Can anyone confirm this system?

Hi all!
I have been studying the forex market for the last 4-6 months. I have been staring at the candlesticks and evaluating all their shapes and forms. I think I safely can say that they alone doesn’t provide sufficient information as to weather we have a buy or sell situation coming up.

Further I have tried all indicators, combining them and altered their settings to try predict what’s going to happen. This has worked a whole lot better. The problem is that most indicators say basically the same thing so I have been concentrating on finding the one (or ones) that will give me the best prediction.

This is my conclusion.
I only use slow stochastic 8,3,3 as suggested by James in his 40-100 pips a day system on my 15 minute trading chart. I also have a 60 minute chart with 2 Moving averages 3 and 5. This is how I do.
When the faster stochastic %k goes below 25 and turns up and the 1 hour chart, last 2 hours doesn’t indicate a clear downtrend, I buy. I don’t wait until it crosses the slow stochastic line. By the it could be over! And the same thing the other way. When the faster stochastic reaches above 75 and turn downwards and the 1 hour chart doesn’t show a clear uptrend, I sell. I look for 10 Pips, no more. I have seen though that if these 10 pips is won withing the current candle, the movement is strong so we can try to take more than 10 pips. Sometimes much more so that a trailing stop will give you your 10 pips even if it turns.

This system in reality appears to signal about the same as the cowabunga system and/or 40 - 100 pips system. The later though requires an IB (inner bar) which I have been looking for as a trade signal but just don’t see. At least not in that context.

I have been demotrading my system for a while and it gives me a very good win rate. The problem is that these buy or sell occations doesn’t form very often during one trading day for one given pair. Maybe only 2-5 times a day or even less. I have noticed that most traders preffer a specific pair. This can’t be a well founded id�a. I understand that most of us preffer money we are familiar with but that contradicts the idea of trading technical indicators in a sense. There shouldn’t be any difference so I expect the system to work on all pairs. I haven’t tested though but that’s why I make this post.

What is wrong with this?


Here is an example of where the stochastic tells us to sell but the 1 hour charts recent hours says otherwise.

As you can see, we had a small price reduction in there but the overall price is moving up.

The last price rise is intriguing but we have no way of confirming that so we just sit aside. The rise though certainly mean that we will eventually have a price fall. Maybe we can catch that one?


Right after the last uncertain rise I wrote that we couldn’t catch that, instead we could wait for a price fall that ought to come.

It came and as you see, there wasn’t much to yell about but I got my 10 pips again.

The attached chart shows 1 hour or so more than the pervious.

Arrow 1: The 1 hour chart showed a weak tendency to turn down.
Arrow 2: The stochastic %k is clearly turning down from beeing in the 90% area.
Arrow 3: This is the small downmovement I caught. I could see that it wasn’t strong so I did set a limit order at my 10 pips which I got.


You wanted some feedback so here comes mine…

You have totally lost me. …Very confusing! :mad: :eek: :frowning:

I have waisted an hour or so writing all rules and setup info. When I pressed preview the forum said I wasn’t logged in and presented me with the logon screen. I logged on and got something I often get on this forum (but only this in the world). A completely blank page with the text “ready” on the statusbar.

Let’s see if I bother to do it again.

When you receive the blank screen if you were then to
press the back button twice on your browser you would
then be back to where you were typing. Then press preview or
submit to see the finished post.

Generally though if I feel as though my post is going to be
a long one, then I pre-type it in “word” & copy it over.

[B]Good advice[/B]

:cool:

There are lots of irritating problems with this site. They have been pointed out to admin by different people over the last year but to no avail. Daydreamers advice is sound on this issue

There are lots of irritating problems with this site

:lmao: I think the term is buggy, not to be confused with the
word I use when another bug appears. :rofl: :bangsheadagainstscreen:

[B]SETUP[/B]
2 charts. One 15 minute chart for trading and a 1 Hr chart to monitor
the long time trend. There is only one indicator needed. On the 15 min
chart a slow stochastic 8,3,3.

[B]RULES[/B]
[U]Buy when all of the following conditions are met.[/U]

  • The faster stochastic line (%k) is below 25.
  • That (%k) line begin to turn upwards, before they cross.
  • You have a 1-3 pip movement up, blue or filled candlestick.
  • The 1 Hr chart doesn’t show a steady downtrend.

[U]Sell when all of the following is true.[/U]

  • The faster stochastic line (%k) is over 75.
  • That (%k) line begin to turn downwards, before they cross.
  • You have a 1-3 pip movement down, red or hollow candlestick.
  • The 1 Hr chart doesn’t show a steady uptrend.

[B]Exits[/B]
We want [B][U]10 pips[/U][/B]!
Set a limit order to 10 pips and a trailing stop loss at either
10 pips or the low (when buy) or high (sell) of the previous candlestick
if less than 10 pips. Don’t lose your nerves since the price often
moves 2-4 pips in the wrong direction. If you close and take the loss
you will probably see the price turn in your direction within fraction
of seconds and there is nothing more annoying.

[B]Exception.[/B]
Now and then the price movement is strong and steady and your 10 pips are
gained almost instantly. Then we can move the limit order away by 5 pips
until our trailing stop will assure our 10 pips gain. If that happen, remove
the limit order and try to hang on until the price movement stops. Check you
charts and apply common sense. You have your 10 pips anyway already.

[B]The id�a[/B]
When the price turns, you will almost always see a movement in the predicted
direction of about 12-20 pips. Even if the price in the larger picture is moving
in the other direction. The id�a is to catch this early and take our 10 pips.
You can roll your charts backwards and see for yourself how many times this
system would have been correct.