Extracted Thread (per thread starter's request)

Just wanted to show potential USDCAD long BO forming if someone trades that pair.

http://www.forexfactory.com/attachme...1&d=1330681441

I posted a couple of days ago about taking a chance on eurgbp when I saw an irresistable though 'unofficial' CZ forming anfter I had missed the previous one. Heres how it worked out.

At the moment it's 40 pips to the good and not far off being booked. This is why i still like to manually draw boxes in addition to having the indicator.

Good morning FH. I'm not doing this for the annoyance factor but there are 4 pairs where i use a 15 minute chart and the rest on 30 mins. I need to get into the habit of putting the tf on my posts when i post a chart. On my 30 min charts I tend to end up with about 1.5 CZ's per week. When I was initially reading through the thread and playing with settings it looked like I was getting fewer losses by using a 30 min chart. This is primarily because i'm waiting for 2 x 30 min bars to close not 2 x 15 min bars, and in the case of gbpchf it's 3 30 min bars. I suppose I could just double the number of bars and use a 15 min chart but I also like the scale a 30 min chart gives me.

I think in time I will be on 15 min charts for all pairs as I should be able to better spot the winners from the losers prior to making an entry.

Wow, not seen one of these on this pair since 6th Feb... 500 pips ago.

Here is yet another prime example (how many does this make now???) of why we follow the PA and ignore every other common trading benchmark, such as trading only with the trend.

The trend for G/U has been up for weeks. It has made a new 8-week high, in fact. And yet last night price broke down for over 100 pips.

No RSI, or MACD, or MA, or Ergodotic, or Heiken Ashi candle -based system (insert favorite indicator name here , LOL) would have gotten you into this same trade earlier or better than I got in by simply following the price upon breakout.

This pic shows the last 2 weeks on G/U M15, my favorite pair.

The 4 CZ's are clearly visible, as well as the breakouts that followed.

This was just for 1 pair and 1 time frame.

Rather than over trading by having too many CZ's due to loose filter settings, I prefer to use extremely tight settings on every pair, and then spread my trades over several pairs & TF's. Using this technique gets me about 10 CZ's per week on average. 40 CZ's per month across several charts is more than anyone needs to be a successful and profitable trader.

Here is your market edge. The rest is up to your own individual money management.

Hi to FXH, what a really good way to trade this is. Congratulations to SQ for his excellent indi and to all others who contribute so positively here.

My favourite pair is EU, I have been trading it on a fixed time BO off a 4 hour box, but this has much better rules.

Attached is what I am seeing this morning on EU, a real thing of beauty don't you think?

I have read nearly all of the thread, done a lot of tweaking of the indi for my charts, looking for the high quality potential trades.

I will post occasionally when I have something to contribute.

update: short triggered trade now stopped out above the box, so now waiting to enter long if it closes twice above the buffer

Welcome aboard Larry.

I monitor M5, M15 and M30 for several pairs.

Here's is my best E/U chart at the moment.

I agree, this is looking like a very nice set-up. Pips will be made on this chart in the next few hours.

E/U is sitting exactly in the center of an 8-week swing right now. It can literally go either way with no trouble at all. So once again, just follow the price where ever it leads. You can never go wrong by removing human ego from the process.

Good luck! Be sure to let us know how it goes.

FxH

Well what a glorious morning in Yorkshire.... and what a great way to start the week.

Hi all,

I just discovered this wonderful thread and still learning this nice system. There seems to be something wrong with this picture. The indi seems to have given the second buy signal when the bar is still at the bottom of the box.

Any thoughts on this one?

Nice Start to the week, +30 taken on AUDNZD

Entry @ 1.29557
TP @ 1.29857




Also watching EURUSD & USDCHF M15

Hows it look? Is it valid?

Hi there tmoney. Everyone has their own trading style but I just want to point out that the number of CZ's per week on your current settings is 4.6. Using these settings you are going to get a lot of signals to trade, however what you need to look for are CZ's of the highest quality. The reason for this is that using your current settings you are going to get stopped out an awful lot and I would seriously doubt you would make pips over the course of a month. I notice your using the ATR to determine the pip range of a CZ, nowt wrong with that but you have to make sure that you set your ATR 'days back' setting to maybe a 100 days. In addition increase the quality of CZ's by increasing the number of bars.

This is repeated many times in the first 50 or so pages of the thread, I strongly advise that you read through them..... and then read them again. It took me 5 days to complete the thread from start to finish. No noe is going to hand pips to you on a plate, they need to be earned.

HXT

Here's another trade from a CZ formed on Friday. I didn't take the short on Friday for the simple reason that there were better opportunities elsewhere. When the short signal triggered there was barely 15 pips to the TL so I held off hoping that it would follow the trend established 2 weeks previous. This morning it did indeed break upwards, I took off .02 at 60 pips (normally 50 but I didnt catch it at the time), .01 remining SL at BE+20 and I'm seeign where it goes from here.

Also caught a short on audjpy this morning for about 70 pips, today so far has returned 5.7% though 1% of this was a trade I closed first thing which had carried over from Friday.

FH if this is starting to appear more like a trading journal just let me know if you want me to stop it.

Hi tikky, I've never seen it do this so I can't shed any light on the matter. The version I use is 1.11, some people use v1.13 (but i dont like the arrows) so as long as your using one of the two you should be ok.

HxT, there are currently idiots in another thread that have taken our indi and have added 8 oscillators to it, thinking it will "filter" their entries better. And here you are making 5% in just one day. And I know this is not the first time, either.

If only I post numbers, then as the OP I am suspected of padding my results some how. But when guys like you post as well, then I can't be accused of wrong actions.

So post what ever you like, so long as you don't post trade details until after the trades are closed. In other words, don't make it possible for someone to trade along beside you.

Congrats on your success! No one gave it to you. You have it because you worked for it.

Although my perfectly good short on eu was stopped out, I also entered this trade on euraud long. Guess what I did, got nervous and exited at BE after that pullback, and gave up that move which would have given me my target TP.

Am now in the eurusd long which is not doing so good, from the same box that I took the short on.

sigh

Cheers for the kind words FH, I have to correct you on one small point, though you wouldn't have known, but since my last post I've closed another .01 so now today I stand at 6.28%, go tell em dude lol.

aye, I did that a few times too in the first couple of weeks. When I was going over my losing and BE trades I realised I should have left it alone and let it play out.

notice how Mer's fib levels played lovely in that pic, I've started using some of them when I move my SL.

By the way thats a nice looking bug in your avatar

HxT, now that you've gotten over your intial jitters and are realizing over 5% in a single day, here's what I would recommend...

First, turn off your computer and go for a nice long walk. Like for 48 hours. Go have some fun! LOL

Second, if you are like me, then you have several templates saved with your preferred pairs, TF's and indi settings. It's time to go over your templates yet again and squeeze the setting further still.

Here's how I do it. YMMV:

I monitor M5, M15, and M30, and I use M15 as my center line indicator. I use 4000 M15 bars as my look-back. That's equivalent to 8 calendar weeks, or 40 trading days. I tweak the M15 settings until they come back with >20-25< CZ's. Which, as we already know averages out to around 2 CZ's per week.

But M5 moves much faster and so it's prone to more whiplash, and M30 has the potential of having twice the DD than M15 does. Neither scenario is very appealing to me; I want to mitigate these negative side effects as much as possible while still holding on to the tradeable CZ's these 2 outlyer TF's still provide.

I do this by tweaking the M5 and M30 settings until they give back only about half the number of CZ's that M15 gave me on that particular pairing.

For example, if G/U M15 shows 22 CZ's over the last 4000 bars, then I tweak M5 and M30 until they both show around 10 or 11 -- or about half of what M15 did. This can be done a few ways, but the way I recommend is by adding bars first and foremost. Add 5 or 10 bars first and see what comes back. If the number is till too big, add a few more.

It's a balancing act. And there's no "official" way to get the job done. To each their own. But the main thing, as always, is to select only the very best CZ's to trade from, regardless of the pair or the time frame.