The7 Trading Method Signals Thread

Dubai, Very astute observation. I will put on my watch list. And I will have Paul call his people to tell their people to move some money into it if this should take place.

I shouldnt tell you this but, GBP as you know moves 10030 pips a day easy. You could take a chance and get in now with only a 35 pip risk to make hundreds! The reason I would NOT do it, is on the weekly, this puppy is dropping pretty bad. But it would not be a bad idea. Problem is, if you get stopped getting in now, do you re-enter if it closes inside the band? Can you risk the money? These are personal questions you need to answer. I for one aM NOT going to do it as I have too many positions now, and I dont like to go against a weekly unless the bar closes.

****TIP OF THE DAY- Dont be afraid to go against the weekly if your R/R is huge. You dont need a change of trend, just 3 good days your way. And if it is a change of trend and you caught it on the daily, Oh......my......GOD! Huge payday. Better to stay within the guidelines for at least 6 months though. I tend to get aheadf of myself as Im very experienced with these tpe of entry,exit systems.

Nice find, Dubai!

Ok i've read every post in this thread and understand the system fairly well now. Just a one thing:

"Closing candle has to open outside the channel to become a valid signal. Let it run until you see opposite signal. Stop Loss is high/low from last candle."

Could anyone explain further the part in bold. I think i understand it, but need to be sure.

I'm still learning. : /

Check the other discussion forum where you asked that question I posted answer there
Paul

Got Gbpusd signal on fridays candle. But also watching audnzd up and cadchf up. On those two we shall see tomorrow. Good luck all.

Just opened positions on: nzd/jpy,gpd/aud,gpd/jpy,nzd,cad ALL SHORT. still time to jump in. Most are down 4 or 5 pips.

Paul that aud/nzd looks like a trap. I dont like the lower low just made and that long wick on previous candle. Win or lose, its not for me. I got in all these at 6:13pm

Thanks! Looks like stops on most of these are quite big to be above the previous candle high. Is that where your stops are?

I hear ya but if i jumped yesterday with the harami formation for a quickie. But trying to adhere to rules lol.
usdcad forming a dark cloud cover, stoch ob, its my number pick. Watching audchf, cadchf long. I know they havent closed yet but other factors are standing out to me. let me place my bets oh i mean my trades lol
Paul

Got hit for 200 pips on NZDJPY and GBPJPY...ouch!

What you do go long on them?

why? Im down like 7 or 8 pips on each lot of both of them. Why did you get knocked out of your position so fast? Didnt you put your stop, 1 pip above yesterdays high on both of them? Im going to bed now. I will read your reply tomorrow. Maybe yu should watch on the hrly and jump back in if the NY boys bring it back the other way. Or maybe just get back in one of them now and put the stop in the right place the system calls for. Cant hurt too much. -)

I just got in to day:

gbp/aud short @15057

aud/chf long@9649


My usd/cad-short is up 44pips and im going to get into

aud/usd-short-10470. Getting in now.

IMHO all the cad and aud pairs look ready to trigger. Big indication there.

****Im also very,very suspicious of the EURO as the France prime minister said France is bancrupt and still the EUR/USD IS MOVING UP FOR 2 DAYS! Watch out below. I personally will take the EUR signals given on this system, but only the short side ones for a few more weeks to see if this was all BS.

Anyone going to short GPB/USD on Sun/Mon if the candle stays the way it is now? (both bands are pointing up which may be an issue, but it looks nice from lots of other trendline, 200ma etc perspectives and currently meets The7 basic criteria......
(please let me know if I have posted this incorrectly in this thread)
Lors

I'm long GU . LOL

YES! YES! YES! Shorting the gbp/usd BUT even more IMPORTANT......shorting the GBP/AUD!!!!! Sit back and enjoy this lesson. I am never repeating it. Why? I have so much energy drink/caffeine in me, I feel like I just competed in a line snorting contest and came in second! I may never have this much energy again. Ha! Ok first everyone look at the daily GBP/USD chart I have attached here. Now some of you think this is not even in the SEVEN rule book. Some of you think it is way too much risk to put a stop at the top of that mountain of a wick. WRONG AND WRONG! Lets analyze:

1-This 1 bar, has changed the entire chart. We now have 3 lower lows, and DEFINITELY 3 lower highs! This to many pro's signifies a true trend change for the medium term.(at least several weeks.)

2-The trend was already down to begin with after both 2 lower lows and 2 lower highs before this huge bar came into existence,right? This is a confirmation bar!

3- So this is not our usual ullback or trend change trade. In fact, the shorts covering GOT their shot for 3 days to get out. So they aren't going to push this up. The longs had every stop in existence from California to their mothers underwear, hit with that bar. The short term longs are gone.Stopped!

4-Volume: Look at the daily volume on that bar. Its only about avg. I loooooove that on a bar like this. Why? It shows it is not a climactic bar. It shows me that the shorts still have some powder left. The shorts still have more bullets in the gun. Maybe a lot more! Yet, it had more volume than 3 out of the last 4 bars which tells me "We got new players to the party to join us."SHORTYS LIKE US!

5-Risk: The odds of a bar equal to this size taking you out the next trading day must be at least 100-1. Would you say you'd see it about twice a year on a daily chart? Me too. So what we might see, is a couple of days of indecision bars, as the shorts run to their safe deposit boxes in Japan at the open and have "Odd Job" the 300 pound bodyguard rounded up(remember Goldfinger/James Bond) and it takes a day or 2 to push another few billion into the system. Now picture 5 small and big hedgefunds colaborating on that on sunday night. So what I am saying is, it might or might not just plunge sunday/monday, but now we have such an intimidating bar, WHO THAT IS A TECHNICAL ANALYST FOR A HEDGE FUND, IS GOING TO "F" WITH THIS CHART AND GO LONG? oUR ONLY RISK imho is that a huge bank suddenly decides it needs pound dollars and doesnt look at charts. =)

So the bottom line is ,this is a "time" bar. If we get stopped on this play, it should be for much less than the 155 pip risk we have at the beginning. Remember what I taught you guys. I dont care that much what my trade does, I only want to know that Im in it for a few days. Then I am guaranteed either a small /tiny loss or a huge win. THATS THE SECRET OF THIS SYSTEM. IT DEPENDS AS MUCH ON TIME AS IT DOES ON PRICE. And big bars are what give you the time. Forget geting in on thoise small supposedly less risky bars. (You hearing me on that,Paul, Ben, Darryl, Anu,Tebis,Akin,Prosper, Shirley,Megan,and all the rest? lol )

Now lets really open this trade setup wide open......Look at the weekly chart I provided below. Does it even look the same at all? Any indecision on what the GBP wants to do on that baby!????? Now thats the kind of chart I'm talking about! That weekly is the cherry on top of the cake to go short. You may not win this trade, but with first rez at 153 or so, count me in.(by the way s/r are often lagging, only mildly important) And for those who are thinking it is oversold, the RSI hasnt even hit 30 yet, and more important, look at the angle on that RSI line! Whoooaaa.... oN THE WEEKLY, thats like having an elephants foot on your back and your opponent telling you to stand up and fight. If this daily bar gets taken out in one day, I may go back to stocks and futures. LOL

btw......when something is oversold on a weekly chart, think about it, if its "about" to turn, we can still get 2 more bars,thats 2 weeks!!!!! of this baby plunging to God knows where. Now it gets better.....................

I didnt post them, but open up a daily chart of the gbp/aud. Now you could make a case as this not being a seven play because on some charts ,including mine,the body is borderline on that top band. But when I look at that huge wick, and how the shorts played games to get in at 1.5306 to short instead of 1.5206, or make a case for the bulls to have lost all control whatsoever, it is decidedly bearish, yes? Now you can put your stop at the top of that wick and you have a great reversal trade possibly if you get taken out. But here is what I am doing. I think that wick was just air, especially since I have such a huge body to protect me without any wicks or tails....I am going to place my stop right over the open of this puppy at 1.5209 and save myself 100 pips of risk and maybe even take 2 lots instead of one. If they take out that huge body, the wick can go just as easy. And...................DRUM ROLL PLEASE..................If I get stopped out at 15209 and it reverses, I may (this is where you need to be a veteran) jump back in short with a 3o pip stop or so or take 1 or 2 bars from the hrly as my stop.

Next option: Ok ,want the home run: Take double your position and place one stop at the top of the wick and one at the open so you have double action and way less than double risk. You can even buy one lot and place stop at the top of the wick and then buy 2 more and place it at the open. Thats the biggest GRAND SLAM play I have seen set up all year so far. Or you can follow the rules strictly and place your stop where the 7 system tells you...at the top of the wick. NOT ME! Im either going with option 1 or 2.

Now you want the bonus for this pair...... Its been at the 1.4700 ish area 3 times on the weekly over 18 months. If it goes to that, Im not a huge fan of quadruple bottoms...I say it keeps going and we have the trade of the year if it gets anywhere near that area!!!!! I wont mind holding this trade for a month and having to re-enter a couple of times.

Guys, this is the way a professional would do it that sees value beyond just mechanically following a system like a dog. I love rules! This is following them....and adding on.

Guys and Girls...please, please ,please let me make one thing clear, please.....you may look at this trade as a huge "opportunity." Or as "too risky." Or not like it at all. Thats fine. Now I will tell you the way I see it. I dont care what it is. Im playing odds. I see it as: If I take these 2 trades 100 times a year what is the best and worst that will happen.

Worst case: I lose over 300 pips and get pissed off for about 10 minutes. And the odds are over 100 to one that happens in one day. I like that! Don't forget, it is about a 40% chance you will lose money between these 2 trades...................BUT NOT AS MUCH AS YOU RISK. THAT'S WHERE THE GOLD OF THIS SYSTEM IS!

Best case: You make 1000 pips or more between the 2 trades which is far more than you could ever, ever lose on this trade.

Most probable case: 60% or so chance you make "something" between these 2 pairs.

Another bonus: The 2 pairs are not correlated very much. I like that. I dont want the gbp TO SPIKE ON MONDAY AND I get stopped twice on the "rising tide carries all ships" theory. I doubt it can happen here.

Another bonus: Cad has been very strong last few weeks but AUD has very strangely not moved with it. In fact its gone opposite last 2 days or so. I witnessed some big money coming back into the AUD on many pairs this friday on the NY open and I think the bonus is they might gap up the AUD or at least it may see very strong action on sunday night asian session or NY monday morn session as those 2 pairs HAVE to correlate at some point.

A WAY FOR FIB PLAYERS TO PLAY THIS: If you dont like either of these trades because of risk, consider placing your stop 6 pips over the .618 area as thats often a place where if a pair moves past, it keeps on going. That has nothing to do with this system. I just know we have a few Fibonacci guys in this system! I know PAUL LIKES THAT IDEA. =)

Parting words: Folks, I may come off as over exuberant or arrogant to some of you. But I am not that way at all. I am just a crazy middle aged New Yorker who grew up always having fun with the english language. To me, a top trader is someone who can make a complete living and pay all his bills from trading. I am not that. I dont claim to be. I am a winning trader. I am consistant. But I only know about 40% of what I know would make this a very easy job, where you just flow with the markets and just eyeball a chart and instinctively know which way it will open the next day. Those guys are out there. Im definitely not one of them! I just hope that after 15 years of sitting in a room by myself pouring over systems, charts, books, software and God knows what else, I can offer a few of you my perspective. But I dont think I am better than anyone nor do I think I am a hot shot trader. That said, I put in 15 years with a mouse in my hand. I feel I earned the right to be adamant with my opinions. I hope in 2 or 3 years or less ,some of us arew partying together at a swank hotel, talking about these as "The good old days."

If anyone has any comments or questions, feel free to PM me. I am always eager to hear new things as well. And I have someone who soon will back test a lot of different variables for me and I will share that with you guys and gals.

One thing I wish one of yu would do for us, and these 2 trades are perfect to do it with, is on huge or engulphing bars, do you make more money if you put the stop at the 1/2 way point then try the 618. point, and do twice the lots, which way makes more money? The full bar or the 1/2 bar method? ANY VOLUNTEERS TO BACKTEST 200 TRADES TO START?

THE MOST CONSERVATIVE WAY TO PLAY GBP/USD SHORT:

Place your sell stop(entry) 5 pips below the lowest of the last 5 bars, which is only about 25 pips lower than you closed at now, so, if we run into resistance, thats the last place it could be for a long while.

Mix and match this method with any of the other 3 options I gave you. Its all good. Your welcome.

The candle you have is called a 3 line break pattern. some call it a really big engulfing candle lol. As with engulfing patterns the more candles it covers the stronger the trend. so i do concur with you its a HOT ONE! No doubt gbpusd should be played as short and its got alot of room to go down either 1.55069 or 1.44730 areas. As for s/l I might use the 2nd up candle's high or low to start then move as it goes.

Anyone thinking of shorting Yen pairs?


Hi there! Well shorted GPB/USD and already 80 pips in profit. GBP/Aud did not go as well and was a loss for me.

Is anyone thinking of going for any of the Yen pairs, have a couple of bearish bars crossing over the line to down side with very little wick, but I dont see much else supporting a sell trade. Looking at Eur/Jpy and Aud/Jpy. Daily stochs may start heading down but that's about it....

Lors

Lors,
I dont deal with any of the yen so sorry cant help. As for the gbpusd I was losing hope but then it came around. As for the gbpaud sorry to hear that. But this is why you need other filters to help keep you out of these trades that go against you. If you use the macd default settings you can see that it was decreasing getting closer the the 0 line. The stocholastic default settings was forming a W. just those two alone is why I didnt jump in. Also you want to cherry pick your trades cant just go with everyone. good Luck keep the faith.
Paul

i see the following pairs,

nzdjpy - short

audnzd - long (hammer)

cadchf - long

audjpy - short

eurnzd - long

eurgbp - short

usdchf - long ?

gbpnzd - long



my interest will be on audnzd, gbpnzd and audjpy.

ony took 1 trade from the abpve.

short eur/gbp.