Amazing Crossover System - 100+ pips per day!

I have to agree with John about those whipsaws. Trading during the News is always a very VOLATILE experience, as well as trading on Friday!

The beauty of this system is in its simplicity. It is deceptively simple, yet the signals are strong. I don’t think whipsaws should pose much of a problem during normal trading times.

BUT, if pivot points help you out, by all means USE THEM! I personally don’t know much about pivot points, so I’m sort of lacking on any discussion about them.

I did add one other indicator, which I’ll describe in my next post.

Thanks for your interest in the system!!

-ForexPhantom-

3 Likes

Greetings everyone,

Last night was a great night to be using this system.

Unfortunately, all the action happened while I was sleeping!

But, I had been lucky enough to take a slight risk that paid off big time.

In an earlier post, I posted a picture of a possible trade setting up on the EUR/USD. The EMA’s were close to crossing and the RSI was descending and hovering around the 50 Line.

I set a SELL STOP order at 1.2585. This was around 20 - 25 pips lower than the current price at the time (not sure exactly, but around there).

I figured that if the price went down that much, the lines WOULD have crossed and the RSI WOULD have crossed below 50.

In short, I was right! My SELL STOP was executed while I was counting sheep. My T/P was hit for 50 pips even. I had used a S/L of 100, too.

Below, I’ll post the pictures of how it all went down. You’ll notice that in the second picture I have added the MACD indicator.

Here are the settings I use:

MACD
FAST: 5
SLOW: 9
MACD SMA: 4

I’ve noticed that this indicator only works about 75% of the time. Sometimes it’s late! Sometimes it does not agree with the RSI.

I think it’s only very accurate if it crosses from the top of the indicator bar to the bottom (with a big downward slope). It can provide justification though if both the EMA’s and RSI are showing a trade setup.

The MACD settings may need to be tweaked.

PICTURE 1 shows the possible setup approaching.
PICTURE 2 shows what actually happened.

The rest of the pictures will show you trades that all took place overnight that we all missed! We had literally a handful of viable trades.

Perhaps the best time to trade is during the night, after midnight?

Anyways, I’ll describe in another post a possible way to benefit from this.

Stay tuned.

Account Statistics:

Starting Balance: 1,000
Current Balance: 1,050
Equity Increase: 5%
Pips Gained: 50

Not bad for one night’s worth of sleep!

-ForexPhantom-





3 Likes

Hello everyone,

This trade occurred earlier this morning and would have bagged you some serious pips had you spotted it.

All the stars lined up on this one, as the EMA’s crossed, RSI crossed and MACD crossed…all in-sync.

Total movement in pips was 100+ downwards on the EUR/JPY at about 8:45 this morning.

-ForexPhantom-


2 Likes

Greetings,

Keep your eye on the GBP/USD as there is a potential trade setting up.

Be cautious though!!

The EMA’s look like they may cross, but the RSI and MACD show no signs of playing ball.

Something to watch for!

-ForexPhantom-


1 Like

Greetings,

I’ve just sold the USD/CHF @ 1.1727.

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

Lot Size = .1

The EMA’s crossed slightly and the RSI crossed. MACD reversed and is crossing, also.

Time to grab lunch and see if my trade will go anywhere when I return.

Thanks,

-ForexPhantom-


1 Like

Greetings,

Just a quick update. I’ve returned from lunch to find that my trade has moved +20 pips in my favor!

I’ve adjusted my stop/loss so that I’m guaranteed +5 pips.

I’m now not risking ANY of my own capital and simply riding the train.

I’m a little under halfway to my T/P target and it’s been about an hour since I first placed the order.

I’ll keep you posted!

Also, please note that I am avoiding (right now) placing multiple orders at once.

Thus, I am not watching any of the other charts at this moment in time.

-ForexPhantom-


2 Likes

Greetings,

I just happened to glance at both the EUR/USD and GBP/USD charts.

Two lucrative trades are currently forming. I’m going to have to restrain myself from jumping into them! :smiley:

-ForexPhantom-



Hello everyone,

Two things:

  1. The USD/CHF trade that I placed experienced some retracement. I was trailing my S/L a bit and it ended up being hit. I gained +32 pips.

ACCOUNT STATISTICS:

Starting Balance: 1,000
Current Balance: 1,077
Total Pips Earned: +82
Number of Trades: 2
Equity Change: 7.7%


  1. Watch out for repulsion on the EUR/USD and the GBP/USD.

I’ll be testing this system for quite some time.

If anyone has any thoughts or questions, please post.

Thanks,

-ForexPhantom-

1 Like

Hello ForexPhantom

I see the gbp and eur cross have maybe frizzeled out

Thanks for sharing your system, Have you tested it on a daily charts yet?

Greetings,

Thanks for your comment. Indeed, those two trades seemed to have vanished before our eyes. Luckily we didn’t enter due to our assumptions or else we would have been swiftly punished.

I have only just begun to test this system using the hourly chart. It would seem to work very well on both the 4 HOUR and Daily charts, just by glancing at it.

Of course, playing with bigger time charts means you need to adjust your S/L and T/P.

The average pip movement on the 4 HR and Daily charts seems to be in the 200 - 1500 range!! That’s incredible, certainly.

While that initially gives me a very warm and fuzzy feeling all over, you have to be wary about certain things. First, the S/L is gonna need to allow for more cushioning, naturally. This means you may be risking too much of your account on one trade. Of course, you can opt to not set a S/L, use a small lot size, and hope for the best. :smiley:

Also, don’t forget about swap charges. If you are gonna trade the daily chart, you may be holding a position for weeks. That can add up quickly if it’s a negative swap pair.

I think experimentation would provide us with our answer. I certainly like the appeal of placing a half a dozen trades per month and banking in thousands of pips with little effort.

In short, I’m not sure. I urge you to test this out for all of us. You may indeed find that the 4 HOUR or Daily charts are better.

Thanks for your great question.

-ForexPhantom-

2 Likes

I forgot to mention that this largely depends on your trading style, as well.

Some people abhor the idea of sitting in front of the charts all day, while others love to be trading “in the moment”.

It’s a matter of personal taste.

I like to watch the markets unfold. I don’t like the idea of placing a trade and letting it sit for an extended period of time with no supervision.

Take care,

-ForexPhantom-

Greetings,

Let me start with a simple question: Do you like paying bills every month?

I certainly don’t. I’d be willing to bet that you don’t either. Nobody does. That is your hard earned money going off in 20 different directions. The worst part of all is that it’s usually for necessities – things in life you couldn’t go without, such as gas, electricity, etc. The funny thing about that is that nobody appreciates those commodities. How many of you wake up each morning, flip the light switch, and feel truly blessed because you’ve got a running current into your home??

My point is that bills pile up quickly each month regardless of whether or not you even enjoy or appreciate the services you are paying for. That is, of course, until they are taken away from you (such as when the electric goes out temporarily due to a storm).

When we go out to eat or buy a new plasma TV, we feel an immediate reward. Our money seems to be well spent. We get satisfaction out of things like food and entertainment. Bills are just sort of there…staring back at you in that mundane fashion.

I’m digressing.

This post is about how you can play the Forex game very conservatively, with very little risk to you, and still manage to earn enough income to pay most of your bills each month.

Think of this as simply free money that can go towards your phone bill, cable, internet, electric, etc.

We all know that the Forex market is the most liquid and profitable market in the world. The stock market cannot compare with the Forex market in this realm. Look below:

Typical YEARLY gains in the stock market range from 8 - 14% (give or take).
With Forex, you could make DOUBLE that rate of return MONTHLY.

Many claim that Forex is too risky. Not necessarily true! It can be very volatile, but that volatility dissipates as you use the larger time frames. In economic times like these, I have more confidence in the forex market than the stock market, personally.

Anyways, back to paying your bills!

The idea could simply be this:

Set up a special Forex account with $1,000. The goal of this account will be to earn you around $1,000 - $3,000 dollars / MONTH, with very little risk.

Use the AMAZING CROSSOVER SYSTEM posted here.
Use the 1 HR time frame.
Trade with a .1 lot size.
Aim for 50 - 100 pips with each trade.
S/L should be 50 - 100 pips.
Trade 1 - 2 pairs daily.

This system is very accurate and will produce a lot of winners with few losers.

Even if you have a loser, it is highly unlikely that any trade will turn on you by 750+ pips!! The S/L will protect you from that, but even that should not be hit often.

If you can place 1 - 2 trades daily and each trade can make you 50 - 100 pips, you will be averaging 1,000 - 2,000 pips monthly.

That translates into an extra $1,000 - $2,000 extra in your pocket with very little risk.

As your account grows, you can slightly increase your lot size. Or you may choose to just aim for a few thousand dollars a month to JUST PAY YOUR BILLS.

This would also be a nice way to eliminate debt.

Just a nice simple conservative trading account to help you each month.

Just a thought! :wink:

-ForexPhantom-

18 Likes

Greetings everyone,

The EUR/USD and GBP/USD are playing cat and mouse with us.

They have been toying with the notion of making a crossover for quite some time now.

I’m a little worried because it’s near the end of the business day and we all know that Friday is a crazy day for Forex!!

See the charts below.

Any insight is welcome.

-ForexPhantom-



1 Like

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-


4 Likes

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-


5 Likes

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-


1 Like

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 [I]Apply to Median Price: HL/2) – One level at 50[/I] part?

Many thanks
Maurice

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-

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. :smiley:

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-

Hello,

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

Keep your eye on it.

Thanks,

-ForexPhantom-