The Force 5min system

Traders,

Heres is my Friday chart below. All my trades are indicated. Its important to understand that my trading is really intuatative so this is the best chart I can come up with. Again anyone at this level will understand what theyre looking at. On a final note following the force will bring you to this point eventually. There will come a time when youll forget the indicators are even on your chart. Ive dubbed this friday "crazy firday mega pip day". I will make a comitment starting Monday to this thread to start posting this chart daily. I hope all can undestand what they see.

FJ

What a week for the bulls! They were in control from market open on Monday at 1.2715 up to Friday's high at 1.3415, clocking up an impressive 700 pips of vertical price increase in one week. How trendy can you get?

Today's US pm session seemed to happen an hour early. The typical London Close retrace (17:00 gmt) was already in progress at 16:00. Maybe they want to go home early on Fridays? The 15:55 candle showed the way for a quick 50 pip drop.

15:55 look closely there's a lot happening...
1. upper TL reject
2. lower TL break
3. force sell signal (advanced)
4. bearish outside bar - the 'obear'

What a way to break a tight range eh? Now that's style!

OK the next signal was plain vanilla, 16:45 basic force buy following a 3 candle morning star pattern providing evidence of support.

This moved quickly to the 20p target but languished in the doldrums until Wall Street bounced at 1:55 ET. This gave confidence to the bulls who had already closed two candles above the old upper trendline. 30 minutes later the 50 pip take profits were hit (to the pip). 90 minutes later the same level was hit again forming a double and price action died down into the NYSE Close.

http://i33.tinypic.com/10mlixf.gif

Lessons I learned...

1. Advanced sell signal does not require that stoch crosses down from overbought. Combined with a firm reject by an established TL and a close below previous low (obear) this signal becomes potent! (eg 15:55 today)

2. There are times to watch what Wall Street is doing, 2pm ET is one of those times. I almost lost pips today by forgetting this practice.

3. An outside bar (obar) may look great but it needs to be combined with a force signal on the very same candle to show a potential entry. The force signal here can be basic or advanced. If any doubts about an obar I can wait for confirmation. One pip below the obear low confirms it. One pip above an obull high confirms it.

obar = outside bar
obull = bullish outside bar, closes above previous high (ignore the lows)
obear = bearish outside bar, closes below previous low (ignore the highs)

Obullwan Kenobi (sky's new nickname, for testing obars big time this week, massive teamwork sky you rock!)

Also my regards to fboy for showing me advanced signals on the charts. The mystery is beginning to unfold, you gave me those aHA! moments.

ForexJedi your system is the Genius of Simplicity!

Vbro and Vantage,

I would like to extend my appreciation for enforcing this rule. Vantage id also like to thank you for helping out with answering questions here. I would also like to thank all the others taking the time to answering questions and helping out other traders. This take a load of work of my hands. Its a great thing seeing people helping people.

FJ

Rob,

Your the best brother.

FJ

Here's a quick bit about how one may need to change theyre lifestyle around to become a success in FOREX. I assume that most traders here work a 9-5 in some sense and with that being said we will start with creating a schedule for yourself. It is important to dedicate about 4 hours a day to the charts in FX. This is easier said then done as most poeple a married and have families and I can understand that so ill bring up my next point. Sacrifice! Pick a time of day when no one will be in your way. Maybe wait till the kids are in bed and youve spent some time giving attention to your significant other. How much time does thia leave you. Probably not 4 hours if you want to get in your 8 hours sleep. You can guess where this is going. Less sleep everyday, thats right I went there. There needs to be sacrifice and hard works for the reward. 4 hours a day will put you on the right path for success. Sleep is highly overated. I trade 12 to 16 hours a day and average 4 to 5 hours sleep a day during the week. What do I get from this? An average of over 700 pips a week and all the fruits of my labour. Anyone no matter who you are can get to this point. Determination! A big word that I may not have even spelled correctly. Under no curcamstance should you let anything or anyone stand in your way. You will always have people telling you markets like FX are a joke and you cant make any money. lol I laugh at them. People like that are the joke to me. Who are they and what do they really know about FX or any market as the banks take the money in theyre savings accounts and make billions a year trading it on markets like FX. Poeple telling you that you will not have success in FX will come from all angles. They will be family, friends, wife, husband, co-workers ect.. Dont let them stand in your way as you climb anf fight your way to the top of the food chain. FX is just a giant game of mentals and emotion from so many angles I cant count them. It starts on the charts works its way to your trading style and ability to make pips to negativity from family and friends. I can tell you that you need to learn to block emotion. Find the switch and place it in the off position. Balls of steel so to speak. Bring everything to the level of logic. Logical trades and a logical plan for success with large goals that are seemingly impossible. There is no limit to what one person can accomplish. The only thing that will stop you is you. Plain and simple. So my next thing is health. Whats the point of making tons of dough if your not going to be around to enjoy it? Clean up your life eat healthy exercise if you can and deal with all your mental issues causing you stress. The thing I give a large portion of my success to when dealing with emotion is meditation. It has been the key keeoing my life in check. If everyone meditates for 1 hour a day you will fell better, stronger, healthier and have a better mental attitude in every aspect of you life. One can google this meditation and look for a simple breathing technique and practice 1 hour a day. As a matter of fact the entire Force system was developed in my meditation sessions. As you may have taken a guess I think about FX mostly in meditation. On a final note I recommend that everyone visualise theyre final goal in theyre head. This will help you get there. Watch the charts as often as possible. If your around a PC all day at work, bring up the chart and watch it in the corner of your screen all day. When your at home watch the charts instead of TV. One must consume themself in FX untill it is all they know and success will follow. I guarantee it. I would write anything I could prove and have not experienced myself. I hope all enjoy this little blurb.

FJ

Excellent

for those of you that don't want too much emas on the graph i'have made this indicator
attached below with a screen exemple
ema5 close/below crimson/aqua
kinonen

Nice. The good thing about this is that you can make it really small to avoid taking up space, you're just watching for a colour change. I would keep same colours as macd just easier for the eye to associate, green up red down.
Thanks.

Hi ,

during this week I have tried to trade this system in real with microlot, and I have to say that this is a very sound system.

A thanks to Forexjedi for having share this system.

Also the chatroom is very useful, with a very supportive group.


For who as me is new to this system, I have created a new .pdf with " tips and nuances " writed from Forexjedi in the past posts.

Awesome Stark for the summary. It will definitely help those newbies. We can direct them to this pdf in the chatroom. And nice work everyone for helping each one understand this system better.

Quote Issaac Newton: "If a force generates a motion, a double force will generate double the motion, a triple force triple the motion."

Thanks FJ for starting the motion.

this afternoon i'have made this one !
can you test it ?

RED is stoch oversold
DarkGreen is Stoch overbuy
Yellow conditions not met for the Force
Lime ok for long
Crimson Ok for short

kinonen

K,

Amazing work! There is absolutly no doubt many many people will appreciate this.

FJ

Another very, very good post, FJ.

Two things that rarely mentioned by traders are (1) the various money management techniques and (2) the the psychology of trading . The great thing about the Chat Room is that it shows a broad spectrum of both these things in motion day in and day out, which truly makes for an unparalleled learning experience.

As far as (1) goes, I initially thought the technique of 50% at +10 and then 30% at +20 was far too hasty. But nevertheless, I gave it a go. I now realise its benefits, and that the skill of that techinique is in adding into the position as the trade progresses. This I currently find very difficult but I am working on it. The alternative I see used a lot is to hold a full position until the trailing stop takes out the full position. Again, this is something that is very successful for a lot of people. I would certainly welcome more discussion from traders, about the various methods and their advantages and disadvantages.

As far as (2), the psychology involved, I have attached a small pdf that I picked up about a year ago. It looks to be quite old now (he mentions trading the S&P during 1998 somewhere). It touches on a lot of issues, and ends with some visualisation/meditation type exercises. It is well worth a read.

thanks i'have applied the rules o, #post 1
perhaps i'll adjust yhe indicator later
happy that you have appreciated this
(i have made something like that on another trade FX50 ....on CCI+RSI ) etc...

bye
kino

I know this is going to sound stupid but I'm assuming your "all in one" indicator incorporates all the aspects of the system (macd, ema of open and close and stochastic)? Once again...terrific work. I know I am a very visual person but also a bit ADD. Anything that can reduce chart clutter and leave more space for drawing trendlines, support/resistance lines and the like is a definite enhancement.

Best Regards
Max

Great post FJ, totally inspiring! Thanks for the ebook too Royston, it's an interesting read.

JMC

I need a little help from the pros.

Maybe its because I have been looking at charts and reading posts for hours (sacrifice and persistence) or maybe it's just because I'm your basic airhead but I am having HELL grasping stoch bullish and bearish divergence crosses and how they are to be applied in the Advanced Force.

I try not to ask a question until I have thoroughly researched and tried to find the answer myself but I am throwing up my arms in frustrated disgust. I have been to Babypips and done an exhaustive google search but I just don't get it.

I moved to the "Advanced Force" this week and so far I have found everything surprisingly simple to understand EXCEPT for that divergence crap.

Can somebody post a chart with a simple explanation of what to look for? Maybe I'm making this more difficult than what it really is but from the way I understand it and the way you guys seem to be trading it it just isn't making sense to me.

For months I have thought that I understood divergence but now I'm starting to think I've had it all wrong.

Let me apologize in advance if this has already been covered in this thread but I assure you that I have read this thread 5 imes over the last 2 weeks (and will probably read it another 5times!) and there is just so much good info in here that it's hard to remember it all or know where to go to find what I need.

Sorry to be a pain and If this has already been covered a hundred times in this thread just tell me and I'll go find it. Hell, I may just be tired and making a problem that really doesnt exist. I'm so frustrated right now I'm thinking about kicking my stupid cat just because she's there!

Thanks guys!

note to FJ: Thanks for all you've done for us and all the effort you've made to share your knowledge. I've never met you but the fact that you would go to all this trouble to help a bunch of strangers tells me that there is a helluva lot more inside you than just a good trader. Thanks again.....

Marto

This hopefully gives clearly the types of divergence. I'll post an example or two soon.

http://74.125.77.132/search?q=cache:...n&ct=clnk&cd=1

Divergence is just another tool. If you can see divergence in the direction of the overall trend so much the better.

The force system is basically looking for entry signals off support and resistance areas, longer term trendlines being one.

In the attached example price has a lower low approaching a round number 1.33. We have been in an uptrend for several days so any round number can be a bounce area. MACD and stoch have both shown positive divergence in that they have waved higher, not following price which has waved lower, an indication that price may turn around.

Force system has macd green, stoch cross, ema cross off an even number with positive divergence.

Same story a couple of days earlier, divergence at a round number.