Alien's Extraterrestrial Visual Systems

EUR/USD Daily-
This could be another Stochastic slingshot. Fiber can climb a little more before falling.

Completely agreed. H4 is already in the process of forming an ADX squeeze and hasnt shown any momentum on the move upwards. RSIOMA looks like it may take a while.

Stay tuned for the FOMC Minutes!

Well, euro is going up and usd is going down. If the 8,3,3 sto on daily tf (for the slingshot setup) stays more time above 80 level it won't work imho.

finally discovered the secrets of stochastic, and I must say alien, was the best person I met in this forum, through which they teaching this topic, I have no words to describe how grateful I am for everything he has done for us here, deserves gratitude possible in this universe.
saved me many years of learning, I must say I'm feeling a stranger now, neither in matrix, when we see the codes of software agents in the world matrix lol
the system only with the color stochastic, we can take the wealth with all TF frames.
Thanks for sharing this perfect system.
MASTER ALIEN

Sold short GBPJPY, but I am second guessing. Please share your thoughts...
D1 chart, it appears that RSIOMA is on the downward trend about to touch 50. Delayed Stochastic just touched 20.
D1 color stochastic 8,3,3, about to come up, both 21 and 100 days are clearly coming down.
ADX rising reflecting strong down trend.

4H
RSIOMA and Delayed Stochastic appears to be on the up trend
color stochastic 8,3,3 about to turn to come down. 21 and 100 days are close to the bottom but 21 day about to come up.
ADX was rising but the lower speeds are coming down (still down trend)

1H
RSIOMA about to touch 80 (up trend)
Delayed S about to come down
colored Sto signaling upward move
cant make much sens of the ADX on this time frame.

thanks much!

AWCHARTS:

Here's what I think of GBPJPY using Alien's top-down approach to analysis:

Monthly RSIOMA - pointing up, below its average but above 80
GREEN STOCHASTIC – flat and above 80
8.3.3. STOCHASTIC – Fresh cross at OB level
ADX – Advanced Kerry ADX flat, other ADXs are mixed
Bollinger Band – Price recently bounced off of the average
On the Monthly chart the picture is bullish.


Weekly RSIOMA - pointing up, below its average but above 80 – does not suggest a trend change
GREEN STOCHASTIC – going flat and > 50 – does not suggest a trend change
8.3.3. STOCHASTIC – Fresh cross at OB level – suggests a potential correction in larger trend
ADX – Advanced Kerry ADX flat, other ADXs are mixed, but 89 & 144 are still strong to upside – suggests a correction possibility
Bollinger Band – Price recently bounced off of the average
BB Squeeze in progress – 27 weeks worth of consolidation
On the Weekly chart the picture is bullish.

Daily RSIOMA - pointing down, below its average and near 50
GREEN STOCHASTIC – pointing down and at 50
8.3.3. STOCHASTIC – Fresh cross at OS level
ADX – Advanced Kerry ADX strong down and rising, other ADXs are mixed – not the moneywave.
Bollinger Band – Price touched bottom band and bounced
On the Daily chart the picture appears to be the completion of the first leg in a correction of the larger uptrend.

H4 RSIOMA - pointing up, above its average but still below 80
GREEN STOCHASTIC – pointing up, just passed 20 level
8.3.3. STOCHASTIC – very recent strong cross to the upside with support from the price action itself.
It should be noted that all 3 stochastics were bunched up at the OS level, which often occurs at tops and bottoms. Look especially at the 5 leg pattern of the 8.3.3 (waves within waves). Likely this is “Leg C” – the final leg in a correction.
ADX – Advanced Kerry ADX strong down and rising, other ADXs are mixed
Bollinger Band – Price touched bottom band and bounced. It’s now above its average
On the H4 chart the picture appears to be the completion of the first leg in a correction of the larger uptrend.

H1 RSIOMA - pointing up, above its average and above 50
GREEN STOCHASTIC – slight slope down but near 80
8.3.3. STOCHASTIC – very recent strong cross to the upside with support from the price action itself. In fact this is a slingshot trade
ADX – ADXs are mixed
Bollinger Band – Price touched bottom band and bounced. It’s now above its average

On the H1 chart the picture appears to be the completion of the first leg in a correction of the larger uptrend.
Now if you look at just the RSIOMA it tells you that the 2 larger timeframes are still bullish. H4 tells you that it’s bearish, BUT the H1 is now bullish. This alone suggests an end of a correction and H1 is tipping you off. That's how I see it anyway.

Going short now really goes against the basic tenets of the system, that being MOMENTUM. In this pair there is no real momentum to the downside. Not yet anyway. Now if you were to look at lower timeframes you could find justification to go short. But since the lowest timeframe you posted is H1, I'm assuming that you're looking for a more sustained move.

Eur/Usd Daily - update -
setup on stochastics is still there. We are now in wave 4 and usually in this wave we're looking for best levels to sell the pair. So watching PA and waiting for the turn. BBS and ADX contraction on lower TF will be the clues.

I´ve got a question for you all. If we would like to trade, say the Daily and we enter a trade on the Daily, are we not effectively trading the Weekly then?

Don´t we have to enter trades one timeframe abelow the one we´d like to trade? Since the green stoc is the black one on the higher timeframe. You know what I mean?

I think i get what you mean. The core idea of the system is to find a setup, then drop down and be patient until ADX-confirmation in the direction of the setup. In your example, you'd need a setup on the weekly, and then enter when the daily confirms direction.

Any trade on a low TF can evolve into a higher TF trade during its lifetime though : if i enter a trade on M15 ( after finding setup on H1) and decide to stick with it until there is no more ADX 89/144, I can keep an eye on the H1 ADX's. If the M15 ADX drops away but the H1 ADX is going strong, I'll move stoploss to BE or better, and consider it an H1 trade instead of M15. If I'm lucky, i can do this again and again, until I have a trade going on daily, while only risking a stoploss on M15. Depending on the pair, that's a stoploss of 30-50 pips instead of 200-300 pips.

Dropping TF's not only gives you earlier entry, it also limits the size of potential losses.

[quote=yaysayer;7790315]{quote} I think i get what you mean. In your example, you'd need a setup on the weekly, and then enter when the daily confirms direction.

Excactly.

Regarding the ADX, I still can´t make it work for me. To be fair I said the same thing about the RSIOMA some time ago, I get its importance now.

I´d use it in the same way as you yaysayer. If I was entering a trade on the 1H and after I already entered the trade I could use the ADX and see whether they are expanding. So I could make the trade a higher timeframe one. But to actually use it to ACTUALLY enter a trade I still find that hard to do. Of course it expands, but you know that berfore the fact?

Don´t get me wrong I think its a great way to trade. It took me some time t get my head around. Since the ADX seems very important I don´t really want to disregrad it.

Dear forexalien
i am new to this forum.i download indies from page 4 after installing it is not look like chart in this quote. can you provide these indies and temp

kind regards

I don't know a damned thing before the facts, at all

Could be I'm mireading you, but are you trying to predict the 5 ADX expansion? You're not supposed to do that The point of dropping down from H1 to M15 is to capture the move sooner, but still only AFTER candle close on M15 that shows all ADX rising. You'll miss a bit of the leg, but you'll be in much faster than waiting for H1 ADX to be rising.

This is annoying to put into words, I'll go dig for a good example and have some fun marking charts to illustrate.

EDIT : some pictures.

The important bits are obviously the red lines. On the weekly, ADX only started rising in september. Using the stoch cross setup on the weekly (visible half of july), and waiting for ADX expansion on daily, we could have captured that same move almost 2 months earlier, with manymany extra pips. I added the H4, which would have given you 2 extra days of pips.



H4 screenies are being idiots, for some reason i cant get the D entryline to show on the H4. try it in your own MT4


Adding that H4 seems silly with this end result, because the extra is so small. However, there are many more H4 trends than D trends. Starting by capturing the H4 trends (according to D setups) allows to slowly build profits every day, and when the H4 trend turns out to be the D direction = BINGO!


Being fully honest : i tried dropping one more to H1, but in this case something silly happens. The expanding ADX on H1 shows up a day or two AFTER the expansion on H4. Strange.

Regarding the 1H. Yes, I know, sometimes it´s not "rational" I´ve noticed as well. I´ve been trading without any indicators or very little for some some time, and fairly well actually. But I relaized using indicators is actually quite beneficial if you can use them correctly and also understand PA a little bit.

So, yeah I think I wanne jump the gun sometimes, I have to get used to confiramtion again I think.

You´re example did get a point across, thanks. Also, you know what I´ve just used your template (light version?) for the first time and I can actually see the ADX´s As a whole I prefer the other template, but I can´t see s... on the ADX there

cheers

Hehe, I'm the opposite. Can't wrap my head around pure PA trading except for major S/R levels on daily. Probably just waiting for the lightbulb to go off...

Once I really realized indicators show the past and not the present, and certainly not the future, i got my indi-trading AHA-moment : I'm looking for imbalance; not prediction. And this system rocks at that.

Now look at this:
Oil 1H -
Clear downtrend so we wait for a good opportunity to sell.
On H1 today we could see a Ds trade and a lot of BBS. On ADX we had a compression and than expansion and on Stochastics we had a slingshot.
As a result we could have made 230 pips in few hours. That's the power of Alien's systems.

perfect friend, great analysis,
'm focused on EUR / USD, and seeing the correlations.
so I apply orders only looking at the TF tables in EUR / USD
EUR / USD and USDCHF are inverse
When You buy one, sell the other.

Hi Hugo, do you mind sharing what you discovered about Alien's Stochastics?

Hi Alien,
I have an elementary question. is the rubber band effect less effective when the buy/sell line is reversed between the RSIOMA and Delayed Stochastic?
you see the green stochastic is about to cross red; downward movement. And the RSIOMA blue buy line is above the purple line; upward movement.