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

This is the one I have on the Weekly. As it has broken previously I'm not sure if it's valid anymore.

The chart posted below(audcad) shows the break of an up trendline then a test of that same TL which gave an entry after the close of the engulfing bearish candle.As you will see this is also a Crown/H&S Formation. These are easily identified by this style of trading. The entry for these formations differs with this system, the entry is taken at the left tip after one of the formations we trade is form as oppose to the neck line.

I would suppose it is not valid but I have no experience in trading broken trendlines in this manner. Likewise, I suppose MOST traders will think the same, hence, it is not an effective level. But that is only my opinion.

1) Trendline
2) Resistance turned Support
3) 38.2 Fib
4) EB

I'm already in UC from before but spotted this potential trade for discussion anyway.

keep on, dont stop, dont stop.... dont stop till u get enough

eye 1.300................... keep holding

Yes Mike, determined to get that 1.3 level!!

Been reading through the thread. Haven't made it all the way through yet but really like the system. Dra/Naijafx... One thing that I am having trouble are any exit rules/strategies. Sometimes I see fibs up sometimes not. Are their any exit rules floating around anywhere in this thread. Sorry if its posted and I haven't gotten there yet, only on page 30.. haha Thanks all!

Welcome man, Dra made mention of exit in the first page as 1.5 R:R Ratio. that is the Minimum.


Alternatively, you could mark resistance levels if u r buying or support level if u r selling and use any of those point that is close to your fib extention as your target.

Hope that answers your question?

Still trying to learn the TL's and everything. Can someone please confirm my TL's and also was wondering what to do when you have many TL's converging. Long term TL with new TL's. My thinking is a breakout of some sort is going to happen, but not sure if we should wait to take signals until a new trend is formed. Thanks for the help!!!

Nice trendlines except for the most inner one. You should draw from the last A B wave. Price is approaching the back of the downtrendline which it has broken. I would suggest staying away if you have doubts and look at other pairs at the moment. EURGBP for example gave very clear conditions which was discussed earlier by tanya and blackeagle.

Anyhow, great work on those trendlines and welcome to the thread!

Hello all,

I have been reading post in the forum/chat room criticising 15min TF.... many say its a noise et al,


well, it will only be a noise if u dont have a thought process towards your trade. like i said earlier, i look at few pairs but take advantage of all the moves using this system. if u understand this concept well, u will trade anytime frame.


Ok, i will explain my thought process here and many will be amazed.


Looking at 4hr there is signal for price exhaustion, Price made a Morning star, rejected at Monthly support et al.


I look at 1hr, Price action isnt clear so dont force a trade.


Moved to 15mins TF and wow see nice price action..... we have bullish AB and price is at the support of a pennant, with polarity change and perfect CF..... u cant get it better than this.


so i bought the baby and as i typed i have closed 2/3 with +50pips and move stop to breakeven hoping that price break out from the pennant bullish(well it doesnt everytime)


May I say in the last 12hrs, i have gotten 3/3 trades from eu/gu with over 200pips, while i await the big elephants in 4hrs.


you see, I just wanted to post this not to prove critics wrong but to provide impetus for those that might want to. this method works on anytime frame, even dra knows it well...... u have to plan u trade and trade ur plan......


fx trading is not about stacking pips, its all about your acct growth by the worth of those pips. find ur comfort zone and stay in it, for me i trade from 15mins to weekly with few pairs and i still get hi probability trades on the lower time frame.

we are here to make money but you will only make that money, if u really look into yourself and trade wot suits you.


I did same concept in USDCHF yesterday, pipping 120pips in two trade on 15mins short. its easy, no stress, just plan your trade and trade it

I dont care wot anybody says as long as my acct is stacking with dollar......

Spotted this one on the EU 1hr.

1) Downward TL in the vicinity.
2) S turned R.
3) 38.2 Fib
4) ES CF

Only thing with EU at the moment I guess is it's choppy so un-decided on whether to take it. May wait for it to retrace and then look for entry on 15min to cut RR down....

Another entry on USDCAD? "Problem" with this one is it's on the 50% Fib and as per previous posts I'm staying away from this level for this system?

Good spot

that ucad has 3 fib convergence as 50/61.8/78.6 so good but i will want us to see a full bull candle above that counter bearish TL before longing it. remember last time, i said we might see a channel shift so lets wait here. we have two possibilities here, we either have a crown formation or channel shift.....

I like this method

Nice pick, but price is in a wedge, look at that tweezer top.....
a break out will signal nice trade but am not prepared for this trade so will not trade it.

Hi Mike,

Thanks for pointing out the tweezer tops. I looked at the chart after reading the post and never noticed them.

I also noticed that tweezer tops are forming on the 4 hrs chart.

Once price moves out of the wedge, is it a good assumption that more than likely the breakout will be down(short)?

I guess the question is, how long does a tweezer top signal stay valid if it is to take place?

Thanks Mike

FXG

Cool, looks like we're gonna get a new channel!! CAD news just helped immensely - 1.3 here we come.....

Hi all,

Happy trading for all you guys.. You all are great traders... You're doing very great shandy, your hardwork will be paid off soon as you see dollars coming to your wallet..lol.. I really like your style of posting. It's concise, clear, simple, and reasonable.

Thanks to mike, he's a great teacher.. A gift to this thread...

I'm on EURUSD trade shandy, i think it's a good tweezer there. The news now probably will move the market to a clearer direction.

Happy pipping all...

Hoedha..

Hey everyone. Was wondering if there was still a chatroom going??? Thanks

Dra,

Was studying your formations and looked up definitions to your formations (evening/morning star, engulfing candle and tweezer tops) and notice that the definitions differ. Was hoping you could take the time to define each as you would deem them valid. I know the tweezer tops you said it could be a space between a couple... Anything you can provide would be great. Hope it wasn't posted already but couldn't find it.