Next Stop (Trading Method)

Trading Systems Free Forex Trading Systems
1

Hello all. I’m back for the second time to bring you another trading method of mine, also taken from my Ichimoku trading series. This is actually the third of the 3 part series. Please feel free to ask questions, give your opinions and make any suggestions. Hopefully I will have more to submit in the future. My main purpose is to help other newbies (like myself) find their path in the FX world!! So, with that being said i would like to present to you…“Next Stop”!
I’m looking forward to hearing your comments!! :slight_smile:

Indicators:
-Kijun-sen (52, shift 3)
-Tenkan-sen (9, shift 0) Daily Chart Only for possible daily pullback level
-RSI (26)
-Trend lines (S/R Levels)

Timeframes Used:
-Daily (Recognize General Trend)
-4 Hour (Get S/R Levels, Kijun-sen Level & Intraday Trend)
-1 Hour (Entry/Trade Management)

Daily Chart (General Trend):
-Mark the previous day’s high/low price
-If Tenkan-sen is above Kijun-sen and price is above both lines the market is in an uptrend
-If Tenkan-sen is below Kijun-sen and price is below both lines the market is in a downtrend
-If price is between Tenkan-sen and Kijun-sen the market is undecided

4 Hour Chart (Support and Resistance Levels):
-Mark all major and minor support and resistance levels from this timeframe
-If price is above 4 Hour Kijun-sen look for long entries, if price is below 4 Hour Kijun-sen look for short entries

1 Hour Chart (Entry & Trade Management):
-Go LONG
*when price crosses Kijun-sen from below, closes above it and RSI is above 50.
*when price comes down, tests and rejects Kijun-sen from above and RSI is above 50.
*when price tests, rejects and forms a pin bar at a support level.

-Go SHORT
*when price crosses Kijun-sen from above, closes below it and RSI is below 50.

  • when price moves up, tests and rejects Kijun-sen from below and RSI is below 50.
    *when price tests, rejects and forms a pin bar at a resistance level.
    **Pin bar = hammer, hanging man, inverted hammer, shooting star and doji

Exit Strategy:
-Exit when price crosses Kijun-sen in the opposite direction.
-Exit when profit target is hit.
-Exit when stop loss is hit.
-Exit when trailing stop is hit.

Risk Management:

Option #1 (My personal favorite):
-Place a 40 pip stop loss
-Place a 60 pip trailing stop
-Move stop to breakeven plus spread after price moves +40 pips
*Pullback Entries (Add 34 EMA Median)
-When price pulls back, tests, rejects and closes in the direction of the trend and RSI is above 50 then it is a valid scale-in/add-on entry
-1st position should have a 40 pip stop loss, 120 pip target and 60 pip trailing stop
-All other positions should have a 40 pip stop loss, 80 pip target and 40 pip trailing stop

Option #2 (recommended for newbies):
-Place a 40 pip stop loss
-Place an 80-120 pip profit target (2:1 to 3:1 reward to risk ratio)
-Place a 60 pip trailing stop
-Move stop to breakeven plus spread after price moves +40 pips

Option #3:
-Place two (2) half-sized positions
-Place a 40 pip stop loss on both positions
-Place an 80 pip profit target and 60 pip trailing stop on the first position
-Place an 80 pip trailing stop on the second position

Kijun-sen Indicator & Template.zip (1.49 KB)

Next Stop 4 Hour.jpg700×386 42.7 KB

Next Stop 1 Hour.jpg700×386 43.7 KB

Next Stop Long entry with pullback example.jpg700×384 51.6 KB

2

The zip file cannot be open

3

What are you using to open it? I just downloaded and upzipped it right now. It worked fine. Let me know… Maybe I can email it to you :wink:

4

My bad, my WinRAR didn’t auto extract the file properly :smiley:

5

Great to hear!! Looking forward to your comments…

6

What an awesome system, digitalgypsy!

Your explanation of the system is very clear so I look forward to backtesting it this week, but the technical basis for the entries and exits cannot be argued with, very cool.

Keep us posted with any new trades/ideas :slight_smile:
Cheerz!

7

Hi digitalgypsy, interesting system. I shall test it!

Just want to clarify something. I assume your entries on H1 charts have to agree with the direction on H4 charts. But in your H1 XAG/USD charts, where you have your “valid short entry”, the price on H4 seems to be above the Kijun-sen. And when you have your “valid long entry” after that, the price on H4 seems to have gone below Kijun-sen.

Thanks.

8

Thank you. Im glad you like it :slight_smile:

9

Hi. Yes they have to agree. I was just showing what a valid entry would look like thats all. Thanks for your question :wink:

10

Hi I have tested your system and it works great.

Was that all? Do we get some pics of your trades, few words about it, how many pips you make in average,have you got an EA for this system ? Something to identify themselves with this system, so like the other systems?

I am of the opinion that this system is quite interesting. It’s sad that you present your system and that’s it. :frowning:

11

Hi thanks for your comments :slight_smile: I’ve only posted the one actual trade which is up above. My average per trade is about 150 pips. I’ll try to post more charts soon. I’m just busy with other things too…unfortunately Im not a full time trader yet :frowning:
But I really appreciate your interest in my strategy. What I can say about the system is that it’s the last of a 3 part Ichimoku Series that i put together.

12

Thanks for your suggestions!! I added a little something to at the beginning. Thanks again!!

13

The last of a 3 part Ichimoku Series? Is it important to know part one and two ?And where can I found them ?^^ yeah me either… trading like a hobby :wink:

14

I’m working towards becoming a full-time trader :slight_smile: You can find the rest of the series and other methods on my website.
I dont know if I can post links here but i’ll try: http://thepippingypsy (dot) tk

15

I’am on my phone and can’t install a flash player,but I’ve question: is part one and two important to trade with part three,like a puzzle ? Tomorrow I’ll check your side;)

16

No, they are all seperate methods using similar indicators :wink:

17

I used your method with my style to handle swings, I open one position and when I am about 1,65 in the red area I open another position and when this position also gets -1,65 I open another position…so to have three imaginary blocks. It works pretty well but because I get out soon of these position I didnt make so much profit…so it’s better to let them hit the take profit and not to get out soon :slight_smile:

Adel

18

Adel, sounds good!! Thanks for your comments. I appreciate the feedback :slight_smile:

19

You’re welcome;) another thing: all signals in the three timeframes have to be hitted? So e.g at the daily chart your candles are above the two lines and at the 4h either, but at the 1h chart the candles cross the blue line and close below it. Is this a valid signal or should I’ve to wait to see some candles crosses from below and close above the blue line, to confirm the general trend and go long ?

Adel

20

Ok maybe I expained it wrong. The daily chart is just to identify the overall trend. It’s not necessary for your entry. The 4 hour chart is what matters more when you want to enter a trade. If the 4 hour is below Kijun-sen, then on the 1 hour chart you want to look for a price cross to the downside from above OR a pull back to the 34 EMA or Kijun-sen. I hope that helps.