Extracted Thread (per thread starter's request)

Yes definitely, so sneaky the SM

Now sat on 90 pips. Got stopped out of eurusd before it hit the bigger move. had moved SL to BE when it had previously got to 50.

I found these two posts that explain a lot about the system...........

Post 1 from FH

First a comment on your chart, and then I'll answer your question...

Your chart shows too many CZ's. I suggest that you tighten up on your filtering parameters. Either add bars, or lessen the CZ pip height, or lessen the ATR settings, or some combination. The CZ is everything to my system. We look for only the very best CZ's to trade from. I expect only 2 or 3 per time frame per pair. So if I have up 3 pairs on M15, I'm only expecting about 8-10 great CZ's per week. More if I'm also using M30 or M5 at the same time, of course.

As for how I trade the breakout, I have never confided this yet, but I'll do so now: I use the prevailing side of the CZ as a pivot upon breakout. So if price breaks Hi, then the upper edge of the CZ (plus any Buffer Zone pips) becomes my pivot. I wait for a candle to close above this line. Once I get this close, I enter my trade Long. My SL/TP is usually 25 pips, but it depends on a couple of outside factors that I will leave blank for now; it's better if you find your own best settings from pair to pair and time frame to time frame. But if my SL is hit due to an early reversal, I'll look to re-enter in the opposite direction.

Note: In my system we never use the phrase "False Breakout". There is no such animal. There is only a breakout that hit your SL before it hit your TP. And once you get the hang of picking out the best CZ's, even those become very rare.

The key to my system, is that if you wait for the very best Consolidation Zones, an immediate breakout of 20 or 30 pips is highly likely. 10 or 15 pips is practically guranteed -- IF... if you wait for the very best CZ's. And if you don't get all of those 30 pips on the breakout, then you have the pivot to look forward to. The market (people/traders/banks) hates indecision (i.e., pause). No one likes to stand still, least of all Alphas. Alpha-types hate not being in control. It is our job to locate those moments of extreme indecision and exploit them once direction out of the pause has been fixed by the guys (Alphas) trading 500 lots or more.

That's my live trading in a nutshell. YMMV.

Post 2 from FH

Here is my complete system, all in one pic. Unlike Awesome, my system does not allow for automatic reversals or automatic lot size increases just because the SL has been hit. With my system no trade goes live until the Candle Delay filter has been triggered, not even when there has already been a loss. My system operates on the belief that once the CZ has formed, the CZ becomes the defacto pivot for the entire trade scenario which follows. This is why it is so important to understand Consolidation Zones, and also how to set the filters so that they pick out only the very best kind. Increasing lot sizes (Mart) is still used, by what triggers the Mart, and when, is very different than with Awesome. The CZ is everything...

Is anybody using a 5 minute chart with this system, if so how are the results ?

Thanks

ab1,

This is why I like this with oil. Breakouts are an everyday affair.

That post that FH highlighted on a narrower range seem to work well for oil too.

A 40 tick 1:1 RR seem to work.

GDP and EIA crude inventory reports tomorrow. I don't usually trade the news for oil. I'll try a simulation and see how it goes.

I seriously need to go to bed soon and stop looking at charts LOL....

But after doing further analysis of my losing trades from today, its easy to see why they lost, the CZ's were not the best quality and when I removed the indicator its so obvious that I wouldnt have picked those areas manually as consolidation areas in a million years. I got sucked in by the indicator and becasue it gave me an alert and formed a CZ based on my settings I immediately entered a trade.

So lesson learnt......... From now on I will always take a long hard look at the CZ manually before I think of trading it. In fact to go one step further I will make my settings tight and reduce the zones considerably, better to have less but more reliable areas to consider. If I want more trades a week then I guess add more pairs or additional time frames, will continue this in the morning.

Make it tighter with the 20, 30, 0.16 settings.

ab1,

I'm not sure if it is ok to post in someone's else thread my view of their method mechanics. Please let me know if I am crossing FH way, so to say and I won't do it again.

Anyway, just wanted to say that it looks like you trying to be too mechanical. It's not so important what settings do you use to draw a box. The most important thing is to locate short term consolidation, support / resistance, supply / demand, you name it zones. Surely, FH tested his settings and they do work for him. As it would work (and works) slightly different settings as well. 'cause in reality it is not the settings but you, trader, work So when you have those zones try to be discrete and human. Use common sense or price action as it is popular now to say. The line on the chart means nothing to the market. So then the price breaks the line (box, whatever) and you mechanically enter the market you are not behaving like a human. You are the same bot, ea, indicator driven system, whatsoever. Look at the break of your line just as an alarm, a potential market entry and then try to read the market. Maybe, breakout / breakdown is going to fail (i read all thread, I know FH hates to name it like this, however, it's just a term and we need terms to define things) and you will take opposite of the planned position.

So in summary, look to the boxes just as short term S/R form which the price has a high probability to bounce off. These boxes have no definite lines even though they have as you look at them on your chart.

Hope this will help a bit.

Yep Thanks Big A, appreicate the comments, however.......

Its a lot simpler than that, it wasnt consilidation I chose and if you had read some of my previous comments prior to answering you will see Ive been trading full time for about 3 years, so do know what Im doing with regards conventional analysis.

Anyway thanks again

Hi Lordalfa

Yep agree from further study I think I want them tigher than that as many within even a BR of 20 can be pretty sloppy imo.

I think you have to look at the candles within the box and there relationship to each other aswell, but even without the indicator a good area of consolidation leaps off the chart, but the indi is great for giving a heads up if your watching a lot of stuff.

cheers

ab1

AB, some perspective, if you don't mind. Big A is from Lithuania, and I'm sure that you or I would have a MUCH tougher time trying to communicate in HIS language, capice? Big A was being very polite and helpful as far as I could tell.

Besides, over the last days I could have said the exact same thing about you leaving posts before fully reading or comprehending my posts about my system. And since this is my thread, and my system, it would be my place to do so.

Let me put it another way. I very much prefer to speak calmly and professionally and keep loose reins around here, and I never forget those that make me do otherwise. Please choose which one you want to be.

FxH

Not crazy about this one on USDCHF, anyone else watching it ?

FH

Someone made a comment, I replied, I didn’t think it was anything other than that, maybe in black & white it came across different, what country there from etc is irrelevant, I’m not a mind reader or know there grasp of the English language.

All I’ve done is come onto your thread since last week, shown some interest and enthusiasm, taken part and offered help as well as listened.

I’m doing what everyone else does, getting involved and I haven’t asked for anything, I’m not after anyone’s settings or freeloading information without offering anything in return.

It’s a fairly long thread and a lot to take in even if I’ve taken the time to read it a few times, so there’s bound to be a few questions that are asked that may have already been covered.

From reading numerous previous posts I can see you have your own way of Policing the thread, which is fine, I’ve asked you a few questions, but you have chosen to ignore them, which is fine, as I said I’m not expecting anything from anyone.

I’d like to stay around and contribute to your thread, but please don’t give me ultimatums about what I want to be etc, I’m too long in the tooth for that kind of rubbish.

Anyway I’d rather be trading than arguing, that’s all I’m interested in.


Cheers


ab1

Morning All,

Long UsdChf Target 30 pips in @ 0.89674

hi all

when i see 10 last page i have conflict with my chart and your image( i use first post indicator with default setting)

are there any setting for usage of indicator on different pairs?

Nice call! We wish they could all be that easy!

I tried this stairstep method and it doesnt work very good. Seems like the most i could get out of it was break even.

...why would you go long, when it shows a bearish wedge pattern?

A bearish wedge pattern? So then, why did price go long for 95 pips following your bearish pattern? Triple what Andy had set as his target, in fact.

These situations are addressed already in the thread.

READ THE THREAD BEFORE POSTING.

Andy did, and that why he's banking pips and not just wondering "what if" like the rest of you lazy fucks who just want a basket of gold handed to you without doing any real work.

hi..thanks a lot for share your indicator, is this repaint or not ?