Hi.
No, you should take candles from 0.00 to 8.00.
In my chart, two vertical lines include candles from 0.00 to 8.00 (BST-GMT). After the second vertical line is the London market time. I begin to find BE. Is that correct? thank for reply
Would you like to show your chart U/J in TF 15m. I can check my chart Again.
Kodziro, excellent strategy! Tried it out the last few days, and it’s been working like a charm.
I am trading it on a demo account right now of course, but so far, so good.
I have 2 questions for you…
Have you tested this on other currency pairs? say USD/CHF? or what about the minor pairs?
And can you give us a chart or something to show exactly how to use the SMA 10 or the BB to get into a trade if we are “late” to the original signal?
Thanks, and keep up the good work!
Greg
Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the long term.
Hi.
No I haven`t tested other currency pairs. Keep in mind correlation between them.
I use SMA and BB to add to trade or/and to jump in trade if I`m late ( when price test/bounce with this lines ). For better picture I recommend you to read Kenneth Lee tread "True PA trading using MA’s for S/R " ( lots useful info about PA and MA ).
Cheers.
Hi Kodziro,
I hope you keep sharing the charts of the trades you take using this strategy. It definitely is a very well-thought out, smart strategy, but it does require a bit of practise to get a hang of. Which is why your charts are so valuable, to get a better idea of the setups. Thanks for all you’ve been doing so far.
Hi.
I know what you mean. Notice that patterns( setups- entry’s ) repeat itself. Practice and you will get feel them. Check today’s G\U and old older one ( 13.10 ). Also add today U\J.
Note : After signal, you should feel comfortable as long as two following candle ( whole ) close under\below SMA(10) and(or) BB(middle). Also when price move to important sup\res take partial profit, move stop to BE or end trade. 1:1 ratio trade is completed so far by 90-95 % probability.
Ps. I will try to keep posting interesting setups.
Cheers.
Hi Kodziro, have a look at today’s U/J chart. In the area I have marked in a white rectangle, that would be a valid signal, right? Has decent price action and divergence, and nice support/resistance area. That would have been a losing trade, but right after that, you get a triple top in divergence formation, which would have been a winner. Not good price action on the 2nd setup though. Your thoughts?
Hi.
No it wasn`t valid signal. We draw a box after close 8.00 BST candle ( including 8.00 candle ). It matter when it make new low or high. However if we trade later on we got clear signal to get out. As for 2nd setup I didnt take it – price action witn no solid base.
Hi Kodziro,
Just wanted to check if this was a valid signal or not. g/u from yesterday. My profit target was 2 times SL. Missed by a whisker. Are you still using 3 times SL as your target? Have you changed your MM rules now?
Also, on average per week, how many valid setups do you see? And how many pairs do you follow for this system?
Hi.
Yes its valid. Very strong trend if price dont test daily high I wouldn’t touch it ( don’t underestimate daily/weakly low/high ). I only trade 2 setup this week so far. Second was day before that ( see picture ). Notice that was long run TP. Daily MACD change color from negative to positive ( see rules for long setups ). Also compare to trade from previous week ( similar trade, one with divergence and SUP, second daily low and SUP ). So in that case my TP is high. If against trend and other I don’t have hard TP= 3*SL. I look to sup/res and sometimes is between 2-3.5. For example if my TP is beyond some important sup/res for 10 pips I cut my TP ( or widen it in opposite case ) or at least try protect trade.
( Although I still test it by TP=3*SL as for set and forget system, and compare results)
Week average is 3-5 setups. I trade on e\u, g\u, e\g , u\j.
Cheers.
Thanks Kodziro for the helpful reply, as always.
So, from what I understand:
- If strong price action forms at previous day’s or current week’s high/low with nice divergence, and it is not against strong trend, we should shoot for a big TP.
- If strong price action forms at the boundaries of 0-8GMT box with divergence, but not at daily/weekly high/low, or is against trend, we should have small target based on S/R.
Is this right?
May I ask how you judge trend? Just visually/200EMA, etc?
Yes you are understanding correct. If we are in main trend then we could expect larger move. Personally I play for bigger TP if at previous day we had breakout in direction of our future trade. ( short term trend is now up/down) If daily trend had same direction even better. Daily MACD change color along with earlier move also make me aim higher. — see todays U\J I already got 3*SL but I`m aiming higher. ( so far we got also valid signal in E\G )
Keep in mind that every price action must have solid base, sometimes is daily low/high , earlier engulfing, checkmate area
As for main trend I define it by Daily MACD ( positive /negative value ) or 50 Ema.
Attaching today’s U/J. I saw the setup on U/J, E/J and traded the E/J, exited at 2SL. Did u enter at the same place that I have indicated in the pic? Because the trade still hasnt reached 3SL. So, I’m guessing you entered at the previous candle? But that’s not strong price action. Or am I missing something?
Also, could you upload the E/G chart and the reasons you entered there?
For longer term trade, you look at the change in color in the daily MACD, i.e, from red to green or green to red? Would be really helpful if you could show the chart for a longer term trade, and exactly what you look at to decide on it.
Let me say again, this is an awesome system, with a stunning strike rate, when properly applied. I have made a few trades, all were profitable.
According to the rules on post 1, I believe Kodziro uses a max 15 pip stop on UJ, or uses ATR 20 - which at that point was showing a reading of around 15. Based on that as an SL the trade would have made 3xSL (reached +57 according to my chart). When its a relatively big candle like that, another method may be to put the SL at the 76.8 fib of the candle (17 pips on this candle), in this case price reached the 61.8 to the pip and then headed up. I’ve often found that if it breaks through this level it’s usually going to keep on going. Many ways to decide on an SL, but I guess the point is that putting it at the bottom of the candle would have been to large an SL for this pair? Still a +ve trade though!!
Actually today we had long term trade opportunity in U\J ( see daily MACD in picture 1). Last Friday tell me to aim for bigger TP ( see my previous post ). I know that if I had trade opportunity It will be with SUP line ( daily low was out of reach ). So when I see doji ( with nice base – scroll back ), divergence at both indicators Stoch, MACD ( which is rare – give extra confidence ) I pull the trigger. If doji was under SUP line I definitely want to confirmation ( close next candle ). Of course you could wait for that confirmation – most times it will work but in that case you would have to extend your SL, or wait to retrace large candle for fixing your SL although price could keep going up or put SL like Shandy mention.
As for E\G check attached picture 2 and compare to g/u trade on 11.07. Keep spotting trade setup and with time you will notice that pattern repeat itself ( and looks similar ).
