The perfect trading system

You are perfectly right! Nothing is perfect in this imperfect world. However, with meticulous planning, strong commitment and discipline you can achieve unbelievable results over and over again. Aim for the star and you will go far.

The daily is making attempt to touch G before another pullback or final fall?. See where the the price is at the moment on daily and H4 charts.

I agree, but it's not easy. I had problems with other account I posted ways back so this is different account with longer testing period since Oct 18 of last year.

This one started with a little over $1k currently up almost 100%. Live performance is similar but not the same due to a host of factors I don't care to get into. Compounding of this account will kick in pretty quick so the next 6 months should be very interesting to see if it cracks the 10k mark by Oct of this year.

Price was unable to break the blue zone and went down below 1.60000. What we are trading now now 1.64000 - 1.60000. The blue zone is still important for a break out.

Happy trading!

and tp?

EURDUSD

EURUSD is currently making attempt to break out of its trading zone depicted by the blue zones.

Recommendation:

SELL. Wait for price to rise back to 70 point mark on the daily RSI, sell and watch out for the 50 point mark on Daily RSI to take or lock your profit.

USDCAD

The downward pressure is still on USDCAD and the pair is still respecting the downward trendline on the weekly chart. Every attempt to rise met resistance at the 50 point mark. History has shown no currency pair remain low for ever.

Recommendation:

Wait for price to fall back to the 30 point mark on the daily chart and watch out for the 50 point mark to take profit or lock your profit.

GBPJPY

GBPJPY concluded its pward movement from 125.45 by a 1000 pips to 135.50. As I mentioned earlier the pair usually move at least a 1000 pips divided in 500 pips to complete a circle. The Japan earthquake brought the currency down to 122.14 (1200 pips). Prompt intervention by the G7 brought the price to 130.00 (800 pips reversal) within the week. If the intervention continues the dragon is expected to trade between 130 - 140. The current move is expected to reach around 137-139 area. Price is currently trading above the 50 point mark.

Recommendation:

Wait for price to rise back to 70 point mark, sell and watch out for the 50 point mark on Daily RSI to take or lock your profit. Personally I would prefer to short between 136-138. I actually have a current pending order at 139.00. I can enter a trade manually if daily gives signal

GBPPUSD

Price was unable to break the blue zone I mentioned in one of posting and went down below 1.60000. What we are trading now now 1.64000 - 1.60000. The blue zone is still important for a break out. 1.61500 is the stumbling block for the bulls for now. Price is stalling around 50 point mark

Recommendation:

Wait for price to rise back to 70 point mark on the daily chart, sell and watch out for the 50 point mark on Daily RSI to take or lock your profit. Remember whenever a daily candle opens and clososes outside the concrete zone the direction is confirmed.


AUDUSD

AUDUSD broke out of the its trading i.e. 1.02500 and 0.95092 (our current concrete zone). The middle of the zone is established at 0.98038. Where the weekly candle closes this week is very important. If it close above 1.02500, that will be the new base for attacking 1.04000 and above.

Recommendation:

SELL. Wait for price to rise back to 70 point mark, sell and watch out for the 50 point mark on Daily RSI to take or lock your profit.

USDJPY

For USDJPY the currrent top is at 86.69 while the bottom is at 80.00. circle. The Japan earthquake brought the currency down to an all time low of 75.98. Prompt intervention by the G7 brought the price back to 80.00 within the week. If the intervention continues price might touch 86.69 before any major reversal. Price is currently trading above the 50 point mark and getting closer to the blue zone on the daily RSI.

Recommendation:

Wait for price to rise back to 70 point mark, sell and watch out for the 50 point mark on Daily RSI to take or lock your profit. Personally I would prefer to short between 85-86 area.


See the relevant daily charts attached. These recommendation should suffice for the next few weeks or months. It is important to note that the close of the week today is crucial to all major currency being the last day, week and month and first quarter of 2011.

Happy trading weeks ahead.

Hi ARticulate,

Nice screen shots and explanation!

Can you share your blue zone indicator please?
(if it is even an indicator)

Thanks,

~Tim

The blue zones are not indicators, they are historical support and resistance. I drew them manually using rectagular shapes.

The blue box on the daily RSI (14 days period) is drawn manually too to identify the buy and sell zones. They are most reliable on the daily charts and to a large extent on H4 charts.

I have said it several times in my previous posts, it is always helpful to have the bigger picture in mind when trading.

For the past 10 weeks the cable has been trading withing a 450 pips range. For 11 weeks, it has been Bull+Bear+Bull+Bear, etc, the only exception being last week and this week which is currently Bull+Bull. If the pattern is to continue this week's candle might end up being a bear. The pair has thus create a 450 pips concrete zone. This a strong manifestation of consolidation between 1.60000 and 1.64000, the middle of the zone is somewhere around 1.62000. To break out of this zone, a weekly candle need to open and close.

How do you trade concrete zone? Short as near as possible to the top of the zone and go long as near as possible to the base of the concrete zone using H4 candle as guide and M15 for the best entry. As for stop loss, set them outside the zone (It can as low as 3 pips or as high as 50 pips depending on your risk appetite). A false breakout outside the zone of about 50 pips is possible. Trading this way, you avoid chasing every price movement. It is most profitable and less stressful to have the bigger picture in mind.


I attach the weekly, daily and H4 charts clearly illustrating the above analysis.

Cable is still respecting the concrete zone and the pressure is to the downside. For any move to the upside to be valid, the pin on H4 will have to be neutralised by another H4 candle above the pin.

Audusd is currently trying to move back to the top of the weekly trendline from 0.80634, when the took off to the currently high. The trendline is what it holding the pair from rising higher for now. If the weekly successful opened and closed above the trendline, then the trend will resume on the higher time frame. If the trendline holds, the a fall to 1.02500 which is the base for the current move is possible. A fall below will drop the pair back to its concrete zone 1.02500 - 0.95000 where it traded for the past 6 months.

My view is that a big reverse is in the horizon, the monthly, weekly, daily are all dangerously close to the overbought zone. A touch of 50 point mark is due on the daily RSI.

Recommendation: short whenever H4 enters the yellow zone and take profit if it drops back to the 50 point mark on H4 RSI

This is the bigger picture.

Trading could be colourful and enjoyable. What I will discuss today is present my previous analysis of GBPJPY in a colourful chart. With all modesty, this is classical chart. If your trading GBPJPY, please replicate on on your chart or print a copy a paste it in your trading room. If you follow it, its capable of giving giving you profitable returns for a long time. To have the best returns on GBPJPY the best strategy is to trade every 500 or 1000 pips movement.

GBPJPY moves is usually 1000 pips per movement with a pause every 500 pips. The 1000 pips support and resistance points are depicted by the yellow lines, while the 500 pips resting points are shown by aqua color.

The red zone on the 14 days period RSI is the sell zone, while the blue zone is the buy zone. The horizontal line on the daily RSI tells you when a movement is weak or about to reverse. The daily chart is the best guide for this style.

The charts are attached. Have a colourful weekend!

See where we are on the blue zones. It is always useful to plan ahead.

New traders take heed to this thread.

Articulate has laid out the tools, materials and blueprints to build a solid foundation for a successful trading business.

Well done sir!

I mentioned that the above posting is classical. See where we are on the weekly and daily charts. For short term traders, I attached H4 charts. I intend to post GBPJPY charts at the beginning of every quarter. Expect another one in May 2011

The cable broke out of the concrete zone and the pullback currently sits pretty well on the concrete zone both on the daily and weekly charts. The target appears to be 1.70000 to retest the highest point in August 2009. This will then create a new range of 1.64000 to 1.70000. The weekly candle will confirm a breakout from any range.

I attach the weekly, daily and H4 charts in support of the above analysis

Enjoy your trading for the rest of the week!

GBPUSD is a very easy pair to trade at the moment if your trades are guided by careful planning. The reason for this is that the dollar is probably weakest currency at the moment and the pound is not performing well either. This makes the movement of the pair very predictable. For example the pair traded between 1.60000 and 1.640000 for roughly 12 weeks.

If you are a day trader, H4 is your best guide. Identify support and resistance on H4 and go to M15 to trade the range and pick up to 50 pips easily. The current moved started from 1.62500 and has risen by 500 pips when it reached 1.67500 area. The analysis is purely based on price action in conjuction with support/resistance without any indicator whatsoever.

I have two longs from 1.62500, one of them is already locked at 300 pips by the sell at 1.65500, the other is still open. I was not expecting the race to 1.6750 about two days ago. There is sell limit at 1.68500 to lock the profit of the other trade still open at 600 pips. Both trades are about two weeks old. I am not rigid in my expectation. Depending on what happens next week, I may decided to lock profit whenever we cross 500 pips from 1.67500. On the other hand if cable reverses from here, 300 pips is guaranteed as the second trade is already on BE. This is how a trade! A few trades in a month with a target of about 300 pips and above.


See H4 and M15 charts attached.

GBPUSD is a very easy pair to trade at the moment if your trades are guided by careful planning. The reason for this is that the dollar is probably weakest currency at the moment and the pound is not performing well either. This makes the movement of the pair very predictable. For example the pair traded between 1.60000 and 1.640000 for roughly 12 weeks.

If you are a day trader, H4 is your best guide. Identify support and resistance on H4 and go to M15 to trade the range and pick up to 50 pips easily. The current moved started from 1.62500 and has risen by 500 pips when it reached 1.67500 area. The analysis is purely based on price action in conjuction with support/resistance without any indicator whatsoever.

I have two longs from 1.62500, one of them is already locked at 300 pips by the sell at 1.65500, the other is still open. I was not expecting the race to 1.6750 about two days ago. There is sell limit at 1.68500 to lock the profit of the other trade still open at 600 pips. Both trades are about two weeks old. I am not rigid in my expectation. Depending on what happens next week, I may decided to lock profit whenever we cross 500 pips from 1.67500. On the other hand if cable reverses from here, 300 pips is guaranteed as the second trade is already on BE. This is how I trade! A few trades in a month with a target of about 300 pips and above.


See H4 and M15 charts attached.

Why do you want to lock your profit instead of just close the order?

I started trading in 2009. When I started, I was chasing between 5 - 30 pips just like every new traders. I then realise you can have many successful trades in few pips and one huge loss will wipe off most of the profit. Then I began to research in order to understand the behaviour of the market better. Through this efforts I realised that the major pairs move at least 1000 pips in any direction with some pullbacks in between.

If my analysis tells me that a move is likely to be about 700-1000 pips, I lock my profit at pre-determined pips by setting up pending orders that are automatically triggered rather than TP. That way, I don't not need to monitor my trades every now and then, After locking my profit, I will be able to continue with my research in order to confirm if my analysis is right. For trades that are not for research purpose, I use TP for those trades. My ultimate target is to achieve 1000 pips per trade. When I get there, I will be posting these trades for those who want to follow them.

Have a lovely week!