My Swing Trading System

Hi,
first of all excuse me for my English. I will try to be more accurate possible.
I want share with you the system i actually use in my real trading. Maybe it's not so special but for me is important have also your opinion.
I'm using it on Daily TF in all pairs.
Before i need to explain how i identify the swing. Very simple it's nothing more than fractal on 3 period. It's simple but maybe necessary attach some image:



now that i describe how i identify th swing ( Fractal) i need also introduce the swing of "Second DImension". It is a swing formed from 3 swing that i describe above:



The Second Dimension Fractal is probably useful in lower TF. In daily TF i use the Simple 3 Period Fractal Swing. Maybe the Second Swing can give us the informatino about trend tendency.

Tomorrow i will describe my entry and exit rules.

EDIT: 10/07/2013.
Share the first version of the manual.
Add an indicator. Default setting show fractal based on 3 period (First Dimension).

Ok. Now i will try to explain how i see the chart.
We have seen that a fractal is base on 3 candle formation For example High, HigherHigh, Lower High.
Then it's probably that when the second bars is formed it will be followed to the lower high candle.
Now i attach an image so you can understand what i mean




So the second high is very important. Now what happen when the high if this candle became break?.




. So the strategy is very simple.
We have to wait for the formation of the first two candle of a second dimension Fractal and put a pending order Above/Below the High/Low.
It's very simple but it's very effective.
Later i will post some live trading.
Waiting your reply and suggestion.
Regards
Dasio

Hi dasio,

It looks interesting and will follow. Waiting for your live examples.

Good luck with your trades.
BT

Thank you. I will post as soon as possible

hope to hear from you soon . tq

Hi dasio, thanks for sharing, interesting system

Am I correct to to say that, there is another entry on the chart you posted..... am trying to learn the 2nd dimension fractal here...

anyway, waiting for your live trade example and also your exit strategy as well as your initial SL.

Correct. There is a second entry in the trend. Trading the setup after the first is only your choise. It depend how the price move. However i will try to be more accurate.

Below you can find the entry doing today. The stop loss is on the first opposit second dimension fractal .

It's important to understand the price. Look at the below image.

from ur pic, you are finding the first low and 2nd lowest. is it right ??
what about no 3 ??
why you dont use fractal indicator ?

just asking ...tq

Yes i can also use the indicator but it's a personally choise.
In the image we can find the first time it failed and generate a second dimension fractal and the second time at "the same level" it failed and run to te upper
setup.
However i'm coding the indicator and share it tomorrow.

means that you wait for 1st fractal to fail then look for 2nd fractal right bro ??

No. It's only another mode to read the setup.
Maybe i have posted these other conditions too early. The basic rules are the rules describe in the first 2-3 post.

ok .. i'll wait for basic entry and exit from you ...

I'm writing a manual so i can explain well the method.

Good morning ​. Ok thanks.

When the setup failed and start to move in opposite direction, do you wait till it hit SL?

Since the SL is at the first opposite 2nd dimension fractal, which mean when the SL is hit, it is an entry for the opposite direction, rite?

Btw, does it matter how far apart between the Point 1 and 2 of the 2nd dimension fractal?


Ah, a manual will be great.... thanks

In the first post i share the first version of the manual. Let me know what is not clear so i can reply with you.
Regards
Danilo

Dasio, many thanks for sharing your strategy!...this is the current 1hr EU, if there is a valid setup please could you annotate the chart, with where the potential buy/sell orders should be?

Many thanks!

Thank you for your interest. The method explained is for daily TF. For 1 hr Time Frame there are different rules.
However for the image i see and the rules for daily TF there is only one setup and it is for buy entry.

OK, many thanks!

Hi dasio,

Here are 3 pics, Trade 1, Trade 2 and Trade 2a. Trade 2 and 2a are the same, except that the SL placement is different.

Trade 1:
http://i1213.photobucket.com/albums/...aatu08/EU1.png

Trade 2:
http://i1213.photobucket.com/albums/...aatu08/EU2.png

Trade 2a:
http://i1213.photobucket.com/albums/...atu08/EU2a.png

Question:

1) Both Trade 1 and 2 valid? You mentioned before "Trading the setup after the first is only your choice", what does that mean?

2) Assume Trade 2 is valid, which SL place as refer pic (Trade 2 & Trade 2a) are correct?

Thank you