PSAR + AO + MACD

got stopped out of the second trade.

sorry for the late post! so I have decided to only take the first valid set up in the morning and it worked out yesterday for 50 pips. here is a chart! let's see what the market brings today!

Hello everyone! Well I was sitting in front of my computer yesterday morning and thought to myself.. my system isn't working as it is supposed, something must be wrong! My system is designed to work in a trending market not in a sideways consolidation, and then I remembered about good old ADX which shows you if the market is trending or going sideways, too bad I thought of it after taking some loosing trades.
On the first chart, without ADX, I will mark the set ups I took. There were 3, on the last one I made money. On the first one after the red candle closed below EMA 34 I placed my stop right there and got stopped out. On the second one I lost 30 something pips... yeah it hurts!
Then as I was sitting and trying to understand what was wrong the idea with ADX came along so I put it on my charts with a regular setting of 14, and that helped me understand a little better as to what I wanna do:
The second attachmened shows what I would have taken if I were trading that morning with an ADX. So for my rule on the ADX I decided that I would only be taking trades when it's above the 20 line, and when I say 20 I mean above it, not on the 20 line. Also you might have noticed that I have a +DI (green) and -DI (red) so when the green is on top I would only look to get in long and the red one - only looking to get in short.
So with ADX I would only take 2 trades in the morning and then another trade later in the evening.
By evening I was really tired of sitting all day in front of the computer so I took modest 50 pips on that trade and was done on the day.

hope everyone's enjoying a nice week trading! it sure has been a nice week for me! heading for over 200 pips this week!

just wanted to share that I found a helpful thing - I put two horisontal trendlines between 6-7am high and low, GMT 0 - so when the market opens and if there a trade that set ups I wait until it breaks out of those trendline and when candle closes out side if it is still valid set up I take it. Got 50 pips yesterday and today.

There were two trades this morning with an announcement at 9.00 a.m. – I took a trade right after that – it broke the low of the hour before the trading session but there was no follow through, I reduced my risk by first moving the stop loss to the high of the entry candle and then by moving it to the lower swing high that the market had set up with a thought in my mind that if the market breaks it – it’s gonna go long, I got stopped out with just 17 pips in loss, spread included. Then there was a second set up – long – after I got in the price started moving south on me, placed my stop first at the previous candle’s low, then after the entry candle closed moved my stop down there, let the market run for a little bit and when the PSAR was above my entry I moved my stop there, I went into this trade with a set profit target of 35 pips but I guess when I was adjusting my stop loss by an accident I moved my profit target up 10 or so pips, but once the price was above 35 pips I just traded out with 38 pips of profit. humble 18 pips for the day. still up for the week 118 pips with one more trading day left.
comments, suggestions?

I like your idea with PSAR and MACD. Forum long stagnant, did you find something new? I still determined trend with MACD (above/under zero line) and than i entry with psar with the trend.. Timeframe M15. SL i give as PSAR point.. Now i test AO and Heiken Ashi in this strategy.

bye
LAK3R

Hey Lak3r,

I've actually been trading the system and it's been on and off but overall pretty successful.

I found another interesting system by Tony112, found here: http://www.forexfactory.com/showthread.php?t=156106

It's pretty good and I've made money with it - paid for my honeymoon I like the pure price action type of systems, but I think there are a lot of good systems out there, just need to be patient and willing to learn.

if it works great!!!!!

for you to make money with it you will need

1 to master your system, know its strengths and weakness of it
2 know in what market condition it works best
3 be able to addapt, improvise and know when the market is turning


my personal advice would be to

strip off the indicators, read
1 the art of war
2 paper money by adam smith
3 the technical analysis fallacy by FTI in this forum
4 crusialpoints post
5 jacko house of pain in this forum

be flexible, be nimble, learn all the indicators but just as tools not to impose any opinions your trade. Trade just what you see.

first

1 identify the TREND= absolutely number one, if you dont know dont trade
2 identify market condition, ranging trending, etc
3 identify Fundamental causes and watch FUNDAMENTAL ANALYSIS
4 find a way to BLEND the two
5 find a way to TROUBLE SHOOT a bad trade
6 attack in waves: small lot initial and as the movement of price goes your way attack with bigger and bigger lots
scale back as the wave exhaust and reduce your exposure.

i wish you luck