The7 Trading System

Which ever ones you feel comfortable with and have a good understanding on how to use them. I use Fibonacci levels, candle patterns, stochlastic, zigzag, supply and demand, rsi. Each one helps in its different way and gives me a total picture of the possible trade. But first I look for that candle opening outside the channel and then closing inside. Then seeing what the other indicators are telling me. And which ever pair gives me the best possibilites thats what I go with.
Good Luck
Paul

Why the Daily Bars Rule:


I tried andre. 60 min and 4 hr charts for a long time. It doesnt work. This system is no good for anything but daily charts.
Here is my theory on "WHY". In a 24hr period many of the 4 hr and 60 min bars have no meaning because there is so little volume on them. So they get mixed into the band creating false signals. But in a daily bar, the big boys are ALWAYS there someplace. Make sense?

I also want to point out that while not part of the system, Im jealous of that long gbp/usd decline and in hind site, this system would work some of the time...but using a 20 moving average would get you the whole move down. Now I will try to get his results but I noticed this because I often keep the 20sma on my chart but also because someone here is trying to use this system by following it exactly until they have enough profit to go to break even, and then they allow the pair a lot more room to run by using the 20ma ot get out, not a break of the band and he has been killing it. I need to find out if nhe is just lucky or if after 3 days of profit, you can do better by moving to the 20ma for your stop. Im not convinced just yet. If anyone wants to back test that and get back to me on a couple of pairs, that would be cool.UNTIL WE HAVE PROOF......

STICK TO THE RULES THE 7 GAVE US. -)

I use support and resistance levels. FIBO show the same levels as the history of. 20sma Make a Difference?

Andre,j07,
Use what you feel comfortable with and what you like. this will help with confidence in trading and decision making. What works for me may not work for someone else. But support and resistance levels are important and co-inside with fibo levels pretty much. try to keep it simple.
Paul

I have a situation. 1 deal covers 4 - 5 trades. Some time had to endure losses.

Sorry but you lost me I dont understand what your trying to say

+1 deal= -4 deal. Ok? You anderstand me?

makes tons of senses. this post of yours may be the most important piece of knowledge of this system over these few months. it fits my feeling so well and explains why, thanks!

Hi haymaker1.
I would like to ask you - is it possible to program in your indicator "The7 TS.ex4" to record signals of arrows in 2 additional buffers (2 and 3)? In that case, it will make possibility, through function iCustom, to program dashboard for monitoring of many currency pairs in one window.
In advance thanks for the answer!
Excuse for my English

Volume rules!

What I came here to mention was I'm looking at the volume on most of these charts and on the 60min bars where real volume can RARELY hide, WHEN YOU CANT SPOT IT ON THE DAILY, its too small, and 4 hrs as well, the biggest volume bars are producing the smallest bars. That is totally opposite of what happens when a prolonged move ,even of a few days takes place. It is the same to a lesser degree on most of the pairs.SIMPLY, RECENTLY WE ARE GETTING MOVES WITH LOW VOLUME BUT THEY USUALLY ARE FAKE OR SHORT TERM SOMETIMES JUST ENOUGH TO GET YOU IN AND THEY SAY GOOD-BYE. Volume is telling me that for right now: THE BIG BOYS ARE JUST WATCHING....OR HOLDING. This will make playing the 7 system a bit rougher but thank God for that 1 bar loss to keep us safe. As usual as I always claimed the set-ups with big solid engulfing bars are doing the best,.Juts look at the setups where the bar goes they both bands. The success rate on them is stll high and is in fact one of the few setups that I can see that is still dependable at the moment. Problem is because volume is so,so low we are hardly getting any of them. But I am astonished that on the eur/nzd 4hr bars where I "Go hunting for the elephant"WHEN IT DOESNT SHOW ON THE DAILY VERY CLEAR, as an elephant(institutional volume) the only bar with big volume is some doji,tiny hammer-ish looking thing that is the tiniest bar on the whole chart!

Here is something interesting many of you might want to do or at least paper-trade. Only take setups where the biggest VOLUME bar out of the last 5 is going in your direction, and better yet if it is the next to last or last bar. I like the next to last bar in these crazy times because I like to see confirmation of volume for at least 2 days. I will settle for one if I HAVE to. But if you look at the triggering bar on the Eur/nzd. Look at that awful volume. And then on increasing volume you get 2 doji like anemic,sorry looking bars, even though you arent in losses on that trade, this is a MOMENTUM system. Those kinds of bars following the kinds of bars we get in on usually spell bad news. mT4 and almost every Forex platform has a way to show volume in ticks. We just want simple bars, not lines or graphs.

If...you absolutely love the setup and arent getting any volume confirmation, go to the 4 hr chart and if your direction doesn't have the biggest bar by far in the last 5-10 bars, or the biggest few bars by a small margin, you are just flipping a coin. You may be going with the trend, but remember this always:

The short term trend that has low volume on each bar, is a treend made up of gamblers and manipulators. I dont want my money following them, because they always "leave the party fast without saying good bye". I want my money following volume. Volume isnt always right, but volume usually means commitment to the trend, at least for the next several bars. A gambler/manipulators commitment may be about as long as a $10 prostitute, and we are the ones who get stopped out[color="Red"].("And left with the bill for the party.")

I'm grateful to even be posting this because I foret too often that the one guy who was my trading coach for almost a year said that "Volume is the best indicator on earth." Why? "It always reveals the truth."

And to me guys, the big volume when it appears is showing very small bars. That to ME, is telling is the big boys(together they make the one elephant) are pretty dis-interested in most pairs. Look! Even the EUR/USD WHICH ALWAYS IS TRENDING SOMEWHERE AND USUALLY HAS THE MOST VOLUME IS JUST DRIFTING ALONG LIKE A OLD HOBO. ***Is all the money being used to prop up all these JPY pairs? Stupid questions for stupid times where we are left in the dark! LACK of volume always turns a trader into a "guesser."


Im going to post this on the other SEVEN board for the rest. I should share it. Ignoring volume has probably cost me many thousands$$$$$ of dollars. If it helps one person................


MY POSITION IS FLAT FOR THE 7 SYSTEM. AT THE MOMENT I AM WAITING FOR THE ELEPHANT TO GET HUNGRY AGAIN AND LEAVE US THE FOOTPRINTS OF WHERE HE IS HEADING. RIGHT NOW ITS JUST SQUIRRELS,DOGS AND CATS LEAVING THE TRAIL AND I DONT FOLLOW ANIMALS THAT THE ELEPHANT CAN CRUSH WITH ONE STEP.I DON'T ALWAYS WAIT FOR HIM, BECAUSE HE SLEEPS A LOT ,BUT IF I DID I WOULD BE A RICH MAN TODAY. NUFF SAID????

Thank you charvo for your kind words. At least somebody is listening. -)

What my journal has just shown me about volume in the 7 system:

Over 80% of my biggest winners, meaning most pips... came with one or more of these criteria:

1-The last 2 bars/candles before entering trade were increasing in ***volume....and if the last bar having more volume than any bar in the last 5 candles that is big bonus , and, the last bar must be larger than the one before it or at last bigger than normal.

2-The next to last bar before entry is the largest volume bar and size bar with the last bar also being higher higher than normal volume, but never low!

3-If you get just a high volume last bar and it is not bigger than normal size candle...something is wrong. Dont play. Treat it like a doji candle.



Thats it. Hard to believe 80% of my winners came with just one of these "rules" attached to it.

LET ME AND THE BOARD KNOW WHAT YOU OBSERVE THAT ADDS TO THIS OR REFUTES IT. HAPPY TRADING!

And of course................So nice to the "The seven" back again on this thread. Let us all wish him well, and the best of luck in his real estate vocation.

Good to read your posting.
How do you tell if the REM is to be collapsed in V, BC?
Is it ok to PM you on this subject?

Definitively agreed.

Pls. share some charts to illustrate your highlighted points (wicks, RN, retracement vs. channel).
Cheers.

Hi Silat,

Volume is not something that I have looked into that much before, which volume indicator do you use?
I see 4 which I have included in the chart below that come standard in MT4.

I got destroyed by this mornings rediculous action. Any one else?

I clearly told everyone that even thpough its not in the system, France said it was bankrupt. Greece said it cannot pay back any money. 2 other EU countries had horrible news and the Euro kept going up. I then issued a warning in bold type to all of you:

EUROPE IS BROKE. LETS SEE HOW FAR THIS MOPVE UP WILL LAST! GET READY TO SHORT....

Yes or no? Well...... the brain surgeon that I am, I short the EUR/USD AT 1.3500,THEN GET KNOCKED OUT BY THE HAIR ON A ZEBRAS BEHIND 2 DAYS LATER. Small mistake on my part. I jump back in 100 pips lower and it was Christmas for 11 trading days down. I kept adding to my position and had 3x normal when a 400 pip bar of which over 100 pips was pure wick, taking out 3and 1/2 bars worth of stops by 9am reverses itself like "magic and plummets till 2pm, desroying both longs and shorts in one bar. I can assure all of you that the brokerage firms that hold the action for themselves were partying big this afternoon. They made money whether you were long,short, getting in, getting out, .The only survivers who profited were people who had a weekly high stop! Do you know anyone besides the institutions who would play like that.

This is why this game is soooooo hard. One anomoly like this and it can wipe out countless accounts or even with good money mgmt, can take away your whole months profit in 4 hrs. To make matters worse of not only us "7" players but most every other trader, all the JPY pairs did the same thing. The JPY went and did the same. Have any of you seem a bar that big as on the AUD/JPY. That bar belongs on a porn star, not a forex chart.

Guys, I am not happy (who is?) losing 4 weeks of profits on one 6 hr period, but Im very, very unhappy losing it on 1 6 hr period that is abmormal and that needs to be investigated.....and whats especially upsetting is all of us would have made a bundle in the end as the 7 SYSTEM had us on the right side. Who exactly was on the other side of the trades during those spikes when the jpy pairs gapped up like a 6 story building and came crashing down and who was oyt that made all those euro pairs spike like a cardiogram patient having a heart attack? Oh well.....lets see...we have no SEC. Who will look into this? ..................Nobody.

What are all those psychology books going to tell me? We all know. They will all say to take a break and come back when Im relaxed,right? Well, if I do that, when I come back the euro might be at .9500 against the USD!

So because I am more aggressive than many of you, I have re-entered some of the trades, (Im not missing out if this is a total collapse coming) but more conservatively. I must admit this reminds me of that flash crash of 3 yrs ago in the stock market where the Dow moved 1000 points in like what, 1 or 2 hours, or something like that? Well, you can bet the SEC investigated. Here....I think we are going to have more of these "Black Swan events" than ever before. I am just surprised it took so long for this to happen. But 2 events in one day? The Euro and the JPY pairs? Amazing. And the fact that I risked less than 8% of my total acct, even with ultra aggressive adding to positions, is that supposed to make us who got trampled feel better,according to Mark Douglas and all the psychology books. I have 2 words for them all: HAPPY BIRTHDAY! -(

Oh and about volume. The volume that came out of nowhere for one day on this, do you think it was an accident, or a well tied collaboration? Almost like a Forex Mafia? Did all of you know that 10 banks control 70% of all the voluke in Forex. I find this astounding that all the euro pairs and all the jpy pairs were all moving up and down at exactly the same day if not the same hour for 2-3 months already! No one investigates or even puts up a headline to ask how is this possible? I have many, many more questions I can ask you guys to ask yourselfves but, suffice it to say I am still in the same mode for now:

EURO:BEARISH!


Lets all be patient,calm down..... come back in short on the next signal.(If there is one for another 3 weeks. lol )

I think Im going to drink a lot of butt-weiser right now. How much do I need before I cant see anymore?

my experiences in backtesting feels that 70% of Sunday/Monday gap will be covered. this past monday is another example.

Please so disgusted only saving grace I got in the eurjpy candle. Easy now it was a fluke lol. Everything I have learned went out the window. I really felt like I was first starting with forex. Well hopefully it comes back lol.

Pattern on the EUR/AUD?

You heard me complain enough about yesterdays rediculous action. However...nothing happens in a vacuum. Everything is part of a pattern. What can we learn about yesterdays action to take advantage of this huge whipsawing,not be eaten by it. I see something right now, that I sware, I have PM'ed Paul about it 2 or 3 times already. This is a new pattern forming as of recently. The 72 ema. Look at the daily and hourly chart of the eur/aud and see how that 72 is respected on both ends, both ways! Wow. Now what does that have to do with the 7 system? Nothing..............yet.

I am just sharing with you guys something I am finding very,very valid over many months of research and that is the 72, odd of a number as it is, is getting a lot of respect by the big boys.

Do all of you know that 70% of the volume comes from just 10 banks. I never wanted to believe it, but do you think its possible all 10 have the same main moving averages pinned to their wall, or maybe the avgs they "know" the others use?

Picture this on the Wall at Deutche Bank (#1 player in the world by the way.Anyone bother to buy their stock?)

Goldman- 200,55,12
Citibank- 155,72,20
Bogus Bank- 202, 34,8 (long,medium,short term avgs.)

and on and on for all the 10 maybe even top 40 players! And do you think theyse banks are using round number moving averages when they know thats what every retail player was taught in books?

So if anyone notices anything coming up we can use in THE 7 SYSTEM with the 72ema let me know. Also, lets think how we can take advantage or get out of the way or not even be there during those spikes.

Volume: Oh yeah.....my friend volume. Most pairs showed no, and I mean zero increase in volume to show that this was coming. Thats why most of us are not able to use slowly increasing volume as we usually can to confirm continuation or change of trend. But it was all spelled out(for me anyway) on the eur/usd when volume on the daily spiked to double its normal which wasnt very much 2 days before and then the next day no action. I knew that money was being "set up" somewhere. I just erroneously thought it was on the short side. I keep telling you newbies. You cant have large movement for long(if at all) without large volume! Yesterday was a twisted bad example, but if you look at every single daily volume bar for every pair, I bet they all were at the high of the year.

Big volume = big bars.=big profits.
Little volume =wasting your time=small bars or no change in price over many days.=........."wasted time."

A great martial arts teacher once said to me..."In martial arts as well as business you can afford to waste money on bad teachers(systems) but you cant afford time. Because money you can always get back. Years of wasted time studying with bad teachers(systems) can never be recovered." LETS NOT WASTE ONE DAY WHERE WE DON'T LEARN SOMETHING NEW. AGREED?

iTS NOW 1:30PM. Volume is higher now on the eur/usd that it was all day yesterday. Yet all we have is a doji at the moment. Wow.....this thing could explode at any moment! Cant wait for tomorrow.

Now your talking about it going long?

Hello all,


The last time Mrs € got down to Mr $1.3000 in December of 2012, she flew up 700 pips.

Question? - Can we expect the same to happen again??

The Stockman