CandyStriper 101

I present to you here a rather simple entry into the market... Candy Striper!

We are using:

-Heiken Ashi bars
-Accelerator Oscillator
-Awesome Oscillator
-MACD

The entry is simple. Wait for the HA, AC, and AO to all be the same color. Use the MACD to confirm. If all three are RED and the MACD Value is less than the Signal, go SHORT. If all three are WHITE and the MACD Value is greater than the Signal, go LONG.

Exit strategy: You've got to know when to hold 'em, know when to fold 'em, know when to walk away, know when to run...

Money Management: Don't trade too big or you might get margin called. Don't trade too small, otherwise what's the point? We are here to make money after all...

Psychology: Don't be cocky, don't be greedy, don't be drunk, don't be scared. No guts, no glory. Always feel good about closing out a trade for profit, no matter how small. If you don't feel comfortable, shut down and walk away for a bit, the market will be there for you when you come back, fresh and ready.

This entry presents COUNTLESS opportunities to make money.

This system, like many others, is a FRACTAL pattern. It works on all pairs, on all time frames.

Trade in CONTEXT with MULTIPLE TIME FRAMES. Get a big picture on the Weekly, Daily, 4HR, Hourly. What does Candy Striper say is happening at these levels? Make your decisions on the 15m and 5m if you can watch the charts. Grab your 15-30 pips and run. Swing trade if you like. If you can't be home all day, trade the 4HR or Daily with smaller position sizes. Again, this entry works on all time frames.

There is no perfect set of rules I can give you to handle all scenarios. You have to have instinct. All any system does is give you a better view of what's happening. It's up to you to decide how much and how often to trade.

Feel free to ask questions. I started Forex in July 2007. I'm no master, but I'm no rookie either. Please don't try to add any more 'confirming' indicators to this. The MACD does that job just fine.

Good luck and have fun!

here is a great example off the E/J Daily chart. The arrow shows the profitable signal, and the 'X' shows how the MACD was effective in filtering the false signal

Thanks for sharing this simple system. I will test it out this coming week.

Thanks, bro. May the forex gods be with you.

Just what I need.. a fresh approach. Thanks Repipula.
What is the strategy when the Macd is twisted around the zero level?
Avoid entry? Wait for stronger direction? Or, enter anyway?
Ep

Thanks for this!

The MACD is secondary, but it does seem to work well as a filter for false signals.

Truly what is most important is your Multiple Time Frame Analysis. I will constantly go up and down the time frames until I have a 'feel' for what's happening, then I'll wait for a solid Candy Striper setup on the 15m (and sometimes the 5m if I'm feeling particularly attentive and active) before pulling the trigger.

Most of the good trades will work well right out of the gate and you'll be in profit and the discretion lies in how far do you let it run, possibly grabbing A LOT of pips. If it's floundering on you from the get go, it's probably not worth the mental grief and it's best to just close it out, walk away, then come back and find the next good setup.

A lot of times you'll find that you arrive at your trade station, notice that you missed the signal a few bars back, but there's still a good entry to be had because of a pull-back.

Backtest as much as you can and it'll become easier and easier to spot the good setups.

I'll post more examples in the coming weeks.

It is necessary that the MACD was a more or less than the signal line, and whether it is necessary that the MACD would be higher or lower than 0?

Thanks for the explanation. Will need practice it in real time.
EP

Please don't get too caught up with the MACD, it is the least important indicator of this method.

The 0 line of the MACD is irrelevant. Just look at Value and Signal.

Value>Signal confirms a Long

Value<Signal confirms a Short

The MACD could be eliminated from this system, truthfully, but it does seem to help in deciding whether or not to take a signal. Backtest, backtest, backtest!

Use the HA, AC, and AO all lining up with the same color primarily, along with Multiple Time Frame analysis and you'll be fine...

Also, it should be added that your classic Technical Analysis skills will only help in picking the best signals to trade. Classic james16 stuff...

Use your Support/Resistance, Trendlines, and Round Numbers to your advantage... and don't forget those Pin Bars, Wisemen bars, Reversal bars (or whatever you wish to call them)...

When it all lines up, you've got a winner!

thank you for your interesting approach,i have a question that for confirmation
with macd the value should be completely up or down of signal line or partially is it OK too?

regards

I'm starting to think that the MACD should have been left out of this system, because it seems to be confusing people...

The HA, AC and AO are what is important along with MTF analysis and TA analysis...

Another approach is to just wait for the close of the bar where the three colors line up (forget the MACD), and then enter when price breaks the extreme of the setup bar...

Again, there is no perfect way to do things that work every time in every way. There is no Holy Grail. You are the Holy Grail. I've just presented a simple way to make the price information more readable to give you a more confident entry. If you are looking for complete safety before entering a trade with a guaranty of success then you might as well be looking for leprechauns at the end of the rainbow.

TRADE, HAVE SOME GUTS, DON'T BE AFRAID TO LOSE.

What's the mantra that has been said a thousand times?...

Bulls make money, Bears make money, Pigs get slaughtered...

Trade like Michael Jordan played basketball. Just Do It.

right now...

look at E/J 15min chart. There is a beautiful setup long and I'm in it right now...

I'm thinking Asia is about to run it up until the london open. Hoping for 30+ pips, but willing to cut bait if it starts to look sketchy

here's the chart I'm using right now.

I'm LONG. There's Resistance at 98.70

No reason for price to stop now until it gets there.

I just set Take Profit at 98.59.

Soon, I'll set a Stop Loss and go to bed...

Wish I had your confidence. Took a very similar position in EU, but had to cut losses as it moved against me.
Of course, it shoots up as soon as I get out!
dp

Hey Rep,
This thread has been on the FF Trading systems Front page for 48 hours with no posts. I can see why you called it Candy Striper, but looks like it is not attracting any attention and on the contrary maybe turning people off.
Maybe time to change the title?
EP

Hi there,

What are your general results with this strat? Backtesting will be ease with the help of an EA.

Best of luck with the thread - i`ll continue to follow it.

Wonderful strategy! will try to post live trades once im home

Nice and simple.....works well as extra confirmation for my trading. For a more visual indication of the macd signal thing I've added an arrow based crossover alert as I was finding it irratating having to actually look at the numbers/judge if the macd signal line and value were in the correct order.

Not a big deal but helpful.

I use the 62 ema as a support/resistance line and watch price closely around it....if it breaks great...if not...out at as near to break even as I can. Simples.