Trading is as simple as ABCD

Hello Clivepackham!

I am very SAD to hear about your Dad.

May GOD rest him in peace.

I can realize it is a great loss for you and
For your family. It is irreparable but this
Is life we have to move on until our last day
Comes.

And I pray to GOD:

O GOD, grant us the Serenity to ACCEPT
The thing, we can not change, AND

COURAGE to change the thing we can. AND

WISDOM to know the difference between.

USD/CHF formed a perfect ABCD in 5m chart

An ABCD from this morning.

http://www.forexfactory.com/showthre...95#post7493495

Hi Donika and Mingary,

Many thanks for 2 great examples of ABCD patterns. Great stuff.

I've attached Donikas example because it actually shows 2 very nice examples of ABCD trades one after the other, but I also wanted to use it because it lends itself nicely to my strategy.

Notice how the 100LWMA (red MA) is sloping up at about a 45 degree angle?
The 15 min CCI (lower one210 period)has just given a buy signal(crossed up from below the -100 level and is generally above the +100 level?
Notice how the 1 min CCI (top one 14 period) has given to 4 quality signals including the 2 BC moves?

Well that guys is basically my system. It works on any timeframe too we just have to adjust the lower CCI periods depending on the higher time frame you are using.

I will now endevour to explain my system in a couple of fairly short posts as it appears to be the best way for me to post at the moment until my posting problem is sorted, so please bear with me I will explain it all.

Ok I will do my best to explain my strategy.

Very basically I look for ABCD patterns as described in post 17 above, looking to buy or sell the pullback. Sometimes I enter on the break of B too, a breakout trade.

But as I stated above there are literally hundreds and thousand of ABCD patterns all over our charts so how do we decide which ones to trade or more importantly which ones to leave well alone.

Well I only trade the ones in a strong trending pair or rather a strong momentum move going on. How do I identify a "strong" trend or momentum, quite simply by the steepness of the 100LWMA (don't trade when its flat). I even have an indicator which shows me the steepest sloping 100LWMAs, my Top 8 Trenders Indy, it basically measures the steepness of the 100LWMA (you can set it for what you want) the theory is that the steepest sloping MA is the strongest moving pair to trade.

To find out more about this indy and how it works checkout my post on this thread post 2124 http://www.forexfactory.com/showthre...62928&page=107

I've tried copying the post and posting here but to no avail, sorry.However I will try again after this post to post it immediately here.

I have attached the top 8 indy here for anyone who wants it.

This version should run on all brokers platforms, Ted has added 2 more input values prefix and suffix all you have to do is try it first to see if it runs ok. If not then check out your brokers symbols and if they have a prefix (something in front of symbol) then put it in the new prefix input when you load on the expert. If however your broker has something after the symbol then put that into the suffix input.


So back to the strategy, well just look at the top 8 trenders and look for an ABCD setup in the direction of the trend. For further confirmation that the pair is trending strongly checkout the 15 min CCI (210) is over the +100 level or there abouts signifying a strong trend is in place on the 15 min timeframe.

I also look for the 15 min to have just given a buy signal but more about this later as to why this is significant.

Now you've established you have a strong trend/momentum in place look to enter on the BC move (pullback) usually identified by a nice signal on the 1 min CCI as shown by the yellow vertical lines. I sometimes wait for the pullback to go over the 100 level to qualify as a good signal but to be honest a swing in momentum is all thats needed.

Place stop behind last high , move to BE fairly quickly 3 to 5 pips or so.

Exit when momentum starts to fade or target D, AB=CD apparently but I am not so sure so just take profit when momentum flounders.

Thats it in its simplest form and as I say works on all time frames and all pairs as long as they are strong trenders, thats the key for me to this whole strategy. You will find that momentum indicators like the CCI work very very well in strong trending pairs.

Theres another great example of this working below with 7 out of 8 winners.

I have more to talk about but will have to go now as getting late and want to be up early tomz for London open.

Any questions please ask.

Very interesting strategy

Hello

Interresting indi, but freeze my mt4, I replace the sleep(2000) by a sleep(200) and now working fine.

Thank you

Hi Clive

I am sorry for your loss, I know how it feels.

I think I am at a loss with this ABCD

Hmmmmmmmmmm

Hi Clive,
First of all ...Please accept all my sympathy for the loss of your dad!...I lost mine last year too and i feel for your loss.
My reason to reply to you...even though i am new here and to trading ( My job got offshored...you know the drill!) and very keen to learn trading ( BTW...your dad's words are so true in every aspect of our lives) i noticed something else regarding that screen shot. It looks to me as if the market moves in 3s...i will explain...
Looking at the ABCD example above...at the first A...there seems to be a /\/\/\ towards B then a drop to make the C...then an other lot of /\/\/\ then a drop ( approximates here ...the market is no perfection)...then an other and last lot of /\/\/\ then a much deeper drop...Further more...each high and low formed a Support or resistance and matched bounce points ( again approximately) from the past.
You will notice about 4 times from the bottom up that old resistances have become supports.
It is worth noting that marking those past support and/or resistance lines might give you an extra added reassurance as to where the bottom or top might bounce off from.
I am sorry if this is very simplistic but as i said i am very new and still learning a lot...It was just an observation looking at your screen shot.
I noticed in the past as well that often the market makes these 3 or 4 peaks then has a big drop...Seems to be doing it in lots of 3 higher highs and higher lows ( and vice versa)
Also what i do regardless on what time frame i trade on...for example if i trade on the 4H...I bring up the weekly chart...scrunch it all up ( minus it so you can see well in the past ) and draw 4 SR lines as long as it touches at least 2 points in the past ( the more the better)...then bring up the daily chart and do the same...only 4 lines...then i go to my 4H chart and draw 4 there as well and adjust up/down the other lines...they serve as a guide for potential bounces. I also have a look at the trend on the next-up chart ( daily chart in my case) to determine the trend direction.
Again...sorry if i butted in...it was just an observation.
I very much appreciate your post...
Would you be kind enough to share your template and indicators? i really like the idea of an overview like the one on the left of the screen and the indies help as well
Kind regards
Dennison ( lady )

Hi rkhan

I am going to trade London open and New York open "Live" so will struggle to answer your query, I will try to answer some queries as I go but in the heat of the battle might struggle.

However I will carry out an end of day review of my days trades and set some time aside to answer any queries I miss, so please bear with me OK??I will get back to you soon as I can.

Cheers Clive.

Ok heres how I am gonna run this thread.

Everyday I will trade the London and New York open with a "Live" account posted on my Explorer,I have set aside £500 (10% of my personal savings for this purpose) but will only trade £100 at a time, more on my money management system later.

I want this thread to be totally honest and open, in my Fathers memory as he was the most honest and trustworthy person ever, so you will see everything I am doing, losers and all!!!

I will try to post my set ups and my morning analysis as I go but as I will be trading 1 minute timeframe I will post as and when I can.

At the end of the day I will review my days trades good and bad and we will learn what we can from them.

I will answer queries whenever I can during the day but my focus will obviously be on my trading. However I will endevour to answer any I miss at the end of the day. If however I miss any please feel free to post your query again until you get an answer.

I will post more details about my trading strategy as I go eg money management, higher timeframes,dealing with emotions , end of day stuff etc etc

I am hoping that the process of doing this thread will help me to become the successful trader I want to be.

Wish me luck and enjoy the ride, I am sure there will be many bumps along the way.

Happy trading.

[quote=clivepackham;7496070]Ok heres how I am gonna run this thread........

Clive,

Maybe I have missed this point, anyway I will ask the question: how do you determine when "C" is formed?

Thank you.

Hi Dennison

What you have very wisely noticed is known to many as The Elliot Wave theory, Its an enormous subject but very basically he talks about there being 3 waves to any move on the markets.

I am not gonna start discussing it here as it will start an avalanche and although I do keep an eye on the waves whilst trading its not a major part of my strategy.

I suggest you google Elliot wave and have a good read about it.

Hope that helps Clive.

Just a quick note for the sake of clarity and honesty. The poem my father gave me that day was not written by him it was written by Walter D. Wintle and its called "Thinking".

http://allpoetry.com/poem/8624439-Th...alter-D-Wintle

Many thanks for all the kind words.

BOJ Governor "What did I say??? What did I say????"



I can feel a post news trade coming on????

Hmmmm???

I'm really interested in this pair this morning as its obviously a bit lively. But then when is GBPJPY not lively???

Now its either gonna go up or down from here so all we have to do is decide which way?

15 min CCI just signaled to buy but after the news I am not so sure? Would like to see it break that 170.87 level and retest it myself before buying?

As for selling well its come a long way already hasn't it but then some news events will push a pair one way all day?

Just not sure right now so gonna sit on the fence for a bit and see what happens.

It can only go up or down from here ,????

Will I tame the Dragon or get burned alive????

Got 2 choice I guess up or down??

Hi Clive,

first of all I am very sad to hear about your dad. I believe he is watching at you and take care about you.


This is a very interesting thread, I will go on vacation soon, but after I am back I will give it a try.
Could you please attach the trend-cci indicator? That would be great.

I wish you all the best andd see you again after vacation.

Best regards,
Peter

Gotcha!!!!

He wriggled and twisted and turned a bit but I got him in the end.

Now the question is have I caught the Dragon by the tail??? Is this todays low??? Should I hold for the day???

Hmmm just catching a dragon is one thing holding onto him is another thing altogether!!

Isn't the CCI 210 still down as for your rules?

Hi Lucariga

First of all I don't really have "rules" as such I see them more as guidelines and also by nature I am afraid I am a bit of a rule breaker.

But actually this is one of my setups, as I trade 15min CCI turns as they are 1 minute trend reversals.

Now a CCI buy signal is when it crosses up from below its -100 level just like a sell signal is when it crosses down from above the +100 level.

Have a look at the chart above you will see its crossed up from below -100 level.

Thanks for your comments hope this answers your query ok??