{quote} This looks great stuff , tremendous effort , Thanks so much , I only just found your thread and not quite sure yet on everything about your method but it looks so promising -- now I have to study it fully .
Just be careful reading through the thread as there are some confusing messages here where I was finding my path myself with the strategy but I am confident of where I am now so probably best if I sort of restart the thread from here and post my strategy over the week end. Its all here one way or another but just have to clarify a few points.
My main belief is that trading is very very simple but we all over complicate it with over analysis to paralysis.
The bottom line is it can only go up or down. Sure I know it can go sideways too but you shouldn't lose if it goes sideways only if it goes the opposite way to your trade. So if it can only go up or down then the only question is when??? When do we enter??? When do we exit??? Thats about it really in a nutshell.
Oh there is one little complication to that of course, it never ever travels in a straight line, it moves in waves. But as long as we remember that then we should be fine, just got to identify the top and bottoms of these waves.
So heres the start of the new thread from here, lets have a look at these waves that we are trying to ride, shall we??? Best to know what we are trying to catch before we set about our task.
Now have a look at this chart because this is the secret to trading and I shall try to explain exactly what we are trying to achieve here....once you know our goal then achieving it should be simple....
This chart below is the GBPAUD 5 min timeframe zoomed out as far as we can with a 200lwma on it coloured green when it goes up and red when it goes down, all we gotta do is ride those waves. It covers Monday to Thursday this week each day seperated by the white vertical lines. Underneath we have the CCI indicator with a lookback period of 14. The top one is the 5 min CCI the middle is the hourly CCI and the bottom the 4 hr CCI. Notice how they are all waves within waves, the 5 min waves up and down in the 1 hr waves and the 1 hr waves up and down in the 4 hr and the 4 hr would wave up and down in the daily if I could fit it all on. The daily waves up and down in the weekly and so on and so on. get the picture??? waves within waves.
All we have to do is choose the wave you want to trade then trade it. How??? Simple look at the last wave on the right of the chart that I've put yellow lines on and you will see what we have to do.
Notice how the 1 hour and 4 hour have both gone overbought on that last 5 minute drive up?? Well what goes up has gotta come down and sure enough it does, notice how the 1 hour CCI starts to slope down from above the +200 level, now all we have to do is drop down to our 5 min CCI and look for every time it goes overbought +100 level and as it turns down again sell it. I've shown 3 quality entries to illustrate the system. The safer 2 entries is after the 200lwma turns red but there is an earlier one for the brave of heart. One thing to take note of is that they are lower highs(LH) preceded by Lower lows(LL) this of course is market structure only ever sell LH's or double tops (DTs) only ever buy HL's or double bottoms (DBs) and you can't go far wrong. One final point is that the best entries in any new trend is the first LH or HL as it ensures larger RR's.
Have a look at the other waves for yourselves and you will see its the same story there with the 5 min CCI's providing nice entries.
So heres what we are going to do here from now on, trade the higher timeframe reversals entering on the lower timeframe CCI sgnals, This will mean low risk entries with high rewards. I'm looking to enter on the first couple of CCI signals and hold until the 100lwma changes colour.
Heres the same chart with a 100lwma just for simplicity I will use the 100lwma most of the time but I thought the 200lwma above showed the waves better.
Choose the timeframe you like to trade then look at least one timeframe above if not two up.
Thats it guys simple as that!!! Now I said simple but not "easy" as its easy to spot these moves looking back but not so easy going forward but thats our goal.
I will fire up my trade explorer for next week and lets see how we go????
Feel the Fear and do it anyway!!!
