonderful people that have shared their knowledge on the forum.

Mostly, I was confused and almost gave up a few months ago. I just couldnt get on the right side of trades (except by accident!!) and didnt know how to use multiple time frames. ANyway, I learned on FF NOT TO GIVE UP NO MATTER WHAT. Finally I found this system (and Phillip Nell's too) which are similar. I LOVE CF. I don't know what happened, but I began to see more clearly just what was going on.
My quest has also been for true simpliticy-- price action and MAs. Everything you need to know is in CF if you just learn to read it and trust it. I learned too the value of patience , and waiting for the set up. It pays off. Thank you Felicia and everyone who added to this thread from which I have learned so much. One day soon, I hope to tell my real money success here. For now, I know I am on the right track and will hone my skills. Thank you again and again.
trademeister
  • #987
  • Sep 18, 2007 4:14pm Sep 18, 2007 4:14pm
Quoting Quickdraw
Hi lever,

The point of my previous post was to point out how nobody lately - for a while now - has talked about their successes with the Cornflower. I see a lot of posts of people trying to make the Cornflower better (by using various indicators, ect.), but very, very few posts of late telling of any successes they've had with the CF system. I had found that odd because I figured people would be happily posting their successes, instead of posting of ways to make the CF work better.

I'm not making any allegations that the CF doesn't work, I'm just curious for the reasons I've stated.
Hi Quickdraw,
I don't know why traders are not posting their successes with cf on this thread. I do know however, that this system is succesful . Take a look at this chat room http://www.rebatefx.com/chat.php I personally trade alongside these guys most days using only the cf system.
Hope this helps.

by the way, thanks lever70 for a great system.
I just wanna have some fun (and maybe make a few green pips along the way).
  • #988
  • Sep 18, 2007 5:09pm Sep 18, 2007 5:09pm
Hello All,

I have attached the 1H, 30M, 15M, and 5M charts for a trade made today. Went long at 231.50 and TP at 233.62 on 5 lots. The white arrows mark the entry point and the blue arrows the TP on all four TF's.

The MACD is there strictly for divergence and histogram divergence which I use along with pivot points to make my entries and TP.

Trading is part art and part science,...more art than science. The CF system helps perfect the artist in the trader.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPJPY 1H.JPG Size: 120 KB
Click to Enlarge Name: GBPJPY 30M.JPG Size: 112 KB
Click to Enlarge Name: GBPJPY 15M.JPG Size: 124 KB
Click to Enlarge Name: GBPJPY 5M.JPG Size: 112 KB
  • #989
  • Sep 18, 2007 5:35pm Sep 18, 2007 5:35pm
Quoting bullrock
I have recalibrated the EMAs according to the blue notes on a 4H chart. I have also attached a picture for clarification.
Any thoughts?
The example shows an impressive 900 pips on GJ

Regards
bullrock
Nice work, bullrock. I have never traded off 4H charts because you can't time entry points with the precision that I am used to. That doesn't mean it's not worth looking into. Looking at these EMA values, it seems that the pullbacks are not as deep or predictable, so it may be difficult to pinpoint exactly where to enter. The other thing is that the longer your timeframe, the wider your stop must be. I am guessing somewhere in the neighborhood of 100 pips on GBP pairs and perhaps 70 pips on others. If you look back in time, you will see that these pairs will go a considerable distance against you before netting delicious profits. And also, when trading longer timeframes, you must absolutely hold for the gains of several hundred pips. Otherwise you can't make up for the big losses. Patience pays.
  • #990
  • Sep 18, 2007 5:51pm Sep 18, 2007 5:51pm
lever70, what do you think of the nice spread of the EMA's on many pairs? I think this means a possible strong trend with chances to buy on some dips?
Check Mate GAME OVER
  • #991
  • Sep 18, 2007 5:57pm Sep 18, 2007 5:57pm
Clansman, nice job.. I'm not familiar with macd.
Check Mate GAME OVER
  • #992
  • Sep 18, 2007 6:04pm Sep 18, 2007 6:04pm
Quoting Clansman
bullrock,

After using the 4H TF charts with your ema settings side-by-side with mine, it became painfully obvious that my settings were to close together (gave me a headache looking at the chart.)

In my early days, I used a half dozen indicators (instead of price action and trend) to make my trading decisions. I eventually settled on using the MACD (for divergence and histogram divergence) and an MA or two.

I used two MACD settings for this chart. The first is 12/100/9 from TKimble's thread "12_100_9 Trending System." For the second, I used 5/13/1 from cornelius2's thread "Trading in 8 pairs." Laying the 5/13/1 over the 12/100/9 allows me to pick up the histogram divergence quickly. What I didn't expect was the 12/100/9 to cross before the 10ema crossed the 15ema (it does it on all currency pairs I follow.) I realize the MACD is not part of the Cornflower system, however, I use the divergence to help plan my entries and exits along with pivot points.

I would like to hear your thoughts on this.

Regards,
Clansman

http://www.forexfactory.com/showthread.php?t=42329

http://www.forexfactory.com/showthread.php?t=45176
Of all the indicators out there, the MACD is closest to price because it is a function of the distance between moving averages. My beef with it is its tendency to lag price action. However, Alexander Elder has made a good case for the power of MACD divergences on longer-term charts. Though I am averse to indicators, if something shows promise I will not dismiss it out of hand.

Phillip Nel has a very nice 4H system based on the 5-13-1 MACD. I suggest reading up on it. There might be a way to combine his insights with Cornflower into something that is tradeable. However, I am not sure what you're doing with the other MACD. It appears to mimic the action of the shorter moving averages on the chart.
  • #993
  • Sep 18, 2007 6:06pm Sep 18, 2007 6:06pm
Trying CF with a demo account has not gone well for me. I went for the 5 pips per day using 5% risk per trade. Most losses were because trying to force a set-up and not waiting for price on the hourly chart to pullback into the CF-zone.. Now because of the risk and my lack of experience my demo account is 1/2 of what it was.

Nothing wrong with the CF but this operator needs his head space and timing checked out. I've just not been doing well with a 5min chart for some reason. I'm sure glad I was in demo mode and will continue my test but will be using fewer lots per trade.
Check Mate GAME OVER
  • #994
  • Sep 18, 2007 6:09pm Sep 18, 2007 6:09pm
Quoting bunton
lever70, what do you think of the nice spread of the EMA's on many pairs? I think this means a possible strong trend with chances to buy on some dips?
That is exactly what it means.

The best trends are indicated by a nice liftoff or descent of the short EMAs from the 72 EMA. If the angle of separation is not clearly visible, then we have stagnant price action, and a lower-probability setup. I do not take trades unless the short EMAs have clearly separated from the 72 EMA. When we get the inevitable pullback, we should have a clearly identifiable trend in place. These are the only conditions under which we should take a CF trade. NOT when the short EMAs have yet to cross over the 72 EMA, or when they have kinda sorta crossed. Don't guess and don't force trades. Wait for the best entries.
  • #995
  • Sep 18, 2007 6:19pm Sep 18, 2007 6:19pm
Quoting bunton
Trying CF with a demo account has not gone well for me. I went for the 5 pips per day using 5% risk per trade. Most losses were because trying to force a set-up and not waiting for price on the hourly chart to pullback into the CF-zone.. Now because of the risk and my lack of experience my demo account is 1/2 of what it was.

Nothing wrong with the CF but this operator needs his head space and timing checked out. I've just not been doing well with a 5min chart for some reason. I'm sure glad I was in demo mode and will continue my test but will be using fewer lots per trade.
The 5 min entry was not intended for beginning traders. Shorter TF trading can be very difficult. You have to act fast and be prepared to bail quickly if your trade does not work out. And risking 5% is simply too much. I would stick to the 1H timeframe. I have always insisted that you can trade the original hourly system on its own because the EMAs act as indicators of different time frames. I am glad you are doing this on demo. Take smaller positions, but hold for bigger gains. This means wider stops also, but I think you will have greater success this way. Read through the PDF again, clear your head, and give it another go.
  • #996
  • Sep 18, 2007 6:30pm Sep 18, 2007 6:30pm
Quoting lever70
The 5 min entry was not intended for beginning traders. Shorter TF trading can be very difficult. You have to act fast and be prepared to bail quickly if your trade does not work out. And risking 5% is simply too much. I would stick to the 1H timeframe. I have always insisted that you can trade the original hourly system on its own because the EMAs act as indicators of different time frames. I am glad you are doing this on demo. Take smaller positions, but hold for bigger gains. This means wider stops also, but I think you will have greater success this way. Read through the PDF again, clear your head, and give it another go.
Lever70, thanks for your encouragement. I was getting ready to smash my PC. It was like everything I was going long on would crash and everything I'd sell short would break out. Now another learning point as I reviewed my trades the market was in a chop.. I learned this action can chop out my account real fast.
Check Mate GAME OVER
  • #997
  • Sep 18, 2007 6:34pm Sep 18, 2007 6:34pm
Oh I'm a thinking we might see some P/B's into the CF/Zone tonight on several pairs..
Check Mate GAME OVER
  • #998
  • Sep 18, 2007 10:12pm Sep 18, 2007 10:12pm
Quoting bunton
Clansman, nice job.. I'm not familiar with macd.
Thanks bunton. It's not too often I get a trade that runs that long. It sure feels good when they do.

MACD stands for Moving Average Convergence / Divergence. It shows the difference between a fast and slow ema (set to close.) It also has an ema which is the signal line. The standard settings are 12 (fast ema,) 26 (slow ema.) and 9 (signal line.) Another component is the histogram. It is there to help show when the MACD and signal lines are crossing.

MACD is designed to show trend changes, however, it is really too slow to be used in forex trading. I use it for divergence and histogram divergence. For example, divergence happens when price action makes a new high and MACD is heading the other direction. This indicates that there is the possibility that the upward trend is slowing down and maybe turning.

I posted a link for Answers.com. Click on the link and type MACD in the search window, and it will give you more detailed information.

http://www.answers.com/


Regards,
  • #999
  • Sep 18, 2007 10:23pm Sep 18, 2007 10:23pm
Clansman, great link and explanation of the macd.. thanks for posting it. I have herd about a macd but never set it up on my charts. I swing trade equities and don't use any indicators or moving averages. But this is all done from a daily chart and so working with anything less then a daily has been a challenge for me.

Tonight I've done 3 trades AUD/JPY closes with a profit. Current open trades are EUR/USD long and USD/CHF short. They did not pull back as much as I'd like but the 5 min chart was telling me a trend my be resuming. We shall see what happens
Check Mate GAME OVER
  • #1,000
  • Sep 18, 2007 10:29pm Sep 18, 2007 10:29pm
Quoting lever70
... However, I am not sure what you're doing with the other MACD. It appears to mimic the action of the shorter moving averages on the chart.
My initial reason for using the 12/100/9 MACD was to see how those settings performed. I like to run multiple scenarios at the same time (a habit that made my old team mates cringe.) What I discovered was it actually crossed over before the shorter ema's did on the chart. I am still testing it to determine if it is helpful to my style of trading. I'll let you know the results.

Regards,
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