Heral System

hi all. i'll show you this system based on PA and inverse trendlines (what?)
i speak only about the setup to buy, sell is the same but inverse.

so, first of all i put a trendline on high between the bar 1 and 2 (bar 0 is the current bar)
high 1 must be lower than high 2 and the diference between high 1 & high 2 must be more than the spread (pic 1)

second, put buy stop up to the high 2 + the diference of the trendline. i draw other inverse trendline double of the first trendline with the middle point where i'll put the order.
the take profit is the diference of the first trendline and the stop loss the low of the bar high 2.

thats all. excuse my bad english, not is my native languague.

hi, i forgot to say that the two candles must be followed.
the second trend (inverse trendline) it's only to visualizing where we put the buy stop order.
i use this system on EURUSD and 5 min timeframe

I liked
can you post more example

hi Stax. ofcourse.

following this chart, the next will be this Sell order:

http://img15.imageshack.us/img15/7936/34398769.jpg

and the next order will be this buy order:

http://img210.imageshack.us/img210/1503/69774306.jpg

i usually trade between 9 and 19 more or less (GTM +1)

before, you can take this operation too if you want, but i prefer take operations with more pips

http://img21.imageshack.us/img21/2044/84558070.jpg

Did not get how you calculate the price for order. What is the "diference of the trendline"?

hi Denzil
it's this:

What is your hit rate? Your losers would be 2-3 times larger than your winners.

hi hxcjf
about 10:1 more or less, depends of the day, others days have more winnings and others more losers but 10:1 it's good.

I put this indicator together just to quickly test this. It doesn't look too profitable to me but if the OP says 10:1 hit rate who am I to say otherwise

Anyway you can test it for yourself.

Use the SHIFT variable to move back in time and see what set ups there might have been and how they would have turned out.

Regards

Lux

PS: Heral let me know if I've missed something in your strategy.

thanks luxinterior.
i forgot to say that the buy stop or sell stop must be expiring in 30 min, sometimes 40, so if the buy stop don't hit in six or eight bars, close the buy stop (sell stop)
so in the pic that you show, i don't trade it

Try finding DeMark indicartor....



http://i9.tinypic.com/4xojspk.gif

if you use the indicator, i recomended to put MIN_DIST 0 and play with SHIFT like luxinterior said.

remember that we only put buy stops or sell stops order if the diference is more than the spread.
i usually look a diference of 3 or more (my spread its 1.8)

As I said I put this indicator togther quickly just to visually test the idea.

Just noticed the indicator wasn't deleting old objects properly. Corrected it now.

Lux

thanks for the updates luxinterior