Greetings everyone,
What is the best ADX settings for “Period”.
I’ve noticed that changing it just a little bit can have dramatic effects.
Increasing it to 35 seems to function almost like the RSI, in that if it breaks over the level 20 you should enter the trade in that direction.
But this might be too high.
What do you guys think?
-ForexPhantom-
Greetings everyone,
Cable and EUR/USD also look like potential trades.
I favor those two much more than any cross currencies.
I’m not sure if I’ll place an order or not given that it’s the dread FRIDAY!
Take care,
-ForexPhantom-
I simply don’t enter when ADX is under 25 (I add this leveL) ,cause then the trend is too weak.
Hello there,
Do you use a period of 20 applied to the median price?
Thanks,
-ForexPhantom-
I use the default setting of 14 in the ThinkOrSwim desktop client.
Hi
nice simple system- thanks for posting
just one question please- are you all waiting for the 1 hour bar to complete before entering or are you entering beforehand?
thanks in advance
Mark
No I use period of 10 applied to close .
I think by adding both Stoch’s and CCI you can see how much power is left in the move…Of course things reverse, but at least it lets you see the potential. DSS is nice as well, because it will show you the current trend. Shi really tells you where you are at in the channel which is nice. I have seen some moves that look to be huge get stopped at the SHI.
I have lost a couple of these type of trades, but so far, its been because my S/L is too tight. All in all, I am not a fan of S/L, but until I am better versed I must use them to preserve equity. Its natural to have inter-move reversals, especially around the common reversal times…I guess we could use a Jacko approach, and as long as we are trading with the trend, let the S/L hit, the when price comes back our way, jump get back in where we hit our S/L and ride it back up to our original T/P.
Hi all,
Yeah… it was a bad day today, almost all pairs were flat.
I took the EURGBP too… and lost of course. Anyway, nevermind those losses, and let’s learn to accept them. As long there is trading, there will be losing trades.
BTW, what happened to your Fridays rule? After seeing how today was, I might adopt that rule myself. Which is good, our weekend will start earlier when we will be fulltime traders. 
Happy trading,
Marius
Hey there,
Yeah, I didn’t place any orders today. Everything was very flat indeed today.
Not a good time to trade in my opinion.
Yes, Friday will be our free day. 3-day weekends when we are pro traders will be nice. 
-ForexPhantom-
Hi there,
This depends on your risk appetite.
Personally, I love to jump in early because you can gain more pips that way.
Of course, it’s riskier, too.
I personally think that you are safer doing this with the main currencies, such as the EUR/USD and the cable.
Other pairs seem to be more volatile and riskier with this type of strategy, particularly currencies with the Yen (JPY).
We are discussing the use of potential indicators which can tell us if the entry seems appropriate. I’ll post some more about this later.
Take care,
-ForexPhantom-
Greetings everyone,
I’ve come up with something that might help us all out in avoiding fake outs and bad trades.
As you all know, I’m all about simplicity. If it’s not simple, I’m not interested. Particularly in the world of Forex, where we are bombarded with lots of systems using a multitude of EA’s, indicators, and other doodads which can over complicate things.
I’ve added the RVI, or relative vigor index.
It seems extremely useful so far. Basically, you lay it over top of the RSI (see picture below).
INSTRUCTIONS:
If the RSI and the RVI cross 50, enter the trade in that direction IF the EMA’s have also crossed over in that direction (or are approaching a crossover).
If the RVI crosses 50, you must WAIT for the RSI to also cross over 50 in the same direction. The RVI will occasionally signal a crossover, but you must wait for the RSI to follow suit.
If the RSI crosses over 50 from the bottom, the RVI must be above 50 to warrant a trade.
If the RSI crosses over 50 from the top, the RVI must be below 50 to warrant a trade.
I’ve attached a picture which will make it very clear.
Use 10 for both the RSI and RVI.
Check out the photo. It seems to help validate an EMA cross and works well with the RSI.
Thanks,
-ForexPhantom-
Hi Phantom,
Question (questions actually):
My RVI does not look like yours, it has two lines instead of one. Am I doing something wrong? or are you using a custom indicator? Hmm… are you using MT4?
The second question might sound stupid… I never figured out how can I place an indicator in an existing window (for example superimposing the RVI over the RSI). Thanks!
Happy trading,
Marius
I too would like fp’s rvi as the one i found online has the signal line as well. To answer your second question. Ctrl-I find the RVI Drag and drop into the indicator window you want it to show up on. Hit OK. Thats it.
I am going mad. It does not work. Thanks anyway.
Happy trading,
Marius
Hmm Sorry,
Thats how i do it…I’m sure there are other tricks but I don’t know em.
Hi everybody,
Something has just crossed my mind.
All of you make an experiment… strip all of your indicators off the charts, and then try to spot where the entries would be, according to this strategy. Then apply the indicators and see how good you did… you did quite well right?
Do the indicators give accurate signals? Yes. 100%.
But what those signals tell us?
There is a trend forming? NO!
They tell us “There WAS a trend forming”, a few candles ago. And this explains our false signals, actually we jump in the boat too late.
Because after all, 5EMA and 10EMA are just averages of the last 5 and the last 10 candles.
That is why I use to believe in the ADX, which can save us some times. At least, if we jump in late, let’s jump in a fast moving boat (read “strong trend”).
Think about it!
Happy trading,
Marius
Hello everyone,
So the RVI seems to help us potentially avoid some fake outs.
To superimpose the RVI on the RSI, simply do the following (for MT4):
Open the ‘Navigator’ Pane on the left hand side.
Scroll down to the indicator RVI.
Simply drag it over top of the RSI window pane.
A window will pop up to configure the RVI – make sure you set it to “10”.
That’s it!
Now, why does my indicator only have 1 line? Because I used a little trick to mask the other one! I set the signal line to the thin dotted line and made it the same exact color as my background, so that it is camouflaged against the backdrop.
The RVI and RSI will be in a sort of delayed correlation sometimes, other times they will cross simultaneously.
This is all only theory at this point. I haven’t tested it with any trades. I will soon, though.
Take care,
-ForexPhantom-
Hello everyone,
I’m going to start messing around with some indicators and perhaps find what works best.
Superimposing the Stochastics with 8,3,3 seems to be very good (if you camouflage the signal line).
Worth thinking about, also.
-ForexPhantom-
Phantom,
Do we trade Sunday evenings? If so, do you spot any promising trades?
Many thanks for sharing!
Bob in Wisconsin:)
