Amazing Crossover System - 100+ pips per day!

[ForexPhantom]

Greetings everyone,

I wanted to share a quick chart with you which should set off warning bells in your head.

It is a specific pattern which consists of a flat MACD, flat RSI, and flat yet touching EMA's.

This pattern indicates that the market is incredibly flat right now. Perhaps a new trend is forming, but it seems unlikely any time soon.

It is best to avoid these trades, unless a big change happens quickly.

These are not ideal trading conditions.

Check out the chart below to see what I mean.

Remember to stay away from these types of trades. Let them pan out a bit further before rushing in.

Thanks.

-ForexPhantom-

[ForexPhantom]

Hello again,

It was mentioned earlier that this system might be tested on the 4 hour or daily charts.

With regards to the daily charts, you would need to be ready for lots of drawdown, but a big reward in the end.

I found a simple yet effective strategy for anyone interested in trading this system on the daily charts.

Basically, enter using the normal rules (EMA cross, RSI cross, and MACD cross).

Exit is tricky on such a big time frame. The best way, I believe, is to use the MACD indicator solely to determine your exit.

See the chart below for a detailed picture.

Essentially, once the cross happens on the MACD, all the bars will be on one side of the median line. Exit on the first re-cross of the bars on the MACD graph.

This means if you sold X/Y pair, the time to exit your sale is on the first positive MACD bar. Vice versa for if you bought the pair.

See the picture for comprehension.

I may test this method out sometime in the future.

Thanks and happy trading,

-ForexPhantom-

[ForexPhantom]

Hello everyone,

After a long day of cat and mouse, I've decided to place a BUY order on the GBP/USD @ 1.4158.

S/L = 75 pips
T/P = 50 pips

I was a little reluctant to place the order because the RSI and MACD had been flat.

But what the heck. The EMA's crossed and it seemed a valid entry.

I guess we'll see what happens.

Thanks,

-ForexPhantom-

[maurice]

Indicators
5 EMA -- YELLOW
10 EMA -- RED
RSI (10 - Apply to Median Price: HL/2) -- One level at 50.

Interesting system although I got stop lossed out of the first trade you mentioned. Common fault - didn't follow the rules and set my SL too small at 35...

I'm new to spread betting and can't understand your RSI. I know what the 10 is of of course but the rest eludes me. Could you explain the Apply to Median Price: HL/2) -- One level at 50 part?

Many thanks
Maurice

[ForexPhantom]

Hello everyone,

Just a quick note.

Look out for all of the following pairs to move into a possible trade setup:

EUR/USD, USD/JPY, GBP/JPY, EUR/JPY

All are showing bullish tendencies and are close to an EMA cross.

I am still in my GBP/USD trade. It is moving around quite a bit, but so far I am up around +14 pips in profit. I'll re-adjust my S/L to break even when it hits 20.
Then, when it hits 30, I'll trail my stop by 15 or so.

Thanks,

-ForexPhantom-

[ForexPhantom]

Interesting system although I got stop lossed out of the first trade you mentioned. Common fault - didn't follow the rules and set my SL too small at 35...

I'm new to spread betting and can't understand your RSI. I know what the 10 is of of course but the rest eludes me. Could you explain the Apply to Median Price: HL/2) -- One level at 50 part?

Many thanks
Maurice

Hello Maurice,

Thanks for your interest in my system. Sorry you got stopped out with the first trade! Make sure all your settings are correct and that you follow the system to a tee. It may help to re-read the first post just to make sure you have it all setup correctly. I'll try to attach my template so that you don't have to second guess anything.

Yes, the S/L is very important. I recommend anywhere from 50 - 100. A bigger S/L is advised because you are using a higher time frame.

Regarding the RSI, the settings should be exactly as follows:

First Tab:

Period: 10
Apply to: Median Price (HL/2)
Dodger Blue Color (your preference of course)
Middle Thickness Line
Fixed Minimum: 0
Fixed Maximum: 100

Second Tab:

Level: 50
Dotted Silver Line

Last Tab:

Check "All Time Frames"


These settings are for an Alpari account.

The Median price option displays an average instead of using data from simply the open or close of candles.

I find it works for me so far, so no need to change it.

If you have any questions, let me know.

Thanks,

-ForexPhantom-

[ForexPhantom]

Hello,

Just wanted to also indicate that the USD/CAD is showing strong BEARISH tendencies right now.

Keep your eye on it.

Thanks,

-ForexPhantom-

[jcelano]

Hello,

Just wanted to also indicate that the USD/CAD is showing strong BEARISH tendencies right now.

Keep your eye on it.

Thanks,

-ForexPhantom-

Looking at that right now.....just waiting to click

Seriously, great system... I will be testing this quite a bit!

Much appreciated!

James

PS I use FXCM and I don't have all the options with regards to RSI - would setting it at 10 and being done with it be sufficient in your estimation?

[husky_1]

The cable (GU) had a signal a candle ago..I did not play it because I did not like how big the candle that cause the cross was though...

[maurice]

These settings are for an Alpari account.

Thanks for a quick and helpful reply FP.

My accounts are with Capitalspreads and IGIndex and their charts are pretty basic and provide only a period tab for RSI. Low spreads though.

From some back checking the system seems to work anyway. Do you think it's OK with just the period? Or perhaps I should change to Alpari or an account with better charts? Though I'd rather not - it's a bit of a bother from Australia with faxing photo IDs and transferring money.

Maurice