The Bouncing Pip

Hi everyone.

I present to you a system called "The Bouncing Pip"

This is a system that was originally developed by BigBear, so full credit to him, but I have slightly modified it. This system can be used on any pair.

Basically, the system is very simple. Using MT4, open up 3 charts on 3 different timeframes, namely M30, H1, H4.

Download the indicators, and apply the template attached to all three charts.

Take a look at the picture, that is what you should be seeing.

ENTRY:

For Sell: When the ZigZag Arrow (Red) and ZigZag Line meet at the same candle, AND the RSI is above 90, then go short.

For Buy: When the ZigZag Arrow (Green) and ZigZag line meet at the same candle, AND the RSI is below 10, then go long.

Make sure you see these entry conditions on all 3 timeframes before trading.

EXIT:

Stop Loss is at the high or low of the candle on the H4 chart. Take Profit is when you see an opposing ZigZag Arrow and ZigZag Line appear on the same candle on ANY of the 3 timeframes.

I look forward to your comments. Suggestions and feedback are welcome.

ZigZag is notorious for repainting.

What system is there to prevent that from affecting entry?

I wonder how u don't know that ZZ is repaint Indicator


~Walid

Yep, ZZ does repaint, but I have noticed that on Multiple Time Frames, in conjunction with the RSI rules I have mentioned, the signal can be very powerful.

I am still testing this myself.

I didn't take this signal, but it was a beauty.

I tried this out a long time ago back when BigBear first came out with it. Even with all the filters, you still would get false moves. The best way to use it is to make the small bets on each signal and finally you would catch the big move and you could add to your position. Takes some tough disclipline, kind of like if you were using a trend following technique.

Adam

True, the repaints are still a concern.

My recent testing suggests if you get the same signal across 3 timeframes, then the probability is greatly increased, since using the RSI with 90 / 10 zones adds extra strength.

do those arrows repaint?

Yep. Which is why you have to forward test it.

HI all,

Just look at EURUSD according to Bouncing Pip.

Has given a Buy in M30 and H1 charts.

I couldn't attach the H4 chart here. Waiting for the Buy arrow.

Yes the arrows repaints itself......

Cheers

Hi,

Eur/GBP gave a buy siganl at 4pm gmt today
1 Hr gave buy signal at 9 am today
30 min gave buy siganl at 8.30am today

Going on what is said is it right to buy on the 4 hour even though 1 hr & 30 min signals were some 8 hours earlier

thannks
paul

Ideally you should see the signals on all 3 TF's on the latest candle. Then enter the trade.

Hi Ash

So based on that, the best time to enter a trade would be when all 3 time frames end at the same time.... not a fews hours in between.

Happy Pippin'
KC

Not necessarily. You enter as soon as you see 3 arrows and 3 aligned ZZ's on each of the 3 different timeframes. You don't need to wait until the candles end.

What are the settings for the RSI for this system?

It's a setting of Period 2.

I'm in this as we speak, signal was only on M30 and H1, (not H4), so it's not as powerful as having the same signal across all 3 timeframes of course.

See what happens eh.

What a short thread! Is it, because it doesn't work - or not good enough - or why?

Kind regards

Forex37

Repainting.

As I see it, the core of this system is that it revolves around an unreliable indicator.

ZigZag does repaint, it moves it's leg to the lowest or highest point.
From my perspective, I don't really believe in this system, as all You have to do it look if the market is lowest(no need zigzag), and look at the RSI signal.

Someone prove me wrong please.