Trading System Using Relative Strength-Part 2

Quoting cobraforex

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Does anyone have an indicator that draws a simple vertical line each x hours (in this case 4H) starting at x hour?
It would be helpful for back testing various setups in smaller TF’s with different broker times.
I found some session time indicators but they don’t do that.

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Quoting cobraforex

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Does anyone have an indicator that draws a simple vertical line each x hours (in this case 4H) starting at x hour?
It would be helpful for back testing various setups in smaller TF’s with different broker times.
I found some session time indicators but they don’t do that.

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Quoting geeve

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Hi guys,

We can use Orest indicator to determine if the market is ranging or trending...

T101 explains it in post#247 here:
http://www.forexfactory.com/showthre...=57375&page=17

Respond to question about ranging...
The Orest indic there are some figures at the bottom. on of them is the total Buys the Other is total sells then the sum of the two. I normally look at the 4 hour column Look at the T: if that value is just within the amount of spread. Say for Ibfx it is the spread is 75 if the total is just runningin that amount is within 100 - 0 and fluctuating around there then you have a ranging market. if you have trade and in profit you can wait it out because it coul dbe just consolidation. I fyou have no trade then dont trade and stay at the side line.
Julius


If the market is ranging we use Ferru indicator and pull a Paris Hilton reversal...

If the market is trending we use Ferru indicator and go normal...

Steve, great work with your trade management EA...

Ferru, new 1.04 indiactor is awesome...

Shiva, Don Of Dubai, love the template and the Jag looks good...


Geeve

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Quoting Pipo

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The one I've got does let you set any TF and color but not the starting hour option.

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Quoting ES Trader

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In my opinion this suggestion looks like the BEST. I think we all should just stick to this above strategy and trade for ONE week. All should agree to put their success/failure and at the end of one week I think we will have nailed this system real well.

Please don't request anymore changes/alteration of the indicator for a while.

Hope This suggestion would be welcome by everyone.

Thanks
Kris

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Quoting mitchp

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Kris,

I'm just not getting how to read this indicator. I have read T101 explaination over and over and I'm just not understanding. Can you maybe explain it to us noobies.

Thanks

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Quoting ES Trader

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Nubcahai,
please read the post above. Let me tell you How I traded 101 system.This may be totally different from how he explained.

I simply look at the last column in the orest indicator v1.11 and if the total number was above 100 I went long whole group and vice versa.

I also used VQ indicator on all the currency pairs.When I saw more currencies in green I went long and when more charts were showing red I went short.( I have explained this in 101 thread.)

I still am not able to understand currency jumping and how to trade those.
This does not mean 101 ,s system is hard to understand.It simply means my senile brain is having hard time to understand .LOL
Thanks

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Quoting ES Trader

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Nubcahai,
please read the post above. Let me tell you How I traded 101 system.This may be totally different from how he explained.

I simply look at the last column in the orest indicator v1.11 and if the total number was above 100 I went long whole group and vice versa.

I also used VQ indicator on all the currency pairs.When I saw more currencies in green I went long and when more charts were showing red I went short.( I have explained this in 101 thread.)

I still am not able to understand currency jumping and how to trade those.
This does not mean 101 ,s system is hard to understand.It simply means my senile brain is having hard time to understand .LOL
Thanks

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Quoting cobraforex

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Does anyone have an indicator that draws a simple vertical line each x hours (in this case 4H) starting at x hour?
It would be helpful for back testing various setups in smaller TF’s with different broker times.
I found some session time indicators but they don’t do that.

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Quoting ozziedave

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I think this is what you are looking for. Vertical line that can be adjusted by the hour.

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Quoting TickJob

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this is the first time I try this, I attached the indicator to a chart and get the following error:
2008.10.19 17:56:40 Error reading file 'C:\Program Files\MetaTrader - Alpari UK-Demo\experts\indicators\CCFp-Diff_v1.04.ex4'

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Quoting PipClipper

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!xMeter MODIFIED OPEN SOURCE. Original was an EA. Maybe some other coders have ideas to add. We should not have to be dependent on one programmer. Now contributions can be openly shared.

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Quoting geeve

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Hi guys,

We can use Orest indicator to determine if the market is ranging or trending...

T101 explains it in post#247 here:
http://www.forexfactory.com/showthre...=57375&page=17

Respond to question about ranging...
The Orest indic there are some figures at the bottom. on of them is the total Buys the Other is total sells then the sum of the two. I normally look at the 4 hour column Look at the T: if that value is just within the amount of spread. Say for Ibfx it is the spread is 75 if the total is just runningin that amount is within 100 - 0 and fluctuating around there then you have a ranging market. if you have trade and in profit you can wait it out because it coul dbe just consolidation. I fyou have no trade then dont trade and stay at the side line.
Julius


If the market is ranging we use Ferru indicator and pull a Paris Hilton reversal...

If the market is trending we use Ferru indicator and go normal...

Steve, great work with your trade management EA...

Ferru, new 1.04 indiactor is awesome...

Shiva, Don Of Dubai, love the template and the Jag looks good...


Geeve

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Quoting qz10cq

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You can't have a system that wins every time (grail) so for me I'm going to play the range which happens between 70-90% of the time. You guys are spinning your wheels when you try to win 100%. Set a good sl and go on to the next trade. Lets concentrate on whose winning and how they are doing it...

Best regards to all, it's a super thread..

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Quoting John Edwards

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While writing all this yesterday and today I saw that FerruFX already produced version 4 of his magnificent indicator having the CLOSE=true option available. Thanks a lot mate….. splendid work !!
First of all I would like to share that I have been developing Metastock trading systems for about 7 years, however because of my age I have decided not to start studying MT4 language, although it is tempting and yet meanwhile I have gathered a little knowledge how to make some modifications.
Today I have had my doubts of adding all this to the thread. At first glance it looks a bit complicated, but when you know how it works you are able to make trade decisions very quickly.
My aim is not to contribute to a system which in itself is simple to practice and make it more difficult to use. It’s just that some traders were screwed with enormous Drawdowns using this system. For those traders that just like me always seek trade setups that avoid high drawdowns……..my views on how to start using the RS System in a slightly different manner may be of help.
Having said all that let’s turn to the trading system we are discussing here....... Actually we are not using the CCFp indicator in a way it has been designed in the first place......... that doesn't matter of course when results are positive and the manner in which we use this indicator is rightly understood. Even ES Trader quite recently has admitted that reversed BUY and SELL signals also seem to work well with his trading system.
Anyway in my view the way we are trading this system best is when \"the basket\" as a whole is right at the beginning of a trend up or down...... So in order to finetune each trade setup at the beginning of a new H4 candle..... we want clear evidence that the current candle will have the potential for at least one..... or even more successful trades in the next 4 hours !!
So to begin with we need CLOSE signals on H4 and also on the other TF's (H1, M5) that are not being interfered by MA delays. That is why I have asked FerruFX for an option true/false in his indicator to exclude MA delays completely. He has agreed to do this and already finished the job in version 4.
In the example (screenshot) shown here I have used EURUSD on 3 TF's H4, H1 and M5. Now when we have all 3 TF's in accordance in this way.... using FerruFX’s indicators all showing BUY or all showing SELL for a certain currency pair..... we have a clean cut CLOSE signals determined situation over the latest bars …. Providing a much more trustworthy trade setup >>>>> Note: this explains immediately why ES TRADER made clear several times that the better entries most of the time occurred ...... half an hour later after the beginning of the current H4 bar.
Now how do we pinpoint visually a valid trade setup? There are many ways.... but this is the way I do it. I got sick of Fibonacci and all other pivot systems...... I have tried them all but the problem for me always has been that it took way to much time to determine whether or not a trade was valid. So out of all this I have distilled a pivot system that only uses 4 lines on the chart, which always show remarkable accuracy in any market and on any chart.... I was lucky to find an equivalent for my Metastock formula's in MT4 and made a few modifications to those….
These lines are derived from PrevDayAndFloatingPivots..... Here we do not use the Floating part. Therefore I have omitted this from the indicators and renamed them in order not to cause interference with other charts where they may be used. That also goes for the other indicators JE-QQE and JE-ArrZZx2+. The JE-ArrZZx2 helps identify the area where a valid trade setup bar is to be expected. In the example you’ll notice this in theM5 chart. Don’t use the ZZ drawing option in this indicator, for in that part of the indicator there is a bug that causes MT4 to consume too much resources of your PC….. It will ultimately halt MT4 completely. Another bug is in the refreshing…… when you would use it also use as an MTF indicator on the same chart, it won’t refresh properly. Reason why we don’t use these options.
The yellow line is the Daily OPEN. The other three are Targets to the up and downside. These four dotted lines are very important because they show where the better trades start, where is the next target and also they represent the most significant levels of support and resistance during each trading day.
Definitions:
1 When the trade moves towards the purple line and we have a wide opening between yellow and purple..... this is a first indication for a trending day. There are other possible trending days. Good ones you’ll see develop when purple and yellow lines are close together and price rises above or falls under both of them.
2 When the gap is narrow between yellow and purple... however price is moving between those two....... we are in a non trending situation. In this case we look for the breakout out above or below one of those two lines.
3. A breakout above yellow - purple area…….and aqua line at great distance is an indication for an uptrend towards the aqua line...... which now has become our target.
4. A breakout below yellow - purple area…… and deeppink line at great distance is an indication for a downtrend towards deeppink line...... which in this case now has become our target.
5. Whenever price reaches a target line…… we immediately close the trade…. We normally don’t wait for the price to move beyond a target line, because 99% of the time price first swings up and down at these target levels before continuing direction or before bouncing back. So every time when price reaches a target level…… we have arrived at a new trade setup situation and we should examine the new trade setup situation before continuing with a new trade. We only continue with a new trade when we have evidence that again there will be enough boost potential for the next trade. Comparing currency pairs that have same correlation with EURUSD like NZDUSD, f.i. these indeed start trending most of the time simultaneously at these pinpointed trade setups for EURUSD. So I believe that for the basket as a whole this should work. Some currency pairs in the basket will be late to the party and some others will be earlier…….

The screenshot shows an example of a visually pinpointed trade setup. Look at the latest setup marked by the yellow arrow. On the H4 chart we see (12 hrs GMT bar) that price has reversed to the upside at the deeppink line. If FerruFX’s original indicator (new version 4) is being used having Close indication option set to true over the 2 previous bars we get here a SELL signal (because C2>C1). However it’s very obvious that price has reversed at the deeppink support level and is heading for our first target which is the purple line. Price going up is also verified by the QQE pointing up from a small red support level…… and QQE not being to close to resistance provided either by the 50 line or the aqua dotted line.

Using FF’s current indicator here instead (having also CLOSE option set to true) this one would show a BUY signal (because C0>C1). So now that we have visually pinpointed first evidence for a possible valid BUY entry we go to the other TF’s and see what the message is here. BTW. I normally use H1 and M5 and sometimes peep at the M30, For the record to prove the accuracy of the 4 PrevDayPivot lines I’ll go down to the M5.

On the H1 chart, also on 12 hour bar where it says “valid BUY” …. we see that C1>C2 and thus have further evidence for a valid BUY. FF’s regular indicator having set to Close option=true gives us that message here too. Also the QQE indicator is rising and just crossed the dotted signal MA.

Instead of going immediately to the M5 chart… you might want to check the M30 chart for instance how things have developed here. If you do that take care that FF’s version 4 is set to CLOSE= true option, TF =30 and Tradelevel is set to 0. Also on the 12 hour bar we now already have a detailed situation which would satisfy me enough to enter the BUY trade. Again we see here confirmation of a rising QQE above the dotted signal line. The 12:30 hrs bar would be the better one to enter the trade because now the QQE crosses resistance at the 50 level (central line of the QQE), whereas the 12:00 hrs bar bounces off first at the 50 line.

A further refinement on the M5 chart shows that the 12:35 hrs bar is the best choice to enter the trade, This is in full agreement with QQE which after first having crossed the signal line now crosses the 50 centerline to the upside.

Please take notice that this is in full agreement with ES Trader’s experience that he often saw the better entry points about half an hour later than exactly at OPEN of the current H4 bar. Next also take notice how accurate this trade ends…. exactly at the purple line target. Also notice that the next bar on the M30 chart also is a valid trade setup >>>>> this trade should be taken when price moves above the purple line (resistance now becomes support) towards our next target line (aqua). How nice this works can be checked again in detail on the continued M5 chart !!!

Conclusions

Using this trade setup we don’t have to wait for agreement on the 3 TF’s using only FF’s regular v4 indicator, for we may quite often already find an earlier agreement using FF’s current version on H4 and the regular (version 4) on the TF’s H1 and M5

So therefore I have another request FerruFX, if you would be so kind to also modify your Current version indicator in such a way that we can use it with this trade setup? I mean using the CLOSE option and also presenting current BUY – SELL advise.

Scalpers may want to use a combination of H1, M5 and M1 templates.

For those of you that may want to study setup possibilities I have attached templates and indicators. All objects are still intact on the templates…. So you have to delete those when you want to refresh your own templates without the objects.

Good luck to all and many pips in the coming week,

John

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