Interesting Observation

Hey all team, well its a brand new week and many pips to be made across the board.

Well during my inebriated state on Saturday night, I started knocking around with some charts and numbers and found something very interesting. Now honestly Im too lazy to check too much into it, but I wonder if any one else has also seen this.

Have a look at the chart below. Forget all the indies except the Williams Percentage with an RSI overlayed (blue line). Williams % settings are 12 and RSI is 9.
This is a 15 min GBP/JPY chart. Look at where the Williams and RSI cross (now I know all you PA geeks are going to say indies are lagging, and I agree, but these two indies are pretty much the best of the bunch). Basically when the two cross, is the optimum time to get into a trade.. Obviously exits are your own preference, but the entries are pretty good.

What Im wanting to know is if there is a system already out there using this, and if so help out please....or if I'm talking out my proverbial and probably a little hungover from the weekend...lol

that is, as you say, an interesting observation. Worth forward testing for a bit.

The signals seem to be more likely to succeed if the slope of each line agrees.

Testing it today, not live dont worry, would have netted 420 odd pips, currently in new trade now 20+ pips up on that as well... so yes worth a look...

OK. Now invent one that works on the H4 time frame and we can shake hands :

I agree like i said, im far too lazy to check on other time frames, however it does appear to work on the 15 min chart nicely. I like getting pips off the pullbacks as well..

well I too am too lazy to do much apart from eyeball at present, but an EA would be the answer. Would be good if it could filter by slope direction.

Well, don't beat ur drunken self up too much now - i do see some good trades on H4. The question is, more bad or more good ? - and will 2:1 suffice to find a balance or will 3:1 be required and what would the likely hood of hitting 2:1 or 3:1 be? - Does it get you in early enough to address this.

As you can see, Exits being an own preference in this case would not be pleasing. You/We'd need to establish a WIN/LOSS ratio and select the appropriate RISK/REWARD to create a standard, off of which, then, people could create a preference..

Dough! >_< (Homer Simpson)

Trading sucks ass lol

Yep I agree again.. Im just going point to point (turnaround to turnaround) to see how bad any drawdown might be, but ive also overlayed Price Channel Stop indie as well as I find that a good way to judge when to get out of a trade. I quickly ran it through vhandstrade as well, it appears to work well getting in nice and early, just the exits need to be sorted.

I dont like indies much but these two are known to be pretty good at predicting (to a certain degree, and only if you know how to use them properly...lol) so thought I'd throw this out there and see what everyone is thinking...

EDIT: The last trade a buy signalled a little over an hour ago, currently 60 pips up...brings daily to 480 odd

ok got out at +30 for the buy now on a sell straight into profit, fingers crossed stays that way... the reason i got out of the buy, price action was telling me to get out, had a double candle reversal (i think thats what they call it ....lol)

EDIT: I was going to go point to point but i hate losing pips even if only demo...lol

Mmmm.... very interesting Total.
I'm just playing around with ema's of the %R and RSI at the mo to smooth things out somewhat. A 3 and a 10 respectively. Exits have always been the bane of my trading life. Let's see what develops...

my most obvious observation is to wait for new candle before taking the trade after the cross.

Hi Total,

Can you post your indicators ? ?

they're both standard on MT4. To overlay just drag the second indicator from the navigator

Yep all pertinent indicators are stock in MT4, look back to previous posts here to see the settings i used. Im sure there are more optimal settings for this though, I just plucked a couple of numbers in a haze of drunkeness, and they seemed to fit.. Any one come up with something a little better??

I too have probs with my exits hence the pricechannel stop indie... i dont use hard stops ie order at the broker, but I have a mental stop usually around where the indicator is telling me too... Perhaps using PSAR with some tweaked numbers to stay in the trades a little longer??

im glad a few people have jumped on board with this, it proves im not entirely mental.. I was trying to explain it to my missus yesterday (hangover day) and she was "You did what when you were drunk...???" and "are you sure??"

Looks nice....nice smooth rides, i think thats what i was trying to do this weekend was find a way to have an indicator that announced when and which direction to take the trade... Problem is most are to far gone, as they lag too much, so i thought ok its well known RSI is good for some predictive qualities as is williams % why not combine them... I just want a nice simple visual scalping system, that i can quickly glance at in between team deathmatch on call of duty 4 on the xbox...lol

x-box -_-

and i was about to ask for your steam lol

Hey hey im a playstation freak as well, missus hates them with a passion, so its all relegated to playing them at nights while watching the charts...(ermmm after doing my due diligence with chart analysis etc etc etc...lol)

im just looking back eyeballing at the moment, trying to see if we can filter out some of the ranging cr*ppy trades, and stochastics (setting 10,1,7) seems not too bad...see the first chart... a cross of 20 from below and from above 80 seems to do a reasonable job of filtering trades. Ive also noticed that a real positive change in the stochs also indicates a good trade...

indeed indeed an interesting observation
myself i am looking at a 20 pip stoploss and a 20 pip target....
today is a good day!!

definitely , i tried it out one time, to combine short momentum values and even larger value, for this accurate entry , to get short and mid term momentum twice, and have full force in it.

( The negative thing is that it occurs not everytime, and you can fall in a trap when 9 crosses before 12, but reverse after it because it was just another retracement, an comes back against )

but good notice

thanks