50 pips candle system | Forex Factory

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50 pips candle system

  • #1
  • First Post: Nov 7, 2009 4:52pm Nov 7, 2009 4:52pm
High everybody !

For this system, you need 2 indicators　: a pen and some paper.

I trade only GBP/USD because usually, there are big movements.

Each time the price move 50 pips up, i draw a green candle.
Each time the price move 50 pips down, i draw a red candle.

As Renko, this system does not take care about time, a candle is drawn when 50 pips are done whatever the time to reach it.

This is good to eliminate the noise.

This system is good in trend and in range.
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  • #2
  • Nov 7, 2009 4:54pm Nov 7, 2009 4:54pm
So, here is november 2009 :
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  • #3
  • Nov 7, 2009 4:56pm Nov 7, 2009 4:56pm
The rules　:
I buy when the 2 previous candles are green.
I sell when the 2 previous candles are red. (playing the trend)

I consider we are in a range when 3 reverse candles are coming. Then i continue to play with the range when the 3 previous candles are reverse.

TP = 50 pips
SL= 50 pips
  • #4
  • Nov 7, 2009 5:01pm Nov 7, 2009 5:01pm
A= buy
V = sell

+ = 50 pips
- = - 50 pips

Now we have 150 pips in November.
Let see it next weeks.
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  • #5
  • Nov 7, 2009 5:03pm Nov 7, 2009 5:03pm
time frame?



Quoting zebulon
The rules　:
I buy when the 2 previous candles are green.
I sell when the 2 previous candles are red. (playing the trend)

I consider we are in a range when 3 reverse candles are coming. Then i continue to play with the range when the 3 previous candles are reverse.

TP = 50 pips
SL= 50 pips
  • #6
  • Nov 7, 2009 5:12pm Nov 7, 2009 5:12pm
Usually i use TF 30 min.
But when there are news, i need sometimes to use 1 min because one or two 50 pips movement may be hide in a 30 min candle.

But TF is not very important, just to draw the candle correctly.
  • #7
  • Edited 2:36am Nov 8, 2009 2:11am | Edited 2:36am
is there not 2 winners and one losser in november ?


have you back test it or looked at it in other mounth how does it look ?

it looks more profitable if you take a long positions after a red candle and a short position after a green candle


best regards
  • #8
  • Nov 8, 2009 3:24am Nov 8, 2009 3:24am
Hello

Would it not be more LOGICAL if you were to trade against the previous closing candle.

For example, when green candle is drawn, open sell for next order.

If red candle is drawn, open buy for next order.

It makes easily 600 pips as opposed to 150 pips.

Also, lets not forget the spread... we can look at this later.

LOGICAL
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  • #9
  • Nov 8, 2009 10:06am Nov 8, 2009 10:06am
What timeframe do you use?

Quoting logical
Hello

Would it not be more LOGICAL if you were to trade against the previous closing candle.

For example, when green candle is drawn, open sell for next order.

If red candle is drawn, open buy for next order.

It makes easily 600 pips as opposed to 150 pips.

Also, lets not forget the spread... we can look at this later.

LOGICAL
  • #10
  • Nov 8, 2009 10:29am Nov 8, 2009 10:29am
Quoting neurus
What timeframe do you use?
it isn't tf based. It is movement based. My question is when do u start your count? Everyone would have diff trade depending on when u started counting up or down. I guess good starting point would b week opening. But if u start just 1 min later u would take different trades as the person who started exactly at market open
  • #11
  • Nov 8, 2009 11:17am Nov 8, 2009 11:17am
Has anybody came across an indicator that highlights 50 pip movement on a chart?

This will save lots of time rather than manually checking each move.

With regards to timeframe - there is none - this system is pip based not time based.

With regards to results - yes everyones will be different depending on open time/price of initial trade.

With regards to this system - I think it can be a good system because just say that 50% of the time price is in a trend and 50% of the time price is is a range we can catch pips both times. Even set a trailing stop at 50 pips so that we can catch bigger pips in a trend.

Also when price is in a trend, there is small ranges in the middle of trend. Good way to get that 50% up even more and catch pips.

LOGICAL
  • #12
  • Nov 8, 2009 12:16pm Nov 8, 2009 12:16pm
Quoting jgadefelth
is there not 2 winners and one losser in november ?


have you back test it or looked at it in other mounth how does it look ?

it looks more profitable if you take a long positions after a red candle and a short position after a green candle


best regards
In novembre we have 12 winners (12+) and 9 loser (9-)
I backtest The system and the result is august =500 pips, September = 850 pips, october = 750 pips

your suggestion is good for range period, but not if we are in a trend...
  • #13
  • Nov 8, 2009 12:19pm Nov 8, 2009 12:19pm
Quoting logical
Hello

Would it not be more LOGICAL if you were to trade against the previous closing candle.

For example, when green candle is drawn, open sell for next order.

If red candle is drawn, open buy for next order.

It makes easily 600 pips as opposed to 150 pips.

Also, lets not forget the spread... we can look at this later.

LOGICAL
This week, we had ranges, but when the trend will come back, your suggestion will fail...
  • #14
  • Nov 8, 2009 12:23pm Nov 8, 2009 12:23pm
Quoting jtmoore007
it isn't tf based. It is movement based. My question is when do u start your count? Everyone would have diff trade depending on when u started counting up or down. I guess good starting point would b week opening. But if u start just 1 min later u would take different trades as the person who started exactly at market open
You can start when you want : you draw the 2 or 3 previous candles and you put your order...
  • #15
  • Nov 8, 2009 1:18pm Nov 8, 2009 1:18pm
what about if we dont use 50 pips as a target and stopploss for the candle mark we use maybe 20 pips that way we can have more money in the market ?

best regards
  • #16
  • Nov 8, 2009 1:31pm Nov 8, 2009 1:31pm
Couldnt a 50 pip box be used, and let charting software develop the point & figure chart? Am I missing something here?
  • #17
  • Nov 8, 2009 1:54pm Nov 8, 2009 1:54pm
Quoting jgadefelth
what about if we dont use 50 pips as a target and stopploss for the candle mark we use maybe 20 pips that way we can have more money in the market ?

best regards
I like 50 pips because there are less candles to draw !
There are less false signal, and it shows the real trend.
And with 50 pips, it is not necessary for me to stay all day on the computer...
  • #18
  • Nov 8, 2009 1:58pm Nov 8, 2009 1:58pm
aaaaa had hoped you should have an answear for that now i must try it myslef, my resoning here is that if i can have smaller stopps i can have more money in the market and by that make more money. I dont see why you should not be able to stay as long as you will in front of the cpomputer regardless how many pips the candles are made of ? How many loser have you maximum have in a row have you had an losing munth that you have seen?


best regards
  • #19
  • Nov 8, 2009 2:21pm Nov 8, 2009 2:21pm
I think 20 pips will give us to much false signals : 2 candles up and 2 candles down, not good for the system.
50 pips candle eliminate the noise.

I can't stay all day with the computer, lots of things else to do in my life...

So with 50 pips candles, i can put orders and go for something else.
I check the market every 2-3 hours.

Since august, i had 4 consecutive loss max.
  • #20
  • Nov 8, 2009 2:39pm Nov 8, 2009 2:39pm
you mean you think i win most at the end of the mounth if i use 50 pips candle instead of 20 ?

do you think 50is the most optimal or perhaps 100 ?


best regards
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