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The perfect trading system

  • #81
  • Aug 12, 2010 2:41am Aug 12, 2010 2:41am
H4 time frame is more accurate and you cant go wrong with it. However i have few questions which i would like to check with you.

If the H4 time frame shows it's in a down trend...with 5-6 bars down...do i still short or it's time to go for long??

I find it very difficutl to make judgement based on these bars..

Thanks
  • #82
  • Aug 12, 2010 7:11am Aug 12, 2010 7:11am
As I mentioned it one of my earlier posts, H4 chart is used in conjunction with RSI. Once you missed a move it is not advisable to enter in the middle of RSI channel, wait for H4 to indicate a change of direction around 30 RSI for buy and around 70 RSI for sell. The strategy for short term trading is to use H4 to determine direction and M15 for entry and determine when to take profit.

Once you see the signal, use M15 to enter your trade. Most of the times M15 will follow H4. When to get out will determine on the numbers of pips you want.

However to assist you in making this decision, draw an horizontal line in the middle of your RSI i.e. 50. If you want to take quick profit, that is the area to watch out for or you take your profit around 70.

You can see these areas on the chart.


=forex_winner;3941405]H4 time frame is more accurate and you cant go wrong with it. However i have few questions which i would like to check with you.

If the H4 time frame shows it's in a down trend...with 5-6 bars down...do i still short or it's time to go for long??

I find it very difficutl to make judgement based on these bars..

Thanks[/quote]
  • #83
  • Edited 10:36am Aug 12, 2010 10:13am | Edited 10:36am
This is what I discussed earlier about H4 and its advanced notice. After the last signal it gave, it is currently preparing to give another signal. If you missed the last signal for your short term trade, wait for another signal from M15. Furthermore, look at where price is currently sitting on D1 - a crucial point! This is where I am currently watching for the medium term/long term. Will it hold or will it break? Only time will tell.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: a - gpbjpy - h4 signal -.gif Size: 16 KB
Click to Enlarge Name: a - gpbusd - h4 signal -.gif Size: 16 KB
  • #84
  • Aug 13, 2010 3:30am Aug 13, 2010 3:30am
Price has broken out of its indecision area. About 12 hours on the rise after the star (+) on H4. The bull candle open at 1.55746 and rose to 1.56792 so far (about 105 pips). The next hurdle for the reversal is at 1.57087, if that is taken, 1.57988 could be on the horizon. However, being a Friday, it could be a slow movement. All the the facts are in H4.
Attached Thumbnailshttp://cdn.forexfactory.com/attachme...1&d=1281687383
  • #85
  • Aug 15, 2010 5:15am Aug 15, 2010 5:15am
There is a buy limit which you put at 118, GBPJPY for months. I would like to ask is this transaction still valid??

The lowest that this pair of currency had reached was on 18 Jan 2009 at 118.79. How do you justify at 118? Mind to share??

Thanks a lot.
  • #86
  • Edited Aug 16, 2010 8:42am Aug 15, 2010 11:28am | Edited Aug 16, 2010 8:42am
Quoting forex_winner
There is a buy limit which you put at 118, GBPJPY for months. I would like to ask is this transaction still valid??

The lowest that this pair of currency had reached was on 18 Jan 2009 at 118.79. How do you justify at 118? Mind to share??

Thanks a lot.

Yes it is still valid. This is where the big boys are waiting. The big boys will make sure that the current fall from 163 touches 117-119 area to complete the 2nd leg of the bullish run from 118.79. GBPJPY is still currently on one leg. The fall to 117-119 area will then prepare the proper base for another bulish run. Take note of this posting, whenever the drop happens, there will be about 300 pips retrace within an hour to 120 area. There are enough buy orders at that area to ensure a bounce. I am simply following the big boys by setting my trap there.
Attached Image (click to enlarge)
Click to Enlarge Name: c - gpbjpy - d1.gif Size: 15 KB
  • #87
  • Aug 15, 2010 11:43am Aug 15, 2010 11:43am
The Cable is still in indecision mode. There is to be a clear break out of the H4 timeframe box to determine if the reversal is genuine or if it is a temporary halt to the downtrend. We are in a waiting period. We will know the direction when the market opened later today. Watchout, the box is important area and H4 is giving enough notice already. I will post another chart on Monday.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: c - gpbusd - h4 signal -.gif Size: 15 KB
Click to Enlarge Name: c - gpbusd - d1.gif Size: 15 KB
  • #88
  • Aug 15, 2010 11:56am Aug 15, 2010 11:56am
The Dragon seems to have form a solid base for the move upward around 133 area. 134.60 area is proving a stumbling block so far. H4 is in the middle of the channel for now. If 134.60 area goes, then a test of 137 area looks very possible next week.
Attached Image (click to enlarge)
Click to Enlarge Name: c - gpbjpy - h4.gif Size: 18 KB
  • #89
  • Aug 18, 2010 4:55am Aug 18, 2010 4:55am
GBPUSD has now formed a 200-pips box (flag) between 1.57807 and 1.55081. A break out of either side will determine the next direction. To play the range, follow H4. The most effective method is to follow the first reversal H4 candle using M15 as entry around 30. The red horizontal line on RSI gives early indication of when to take profit or lock your profit. Now the trend is up, reversal on M15 around 70 is a signal to either take or lock your profit by either using trailing stop or shifting your stop loss.
Attached Image (click to enlarge)
Click to Enlarge Name: d - gpbusd - h4 flag.gif Size: 18 KB
  • #90
  • Aug 20, 2010 8:03am Aug 20, 2010 8:03am
Quoting Articulate
GBPUSD has now formed a 200-pips box (flag) between 1.57807 and 1.55081. A break out of either side will determine the next direction. To play the range, follow H4. The most effective method is to follow the first reversal H4 candle using M15 as entry around 30. The red horizontal line on RSI gives early indication of when to take profit or lock your profit. Now the trend is up, reversal on M15 around 70 is a signal to either take or lock your profit by either using trailing stop or shifting your stop loss.

It is always important to have a clear picture of market sentiment at any point in time. H4 will always tell you the sentiment at any point in time. When I posted the above message, I mentioned that a clear break out of the box will determine the direction. Look at where the price is on the charts below.

H4 chart indicates that the price is still within the box
Daily indicates a bias towards down
M15 indicates that the fall was to fill gap created between 1.55231 and 1.55345

Our guide is H4, which indicates that the price is still failing. If you miss the train from 1.56790, it is too late to join. Wait for H4 to get to around RSI 30 area. The most important advise however is avoid trading on Fridays, it is only the small players that are usually around the big boy are not on the scene.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: e - gpbusd - 200 pips flag.gif Size: 18 KB
Click to Enlarge Name: e - gpbusd - 200 pips flag daily.gif Size: 14 KB
Click to Enlarge Name: e - gpbusd - 200 pips flag m15.gif Size: 17 KB
  • #91
  • Aug 21, 2010 2:39pm Aug 21, 2010 2:39pm
Hello Articulate,

I am very happy that I decided to check out your thread. I have been trading for about two years now with no sucess mainly because I did not have one strategy that I have followed. However, just three weeks ago I decided to use the 1 hr chart and RSI and was sucessful in those trades but the safest trade I found was when I took about 25 pips.

So I then tried the same strategy but with the 4 hr chart and I find that one can get at least about 80 pips. In addition I also use the Ichomoku indicator which is an additional confirmation of the strength of the trade. Now this is still all in the testing stage and over the next month I will have a better idea.

I see you only trade GBP/USD. I am testing this on all pairs. Currently I have a sell on USD//JPY.

I am interested in hearing your comments. Thank you.
  • #92
  • Aug 23, 2010 7:10am Aug 23, 2010 7:10am
I am glad to know that you found something useful on this tread. A carefully articulated trading strategy is very critical to the success of any trader, because there is a lot of confusion out there. Pick a plan and stick to it. If a trade does not fall within your parameters, forget such trade and wait for the next one. There are countless opportunities by the corner

It took me a lot of research to realise that H4 chart is the key to success of any day trader. You may not get so many trades, but the few trades you get will be first class trade. As I mentioned on one of my earlier post, to get the best entry, use H4 for direction and M15 for entry and you will realise how you pick 100 pips easily. Pick up any chart and you will see what H4 signals will most of times give your over a 100 pips. H1 could be useful, but H4 will guarantee you more success, because it trends better and eliminates all the noise in the lower time frame. If H1 works for you, practice with it regularly and develop your strategy around it. The most important is to have a plan and avoid the trap of instantaneous trading.

I use mainly H4 for my trading because I have a very busy schedule and don't have time to monitor the market on a more regular basis. A quick glance on H4 chart is adequate for me to make a decision. I trade GBPUSD and GBPJPY mainly because because their impressive price movements is ideal for a trader interested in sizeable pips per trade like me. I trade other majors too, if the setting is right. I attach herewith H4 chart for USDJPY to show what you can see at a glance on H4 no matter the currency pairs.




Quoting Rafiki
Hello Articulate,

I am very happy that I decided to check out your thread. I have been trading for about two years now with no sucess mainly because I did not have one strategy that I have followed. However, just three weeks ago I decided to use the 1 hr chart and RSI and was sucessful in those trades but the safest trade I found was when I took about 25 pips.

So I then tried the same strategy but with the 4 hr chart and I find that one can get at least about 80 pips. In addition I also use the Ichomoku indicator which is an additional confirmation...
Attached Image (click to enlarge)
Click to Enlarge Name: h- usdjpy.gif Size: 16 KB
  • #93
  • Aug 23, 2010 3:55pm Aug 23, 2010 3:55pm
Hello Articulate,

Thank you for your comments. I will attempt to post potential trades here looking for your and others feedback.
  • #94
  • Aug 24, 2010 5:18am Aug 24, 2010 5:18am
Quoting Rafiki
Hello Articulate,

Thank you for your comments. I will attempt to post potential trades here looking for your and others feedback.
You are welcome. Sharing ideas is the essence of this thread.
  • #95
  • Aug 24, 2010 5:57am Aug 24, 2010 5:57am
Quoting Articulate
For the Medium-term trade, W1 chart is my principal guide and I D1 to determine the current direction of the market and H4 or atimes H1 to identify my specific points of entry for such trades. I also use RSI 14 days period to determine the strength of any current price movement. Once the RSI is around 70 or below 30 the W1, in 95% of such situations, the trend reversal would most likely result in a movement of between 700 -above 1000 pips. My targets for such trades is usually between 400-500 pips. I allow such trades to roam for days or even weeks...

wow ! this is all too much. how well have you done using your system ?
  • #96
  • Edited 7:10am Aug 24, 2010 6:25am | Edited 7:10am
In forex trading it is important to have the larger time frame in mind.

The first chart is the weekly chart. The trendline where the price touched and bounced back is the downward trendline from 11 of August 2007. As long as price is on top of line, the move move upward is still valid.

The second chart the daily tells us that the downmove is still valid, probably what is happening is a retrace.

The third chart which is our ever reliable H4, tells us that price is taking a breather and the signal was given around 1.53800. The line on the sand now is around 1.53800.

The 4th chart is M15 which showed when the signal was given.

How do you trade this for a short term trader looking for 40-100 pips per trade? Wait for the current HR candle to close if the next candle open above 1.53800, the retrace is confirmed. Follow the candle and take your pips.

Another way to trade this is, since the daily chart shows that the fall is still on, wait for the current reverse to end and follow the next bear candle. Either way you will get your pips. The advantage you have with H4 is that you are guaranteed enough notice. If you look at your GBPJPY you will observe almost identical set up.

If you pick only 5 pips daily, 25 weekly and 100 monthly based on the recommended lot size to the account value, you will increase your account by 10% at the end of the month.

Happy trading.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1-gbpusd w1.gif Size: 17 KB
Click to Enlarge Name: 1-gbpusd d1.gif Size: 19 KB
Click to Enlarge Name: - gpbusd - h4 signal -.gif Size: 16 KB
Click to Enlarge Name: 1-gbpusd m15.gif Size: 17 KB
  • #97
  • Aug 24, 2010 6:58am Aug 24, 2010 6:58am
Quoting whatfx
wow ! this is all too much. how well have you done using your system ?

It's been very profitable so far. I currently employ people, give them intensive training on the fundamentals of my trading method, open live accounts with my fund to trade. They receive salary and certain percentage of profit as bonus and they've all making profits every month. Fortunately for me I have enough funds to trade with. I have investments in other areas stocks, property, etc. Forex is only an aspect of my investment portfolio.

I don't tell my staff anything different from the things I post here. The only additional thing I do is that I encourage them to research and discover the characteristics of the market on their own. Do you know why they are making profits? I give them rules which they are required to abide with at all times to instill discipline in them. Violation of the rules attracts sanction.

Believe me, once you understand the market and have a plan in place trading could be very profitable. What contribute to the demise kills most traders inadequate knowledge and lack of discipline.
  • #98
  • Aug 24, 2010 8:31am Aug 24, 2010 8:31am
When I noticed double top in GBPJPY early this month on both H4 and D1, I posted two charts on this tread on the likely areas (indicated by the yellow boxes on the charts) where the double top is likely to take us. From the look of things, we are heading to 126.739. If we get there, I will re-evaluate where we may likely go next. Everything is in the chart

Happy trading!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2-gbpjpy - double top daily.gif Size: 20 KB
Click to Enlarge Name: 2-gbpjpy - double top.gif Size: 23 KB
  • #99
  • Aug 24, 2010 8:44am Aug 24, 2010 8:44am
I observed that the title of the tread was changed from "Holy Grail: The Perfect Trading System" to "The Perfect Trading System". This must have been done by the Administrator.

I am using this opportunity to inform visitors to this tread that nothing is perfect in this imperfect world!this world, because the world itself is not perfect. Ignore the title of the tread and see what you can pick from my technique.

Happy trading.
  • #100
  • Aug 24, 2010 8:53am Aug 24, 2010 8:53am
No stop loss = wipe out.

sorry, but it's true.
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