The System II (Yes with irony)

Stop at breakeven waiting for monday.

Hi everyone,
First of all I'd like to thank Feb for teaching SystemII. I'm new in trading forex and I used to trade by using lots of indicators and TF analysis. After reading this particular thread, I cant stop reading everyday as I know I learn lots of new things from here.

I've been trading demo and live by using this method for couple weeks now (result is BE now) and I'm trying to avoid the fake breakouts but still unsuccessful.

The more I trade, the more I feel afraid of the fake breakouts. Any cure for this disease

Could any of you be so kind to guide me in the right direction
Attached is a 5m eurusd chart and following are my reasoning:

- Line 1 = a support line as the price tried to break it about 5 times.
- Line 2 = a support line as well as price tried to break it alot of times.
- Line 3 = a resistant line.

My questions are:
1. Am I pulling those 3 lines correctly ?
2. I entered SELL after the candle at arrow A finished (and this trade touched my SL). Will most of you enter this trade? If not, what's your reason?
3. Will you enter BUY at arrow B...what's your reason for this answer ?

Looking forward to learn from all of you.

Cheers!

I've made an indicator for this system.
Look like indicator fractal by Bill William,
but this indicator give a bit more.
I hope it can be useful

It's use with 5 digit in proforex,
if you use 4 digit broker,
set the first parameter (markSpace ) to single digit distance.
To change the dot , you need to see the wingding code,
and enter it in the 2nd parameter (ArrowShape)

PS:
to Bakuli,
this indicator maybe suitable for you to draw the ZZ line



_fractal indicator :

Fake breakout is always there I minimize it by watch the swing before enter. I'm not enter in every fcr or 123, I'm not trade that way.
Here is a trade I just took



I don't think feb mention about support or resistant line to enter a trade.
IMO your questions are not about system ii,
please read again the early post.

here is another entry

setup on eurusd...
waiting for breakout..

edit: stopped out at +10 pips...

I am long at about 1.3855, now im about 115 + and i was wondering how you guys would manage this trade, im very tempted to close out.

1.3950 stop sound logical to u guys?

another good trade 5 mins ago...

today's trade...

a good trade that I just missed...

retracement was too deep on this one, so stayed out of the market...but would have hit my TP of 20 pips, nonetheless...

another successful trade.

Is there anyone that trades NY that would like to skype to learn this style with another person??

ive been doing this for a while now but the thread is slowing down. PM me if youre interested

I am by no means an expert or even good : i just want to learn

5 min eurusd, L = long, S = short
currently long from 1.3374

subscribe

how do u identify buy / sell signals with this indi ?


is alpari uk a 5 digit broker ?

Hi,
First you need to :
Identify the swing, (to do this, learn system 2)
entry on the 123 or fractal reversal,
the indicator show where the fractal reversal or the 123 brake.

here :
my Zillion dollar chart from date Nov 25,

Hi,

I have read the first pages on this thread, not both the 1046 pages
At the moment i think this system can give some pip instead of continuously loosing. I have tryed and I have question.

Before Fankfurt market opening(1h before London) with 2h I saw am uptrend in 5m chart with retrenchment. Around when is the ideal point to enter described in this setup. So I have entered in long position with initial +/-20 pip limits. I had nothing to do and I have browsed the charts for diff currencies, diff timeframes. I saw exactly for that pair on a higher timeframe is a good position, just need to adjust the SP and TP, so I have changed my SL to -30 pip and TP to +60 pip, I have changed my Trailing Stop to -32 pip. I was hoping this deal will work all day and L&NY cross time will enter into SL or TP. I went to kitchen for breakfast and for other things... when I came back I saw my position is closed! Ah... With -1 or -2 pip the TS closed my trade. The price have followed the uptrend, Frankfurt open: -30 pip and I was stopped. Good or bad idk.

Before this I haven't used the TS, just a few years ago, I don't know how to use properly to earn money. In the above described situation how should I use it? what mistake I did, if I did, what was good?

The M5 chart: in this I have look at the setup:
http://img149.imageshack.us/img149/2049/64236116.png

The 1h chart: - not clear where is the mark, but there, where is the MA and price cross: the bottom of last green candle
http://img805.imageshack.us/img805/1052/71673935.png

As I see in my balance the TS did +3 pip, not -2, anyhow doesn't matter, I wan to play for +20 pips: 30-60

Ah... I look better: the price on m5 is to far away from 200 ema => retrenchment will be sooner, but .... still should be uptrend no news at this moment

When I came to home at evening I Saw I won the second position.
It could be a luck, because I have turned off my PC, and the trailing stop maybe is on the client side and that was turned off to. As you see it is a retrenchment again to almost my 0 position.

And the second reason why I am not happy because I won on the top of the wave. So is luck, not knowledge.

http://img704.imageshack.us/img704/873/m15s.png

Many times was unlucky am my 60-80 pip TP wasn't hitted because of the missing 2-9 pips...

And the last reason why I am not happy because is a trend reversal, and not news release time and I don't understand why is the reversal there. Please explain to me!

On the chart at 11:00 is the top of the wave: is at GMT time

The callendar is set to GMT+2 time, so we need to look at 13:00 to see what happent there:

Fri
Dec 172:01GBP
Nationwide Consumer Confidence

45
53
52

2:01GBP
BOE Financial Stability Report

10:15EUR
Buba President Weber Speaks

Day 2EUR
EU Economic Summit

11:00EUR
German Ifo Business Climate

109.9
109.2
109.3

12:00EUR
Trade Balance

3.6B
2.9B
2.0B

17:00USD
CB Leading Index m/m

1.1%
1.2%
0.4%


No news at 13:00, only 11:00, 12:00 and those results are not to far away from forecasted results.

Any ideas about that reversal move? or the timing of the reversal?