Hey everyone, just wanted to let you know I took down Part 2. I neglected to put in a few very important key rules that could end up hurting everyone in the long run. I’ll edit it, and put it back up later today. Sorry for the inconvenience. The main part is still valid for those who d/led it already. Just the rules section will have a slight change.
Also, I brought a mic and a new vid recording software to work with me, so look for some new videos today as well!
Grr I hate work computers! I can’t get the mic to sync with the recording software Hold tight I’ll try and get one out today when I get home from work. *
hi, windsorftw:
Eagerly anticipating your revised part 2 and new videos!
Can you post settings for 3SMA, applied to Close (shift=?)? Also in your videos, is it Ok you show us where you place your entry, stop-loss and TPs with Fibonacci? Right now I'm a little confused about them.
And one more thing: can you talk about your trading routine using this method? I mean how you go about looking for setups across all pairs and timeframes? Did you literally plot all these horizontal lines and Fibos on different charts and wait for setups?
Thank you for your time and help!
Hey Zhangshuo,
Sorry I haven’t been here all week, had a family emergency and it prevented me from doing any work and update you guys. Things have calmed down and I will be able to get part 2 finished and re-uploaded.
I’ll also upload a template file in the original post for you.
I still can’t get audio to work with my computer, very frustrating. I’ve tried a couple of different Mics, a dozen different screen recording software, but nothing seems to work. I might just go out and buy a new laptop with a built in mic to fix the problem lol!
Apparently I can’t edit the attachments on the first post anymore so here’s the template file and part 2.1!
There’s the whole strategy in a nutshell. Part 1 and Part 2. I’m happy with the system, and trading it consistently will generate profit. However, there are a lot of missed opportunities, especially for Part 1.
If you get the hang of the higher close/lower close principles, you’ll notice that price respects Fibonacci Retracement levels, and don’t always go down to the target entry. I’ve been trying to come up with a solution for the better part of 6 months now, and though I have come up with a couple of tricks, I’m not sure if they are viable. There are a lot of missed opportunities that we could be getting in on. I’ll post up my thoughts and my tricks that sometimes work as possible entry markers. Maybe with your help we can develop it into a more solid entry rule than what I’m using for Part 1, land us more pips and prevent us from missing those golden opportunities!
In the meantime, i’m now working on some new videos (no audio still for the time being) but hopefully they can help show you the trades.
I do have one final question before getting to new videos. Does everyone understand how to find the recent high/low using the 3SMA? If you don’t understand that, then the rest of FXEM will throw you off. The hills and valleys of the 3SMA should be pretty evident. If anyone’s embarrassed to post a question, feel free to PM me and I’ll answer you back. Chances are, if you have a question, someone else out there has the same question.
Shuo, I look for a close above or below a recent high/low. Once I find that, then I go into action and use my Fibonacci tool to draw in all the lines. Most trading platforms out there have a Fibonacci Retracement tool and or an Extension tool. Luckily, in MT4, we can do both with one easy tool.
My next video will concentrate on finding the closes above and below recent highs and lows to show you what I’m looking for. Once that occurs, it’s simply a matter of waiting for price to retrace or extend (depending if you’re looking for P1 or P2 setups!)
On the daily time frame, it takes me all of 5 minutes to look across 10 pairs for a setup. Of course, once I FIND a setup, it takes a little bit more time to set a trade up or to see if the setup meets entry criteria. Once in the trade, I let price take over, and it either hits my profit, or stops me out.
I’m also going to attach the Move Stop Expert Adivsor I use with my trading. What this EA does is it will move your stop loss once a certain target is hit. It’s great for moving Trade 2 stop loss to breakeven once Trade 1 hits it’s profit target.
If anyone has any questions on how the EA works, just ask. Remember, this is an Expert Advisor, and not an Indicator!
hi, windsorftw:
first up thank you for your pdfs!
I just have couple of things to say:
1. can you make some videos with audio to demonstrate both part 1&2 for us, whch will help a lot more? You can use programs like Jing (free).
2. Just post up your 'tricks' and we will brainstorm. That way maybe we can figure out something new.
3. Also correct me if I'm wrong, for part 2, is it better to just have 1 profit target because we're trading against recent momentum (in other words, we're just trading pullbacks)?
1 - Yes, I’m working on getting better videos with Audio. Still experiencing technical difficulties, but hopefully I can get something worked out soon!
2 - Will do, one of the tricks has to do with 3 below
3 - Yes you are totally correct. Though I prefer going for larger pips, I tend to use the entry level for the first system as my T2 target. I tend to aquire more pips than trying to go for the big move. Basically, I’m trying to determine where the market will continue it’s recent momentum at, and get all the pips along the way.
Thanks for sharing this. A LOT of work and studying has obviously gone in to it.
In one way, I’m surprised there isn’t more interest in your thread, but then again, I’m not surprised, because it requires people to study and read and read again, and actually use their brains.
Hey 599GTO, thanks for the positive feedback. It’s your responses that’ll keep us working together to completly optimize the system.
I couldn’t have said it better myself. This requires a lot of work and understanding, most people aren’t willing to put the time or effort into something so elaborate. They’re loss eh!
For anyone who is struggling with learning the system, I suggest you learn the Higher Close and Lower Close principles first, then move on to the rest when you have a better understanding of that.
Speaking of which, I have a new video (still no audio, bear with me!). I’ll upload it to Youtube today and get the URL for you guys. It’s fast paced and I didn’t really stop to ID anything, just keep up. I basically move the high/low with the high/low of the 3SMA. Watch it a few times if you have to, but it’ll eventually make sense. It’s just the higher close and lower close principle.
As for time frames, technically the system will work on any time frame, any pair, any market. HOWEVER, I prefer the longer time frames, more pips, more time to analyze, and I don’t have to be glued to the screen. That’s just my preference.
Also note, I’ll post up some of my thoughts concerning System 1 and how we can try to get into those trades that respect the Fib lines as opposed to hoping for a huge retracement.
Vijai, yes there was a setup that occured last week I believe on the AUDUSD…not quite sure if that’s the pair or not. I think it was based on system 2. I will be posting up trades as they happen soon.
Please continue to be patient
Also, I updated post #1 with a new, still audioless youtube video showing the higher close, lower close principle.
As you can see in the video (though the candle wicks are hard to see, I’ll make it easier on the next vid), I move the high and low with each high/low created by the 3SMA. Once one of those highs/lows have a candle closing beyond it, I move a blue box showing where the close occured, validating the new high/new low move. Here’s the URL again:
Hold tight I’ll try and get one out today when I get home from work. *
