Trading is as simple as ABCD

Hi Clive

Have a good look at where the change of colour is for your exit, the 'give back' is quite substantial, I think you'll be surprised how much.

Great trading today!! The fast smooth ma is quite intensive on the cpu, have you noticed any problems?

Hanging on by the skin of my teeth....

Didn't look like it was going to go so pulled it for a 1 pip loss, see doesn't work every time does it?????

Yes I hear what you're saying but then again look at this GBPJPY chart first 2 entries after a turn down and 80 pips later we'd be about 150 pips up...would probably take a gamble and close out here wouldn't you??



but at least the FSMA kept you holding a bit further than we'd probably would watching the 1 min....I'm always getting shaken out.

Interesting though that it could work very well in rangy days and we can stop trying to hunt down those bigger runners that have proved to be so elusive up to now...

Heres another thought, we've also had the top trender turn on us a lot too so now we're be trading the reversal instead of worrying about it continuing . In fact maybe this might prove to be a very profitable way to trade the TTindy, when somethings been top for a while then gives us a reversal signal on our FSMA???

Lets have a skype call sometime and chat it over...

Is it just today??? This really seems to be working very well today.....heres a EURAUD sell just after the FSMA turned red , not quite a full signal but definately a nice pullback, I like these sort of swings in the CCI from up to down...



Knocked off at BE as I type... But I don't mind a lot have held today after just a couple of pips and to BE. Thats the thing if you get it right when CCI is overbought/sold against the trend then its like an elastic band being pulled back too far, it just pings straight into profit and away..

Also I've switched brokers today to DMMFX who have fixed spreads and no commission so although the spreads not as tight as FXCM but because theres no commission its cheaper to trade with them and from a psychological point of view I can go to BE right on my entry without allowing 2 pips for commission.

If it stops me out take the next pullback no big deal...

EDIT: Meant to say they are quite tight spreads apart from CHF pairs which are all 9 pips so best left alone...

Ok just had a loser there so quick look into why and can I learn anything from it???



First thing sold a HH also the signal candle was very large so the right place for the stop above last high was nearly 20 pips away far too large...

Secondly why am I still going at it when I've made my profit for the day?? Shouldn't I have a daily target and once hit stop??

Good thing was I decided to just take my mandatory 10 pip loss so not too much damage done to todays profits. Really important I think to keep our losses under control. The one thing I can control is the size of my losers, my winners size is down to the market and how much it wants to give me..

Lastly thats 2 losers today so should I have a rule like 3 trades and out??? If I suffer 3 losers in a day I just stop trading...

Yes. That's what having a rock, solid trading plan does. Profit target met (or loss allowance), charts closed, come back tommorow. Rinse, repeat.

Is there any better feeling in the world than meeting your profit targets, closing down your charts and relaxing for the rest of the day while everyone else continues to chase and lose money?

Yes just as it's key to have profit goals in ones plan we also need to cover the bad days and what is enough. Whether that may be a set number of losing trades, or a set % or $ value lost etc...

Wise words my friend wise words indeed. Lots of traders think its about having a sound trading strategy, but thats just half the battle then you have to form a trading plan around that strategy...

And I'm still formulating both but getting closer day by day..

just took another entry on GBPAUD first CCI after colour change got in got to BE but stopped out.. no problem theres been plenty that have ran today..

Away we go again...

Got it thanks for the answer, i read a few pages but there are too many in this thread

Just wanted to point out the similarities with well known "companies" that offer trading services, not sure if Clive was aware of that (probably he is).

Hi Clive
I have loaded your TT trenders but for some reason I am not getting any numbers active only 0 I know you have answered this problem before for someone but I have searched the thread and cannot find it, if it is not to much trouble could you point me to the root of my problem

http://www.forexfactory.com/showthre...24#post8123224

I think we need a post with gathering all indicators and their versions

Thanks GodsClown for you quick reply, but is that the one that's CPU intense or Clive's Bog standard one, may I just add that I see that you have been doing a tremendous amount of work to help with the layout of this, but I do not see to many thanks going your way, needless to say Clive being the exception.

Had quite a bit of success today with the "Good Old One Two" strategy so thought I'd just post my entry technique, nothing different from before apart from the 120FSMA giving us our reversal signal.

Firstly the 120FSMA changes colour then look for first two qualifying CCI signals immediately afterwards.. Qualifying CCI means its gone overbought( over the +100 level) in a down trend or oversold (under the -100 level) in an uptrend. Then when you get the first shorter CCI candle this is your signal candle place a pending order or rather drag a pending order 2 pips below or above the signal candle. You're be surprised how often it won't get hit and the CCI will lengthen again as the pullback goes deeper. Wait for the next shorter CCI candle and repeat until your order gets hit or the price pulls back too far past your A point so nullifying the setup..

Initial stop above last high or below last low and try to keep it at 10 pips not much more, I sometimes use 20 as an emergency but will close out manually soon as it goes near 10. Move stop to BE pretty quickly at least within 5 pips if not 3 pips, more often than not I'll let it come back to me once but thats enough, anymore than that and you're in trouble. These overbought/sold signals are like pulling a bow string back , when they go they should go quickly if they don't get to BE asap and if taken out wait for the next setup. eg for the CCI to go overbought or sold again then repeat...

Heres a tip on identifying which moves to take and which to leave alone, look for market structure to confirm the reversal. I want to see the CCI signal I'm trading to be proceeded by a strong AB move clearing cutting through the FSMA then pulling back and giving us a LH to sell in a down trend or a HL to buy in an uptrend. Look at the CCI signal you're trading and compare it with the last one, is it lower or higher than the last one??? I'm always referencing the previous CCI signal to the one I'm trading to make sure the right market structure is in place for the direction I'm trading. Remember we sell tops of waves and buy bottoms of waves , DTs or DBs at worst..

Notice on the chart below where the CCI signals are below the proceeding one. CCI signal 1 is below the previous one and CCI signal 2 is below CCI signal 1. This confirms market structure is in place....so take the CCI signals.

Heres a chart of the GBPJPY pair about an hour earlier where I marked these out as perfect examples. If the signal candles more than 10 pips I would leave it alone and wait for next pullback. We want to get our 10 pip stops above the last high/low. Both these examples were less than 10 pip stops.

Exits I will leave up to you but heres a couple of ideas, but depends on your discipline which you use.

1) Look for the price to falter at key levels then close out.

2) Use the Fibonacci extension to mark out at least AB=CD the 100% extension and use the one that coincides with a key level etc.

3) Hold until the FSMA changes colour again, this might be more appropriate if the last FSMA move was an obvious BC leg and was proceeded by an AB leg. Basically trading the ABCD move from the 5 min or 15 min timeframe.

Here's the chart showing my entry technique, by the way I tend to drop a pending buystop or sellstop on the chart, well away from the action, then just click and drag it into position quickly when the signal candle closes.



Might help to only take FSMA turns back with the 5 min strong trenders from the 5 min TTindy so you're trading with the 5 min strongest trends if you believe trading with the 5 min trend is to your advantage. I'm not convinced as in fact theres an argument that if a pair is top of the 5 min TTindy then the 1 min trend has been going one way for sometime and very often these reversals provide the bigger moves of 70% of the original move but thats just IMHO.

The other way you can use it is once you've caught your CCI signal then look up a couple of timeframes to try to figure out which leg of the higher timeframe leg you are trading? The BC or CD leg?? This might help you decide which exit method to use.

Heres a perfect GBPJPY move to illustrate what I mean , however I'm not convinced as many times these moves will let you down all too often and you're end up with nowt...but heres the theory anyway...



Once you've caught the 2 CCI signals and you're wandering how to exit,pan out the 1 min and have a look at the FSMA moves and identify the legs , as AB is longer than BC then the shorter move must be the BC leg so we can expect a CD move to be at least equal to the AB move if not more as in this case. This move exceeds the 100% move and even the 161.8 FIB extension...

Having identified the up leg to be the BC move then you might decide to hold on the slope change, in this case I reckon you might have got 70 x 2 = 140 pips.

trouble is of course they very rarely follow through like this in fact I'd say at least 70% of the time they won't, so the question is can you stand all the BE's after being up 50 or so pips in a move just to catch one good move every now and again???

I'll leave that with you to choose...

Nice trading clive

What actually is the moving average that turns red and green

Thanks Harold and all down to you introducing me to your flag trading method. As you can plainly see I've taken your method and just tried to identify some prime situations to trade it. Mostly focusing on strong trends the stronger the better.

This latest addition of the 120FSMA just helps us identify the first two pullbacks in the new trend, works well doesn't it. That was one of your things too I believe get the first pullback in the trend if possible.

Of course I stole the first pullback is the best entry from dear MR V.s brilliant thread....

So as you can see its all starting to come together from a very simple setup, simple as ABCD and as old as the hills as you once said...

Oh by the way a BIG THANK YOU to Wolfgang for his gift of the FSMA its proving to be very useful so far...

I've attached it for you Harold as I've just seen your question, here you go a gift from me to you in return for your "Flag trading the Trend" thread...

Whats fsma the red line that turns green

Really great work Clive. Thanks for sharing your ideas and progress.