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Swing-Hi trading System

  • #1
  • First Post: Edited 11:31am Dec 6, 2014 5:19am | Edited 11:31am
I had been on this forum for some years gathering experience from other expert traders but I feel its high time I make my own contribution to the forum. i had been trading this system manually with over 95% winnings nipping between 5 to 10pips per trade. It works perfectly on any low spread currency pairs like EUR/USD, AUD/USD, EURAUD, NZD/USD, GBP/USD

BASICS
When you look at forex charts of those currency pairs listed above (15M,30M, 1H, 4H, etc), you will notice that a particular pattern repeat itself quite often. it can occur up to 10 times/ day on a particular currency pair at different time frames. the higher the time frame it occurs, the higher the profit.

THE PATTERN
BUY Pattern: It takes 2 candles to complete the pattern. the previous candle closes lower than the open price while the 2nd candle must be lower than the previous candle and at the same time must also be higher than the previous candle's high but closes more than the opening price. This pattern simply shows the entrance of big player/s in the market with sharp reversal or continuity of the trend.
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  • #2
  • Edited 6:20am Dec 6, 2014 5:39am | Edited 6:20am
SELL Pattern: This is the opposite of the buy pattern stated above
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  • #3
  • Dec 6, 2014 6:31am Dec 6, 2014 6:31am
Thanks for the simple system. So you mean for a time frame of 30mins, you will pursue just 5 or 10pips? And what is your sl?
  • #4
  • Edited 7:04am Dec 6, 2014 6:41am | Edited 7:04am
Quoting Obi
I had been on this forum for some years gathering experience from other expert traders but I feel its high time I make my own contribution to the forum. i had been trading this system manually with over 95% winnings nipping between 5 to 10pips per trade. It works perfectly on any low spread currency pairs like EUR/USD, AUD/USD, EURAUD, NZD/USD, GBP/USD BASICS When you look at forex charts of those currency pairs listed above (15M,30M, 1H, 4H, etc), you will notice that a particular pattern repeat itself quite often. it can occur up to 10 times/...
Big Like for the idea! I will forward test it myself next week in trading.
Since you say it signals entrance of big players in the market then volumes should be checked as well for the confirmation, would you agree?

Thank you,
Dragos

edit: what about this setup?
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  • #5
  • Dec 6, 2014 7:43am Dec 6, 2014 7:43am
Quoting Obi
I had been on this forum for some years gathering experience from other expert traders but I feel its high time I make my own contribution to the forum. i had been trading this system manually with over 95% winnings nipping between 5 to 10pips per trade. It works perfectly on any low spread currency pairs like EUR/USD, AUD/USD, EURAUD, NZD/USD, GBP/USD BASICS When you look at forex charts of those currency pairs listed above (15M,30M, 1H, 4H, etc), you will notice that a particular pattern repeat itself quite often. it can occur up to 10 times/...
So in other words, you are trading the engulfing/outside candle pattern.

Do you enter at the open of the candle or you wait the break of the pattern high/low ?
MT4/MT5 EAs/Indicators/Alerts coder
  • #6
  • Dec 6, 2014 8:49am Dec 6, 2014 8:49am
Nice and simple. I like the idea.
  • #7
  • Dec 6, 2014 9:17am Dec 6, 2014 9:17am
it's the quick stop take and reverse.. is this not what everyone watches for an entry?
  • #8
  • Dec 6, 2014 9:19am Dec 6, 2014 9:19am
my two pennies..

on really short term time frames, a little divergence in say a stochastic 8,3,3, or something similar (fast RSI maybe) is another nice confirmation to a smash and grab for a few pips..
  • #9
  • Dec 6, 2014 11:14am Dec 6, 2014 11:14am
Quoting FerruFx
{quote} So in other words, you are trading the engulfing/outside candle pattern. Do you enter at the open of the candle or you wait the break of the pattern high/low ?
for a buy, you wait until the new candle breaks lower than the candle 2 close,


For sell , you wait till the next candle breaks higher than the previous candle close (candle 2)

please note that it must break lower than the previous candle(candle 2) close before you place your buy trade and it must break higher than the candle 2 before you sell. this happens 98% of the time.

You take your profit after 3 candles from the candle 2 if your take profit has not been hit. sometimes if the trade is very slow, you exit trade after the 3 candles at minimum profit but no loss.
  • #10
  • Dec 6, 2014 11:23am Dec 6, 2014 11:23am
Quoting dragos_
{quote} what about this setup? {image}

You take your profit after 3 candles from the candle 2 if your take profit has not been hit. sometimes if the trade is very slow, you exit trade after the 3 candles at minimum profit but no loss.
  • #11
  • Dec 6, 2014 11:57am Dec 6, 2014 11:57am
Quoting dragos_
{quote} what about this setup?
See also other buy signals from your chart
Attached Image
  • #12
  • Dec 6, 2014 12:04pm Dec 6, 2014 12:04pm
Quoting Obi
{quote} See also other buy signals from your chart {image}
Thanks. Is clear you have a trained eye
  • #13
  • Dec 6, 2014 12:17pm Dec 6, 2014 12:17pm
Quoting easy123
Thanks for the simple system. So you mean for a time frame of 30mins, you will pursue just 5 or 10pips? And what is your sl?
Remember that I said the pattern can occur up to 10 times/ day on a particular currency pair at different time frames, Now imagine trading this on 4 different currency pairs and at different time frame. The only problem we will encounter here is how to place an alert to notify us with sound when, which currency pair and what time frame it has occurred. To this regard I hereby invite programmers on this forum to code a simple indicator that will be based on the basic above to give us alert when attached to a chart. I will be glad to see us contribute to the development of this system.


For the sl, I use mental stop of 10 to 20pips depending on the time frame.
  • #14
  • Dec 6, 2014 12:39pm Dec 6, 2014 12:39pm
Quoting Obi
{quote} For the sl, I use mental stop of 10 to 20pips depending on the time frame.
  • #15
  • Edited 10:36pm Dec 6, 2014 12:52pm | Edited 10:36pm
Quoting mvp77
{quote}
the best sl for this system on buy trade is to set your sl at the previous candle low (candle 2) and on sell, you set your sl at the candle 2 high But the reason I use 10 to 20pips mental stop is because some candle 2 high or low are more than or less than 20pips
  • #16
  • Dec 6, 2014 1:44pm Dec 6, 2014 1:44pm
Quoting Obi
{quote} for a buy, you wait until the new candle breaks lower than the candle 2 close, For sell , you wait till the next candle breaks higher than the previous candle close (candle 2) please note that it must break lower than the previous candle(candle 2) close before you place your buy trade and it must break higher than the candle 2 before you sell. this happens 98% of the time. .
please explain this with a diagram or with a chart please

thanks
  • #17
  • Dec 6, 2014 3:29pm Dec 6, 2014 3:29pm
Obi Nwannem Ndi Ocha ji anyi akpari amu here http://www.forexfactory.com/showthread.php?t=516654. biko try ka anyi mechie fa onu. Kudos. eso me gi na azu Nwannne.
  • #18
  • Dec 6, 2014 3:46pm Dec 6, 2014 3:46pm
Obi I started a thread similar a long time ago

http://www.forexfactory.com/showthread.php?t=340503

I called them exhaustion candles (others called them kraven candles lol) the main difference is you are waiting for the exhaustion candle to close lower/higher then the first candle which is a smart idea . I felt the thread had run it's course although the principle was pretty sound.


EasyRider created a brilliant indicator for me that highlights the exhaustion candle, all you have to do then is see if it closes lower/high
  • #19
  • Dec 6, 2014 5:16pm Dec 6, 2014 5:16pm
Quoting kraven
Obi I started a thread similar a long time ago http://www.forexfactory.com/showthread.php?t=340503 I called them exhaustion candles (others called them kraven candles lol) the main difference is you are waiting for the exhaustion candle to close lower/higher then the first candle which is a smart idea . I felt the thread had run it's course although the principle was pretty sound. EasyRider created a brilliant indicator for me that highlights the exhaustion candle, all you have to do then is see if it closes lower/high
Those exhaustion candles combined with divergence and/or support and resistance make for a nice simple system.
  • #20
  • Dec 6, 2014 5:34pm Dec 6, 2014 5:34pm
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