CHOROS System

That is excellent info, helps a lot to get the opinion of someone familiar with the trade, thanks for that. I will check out survivors posts and maybe see you in the chat room. (still trying to wrap my head around that notion that "sleep is highly over-rated".....)

In the chat room, Binyamin made us notice a good EURCAD setup yesterday so I made my analysis and tried a EURCAD trade that gave me +50p . It was based on the following confluences:

1. H1 35/50
2. H4 10EMA
3. PPA from 2011.04.12 at 1.3988
4. PPA from 2011.03.18 at 1.3974
5. Daily Pivot at 1.3982 (Please note that the attached images show Pivot Levels of the day when the trade was closed. The previous day, when the trade was opened, Daly Pivot was at 1.3982).

H4 10EMA trades usually gives a lot of pips when the setup is right, so I decided to give this trade a chance for 9 hours (that is a LOT of time for CHOROS) and it resulted very well.

Happy trading to all.

Heydel , good one m8.

i have some time since my last post here. i know these have been posted hundreds of times before but here a classic H1 10 touch confluence with RN in EU.

the market is dancing well this week.

Hi guys,

May I ask which chatroom are you guys refering to? Can I join it as well?

http://www.scribblar.com/4qxy4df

this is no substitute for reading the thread though. all the info is here

Actually, you should only visit the chat room after you have studied the thread. At least get the important concepts here before asking basic questions in the chat room.

I have watched EU, GU, AU, and CHF whole London session yesterday, it seems there is no reliable setup at all (classic M15 method). Please share if you find any good setup yesterday (even if you found it in hindsight, and even if it is a good but failed setup).

I would like to convey Clay's and my congratulations and thanks for your work in translating this work into the French language.

someone asked for my templates so here they are.
you will need to add Kostas M5 , 12 and 23 EMAs.
Knock yourself out :nerd:
also the indis i use, + a couple more than you will find in the templates

AU failure: Entry short at red arrow - M15.35/50 + H1.E10

recent reaction off H1 35, H4 10, RN.
HTFs trend is up

Quite far away from that reaction (60 pip), so there should have been enough space.

Hi !

I know that afterwards every comment is easy and we are all "Masters" in that , but I would like to point out some points which I would have told you "live" if I could:

1) Why the Heck do you go to look for AUD/USD when there is a lot to do on E/U and G/U as well ?
(I hope you know I am saying that friendly)

2) You wanted a first touch of the 35/50 on M15.
That's ok, and you expected it to work....

IT DID!

For such a counter trend Risky trade

a) not two bars
b) retracement bars much bigger than the previous 2, 3 bars showing power in action
c) previous possible trouble area below very near (round number 1.0200)

It was good for something around 9 pips...perhaps the time for setting at BE...or so near to the R/N just to get them...

The reason(s) why Asos is saying that HTF are showing UP moves are shown in the H1 and H4 charts.

H4 was not only a pin bar, but it could get in the next days to an interesting constrainment upwards, why not up to 1.0350 if you look at the daily chart's next possible trouble area.

Yours was a counter trend trade and it worked out for 8, 9 pips...it was not wrong, only very small.

Missing you all, and for sure whishing to may see one day for a whole session the chat !

See you
Ciao

PS: still posting only one TF overview ?

Hi, looking to learn to identify Constrainment Setups, so will hopefully pick some out of the past and get confirmation, or comments, on my selections and then try doing it in realtime.
So comment away,
Here is a setup and result for what I saw as a Constrainment on GU M15 on 11/24/2011
thanks.....

I was chatting with our fellow traders today, explaining what I’m currently doing to trade H1 10ema and H4 10ema consistently and profitably. So I got inspired by that chat session and I have outlined some rules I use for those trades transcribing and ordering what I said on the chat room.
Here you can find an addition to the basics for trading H1 10ema and H4 10ema CHOROS rules including a typical “before, during and after” example.

Rules:

First: Wait until the confluence of at least 4 levels (let’s say M15 35, M15 50, H1 10 and Daily Pivot) has a maximum height of 15 pips between all of them, the order doesn't matter, but all of them have to be inside that 15 pips area, if it’s less, that’s even better.

Second: Make your entry on the first touched level. This rule helps to avoid the cases where I’m left waiting at the station.

Third: Set your SL adding around 5 pips to the other side of the levels in confluence. I use more or less 5 pips. You have to decide according to what you see on the chart.

That Maximum Height between all the levels in confluence can be stretched a little but no too much. I usually want it to be as closest to 15 pips it can be for the H1 10ema trades, if it is more than 20, then that is a NO trade. And I want it to be as closest to 20 pips it can be for the H4 10ema trades, if it is more than 25, then that is a NO trade. I’m still refining this criteria and it may vary depending on the pair.

Do not take these rules as written on Stone. You have to use your good criteria so you can adjust your entries and exists, for example if the confluence includes PPA or Pivot Points and that level is very close to the MA that is going to be touched first, then you can set you entry point right on that level, even if one of the MAs is going to be touched first. That can help you to use smaller SL levels.

If you have more confluence levels on a small area (15 pips or less), then you have a high probability trade, so you can extend your TP a little.

Several traders trade on those levels individually so if you wait until several of those levels are together, it is sure that you will have some reaction that you can use to profit.

Those levels in confluence form something like a wall of several levels. The smaller it is (around 15-20 pips) the stronger it gets. That’s what I wait for. I usually make my entry when the price touches the first level expecting that the price will start to reverse there. If it doesn’t, then the next level will hold, or even the next one, if you have 4 or 5 levels of confluence within 15 to 20 pips then there is a high probability that that small area will hold at lease for a quick scalp even against a HTF trend.

Please take a look at the attached images. As you will see that is not a utopic example that you will see only once a year, that kind of setups happens several times a week on diferent pairs, so patiently wait and profit from them.

Happy trading

Haydel, That is excellent! Very well thought out and documented. I for one will take note and watch for these setups, they look pretty straight forward to identify and obviously profitable in this case.
Thanks for sharing that!
One question I have regards the Pivot indi you use. I am using two different ones and both of them show the DP for that day about 20 pips below the one you show.
I have serious misgivings about using Pivots for just this reason.
Anyways, I have a DP of about 1.5740 vs yours of about 1.5760.
I am using the indis: fxbc_S&R_pivots and Pivot Points v3.

Nice contribution my friend.
The confluence increases your chances to the max. In my experience, GU usually likes to touch all levels before turning back. Alternatively, you can use the M5 timeframe to show you when the price starts to react after touching the last level. This could save you some SL pips.
For newbies, Haydel's approach is the way to go. Focus on M15 TF, master it by waiting for confluence and this by itself will be enough to get you profitable.

Thanks, Haydel! Excellent analysis and presentation!

Funbux, you've got it! I looked at your first chart and thought it looked pretty good, then saw your second chart and price went your way.

I think this setup would need a really good entry (as close to bar highs as possible) and very small SL. Because if it goes more than a couple of pips north the pattern is broken and could fail. And you got all that.

The only other potential negative I see here is that low activity PA is so flat and getting flatter. Price could go either way based on that, but you are right the MAs and RN influence it downward.

I think the best AAA constrainment setups are pauses or slight retracements in a trend. But this was obviously a good setup.

Mega pips!
AF

Ah, Pivot Points! There are a series of posts by several of us discussing this a couple of months ago. Here is how I solved the same problem you are facing.

Attached is PivotPoints v8.03 indi. It was generously re-coded by screenname. You will see the options when you open it. I prefer the AutoPivotIndicator_ver5 display but it's better to have accuracy.

The main thing IMHO is to use what the rest of the world uses for PP because that's the only reason they work. The rest of the world uses NY close for end of day for purposes of PP calcs. This is GMT 17:00. The attached indi can be set for any hour you wish to use for calcs.

EDIT: NY close is GMT 22:00. I was thinking EST, which is my broker at 17:00!

Just to be sure I check my pivot values against this website every day. http://www.actionforex.com/markets/p...2010040848154/

I find it to be within 1 pip of the indi.