JL Method in honor of ForexPhantom

Good day all

A little project between myself and jayboii478 (301 Moved Permanently).

We both love the system and we looking at ways to improve by minimizing “false” signals firstly and then move to ensure maximum profit. Having traded this for some time there is definitely a large amount of pips up for grabs provided you get into the right trade.

http://forums.babypips.com/free-forex-trading-systems/20496-forexphantom-daily-crossover-system.html

This is not our system and credit goes to ForexPhantom as this is what our ideas will be based on.

For now we will
-Use the system as a base.
-Add 2 and 8 LWMA for further confirmation.
-Use 200 EMA for trend confirmation.

Our aim is to help ourselves first to get better and then anyone else who is willing. Our only request is that we don’t have unnecessarily negative replies and telling us what wont work and the usual. And no there is no back testing etc. If you interested in trying, please refer to ForexPhantom’s post and follow on from there.
We will proceed with the above on a demo account and post our trades as we take them with our reasoning. This is mostly for our own tracking purposes.

All other MM etc will follow.

Objective one - get confirmation of valid trades.

Jayboii

I looked at the ADX and its a dead duck in my view. Then the 200 EMA filters tons more possibilities out as for the price to get back our cross takes some doing.

This is what I am going for now. will do for a few.

added the 2LWMA to the 1 and 4 and use the first cross as intent and second cross as confirmation. The exit we will work on but this seems a bit more of a better filter. Even Stoch wasnt that great.

Very well done Snipes! Looks great to me. I feel we are off to a great start and we are making good progress! The two trades you took yesterday seem to be making some profit now, which is nice for sure! I think we should use Major Daily support and resistance levels for TP and SL, they seem to be good areas that price struggles around, or use a trailing stop at a support or resistance level, so at least we will be protected come that level. Also if we are close to a support or resistance level and we get a signal to enter, don’t enter until that area is broken and closed above on the daily chart. My 2 cents haha. Let’s see what we can get!
I’m watching the USDCAD now, but beware! it’s at the top of a trend and looks like a consolidation period, so could breakout to the downside, but the 1.3000 area is a very strong area of reaction for the pair.
The USDCAD on the DAILY chart, rested on the 75% fib, as well above the 200 EMA, once we get the 1 and 4 cross and 2 and 8 confirmation, I’d be interested in entering the trade for a long to around 1.3175. :57:

ADX we should shy away from, The 200 i’ll continue to use, but with skepticism. I’m interested to see the 2LWMA and how that works, I’ll give it a go! Stoch depends on the settings we use, but for this it might not be our best bet.

Hi Jay

will look more into the SR for SL and TP… for now will rely on trailing as i want to focus on filtered signals.

I just entered (naughty R at 1.09000) short on EURCHF (1.08490). Both 1 and 2 crossed 4 sometime yesterday and we could have been about 23 pips in the good if we got it earlier. Will monitor closely.

The two trades of yesterday I have closed. needed to focus on this for now.

Will watch the USDCAD also, if I have to stick to the 1 and 2 cross then it should be a long… but like you said seems like some consolidation happening. Also dont like how the 2 is hugging the 4 since Tuesday.

Jay watch EURGBP for a short as well.

Howzit chaps,

Sorry to jump in uninvited. Can you post a template & updated instructions on the first post so us newcomers can get upto speed without having to trawl through 80 post on ForexPhantom’s thread. I’d like to see how it stacks upto some other indis I have.

Thanks

Ok snipes EURGBP added to the list! That is true about USDCAD too, the MA’s are hugging, watch this pair closely.

Hello SafariPip!

It’s very simple to do yourself
First take a chart any chart, I’d say start with the EURUSD, move it to a D1 timeframe ( for daily )
than right click that chart, at the bottom you’ll see properties go to there.
Change the background of your chart to white ( or whatever color you wish ) than change your candle stick colors to what you want them to be. Make the foreground black if you did the background white, it is the easiest to see. Than scroll over to common and get rid of show grid.
Than click OK and close that box, right click your chart again and select indicators list, and delete all of them. Than add the MACD to your chart, by going to the top of the chart at the insert section than choosing trend, than oscillators you’ll see MACD. Make the colors on the MACD the same as your background, than set the perimeter at Fast: 4 SLOW: 9 MACD SMA: 5 and make sure apply to: close is selected below.
and click ok.
Than on the left of the chart towards the middle below all the currency pairs, you’ll see the navigator, select the trend section and drag 2 moving averages to the MACD box on the chart on the bottom of the chart, ( macd box should be blank nothing in it before you do this ) Than select the period as 1 with a liner weight MA method and Apply to the first indactors Data.
Than for the second EMA make it period 4 and select the same thing, than when the 1 cross the 4 to the downside, you want to sell, when the 1 crosses the 4 to the upside, you want to long.
Than we are using a trailing stop to TP, USE a 2 and 8 liner weighted moving average for extra confirmation on a second MACD box. SL we are working on, I’d recommend 100-150 to start, big movements on the daily charts. I use FIBONACCI as extra confirmation for a trade, when price rest in the 50-61.8% zone is typically a stronger signal. We are working on a EMA to make it easier to determine trend, to trade with the trend. This is not a good system to trade ranges really.

Hope that helps!
if you need more just ask!

Jason :41:

Hi SafariPip

You most welcome. If you go to the OP of ForexPhantom thread there is an explanation as well as a template for the system. Reason we not posting it directly here is to ensure that the respect and kudos goes to Phantom.

You dont need to go through all the other posts. You can just look at the OP and then maybe last 2-3 pages where Jay and I started chatting.

Jay

Trade went positive

Quick one… if my fib understanding is correct, at 23.6 we might see some stalling? 1.08100.

Been a R and S area before?

So BE as soon as more positive and then once price breaks the 1.08100 should then become S/L?

NB Still firming up on the SR and Fib knowledge.

The 23.6 is passed now, that would be one area, its a weaker one though. 50-61.8 are the stronger ones. The 50% looks like a strong resistance and lines up with the 200 EMA, so expect that cause some trouble, I’d lock in pips before than to be safe :57:
38.2 could be some trouble, but not as likely.
Happy trading!
Jason

Support not resistance on my last post! lol.
http://forums.babypips.com/free-forex-trading-systems/20496-forexphantom-daily-crossover-system.html
That’s Forexphantoms original page of this system, he is the creator!

This part here also depends on how you FIB the trend, I might fib differently than you, so I might have different results, if you fibbed the last months low to this months high, you will have a different FIB than me, but nothing wrong with that! It’s still a good one!

Got in the AUDNZD at 1.1210 for a long, after the cross of the 1 and 4 MA and 2 and 8 touching, came out of my 50% fib zone as well for a stronger entry. TP is with a 75pip trailing stop loss, and SL is 100 pips.

Jay

I’m just review my notes and understanding again to make sure I’m not getting ahead of myself. More so with Fib and SnR.

[QUOTE=“jayboii478;716471”]Got in the AUDNZD at 1.1210 for a long, after the cross of the 1 and 4 MA and 2 and 8 touching, came out of my 50% fib zone as well for a stronger entry. TP is with a 75pip trailing stop loss, and SL is 100 pips.[/QUOTE]

That looks like a solid entry there

Great idea! Like I said your FIB might differ from mine and that’s fine!

65+ pips on the AUDNZD so far, so lets see 1.1320 resistance area as my new TP, hopefully will hit there.

Jason :57:

Closed out AUDNZD with 62 pips at of profit at 1.1272, before the week ended. Not bad, now next week we got a fresh week ahead, so lets see if we can stay consistently profitable!

Hi Snipes,
I’m interested in following and contributing what little I can to this thread. I had gone through the Phantom’s entire thread on this system about a year ago. Didn’t work too well for me then. I’m hoping that with a relook I will have better luck. Trading on the daily suits me better which is why this simple crossover method had always held so much appeal for me.
I see one or two set-ups coming up; when the market opens on Sunday I will post my comments/opinions on those pairs.
Thanks
David

Hello David!

Welcome to the forum! We will be happy to help you get going in the right direction! On sunday night I’ll do my analysis and post up trades I’m looking at. I’ll be around the forum if you have ANY questions!

Happy trading
Jason