Hi there
this is a system/method/pattern i have read about that i want to post for you to read/improve/share/talk/love
i will post it here and also in the Holy Grail area
this is how it works:
it is applied by reaching definite goals - if not reached - we are out of the game
Open a 5 MIN. chart
MISSION 1:
Find a trend - meaning a series of candles that form higher highs or lower lows - that its highest/lowest point differs from the lowest/highest point by
at least 40 pips, once done we move on to mission 2
MISSION 2:
call that trend
Active Wave 1 - that is its name from now on.
Active Wave 1 is the nearest in time to our current time, meaning that there can be lots of possible AW's but we take the nearest and MUST be over 40
MISSION 3:
Draw Fibbonaci's Retracment levels on that same AW 1 - levels of Fib. used: 0, 0.25, 0.38 , 0.61 , 0.75
MISSION 4:
wait for a candle to
close between 0.38 - 0.61
once achieved - next mission
MISSION 5:
wait for a WHOLE candle to either pass the 0.25 or the 0.75 level - you may be asking - which direction?? well it depends on the AW you drew and on you Chart software - if the AW was going up and the candle passed through 0.25 or 0.75 meaning it is closer to the top of AW - then we are about to get a BUY signal, if the candle closed below 0.25 or 0.75 then we are about to get a SELL signal, but wait.
MISSION 6:
Before deciding on your own whether you are right or not - look at the D1
and if the RSI(14) indicates on a values larger than 50 and we had a BUY signal from MISSION 5 - it is a BUY, otherwise it is not.
if the RSI(14) indicates of a value smaller than 50 and we have a SELL signal from MISSION 5 then it is a SELL, other wise we are still out.
MISSION 6.5:
Make the order and place a 50 pips STOP LOSE - Which will remain the whole way at the SAME LEVEL - no trailing stop no move to even, nothing.
we will trail the stops on our own special way
this was the entry - getting out:
once we ordered ,meaning we already bought/sold, we exit once we get in the same way of applying MISSIONS 1-6 a reversed signal - if we bought something we wait for selling signal, if we sold we wait for a buy signal.
MISSION 7 - wait to Exit the trade:
after drawing AW 1 - wait for a new AW to form, in any direction!
once formed - delete the previous AW and FIB. Retracement and draw a new one on the new AW - in this specific wave for a BUY/SELL signal - if it is reveresed to your current order - exit the trade, otherwise wait for a new AW.
the trade is exited/closed either by getting a reversal signal or by reaching the 50pips stop loss we set at MISSION 6.5
that is it - unless i forgot something i will now post 2 images i have right now from last nights trade i enterd - i will post it even if i go -50 pips only to show you how it works, in general, i think you can learn more by posting losing trades than by posting winning trades
for questions - hit me on!
M.
MANY THNANKS TO ELANG WHO SHOWED ME THIS AND SOME OTHER STUFF - heheh