Hey everyone! I just wanted to start a thread about picking tops and bottoms. I know most of what we read is like STAY AWAY!! But I think there is no better to profit than picking tops and bottoms ( accurately of course )
I read a very interesting article about Cluster indicators and Complex Balance Lines. Now I do not use Cluster indicators because I can not find a suitable application for them but if anyone has any theories please share.
I focus only on the Complex Balance indicator or CFP indicator as it is called in the article above.
Mid way through the article is has a theory about finding peaks and valleys in the indicator itself and drawing trend lines on the indicator and when it breaks the trend line its a good sign of a reversal.
( it does a tremendous job I might add )
I also use a little bit of divergence with in the indicator and really look for retracements which is how you can accurately get in at the top or bottom with an extremely tight SL around 4-5 pips and have a very low drawdown with some awesome gains.
I will post pictures of my chart later today when I am off work but I just wanted to get the thread started and have anyone who wishes to read the article do so ( I strongly recommend it ) It has changed my view of trading and the markets forever.
The amount I have learned from the markets trading my live account over the last couple weeks surpasses everything I have learned demo trading random strategies for the last 5 years.
I also am trying to find the most suitable risk management strategy for this. I believe closing half your position once you reach around 5-10 pips and keep your SL very tight so if the market does go against you quick you either break even or gain a little. But if the market continues as excepted you still make a great return with an awesome RISK/REWARD RATION.
[QUOTE=“marcramon;563607”]Kelton please post the indicators,when i attach cfp on the chart nothing shows,my broker has a prefix,would this be the problem? Regards[/QUOTE]
[QUOTE=“marcramon;563611”]gbpusd- or gbpusd-m something after the currency name ,what indicators are you using could you attach them with your template thx Regards[/QUOTE]
The CFP indicator can be downloaded from the article and the complex balance line here Account Suspended
[QUOTE=“marcramon;563654”]ok have downloaded the indicators however still not able to get the CFP working,which broker are you using Kelton. Regards[/QUOTE]