Simple Forex Trading System

[woodydj]

Hi I am new to this forum in fact I rarely write post in forums. Being a succerssfull forex trader for many years coming from and still trading commodities for a living. I have usually not bothered to post in forums as they usually have too many rules. However I am sick of all the fake BS systems being sold to the many struggling rookie traders. I am going to freely give you one of my very successful and simple systems. I am doing so in the hope that any rookie traders reading this post will realise that ANY system that is sold is a fake, if these so called foolproof systems really worked then the people that wrote them would not need to sell them as they would make millions using their system themselves.
I do not use indicators at all I trade Price Action only. No cluttered chart just a simple candlestick chart. in the MT4 Platform. On the H1 chart I insert the daily seperators and I use a plugin called daily open.
I wait till a new week begins and I draw a line on the weekly open. This becomes a major support and resistance line for me. I note the trend direction if for-instance the trend is up then I place a buy order on the first bullish candle above the weekly open line with a SL on the weekly line, sometimes this is stopped out a couple times however I keep doing so till it rallies. Some time during the week the market will return to this line, if it bounces off then I again place a buy order with again a SL on the weekly open line. If the market breakes thru the weekly open line then place a sell order on the first candle that closes below the weekly line with a SL again on the line.
If the market rallies and does not return to the weekly open line then take note of the next daily open line
run a Fib from the weekly line to this daily line and wait till the market retraces to the 50% line then place a buy order with a SL on the 50% line.
In a downward market do the opposite to the upward market.
There a simple system that any careful trader can make money from.

[bugmenot2]

Got with you friend

[mimmi]

Hi,
Do you mind telling us how you handle the exits?
Thank you for this method!

[goldmedalkid]

Hi Woodydj

i have been thinking about the weekly open....... it becomes significant during the course of the week....
have you get any more tips to give us?

thank v much

[woodydj]

As I have stated before no system is foolproof. Like all system you must manage stop losses and money management. The weekly open is significent as it often and I say again often ( Not always) set the trend for the week. If the market rises above the weekly open line then I wait for a COMPLETE candle to close above or below this line and trade accordingly. As for exits that depends on your own risk factor. If I feel lucky I will follow the trend till it begins to retrace. If I feel apprehensive then I will take out 20 to 40 pips then close.
You can design yourself a system using candles, heikin ashi smoothed indicators and a couple of EMA's. nearly 90% of the "holyGrail" systems out there use just that and charge you anything from $50 to $500 for it.
Set up a system and stay with it.That is the secret to success.
I do use another system however I use it only for confirmation.

Cheers woodydj

[goldmedalkid]

I wait for a COMPLETE candle to close above or below this line and trade accordingly. As for exits that depends on your own risk factor.

Must ask which TF candle do you mean when you say "wait for a COMPLETE candle to close above or below"
do you do this sunday eve?
or wait til monday or tuesday?

It would be really helpful if you could find the time to post a few Pictures


Thanks
GMkid

[woodydj]

Hi GMkid
Please give me a couple of days to answer you as I am off to PNG for business. However I am having trouble attaching a photo on this forum anybody can help me there? When I am back I shall post a complete and extensive reply on my system along with chart photo's If I can attach them ok

[DonaldQ]

Thank you for sharing this system woodydj! Just going through it and trying to pick up all the important points. So....

...in the MT4 Platform....H1 chart....draw a line on the weekly open. This becomes a major support and resistance

H1 chart, so far so good.

I note the trend direction

How do you determine this?

If the market rallies and does not return to the weekly open line then take note of the next daily open line
run a Fib from the weekly line to this daily line and wait till the market retraces to the 50% line then place a buy order with a SL on the 50% line.....

I *think* you mean place a SL on the weekly line, dont you? Because if price is at the 50%, and you place a stop there as well it'll be stopped almost immediately?

Thanks in advance for your clarification!

[woodydj]

Hi DonaldQ



Here is a Chart of my System. Like all systems it has Flaws, What they are well it is too complicated to do so in this forum. Here is the System Check it out and experiment. You should find the Flaws yourself and learn to recognize them and how to compensate. Further to ad to the confusion here, even though I use MT4 Charts for Demo here In reality I Hand Draw my Hourly Eur/Usd Chart. Cheers Woodydj

[DonaldQ]

Interesting, though I have to squint to make out the smaller text on the chart.

What would you do with a week like the one below? Blue is the weekly line, yellow is daily (I wrote the indicator)