HEY EVERYONE!
My name is Jason, I’ve been trading forex for a few years now. I have been trying to figure out a nice simple system, yet profitable, with decent amounts of entry’s, and when you lose its a small loss. But not to the point of overtrading. So after some messing around and much testing of different things in forex, I give you
THE SKYLINE SYSTEM!
here is how it works, nice and simple.
What you will need,
MT4
Support and resistance on a daily/weekly chart
10 and 14 EMA ONLY on the 30M CHART
200 EMA on daily chart and weekly chart
and mostly Patience
So this is how I do it, I’m mainly looking to be going with the trend, I set up a S/R level on my daily chart, then I try to find a couple more S/R levels. Then I go to the weekly chart and see how they match up there compared to the daily chart.
Once all is in check and I verify these are strong S/R levels I move on to step 2
STEP 2: Wait for price to hit one of your S/R levels, Then once price hits the level, you drop down to the 30M chart and wait for the 10 14 EMA crossover to occur, once it does, you enter the trade. I wait for at least a 5 pip separation between the 2 EMAs to confirm the crossover and that it is not just touching.
STEP 3: you now have choices to make, you can set a SL where you deem fit and a TP same deal. Or you can wait for the crossover to reverse and exit there, typically that leads to small losses, because you get out early if its a losing trade and if its winning you get out before its starting to go against your trade. That does not mean small wins like some would think, this has given 200, 300 pips before it reversed its crossover.
IF you chose to set a SL and TP ( I recommend not leaving the trade un monitored if you’re not setting ANY SL, market can be erratic!) I’d set a SL at a low, either on the 30M or Daily chart. What I do is I set a SL usually a kind of large one to give the trade room to breath, then once its in profit by say 40-50pips I would bring my SL to BE and then just exit on the reverse crossover of the EMA or if price hits my TP first.
For TP I set dynamically, usually based on highs, but sometimes might be a S/R level in the opposite direction too.
THIS is the GBPCAD on the daily chart, notice the Support line drawn. The red vertical lines show the start of the support area and the current end of it. Once price touched that area ( that was Friday 10/9/2015 ) you would look to enter for a long.
THIS is the GBPCAD on the 30M chart where you would look for your entry. Notice how price touched that area and then gave a 10 14 EMA crossover? That started at 1.9830, price is currently at 1.9950. Overall 120 pips and still going. You protect your profit say 50 or 100 pips SL of profit or put it at Breakeven, you could set a TP for price to reach or you could wait for the EMA’s to reverse their cross back over.
NOW MIND THIS You can trade it in a trending or ranging market. If its trending just follow the above steps, if its ranging, look for tops and bottoms on the daily chart, mark the closes of price with S/r level, then once price hits the top look for the crossover to go short and place SL above that top and vis versa for the bottom. TP is how you chose, can be reverse crossover or can be a low/high etc…
THIS Is the EURAUD on the daily chart, it’s last month ranging market, notice how I chose the very tops and the very bottom of that range? Now if price was still in that range, you would wait for price to hit that top or bottom and look for your entry. But price broke out, so you look for new areas now to enter.
Now that is part 1 of the system, What do you think?
WANT PART 2??? 2000$$ AND ITS YOURS!! … YEA RIGHT HELL NO!!! IT’S FREE YO!!
PART 2!
This is very simple and I DID NOT create this part I DID CREATE PART 1
This has been around for a while I know that.
All it is, is this, you setup a S/R level on the daily chart that is a strong S/R level, once price breaks through with a strong candle and closes above or below that level, you wait for the retrace to that S/R level and you enter your trade, it can be on the touch of that area and you enter, or you could wait for your 10 and 14 EMA crossover.
This works on trending and ranging markets too.
THIS is the EURNZD, notice the strong Resistance area during the UPTREND? Once price broke that area on the daily chart here, it retrace back to it and then went long. You could enter on the touch or 10 and 14 EMA cross on the 30M chart.
I will be on this forum posting my trades in real time with my results! I hope others will too! All are welcome!
FEW RULES TO FOLLOW!
NEVER EVER TRADE DURING A MINUTES MEETING OR NFP FRIDAYS!
NEVER EVER TRADE DURING BANK RATE OR CASH RATE ANNOUCEMENTS! OR STATEMENTS!
DON’T OVERTRADE, AND BE AWARE OF CORRELATION YOU DON’T WANT TO ENTER 2 TRADES THAT ARE GOING THE SAME DIRECTION AND HAVE THEM BOTH LOSE!
I also look at fundamental news and keep myself updated with it, if you match strong currency’s to weaker ones, your results will be much better all around! That does mean you NEED to do a fundamental analysis, I just encourage it!
SIDE NOTES:
If interested in a daily crossover system, a member named Snipes and myself have a trading journal, dedicated to a system that was made by a member named ForexPhantom here at Babypips, we are using that system with some adjustment’s of our own! http://forums.babypips.com/trade-journals/75424-jl-method-honor-forexphantom.html is the link to that page!
That’s all there really is to it!
Good luck and I hope folks join in here with me to trade the SKYLINE SYSTEM!!
Happy trading
Jason
