The Paradox System

In post #28 Dove said in the description above the first snippet picture:


One thing im slightly confused about is that he said the 2H chart is your source of the true trend and he also says if Romar is above ema then the trend is down, however in that description above is he saying that the trend is up as the white, smooth and ema had crossed purple?

He also says in the next snippet of the 1H chart that he took a buy trade at the daily open line, but is that not going against the trend of the 2H?

Would appreciate it if someone could clarify what he means for me,
Thanks

On the 2H :

The Romar trend is down ( Romar above EMA ),
but the four trading indicators ( purple , white , smooth , psar ) are in a Upswing or trending up .

on the 1H :

The same Romar trend , but romar crossing purple , so trend is about to change into uptrend .
The 4 Horsemen are also in uptrend .

I hope this is correct , if not so fellow members , please correct me ,
I'm still in learning mode ,

Cheers ,

This is my understanding!
Romar is your first chart trend: Romar above EMA downtrend. Romar is Resistance
EMA is your second chart trend: EMA below Purple trend is up in the Swings.
So you have a kind of consolidation on the 2Hr chart itself.
Main trend Down and Second trend up



1Hr was kind of same situation.
Second trend was up, Main trend was down, but Romar was crossing Purple for signal changing trend for that swing.
So yes it was against the 2Hr main trend but he was trading with the second trend.

I hope this helps a bit.

Hazza88

From the 49
"But if Smooth crosses Purple then EMA will cross Purple and the reversal is set provided the Parabolic had also flipped."

My interpretation is that a reversal of the tend is set up to happen. So although EMA is above ROMAR, this trend is effectively reversed on the 2h chart due to Smooth crossing Purple, then EMA and with the Parabolic flipped down to support. So we then have the 4 hourseman for the uptrend.

I'm learning too so if anyone can add to or correct this then please do.

some time ago I have also noticed exactly the same regarding "up trend example" in post 28,

It change or lets say prove my understanding that moust of time we are actually trading secondary trend (position of purple vs ema) and that meaning of words that we trade " 2H chart as your source of the true trend", pointing to that fact: we dominantly trade secondary trend as he is in fact most important for our trading decision. (eg everything after him give late entry and everything before him give to early entry )

I see, so where would the rule of not trading against the romar trend come in? When Dove took that particular trade how did he know price would break past the romar resistance?

not sure what to say, however this week I am preparing my self to go through everything writen here so if i come to eny conclusion regarding that example
will post

I see that ROMAR on all thee charts is now down on my charts. We are out of consolidation and into a down trend.

He does say in the example :

"Because of taking the entry as low as possible Romar was no longer a threat of losing my trade in using B/E "

So he was aware of the romar downtrend threat to his position !?

Every time I go true his writings , I discover new things and it can get confusing ..... pfffff

Thank You for your excellent system and sharing it with us!
God bless You too!

RoboForex does have all major currencies, including EUR/JPY.
You just needed to go to Market Watch -> then on text "Symbol" right click and choose "Show all".
There you could see much more pairs, including EUR/JPY.
After this go to EUR/JPY - right click and choose "Chart Window". That's it.

Not UK but try Pepperstone. I use their live feed and its correct. Not sure about the demo. But as your UK you can open an account very easily and you don't need to fund it to use it (I think so anyway, although I have cTrader account so maybe they just let me use the mt4 live because of this).

Hope that helps.

For this weeks of training.... Dove was using H1 for entries.. but he says a few times.. that he only uses H2 D1 for trading.

In the market we have 2 scenearios.... We are in Trend or we are in Consolidation... Right? So, we are going to be 2 different of trends.... The Trend with the MAIN TREND, and other Trend with the Consolidation.

When we are in Consolidation that Dana says is about %80 of times... the price is bouncing Supports and Resistances...

I am here only to post a summary of everything I have given in regards to the Paradox. This summary is placing the variables in trend/consolidation and how the indicators separate the differences.

Both trends and consolidations have one thing in common and that is with support and resistance. The variable for trends is from high to low and vice-versa. The variable for consolidations is with the swings, and/or sideways. And they both have a support and a resistance.

Because of the variables in trend with this system there is an indicator called “ROMAR”. The second source of the trend is an indicator called “EMA”. These two indicators is the total representation of all supports and resistances within this system; in both trends and consolidations.

ROMAR is the major trend for both support and resistance and crossing EMA changes ROMAR direction of the trend: This is true on all three charts. The 2 hour chart is your primary trend for trading.

EMA is secondary trend according with the swings and changes its trend by crossing Purple.

When you have EMA in a downtrend and ROMAR crosses EMA for the downtrend you then have a true trend. If you have EMA in a downtrend and ROMAR is support you are in consolidation for ROMAR support and vice-versa.

When ROMAR/EMA are running together in the same direction that is your trend until ROMAR and EMA crosses one another; and then ROMAR IS THE ONE reversing the trend.

EMA is your source for short term trend of the swings by crossing Purple. If EMA crosses Purple and becomes resistance and ROMAR is already resistance you are in trend. If EMA crosses Purple and becomes resistance and ROMAR is support; you are in consolidation and vice-versa.

The 4 horsemen: Purple, White, Smooth, and Parabolic’s are dedicated for the swings only; and the Parabolic is the trend for the swings. The swings could be short term or long term depending on ROMAR/EMA. If you get ROMAR/EMA in the same direction with the 4 horsemen then the trend is long term with no swings, but only sliders with retraces back towards the 4 horsemen. With this type of trend the Parabolic is the source on indicating when to close your trade. If the Parabolic is trending above EMA then let the trend ride. It is when the parabolic reaches EMA will the trend end.

In the swings with ROMAR Resistance and EMA as Support or vice-versa; is when you are in consolidation and the swings are short lived. So, during trading you must always have the separation with trend/consolidation as for ROMAR and EMA. This should always be on your trading plan so you can keep reference.

ROMAR:

If you had the 1 hour ROMAR cross its EMA opposite of the 2 hour ROMAR trend - you are then in the first stage of a consolidation and/or reversal. The market behavior on the 1 hour is now under pressure from the trend.

When this happens then the 1 hour is looking for the 2 hour ROMAR crossing. When the 1 hour ROMAR crosses its EMA you are then in opposite trend of the 2 hour which places both the 1 and 2 hour in consolidation and under pressure for a reversal and/or a slider within the 2 hour trend.

This now becomes a much distorted picture and no advance indication of market movement. Or at least it seems so.

The reason for this happening is because of the barriers within support and/or resistance. In this system there are 5 such barriers and they are:

1). 23.6 or 61.8 of the Fibo
2). ROMAR
3). Parabolic
4). EMA
5). 4 horsemen

The first step is to identify the barrier of support and/or resistance in order to trade any further. Now - the issue that some are facing is what charts to look for - with the consolidation - and the answer is this:

All major consolidations are feed off the 2 hour and Daily. If the consolidation occurrence were feed off the Daily and then it affects all the trading charts. All you need to do is wait on the 1 hour support/resistance being in consistence with the 2 hour. The 1 hour sets you up for the 2 hour trend.

In order to understand consolidation lets define the word:

Definition of CONSOLIDATION:

1: the act or process of consolidating: the state of being consolidated

2: the process of uniting: the quality or state of being united; specifically: the unification of two or more corporations by dissolution of existing ones and creation of a single new corporation.

Example of CONSOLIDATION in the market:

"The consolidation of several intelligence agencies into one super agency"

When the market consolidates it is then in submission of changing power from Bear to Bull and vice-versa. Any time we go into consolidation; ROMAR/EMA will show this consolidation period by crossing one another. And all it takes is one of the three charts to reverse from the trend into consolidation.

A SLIDER: The sliders are most frequent in consolidations; especially with the 4 horseman’s. This is when Smooth does not cross Purple but slides over/under Purple (depending on trend) and keeps the swing intact. This is also true with EMA. You can have White/Smooth crossing Purple but EMA does not cross Purple but slides under/over Purple to keep the Swing/Trend intact. And for your longer term trends ROMAR can also slide under/over EMA to keep the trend intact.

VARIOUS CONSOLIDATIONS:

1). Crossings of ROMAR and EMA in changing the trend.
2). Change of trend in one chart from the others.
3). Out of “sync” with charts; such as Swings, ROMAR, EMA, and Parabolic’s.

This is why the market is 80% consolidations.

All these variables stated above makes up the moving Paradox.

This system also has what is known as the consolidated paradoxes trend and consists with the Daily disruption of market exhaustion in regards with the ROMAR crossing EMA and the Market is in between Both ROMAR and EMA with a 50 or less pip spread. This disruption can last a long time within the Daily chart as the Ranging Mode is strictly between the Two: ROMAR and EMA. Variables in indicators can change dramatically from hour to hour; from chart to chart. And frustration can set in as the hours pass by while you are sitting at the computer trying to find a decent trade within the indicators.

This type of disruption can only be solved with trading support and resistance which are: ROMAR and EMA on the Daily chart.

Highs and Lows:

When it comes to highs and lows I do not use the Daily candle as most traders do accept for breaking these levels in my daily trading plan. What I use is the 2 hour lows and highs of the “Fibonacci Retracements” as a marker for previous highs and lows during cycles. The 2 hour Fibo is a great resource for trading; it is accurate and dependable.

You have to always remember the 2 hour is your TREND chart and the 1 hour is your reference for entry with the 2 hour. For a good trade to be established is when the 1 hour 4 horsemen are sync with the 2 hour. In other words; they both are in the same direction. Otherwise you will be counter-trading for a loss.

Thank you for this treasure. This post MUST BE PRINTED and put in ur desktop. Hahaha.

Ok Master i have a "virus question" that i think most of traders can did this mistake.... For example talking broker time, and every 00:00 02:00 04:00 is a new H2 Candle. *We need to wait for the current H2 close, and appear a new H2 candle* right? I mean:

If is 01:30 (30minutes left for H2 candle close, and appear a new one) and we see any crosses... that isnt valid... We need to wait for that current candle close right?. For example: If is 01:53 (only 7 minutes left for H2 candle close and appear a new one) And we see any kind of crosses, We need to wait 7 minutes more for confirm that Cross... Because in 1 minute before candle close, the price can move to fast and now we dont have any crosses in the neew candle. So the trades is at New H2 candle open. 02:01 04:01 6:01 Im right? Thank you im happy that u post again I told u, i just smile.

I remember that u answer me before:


But in this week my trades was to early... i didnt wait for H2 candle closes.. and after 20 minutes i realize that the line never cross and something like that. is that my question Master. Thank you.

and the system turned into a real paradox

All I am doing today is only posting summaries and rules. I am not hear to answer questions; but only give details to help you all:

Rules for Trading

Basic rules:
a: Do not trade against the trend.
b: Trade objectively and not subjectively using support and resistance.
c: Do not chase the market but let the market come to you.
d: The 2 hour chart is your trend chart for the system.
e: The Daily is your reference for the Daily trend, support, and resistance.

Rules for uptrends:
a: ROMAR and EMA must be in sync on all three charts to trade long.
a: The 1 hour is your reference chart with the 2 hour trend chart.
b: You are looking for sync of both ROMAR and EMA uptrend on both the 1 and 2 hour charts to enter a trade.
c: Trades are made from the support area to go long.

Rules for downtrends:
a: ROMAR and EMA must be in sync on both 1 and 2 hour to trade short.
a: The 1 hour is your reference chart with the 2 hour trend chart.
b: You are looking for sync of both ROMAR and EMA uptrend on both the 1 and 2 hour charts to enter a trade.
c: Trades are made from the resistance area to go short.

Rules for consolidation:
a: The 2 hour is your trading/trend chart.
b: Use the Daily Chart S/R as reference for consolidation.
c: You can trade either short or long in consolidation.
d: Trade from resistance to support and vice-versa. Do not trade from center in consolidation.
e: Both upper and lower bands are resistance and support in consolidation.

Rules for Support and Resistance:
a: The 2 hour ROMAR is the Major Support and Resistance for the whole system.
b: The 2 hour EMA is the secondary Support and Resistance for the whole system.
c: The Daily ROMAR is the Major Support and Resistance for the Daily.
d: The 2 hour Fibo determines cycles for high/low support and resistance.

Rules for determining consolidation:
a: If one of the trading charts are not in sync with one another you are in consolidation.
c: If the Daily ROMAR/EMA are not sync with 1 and 2 hour charts you are in consolidation.
d: 10% of the time is trend; 85% of the time is consolidation; and 10% economic news.

Rules for Economic News:
a: Never trade during a MAJOR (Red) economic release.
b: Clean up your trades 5 minutes before a major economic release.

The 8 Rules on Money Management:

There was a lion, a donkey and a fox all keen to go out rabbit hunting together. After a productive day of hunting, the three of them sit around the pile of rabbits and the lion asks the Donkey; "Mr. Donkey, would you please divide the pile into equal shares for the 3 of us? The Donkey obliges and counts the rabbits into three equal piles for each of them. The Lion immediately roared and pounced on him. He then piled all the rabbits on top of the donkey and asked the Fox; "Mr. Fox, would you please divide the rabbits up evenly between us? The Fox takes out 1 scrawny rabbit from the pile and puts it in a pile for himself then say; "There you go, Mr. Lion, that's your pile" pointing to the large pile of rabbits. The lion says; "Mr. Fox, where did you learn to divide so equally"? And the fox says; "The Donkey taught me."

The moral of the story is to learn from others' mistakes.

Rule #1: Never risks any more than you can afford to lose, you will lose money, all traders do; make sure you're not sacrificing anything else important in the process.

Rule #2: Never risk any more than 2% of your margin trading account on a simple trade. For mini account holders, 2% of $300 would be $6 so realistically you would need around $15 so you can make this 5%. As soon as your account size is big enough, make this 2%.

Rule #3: Always use a stop loss order. If you haven't figured out where your stop loss order and limit order should be at the start of your trade then you shouldn't be trading.

Rule #4: Always place your stop order before pulling the trigger.

Rule #5: Know your exit point before you enter a trade.

Rule #6: Demo Trade First: Become successful with a demo when there's nothing on the line before you open a real account.

Rule #7: Take a breather when your equity has taken a dive.

Rule #8: Don't let your emotions call the shots: Stay cool, calm and collected. Patience and a clear head will win the game.

AMAZING. THANK YOU.

Thank you for your summary, Dana.