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A,B,C,D - 1,2,3,4 System

  • #1,101
  • Dec 8, 2008 2:04am Dec 8, 2008 2:04am
I think everyone is really putting alot of positive energy into learning this system. Really nice to see that, will do my best to help out in whatever ways I can.

Just to highlight another point which I personally feel is quite important, you should always look out for setups only when the market conditions are right. By that I mean good healthy market movement, no consolidation patterns and there is clear indication of price trends. The movement now is a prime example. Usually when I see market moving like this I will pay more attention to the charts to spot possible setups.

Below is a chart on EURCAD, I believe there is potential for a good setup if price makes a good reversal pattern at the area highlighted in blue.
Attached Image (click to enlarge)
Click to Enlarge Name: eurcad.gif Size: 17 KB
  • #1,102
  • Dec 8, 2008 3:00am Dec 8, 2008 3:00am
Quoting forexgenius
Hello Everyone:

It is short notice, but I just placed this trade.

I saw the bearish engulfing pattern near the 4 hrs bearish TL.

The trend is down. I placed the trade short.

This is the USD/JPY 4hrs chart.

I figure that I will simply take the ride down to the daily TL.
Hi Hoedha:

This trade did go north. It took a ride in the opposite direction.

Your explanation of the engulfing pattern definitely makes sense now.

Thanks again for the help.

Just a few pips loss due to the tight stop loss; no big deal.
  • #1,103
  • Dec 8, 2008 3:03am Dec 8, 2008 3:03am
Quoting soyabean
I think everyone is really putting alot of positive energy into learning this system. Really nice to see that, will do my best to help out in whatever ways I can.

Just to highlight another point which I personally feel is quite important, you should always look out for setups only when the market conditions are right. By that I mean good healthy market movement, no consolidation patterns and there is clear indication of price trends. The movement now is a prime example. Usually when I see market moving like this I will pay more attention to the...
Hi Soyabean:

Thanks for posting the chart.

I am unable to track and compare this chart because ODL does not offer this pair.

Atleast I got to look at your trend lines on your chart.

Thanks for all of the great knowledge that you are sharing with us.
  • #1,104
  • Dec 8, 2008 3:06am Dec 8, 2008 3:06am
Quoting tanyasiapa
Hi FG & wltien,

Yes FG, the best way to understand a system is to try it and learn from the failure. And what's better than that is to teach other people. By teaching others, you have to understand it deeper, and sometimes take a review back. You are a fast-learner FG & wltien, and you have much passion to understand this system deeper. And it will give back to you. It's only matter of time until you become a master like Dra, Soya, and Mike.

Hi wltien, yeah, after all we're neighbor. I have many friends from Malaysia in my college. They're friendly...
Hoedha:

Thank you for the words of encouragement.

With help from you guys, it is much easier to develop confidence and to be excited about this system.

You keep talking about Master Dra, Mike and Soya, you are quite knowledgeable yourself; maybe not a master yet, but quite good.
  • #1,105
  • Dec 8, 2008 6:23am Dec 8, 2008 6:23am
Quoting tanyasiapa
Hi,

Maybe this will be a good setup on EURUSD. It's on the down channel now. Making evening star/engulfing bearish... On fibo 78.6... If it ends this hour with a correct CF, i'm in..

Happy pipping..
Hi Hoedha:

After reviewing this chart for this post a few times, I wondered why you did not place the trade for EUR/USD short after the formation of the evening star pattern on the trend line.

Why did you wait for the formation of the potential engulfing pattern?

Thanks for your reply.
  • #1,106
  • Dec 8, 2008 6:31am Dec 8, 2008 6:31am
Hi all,

Anyone watching USDCAD? These are chart of USDCAD, the first is from weekly view. The price is now testing the downtrend line. I pull a fibo and it's on 78.6 retracement. Unfortunately, i cant find any fibo confluence.

If we zoom in to daily view, we can see that recently price tried to break the trendline twice, but failed both. It's the third time now, and it is making a good candle formation i think. It's an evening star (CMIIW) although it needs a couple more hours to complete. The SL will be large, but the TP should be big too. I think it's going for a lot of money. What do you think?

Please comment this..
Happy pipping..
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdcad_w1.gif Size: 14 KB
Click to Enlarge Name: usdcad_d1.gif Size: 12 KB
  • #1,107
  • Dec 8, 2008 6:39am Dec 8, 2008 6:39am
Quoting forexgenius
Hi Hoedha:

After reviewing this chart for this post a few times, I wondered why you did not place the trade for EUR/USD short after the formation of the evening star pattern on the trend line.

Why did you wait for the formation of the potential engulfing pattern?

Thanks for your reply.
Hi FG,
After all, if we looked back at chart that time, it never completed as a evening star or engulfing bearish. An evening star consist of 3 candle that have to be completed to be called evening star. The first candle is a bullish candle, and the second could be bullish or bearish, but with a long leg (some people call it 'pin bar'), and then the third candle must be bearish with at least down to about 60% of the first candle's body.

In my chart, the first and second candle was completed, but the third candle was not completed yet, therefore i said to wait until the third candle completed, whether it to be a evening star or engulfing bearish. In fact, it didnt completed either way. And that's the advantage of using candlestick pattern as our tool. It saved me often. And that's what patience will give us back.

Happy pipping FG..
  • #1,108
  • Dec 8, 2008 7:03am Dec 8, 2008 7:03am
Quoting tanyasiapa
Hi all,

Anyone watching USDCAD? These are chart of USDCAD, the first is from weekly view. The price is now testing the downtrend line. I pull a fibo and it's on 78.6 retracement. Unfortunately, i cant find any fibo confluence.

If we zoom in to daily view, we can see that recently price tried to break the trendline twice, but failed both. It's the third time now, and it is making a good candle formation i think. It's an evening star (CMIIW) although it needs a couple more hours to complete. The SL will be large, but the TP should be big too....
Hmm, I'd love to hear Dra's opinion on this.
  • #1,109
  • Dec 8, 2008 7:28am Dec 8, 2008 7:28am
Quoting soyabean
This was a good entry that turned out well at the start of this week.

Entry was at the bullish engulfing formation, at a 50.0 and 61.8 fibo confluence and support line.
Hi Soyabean:

Thanks for the great example of a valid engulfing candle.
  • #1,110
  • Dec 8, 2008 7:34am Dec 8, 2008 7:34am
Quoting tanyasiapa
Hi FG,
After all, if we looked back at chart that time, it never completed as a evening star or engulfing bearish. An evening star consist of 3 candle that have to be completed to be called evening star. The first candle is a bullish candle, and the second could be bullish or bearish, but with a long leg (some people call it 'pin bar'), and then the third candle must be bearish with at least down to about 60% of the first candle's body.

In my chart, the first and second candle was completed, but the third candle was not completed yet, therefore...
Hello Hoedha:

Thanks for your patience with me and all these questions that I ask.

After reading your explanation about the evening star, I decided that I had better read up on candlestick formations again.

I studied them before but since I was not using them, I guess that I did not pay good enough attention.

I will return in a few hours better equipped.

Thank you so much for your help.
  • #1,111
  • Dec 8, 2008 7:44am Dec 8, 2008 7:44am
Just took this entry.
Attached Image (click to enlarge)
Click to Enlarge Name: eurcad.gif Size: 20 KB
  • #1,112
  • Dec 8, 2008 7:51am Dec 8, 2008 7:51am
Quoting tanyasiapa
Hi all,

Anyone watching USDCAD? These are chart of USDCAD, the first is from weekly view. The price is now testing the downtrend line. I pull a fibo and it's on 78.6 retracement. Unfortunately, i cant find any fibo confluence.

If we zoom in to daily view, we can see that recently price tried to break the trendline twice, but failed both. It's the third time now, and it is making a good candle formation i think. It's an evening star (CMIIW) although it needs a couple more hours to complete. The SL will be large, but the TP should be big too....
Hi Tanya:

I do not have an answer for you.

I just wanted to express my gratitude for this post and the way you explained everything.

I followed it step by step and could actually get a feel for what the process is to identify a valid trade.

To me, it is helpful to see the steps before the trade is placed instead of discussing it after it has been placed. Not because I want to copy the trade, but because I want to understand what the analysis process is like prior to the trade. This helped a lot.

While walking through your explanation, I also caught one TL that I had missing from the monthly chart.

All these posts with the explanations are extremely helpful.

Thanks again to everyone.
  • #1,113
  • Dec 8, 2008 9:11am Dec 8, 2008 9:11am
Something to look out for in 50 mins time.
Attached Image (click to enlarge)
Click to Enlarge Name: nzdjpy.gif Size: 19 KB
  • #1,114
  • Dec 8, 2008 9:14am Dec 8, 2008 9:14am
Haha, many possible setups appearing.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpjpy.gif Size: 18 KB
  • #1,115
  • Dec 8, 2008 9:21am Dec 8, 2008 9:21am
Quoting soyabean
Another entry I took for this week.
Closed at 1:1.5
  • #1,116
  • Dec 8, 2008 9:41am Dec 8, 2008 9:41am
Quoting soyabean
Haha, many possible setups appearing.
Hi Soyabean:

Thanks for posting the charts for potential trades.

My trendlines actually match yours. I guess that I am getting better at drawing the trendlines.

Question:
The reason for placing the trades for NZD/JPY and GBP/JPY would be because of the evening star candle formation correct? I just got a lesson on this from Hoedha.

Are you then waiting to see if the third candle will be atleast 60% the length of the first candle?

Thanks for the response.

Congratulations on your latest profitable trade.
  • #1,117
  • Dec 8, 2008 10:05am Dec 8, 2008 10:05am
Didn't take gbpjpy and nzdjpy. Instead, I took audcad again.
Attached Image (click to enlarge)
Click to Enlarge Name: audcad.gif Size: 19 KB
  • #1,118
  • Dec 8, 2008 10:08am Dec 8, 2008 10:08am
Quoting soyabean
Just took this entry.
Closed half the position, going to let the rest run for a free trade now.
  • #1,119
  • Dec 8, 2008 10:17am Dec 8, 2008 10:17am
Quoting forexgenius
Hi Soyabean:

Thanks for posting the charts for potential trades.

My trendlines actually match yours. I guess that I am getting better at drawing the trendlines.

Question:
The reason for placing the trades for NZD/JPY and GBP/JPY would be because of the evening star candle formation correct? I just got a lesson on this from Hoedha.

Are you then waiting to see if the third candle will be atleast 60% the length of the first candle?

Thanks for the response.

Congratulations on your latest profitable trade.
Hey thanks alot FG.

Nope, they are bearish engulfing patterns to me. GJ looks more like an evening star but the middle candle was overlapped by the last, so it was still an engulfing pattern. Anyway, I have taken quite a no. of trades for today and have already closed for over 150 pips. Decided not to take these 2, all the best to you.
  • #1,120
  • Dec 8, 2008 10:21am Dec 8, 2008 10:21am
Quoting soyabean
Haha, many possible setups appearing.
Hi Soya, thanks for sharing the charts!

For GJ, there is a Daily TL (yellow in colour) in my chart, which is lower than 4H TL (purple in colour). Which one we consider 1st?

Thanks!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gj weekly 081209.gif Size: 31 KB
Click to Enlarge Name: gj daily 081209.gif Size: 25 KB
Click to Enlarge Name: gj 4h 081209.gif Size: 29 KB
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