Cornflower Hourly System

Here's an hourly Cornflower I'm watching on a painfully slow day. It looks set up on 1hr, 30m,15m and 5min. I'm waiting for a break down, but it could go up.I won't take it long untill all the mav's are stacked in that order.

Here might be some handy pips on the oz 1hour

Hi Felicia

I just recently started reading about your wonderful system and I'm trying to absorb as much as possible. I had a few questions, and tried to send you a private message, but was blocked. Anyways, any chance I can e-mail you. My e-mail is [email protected]

Thanks for your help.

P.S. Did I say I love this system.

Hi Again

In earlier posts, there was mention of a chatroom. Is this still up and running? I clicked the link that was provided at that time, but it didn't work. If there is a new chatroom, could someone please provide the link. Thanks for your help

Peter

I'd prefer you just post in the thread. I don't know why the PM was blocked, but any questions will benefit all.

Nice to see you guys still at it. I'm going to try to be more active again going forward.

Hi Felicia

Noticed you're on-line. Actually, as I read through this thread, the more my questions are answered. I've been trading for over 15 years, mostly in Futures and s&p e-mini. Just switched over to the Forex market in the last few months. Read a ton. Chart patterns are basically the same for all markets but had to get used to the nuances of Forex. Out of all the systems and methodologies I've learned or read about, yours ranks way way up there. It's easy to learn, and it doesn't rely on a million indicators. Combine it with proper position sizing and risk control, and i believe this is a s close to the Holy Grail that anyone will ever get too. Great great job Felicia. Thank you for sharing and keep up the great work.

Peter

Hey Felicia

Glad to see your back! hope all is well in your world... any time you can spare us will be unreal!

Bob

Could this be the start of something beautiful?

Hey Guys,

I am new to forex, I hv been using the cornflower system for a few weeks now and gaining some profit from it. Thank you to lever70 for the system.

Unfortunately, I hv been hit a few times with the news release where price goes up/down instantly. I need everyone help here to teach me about the news release, when it release and how to avoid them.

Thank you

Dude, news calendar right here on this site. Don't trade during red release times. Even the orange ones can be dicey.

We are in crazy times and you do not want to be in a highly leveraged position near news time.

I doubt it. There isn't much beauty these days in the markets. This is also counter to the downtrend that is firmly in place. I expect this downtrend to continue. Not that you can't trade the upswing on CF, but you do have to be more vigilant. As for me, I'm finding this crazy market to be a scapler's paradise.

Can you help us explain what the "actual", "forecast" and "previous" numbers mean in the calendar? What do those numbers represent?

Previous - the number last time the report was released.

Forecast - the consensus on what the upcoming number should be

Actual - the news number itself. Deviations from the forecast will move the market on a red news release.

Do not be in the market at news time unless you are already in a long term position. Brokers widen spreads, and you will find yourself in a bad spot.

Do not try and guess what the number will be. That's gambling, pure and simple. News can move the market 100 pips or more in a very short period of time. Also, do not trade news using an autoclick program. That was a good game a couple of years back, but brokers have long since gotten hip to it.

We have to be aware of when the news comes out to protect ourselves. You can attempt to trade the move after the spike, once spreads have returned to normal. This can be accomplished using my 5/10 system that I outlined earlier in the thread. Don't worry too much about the news itself. As I've always said, just trade with the market.

Welcome back Felicia, glad to see you again.

Regards,

KG

Looking back through some recent posts, I'm seeing a lot of indicators being added. I've always made a point of saying that traders shouldn't rely so heavily upon indicators, and I still feel this way. If indicators make you feel more comfortable about taking a trade, then pick just one and stick with that one only. But you are really better off without them.

Indicators are derived from price. As such, they lag what price is actually doing. You are much better off trading on price action.

Yes, EMAs are indicators. But I've found that they are the least of all evils. They represent the movement of price over time, and price tends to gravitate back toward a mean. This is why Cornflower works.

Indicators other than moving averages, in my opinion, are largely voodoo. They lull traders into a false sense of control over events and distract us from paying attention to what price is actually doing. We get paid only if we are right on price. Cornflower aims to gauge price direction.

The only other indicators I've used are (a) bollinger bands on my 5/10 chart to gauge volatility, and (b) cross-currency correlations. I haven't discussed correlations here, but they are invaluable. Typically, EURUSD moves with GBPUSD, and they are opposed by USDCHF and (to some extent) USDJPY. So if USDCHF is going up, GBPUSD and EURUSD should be going down.

Even if you only trade EURUSD, you should watch the other pairs. If the point of indicators is to predict the future, then we should be watching all four of these pairs at once. More often than not, when the GBPUSD moves, the EURUSD follows, and the USDCHF goes in the other direction. It's usually cable that moves first, though this is not always true. The point is, more often than not one currency pair will tell us where the others are going.

Go to http://www.mataf.net and look at the correlation tables, which are updated frequently. They will help you in making your trading decisions.

hey lever, I have been following this thread for a little while (i notice every one says lurk or they are a lurker here so maybe I should say I lurk here as well lol) and I just wanted to say thank you. I know there are various EMA type systems but I have been lurking on this which has added another piece to my style of trading. I know that you are against using too many indicators as it can sometimes be detrimental. I have been examining cornflower in a stochastic setup using one other indicator. I really have an affinity towards using stochastics for some odd reason so I have added it to my arsenal and use it with almost any system. Primarily I trade using multi-time frames and I am using the cornflower as an entry system on lower time frames coupled with a few other things.

I believe that each trader must search within themselves to find out what makes them trade better and makes them more confident. Right now I just use about 3 indicators. I will not discuss it here as this is the cornflower thread and do not want to derail the discussion using the cornflower system. Just wanted to chime in to say that I think the cornflower is quite powerful and that I will be using it to better time my entries as well as a filter for trades. I have been looking at using the cornflower at the 5min and even the 1min level and it has nice potential.

just wanted to say thanks again.

I don't have much to add at the moment. But trade vigilantly and protect your profits.

We are in the midst of a financial crisis whose outcome is far from clear. Liquidity is thin because market participants don't trust one another. Remember that the forex market is comprised primarily of banks, and they are all playing defensive right now. There is an unwillingness to commit capital, and a general sense of mistrust. In illiquid markets, the moves are sudden and swift, and can't be easily predicted. As I type this, I am watching the EURUSD zoom up 40 pips in an hour, with violent downswings along the way. This type of action never used to happen in the early hours of Asia trading. It is now near-routine. There are, of course, opportunities in this kind of action. But be careful. Trade what you see, and guard yourself against trading on expectations of how things "should" happen. The past is the past. We are in a different era than we were a year or even six months ago, and everything is suspect.

I am currently using Cornflower as a means to gauge (oh look, EURUSD just dropped 15 pips) general market sentiment, but am relying on my shorter-term systems for actual trades. I'm willing to take any and all questions relating to these. Mind you, they are not for the faint of heart. Then again, trading isn't more generally.

Over and out,
F

Folks,

I'm removing the 30M "aggressive" entry from the system. I have decided that it's too arbitary an entry point, especially in this market. Please use CF in its hourly application only.

Also, I see that people are using CF on all sorts of timeframes. That's cool, but just remember the values of 8, 12, 24, and 72 are so because they correspond to hour lengths, hence the timeframe.

Best,
lever70

Hello All,

It's been awhile since I was on the forum. It's nice to see CF is still going strong. Regarding TF's, I still use the 4H and the Hourly chart for entry signals. I had been experimenting with the Daily and Weekly charts, but the results were not as I hoped they would be.

So, if I'm using the 30-min timeframe, my values will be 16, 24, 48, 144 .. correct?

Also, what would be the advantage of moving to a smaller timeframe, because now you've adjusted your EMAs accordingly? The relative increase in volatility by moving to a smaller timeframe is counter balanced by your adjusted values.