Triple timeframe system

Quoting vinafx

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I have spent a lot of time on seeking, trying so many trading systems, adding tens of indiactors on my charts in order to catch a so-called Holy grail (!). But the more I seek the more I am disappointed! After that, when I threw away most of the indicators, forgot all the systems I had learnt, I found that the right system for me is right on my hands! With a pencil, I draw a zig zac line and the system appears! Perhaps most of us have known this as 123 trading system. But how to trade successfully with this?

I have tried with many ways and then I found a very awsome system to trade 123 pattern effectively. Only with a 50 EMA and 2 common indicators, you can catch the trend axactly & at a very early point. I call it Triple timeframe system as exactly what it is.


This is something you should prepare to set up this system:

1. Timeframe: Depending on what timeframe you desire to trade, you can choose any TF triple: (30M, H1, H4); or (H1, H4, D1); or (H4, D1, W1),... of which the midle TF is the one you would like to trade. Ex. H1 for the triple (M30, H1, H4) or H4 for the triple (H1, H4, D1) and D1 for (H4, D1, W1)...

1. Basical knowledge of 123 pattern trade.
2. 50 EMA on the lowest TF
3. RSI on the lowest timframe
4. Stochastic (5,3,3) on the highest TF

Trade:

A) SHORT when:

1. Timeframe 1: Candle closed below 50 EMA AND RSI <= 50
2. Timeframe 2 (We trade this TF): Candle closed and a 123 pattern has just appeared.
3. Timeframe 3: Stochastic (5,3,3) pointing down

B) LONG when:
1. Timeframe 1: Candle closed above 50 EMA AND RSI >= 50
2. Timeframe 2 (We trade this TF): Candle closed and a 123 pattern has just appeared.
3. Timeframe 3: Stochastic (5,3,3) pointing up.

Default Stop loss: SL = Point 1 +/- spread +/- 1.

What is Point 1? Read again about 123 pattern trade please!

Devide your trade into 2 partial positions with the same amount. When the 1st position reach TP 50 or 100 pips (*), close it then move SL of the other to BE. Let the second position run and close it when price cross back 50 EMA on the lowest TF.

That’s all. I’m happy to share this with you. I hope you will try and give your opinion to develop the system.

Thanks.

(*). Depending on what triple TF and what pair you trade, you can set the a TP for your first partial position. In commen sense, the larger the TF, the bigger the TP.

Ex. For GBP/USD: 50 pips for (30M – H1 – H4); 100 pips for (H1 – H4 – D1); 150 pips for (H4- D1 – W1)...

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Quoting findcount

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i think you could draw channels based on 4hr charts and then sell at the top of the channel and buy at bottom of channel based on 1-2-3 pattern.

if your entries are based on 1-2-3 then probably you can do without any indicators.

sometimes 15min entries may be better as 1hr charts may hide some 1-2-3 patterns that are more obvious on lower TF.

did you have a look at Teb63's 'World's Simplest System' and KHarvell's 'Peak and Valley' threads ?

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Quoting vinafx

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When lot 1 reach TP, move SLof lot 2 to BE. Close lot 2 when price cross down 50 EMA on 30M chart.

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Quoting cash4u2

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Sorry, what does BE mean?

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Quoting Jurrasic

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Sounds like a good system to me at first glance, a bit more for the longer tfs purhaps so less to my taste in that sense but I believe it should work for 5m-15m-30m too. Thank you for posting vinafx.

Could you tell us more about how long you've been using it and what are your results in temrs of win to loss and average risk to reward ?

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Quoting thunderwolf

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Hi VinaFx,

Nice idea for a trading system you have here. You didn't mention in your 1st post what your RSI settings were. Is it a 21 period RSI , or something different?

Thank you for presenting your system! ....T-Wolf

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