The Paradox System

Best wishes everyone. I'm studying hard this weekend.

Hi All
I just wanted to get down a few things in one place and thought it may help others too, so here goes...

Trading in the MOMENT means trading an open 2hr candle. When 2hr chart is in trend with Daily then try to find entry off of Support/Resistance on 2hr or Daily charts or fine tune off 1hr. If 2hr is in consolidation with daily then trade off Support/Resistance on 2hr only. Always trade ROMAR trend in consolidation.

Create notes on your plan of entry as the market moves. Retraces are valuable as they will hit trend indicators for entry.
20 pips profit if already in trend.
40 pips profit if trend just starting.

The 2hr ROMAR is the true source for the trading TREND.

Daily ROMAR is key to direction turn. When EMA crosses look for turn.

When ROMAR is same on all charts we are in trend (trade with trend only). If they are not same then we are in consolidation and can trade both ways.

If PSAR is in Trend and market opens beyond PSAR and it does not flip then continue trend.
White crossing purple eliminates PSAR.

Psar will flip at EMA for Purple crossing.

Purple & White are for swing trend. They can hold market in trend or consolidation before direction change.

Smooth can hold market in swings. In consolidation look for which side of Purple Smooth is for trend...
----Above Purple trend is down----Below Purple trend is up.

EMA is secondary trend indicator. Purple crossing will determine swing trend. Red and Green arrows indicate market cross of EMA.

Four Horseman: Purple, White, Smooth and PSAR will deliver a visual for each swing. White & Smooth must cross Purple before taking a trade. EMA must
also cross Purple in consolidation ( slider ). If it doesn't then original trend will continue.

Fibo will flip with new high or new low. The contour lines show current range of market and are useful in spotting breakouts.

Bolinger Bands in consolidation if hit will retrace to EMA or opposite band in uptrend. If hit during downtrend then retrace may only be to Purple, White or
Smooth.

Swings are retraces in a trend. Usually back to Purple, White, Smooth or PSAR then continue trend.

DB and SAR are lines indicating swings. DB is long term and SAR is short term. SAR is for trading swings and for trend continuation.

DB will move from candle to candle in a trend.

Once SAR attaches with DB then DB is in control. SAR will stay with DB until a new high or low is determined.

Very good Cfudge and thank you for posting but one mistake on this quote:

"Daily ROMAR is key to direction turn. When Purple crosses look for turn."

It is not with ROMAR/Purple crossing that changes the trend. It is with ROMAR crossing EMA that changes the trend. Other than that - very good.

ROMAR crossing Purple can indicate it will cross EMA. But until it does the trend stays the same.

Date:

Daily:
ROMAR - Resistance or Support
EMA - Resistance or Support
PSAR - Resistance or Support

Check List:
Last MACD 0 crossing
Last EMA Alert Arrow
Last DB Attachment
Fibo up or down

Notes:

2 HR:
OPEN PRICE -
ROMAR - Resistance or Support
EMA - Resistance or Support
PSAR - Resistance or Support

Check List:
Last MACD 0 crossing
Last EMA Alert Arrow
Last DB Attachment
Fibo up or down

Notes:

1 HR:
ROMAR - Resistance or Support
EMA - Resistance or Support
PSAR - Resistance or Support

Check List:
Last MACD 0 crossing
Last EMA Alert Arrow
Last DB Attachment
Fibo up or down

Notes:

Final Notes for all three charts:

Entry:
Consolidation:
Long:
Short:

Notes for readjustments:

*************************************************************

We are now going on two months of training and using trading plans. For those who do not believe in creating a trading plan then it is your lost.

The trading plan you have been using is a step of looking into the future; trying to see what the market is doing after the 17:00 EST Bar for an entry. This plan above is the same but is advance with a check list too further interpret if the market is going long, short, or in consolidation. This check list is crucial in knowing exactly what the market is doing so your plan can eliminate any guess work; and focus in what your plan is actually seeing.

It does not matter when you create your plan; but it does matter that your plan is made in a session; such as the London session or the USD session or the JPY session. Whatever session you trade the plan must be made with the 2 hour candle that opens with that session.

There is one thing I want to mention is the Open Price with the 2 hour: Having the open price on your plan is keeping you alerted for the first 6 hours of the market movement. 90% of the time after 6 hours if the market is below the opening price then the market will stay below the opening price; and vice-versa. This is the reason for it being there. You can take that Open Price and place it anywhere on your plan as long as it can keeps you alert. If you are trading outside the 17:00 opening then you are already set up with the open price location of the market.

Let us now go through the check list:

Check List:
Last MACD 0 crossing:
The last White arrow had given you the MACD crossing and what direction.

Last EMA Alert Arrow:
The last EMA alert is either Red or Lime Green. You will indicate the Arrow is Red for down; or Lime Green for up. Do not get confuse. You mark down the last Arrow showing.

Last DB/SAR Attachment:
If the DB/SAR is attached together you indicate this fact. If The DB is attached and the SAR is attached somewhere else then indicate this fact. You mark down the price of the last attachment of the DB and the SAR if it had broken from the DB. You then indicate where the attachments are located top or bottom of the candle.

The DB/SAR is long term trend when they are both attached together. So lets say the market is going long. You have a retrace that is pretty heavy and the SAR breaks away from the DB and attaches to the bottom of a retrace candle. This is telling you the retrace had completed and the market is going back into trend. This also telling you the market will get above the DB so both DB/SAR can reattach for the continuance of the trend.

NOW Lets say you pulled the trigger on the bottom of the Retrace candle with the SAR and you got greedy; and you placed your TP at the DB level. And what could happen is the SAR reattaches to the top of a trend candle going up before the DB level; reverses the market and takes you out with your Stop; and the DB/SAR will reattach together at the bottom of a candle for a new trend going short. You can see this same scenario going back to last Monday into Tuesday. Friends do not ever get greedy.

Fibo up or down:
It is important to know what the Fibos are saying for a plan to be healthy. So indicate if the Fibo is down at the 0% or up at the 0%.

This is the reason for the check list. So you always know what the Market is doing with the signals. If you have no idea what the signals are saying then your plan may, or may not work if the signals are not giving the right direction of your plan. And if the signals appeared after your plan is created then go back to your plan and indicate the new signal and readjust your entry. Just remember your plan is good for 24 hours and you have 2 hours to create your plan with a new open 2 hour bar. So there is no rush in creating your plan which means take your time in creating your plan so you are seeing everything on all charts.

For your entries there are many scenarios in using for the entry; such as the 4 horsemen, support and resistance, the signals, and the SAR without the DB. So with your entries you have to be focus without guessing. And all entries are in the moment; and if you are focus then that moment will arise with all the variables for the entry without chasing the market. This is how you become 80+% of your trades.

Entry:
Consolidation:
Long:
Short:

Being focus on creating your plan will constitute a consolidation, or a long entry, or a short entry; and your plan will be one of the three. If it is consolidation then the consolidation will establish either a long or a short entry and not both. So, on your projected entry you will write your notes for one of the three according to your plan. And once your plan is created do not trade against your plan. You trade your plan and do not think outside of your plan. You will be surprise in how well your planning had done for any entry. Even though the rules is for either two 20/40 or one 40/40; my suggestion is looking for one 40/40 trade on your plans. This will eliminate the possibility of losing one of your 20/40 trades.

Notes for readjustments:

Notes for adjustments are for new signals and news releases if you had not entered for a trade at the time of the adjustments. New signals and news releases can very well upset your plan. So you have to be prepared for any alterations of you plan and make adjustments accordingly for an entry.

In time; if you continuously creating Daily Trading Plans, you will arrive to a point where you can open your charts and within a few minutes can see EXACTLY what the market is doing and where it is heading. But that takes time like about 2 years worth of creating plans. Even I can see everything from bar to bar and know what to do. But I still create my plans Daily for the simple reason I am not perfect and could very well miss something major. And believe me; I have missed many major upsets if not for my trading plan.

Since some of you may had already created a plan with Fridays closing then just continue with your plan unless there is a major gap; then use this new plan with the check list. All others start using the plan with the check list for Sundays opening.

I will give the first plan with Fridays closing so you can see how it is done; without the entry. This will be on you to create your entry.

Date: Closing of Friday 03-11-16

Daily:
ROMAR - Resistance
EMA - Support
PSAR - Support

Check List:
Last MACD 0 crossing - The crossing is up.
Last EMA Alert Arrow - Lime Green up on same bar of the MACD crossing up: Retrace with Red Arrow and then Lime Green up.
Last DB Attachment - Both DB/SAR attached on top at 127.277 for continuance of the uptrend.
Fibo up or down - Fibo is up from the bottom.

Notes: The 4 horsemen are in the uptrend with ROMAR as resistance at the upper BB with a spread of 84 pips between closing Friday and ROMAR resistance with all signals in sync for the uptrend.

2 HR:
OPEN PRICE - If no gap on Sunday's opening price will open 126.861
ROMAR - Support
EMA - Support
PSAR - Support

Check List:
Last MACD 0 crossing - The crossing is down.
Last EMA Alert Arrow - Lime Green up before the MACD crossing down.
Last DB Attachment - Both DB/SAR attached on top at 127.277 for continuance of the uptrend.
Fibo up or down - Fibo is down from the top.

Notes: The 4 horsemen are uptrend in a slider with the market above the White/Smooth at Purple for a crossing at opening which indicates a continuance of the uptrend with EMA holding as support. The Parabolic is now at EMA for a flip flop during the two hour candle. The market is oversold at the 0% Fibo with both DB/SAR indicating a possible retrace to EMA with the opening candle.

1 HR:
ROMAR - Support
EMA - Support
PSAR - Support

Check List:
Last MACD 0 crossing - The crossing is up at the 38.2 Fibo.
Last EMA Alert Arrow - Lime Green up before the MACD crossing.
Last DB Attachment - Both DB/SAR attached on top at 127.277 for continuance of the uptrend.
Fibo up or down - Fibo is down from the top.

Notes: The 4 horsemen are shallow with the uptrend with an open candle below White as Purple turning for a slider and/or reversal. 6 hours prior the BBs were flat indicating the upper band being hit a retrace at least to EMA which has not hit yet but went sideways.

Final Notes for all three charts: All 4 horsemen of the three charts are uptrend. But several elements of the uptrend, with each chart, are also indicating a conflict with the uptrend:

The Daily ROMAR - Resistance in holding back the market with an 84 pips spread for a hit on ROMAR would indicate a retrace. The Fibo is in an uptrend from the bottom.

The 2 hour - The Fibo is reversed for the downtrend from the top. Purple is sliding giving White/Smooth a shallow crossing which opens up EMA for a hit with the Parabolic at EMA with a possible lock in for a reversal on the next 2 hour candle after opening. The MACD signal is down with OSMA bars holding a uniform number for the down.

The 1 Hour - Open candle below White/Purple with Smooth as support. Next open candle will place the market below Smooth with the Parabolic close enough at EMA to flip. Since the MACD signal the OSMA bars are very shallow off the 0 line and dropping back to the 0 line for another crossing going south. The Fibo is also in the downtrend mode from the top.

(Final Conclusion): As you have noticed this trading plan had given me all the information to make a concrete conclusion on how to make the right entry and where to make the entry. And now it is on you to make a conclusion off this plan for your entry; if you were to use this trading plan.

For those who are wondering about the difference between the Lime Green and the Red Arrows showing before the crossing of the MACD is relevant. And the reason is because if you have the MACD and the EMA alerts on the same bar or; MACD crossing before the Arrows you are then looking at a major retrace in the near future. So you want the Arrows before the MACD crossings going the same direction.

To give you a better understanding on the 2 hour you have a conflicting MACD Arrow with both DB/SAR attached at the 0 Fibo and no red arrow, as of yet, but with the Green Arrow still up. On the 1 hour you have the Lime Green Arrow before the MACD crossing showing the continuance of the trend.

If you go back to Thursdays Opening you will see the White MACD crossing before the Red Arrow showing down and retraced; and then the Lime Green Arrow shows up before the MACD White Arrow for closing of Friday. If you study this conflict on the 1 hour you will see what you are looking at with Sundays opening. This conflict shows up a lot on the 1 hour and is one reason I recommend not trading the 1 hour.

This trading plan is what I use Daily. The one you have been using was a stepping stone in learning how to create a trading plan. You now need to really study my plan above with your charts on Friday's closing bar; and begin to see the whole picture before you even think of taking a trade. This check list will surely take you into a new light for your trading plan; provided you do not rush in creating your plan.

Entry:
Consolidation:
Long:
Short:

Notes for readjustments:

Dana, many many thanks for sharing these gems! they are really worthy and you share them freely. I will study these trading plan, and make them my daily habit, thanks thanks a lot!

CFudge, thanks for your effort to summarize the Paradox, I hope that many will reap the benefits too. Thanks my friend!

Thanks a lot for the great system and your kind support, Dove! God bless you!
I used to keep my trading plan in a spreadsheet with profit/loss numbers for each trade. It's easier to observe the dates and to have statistics, etc.
I tried to modify it for your much more complex plan and checking lists and here is a 1st draft is attached.
The idea is to have it in a compact table so it would be easier to monitor changes from day to day. I created sections H2 and H1 separate from Daily as we may have multiple H2/H1 copies for the same day.
Maybe word document with text table will work better for the plan and we can use a similar spreadsheet for trade statistics only.
Comments, suggestions and modifications are welcome from everybody.
Thanks again, Dove!

if somebody doesn't have Microsoft Excel to work with this spreadsheet, you may use free LibreOffice available here: https://www.libreoffice.org/

You have Purple in your spread sheet which could very well be confusing with the 3 major support/resistance. So I would suggest in eliminating Purple from the spread sheet. And also keeping the check list in one cell.

Another problem I had just checked is printing of the document. There is a problem with that. That is why it should be on Word and not Excel.

I am wholeheartedly grateful for all what is being done here in this thread to help pure unknown people. Also, the mutual assistance from evry body. If the thread keeps running toward this direction, it will take EPIC proportions.

Many thanks to all who participate, and of course to Dove who guides us through this journey.

Thank you very much for all this very helpfull information and summery. Cfudge for your very good summery and Dove as always for all the information.

I have a small question: With the time shift do we change the session_indicator?

Thank you in advance.

If the market was still running then yes. But since it is close it should open with the new time at 17:00 EST on the chart. At least mine does. The only difference is an hour earlier.

While I am thinking about it -- The market opens and closes with the New York time table. When New York goes on Daylight Savings Time so does the Market. Which means all other sessions (such as Tokyo and London) are 1 hour ahead until they open with DST.

My market closed an hour earlier on Friday. I will have an look on what happens tonight.

Thank you for the reply.

"Being focus on creating your plan will constitute a consolidation, or a long entry, or a short entry; and your plan will be one of the three. If it is consolidation then the consolidation will establish either a long or a short entry and not both."

Dove,

Just to clarify. I did my plan a little early on Friday, so I have both a long and a short option. Under the new plan that you have shown us today, would I then pick just one of the scenarios (long or short) and completely disregard the other?

Sometimes it is good to have both - but on the other hand your focus is split on one or the other; and with your focus being split could place you in missing the right opportunity. A plan should always consist of the trend for entry even in consolidation. You have three major trends; ROMAR, EMA, and the Parabolic's. And those 3 majors is your objective with each chart; and your signals must also be objective with the 3 majors. If not - then they are subjective in ruining the trend. But since you already have your plan created for today then go ahead and use it.

Put post 5025 into a word document.
Hoping someone can do the same for longterm trades and the divergences...

Chris

Understood. Thank you.

Hi Dove,

This sentence is conflicting to me:

"... if you have the MACD and the EMA alerts on the same bar or; MACD crossing before the Arrows you are then looking at a major retrace in the near future. So you want the Arrows before the MACD crossings going the same direction."

Maybe it's because of my English any way I dont understand: So we want first EMA arrow and then MACD arrow in same direction, right? That should indicate major retrace, right?

I'm in the UK and our clocks change by adding 1 hour at 1 AM on 27 March 2016.