JÄWÄ's 'Experimental' Price Indecision System

Trading Systems Free Forex Trading Systems
503

I’m still trading.
While both the AUD trades this late morning hit SL, I’m still positive pip territory right now, and would have been doing really good if I hadn’t fallen asleep literally a minute before looking at that next candle last night…anyways, got three buys, didn’t see anything on AUDJPY…we’ll see…some of the fundamentalists are predicting these pairs to breakout and skyrocket, the question is when, but I’ll just keep my head down here and trade what I see…hopefully I can keep my eyelids open long enough for next 4 hour candle.

Edit: yay! AudUsd hit first TP, moved other trade SL up…the others are at same as entry, after dipping…come on 11:00 CST!

Double edit: this calls for a yehaaw! Make that full TP on AudUsd!

SJ, did you buy or sell the 12:00 noon candles? That’s the one I lost both trades on, just wanted to see if I missed something on those entries?

504

@pipcompounder: hurray :smiley: i’m back in the positive for the week, finally a news announcement i like :smiley: I think im going to post my trades soon to show people what’s been going on

505

@pipcompounder: I had sold at the 4AM, 8, and 12 candles, as well as that I had a sell stop pending, but at the 4PM candle a morning star formed so I placed a buy, as well as that chart I had morning stars on the other charts, as well as inside bars and a pin or two :slight_smile:

506

I posting this to encourage others…my other two trades just hit half TP! I better start lookin for a tax man to keep Obama away from me.

507

@everyone: These are the trades that, had you been on this server time and trading the system to the letter, would have taken this week, unfortunately i have been “derping up” this week, I have many other responsibilities and obligations that have kept me from being at my computer the majority of the week, so when i have been able to I have been trading on my phone and forgetting very simple rules, this just goes to show you this is a business and it needs to be treated as such, I have been busy and distracted and haven’t been able to trade my own system to its full potential this week, that being said i am in positive territory this week, but I am disappointed with the lackadaisical attitude towards trading i’ve let myself have this week :frowning: I should’ve printed out my checklist and made sure i knew exactly why i was entering or exiting each trade, my mistakes :3

regardless here is the AUD/USD chart for the week so far :slight_smile: I recommend everyone who is having trouble (even me) demo trade until they can show consistent application of the rules to a T, because even one messed up or missed entry can cause a huge drawdown for no reason:


If traded properly this system, this week, should be ahead around 600-700 pips, IF traded properly :3

@everyone: I have realized today and this week that I have unfortunately too many people and things relying on me in other aspects in my life and i do not have the time i wish i had to devote to this forum and its members :3 so my replying to questions and things of that manner will be slowed, i might only be on once a day if that, I am extremely sorry to everyone here that i cannot be more helpful :\ I’m not going to disappear but i cannot be as present as i have been, so as one quick note that i think everyone should adhere too, print out the checklist, make a journal for your trades, at every single candle go up and down the checklist, remember all the filters and tiny rules, especially for filtering out direction on stars and inside bars, those ones still kill me :stuck_out_tongue: and at every trade make a note of why you have entered a trade, or why you have exited one, if you are not 100% sure about an entry chances are you are doing something wrong, so yesh… happy trading!

508

ahaha just make sure you can keep on making these good trades :slight_smile: dont forget the rules!!

this is an fxbook linked to one of the accounts i made my friends

1K - 1M System | Myfxbook

you’ll notice at first he started off amazingly well, but then he started getting very VERY dumb and forgetting rules, putting to much risk into trades etc. And he had a bad streak and started emotionally trading, and all his losses are small, most of them are him exiting trades out of fear, DONT FORGET THE RULES!! and dont let your profits slip, after a while after like 2 losses in a row he’d lose his nerve and demo trade the rest of the week, its a good thing to learn from

Also for when you start making actual money Obama will legitly come after you :l being the 1% isn’t fun when you get taxed more then most people just for working harder and being smarter then most people (not trying to stir up opinions, i dont mean to offend anyone), What i suggest you do when the time comes is make a corporation for yourself and begin investing in real estate, of course that is a whoooole nother thread but basicly by forming an LLC you can mitigate many of your expenses into tax shelters and refunds, and investing in real estate i believe should be the end goal of all traders, if you finance and buy 10 $60,000 rental houses for $200,000, that gives you roughly $6,000 a month in total returns after ALL expenses, and after a couple years of growing equity you can take loans of the houses equity to get more houses and more and more and it keeps snowballing, THAT is true wealth compounding :slight_smile: thats how donald trump and robert Kiyosaki do it, and real estate is a great tax shelter too if you do it correctly :smiley: Also speaking of texas!! The most profitable real estate in the country is there, you can buy an apartment complex for between 5M and 10M that gives you returns of near $100,000 a month after expenses :slight_smile: I kind of went off track there and used up more of the time i dont have but i cant help it! Forex is my baby and i am addicted to it and helping all those who trade it :3

509

I agree to the “T” …I would be up about 700 pips right now if I hadn’t fallen asleep on the job 24 hours ago, but at least it’s about 350+

Thanks again, SJ…I hope the others viewing your thread get this, it’s a wonderful system.

Edit: real estate…I’ve got a tax property that I just need to find time an clean up and sell…potential 1000% profit, that is what my wife wants to do…anyway

511

@pipcompounder: aha i can’t wait till i get to experience the joys of married life :stuck_out_tongue: hmmm, renting properties out and flipping them have very different pros and cons, the major pro of renting out a property is the passive income, so after a while you dont have too work, of course the income is much lower

Flipping properties takes A LOT more footwork but the potential profit is substantially more and much faster :slight_smile: One thing that might be a good idea is to clean up the property and sell it, then use the money for forex trading, obviously if you master this system you could get as much as 100% a week, so that would be probably the best idea although again it would take much more foot work, paper work, and of course risk from the trading :slight_smile:

EDIT: You should read some of Robert Kiyosaki’s books, Rich Dad Poor Dad, and The Real Book of Real Estate, are both very interesting and informative reads :slight_smile:

512

Hi how are you.

This is my first post on thread or on this forum. I’ve been demoing for a few months. I’ve been demoing this system for about ten days. Last week I did very well. This week I’m about break even or so.

First of all thank you Daniel for creating and sharing this system. You’ve put a ton of time into explaining it and helping everyone, and I know I’m grateful for that. Thank you to everyone else who has posted and helped as well.

I’m posting because I’m still unclear on exactly what the rules are. I feel like you know the rules well yourself, and you explain them very well, but there’s still just a little bit of ambiguity from where I’m sitting. I will concede that it may be my fault; I may be reading things wrong or I may have missed something.

I’m going to use your most recent chart post as an example. Post number 505. The first trade you make is not a pin bar. The long wick is not fifty percent of the candle. Therefore I would not trade it, and I would miss out on profits. Am I supposed to say ah, close enough and trade it anyway? There are several other times that this has happened.

The morning star does not look like a morning star to me. The first rule is that the first candle be in the direction of the trend in place. In this case it is not. The previous four candles all closed higher than they opened. To me, one candle does not make a trend. And if it does then every candle will be in the direction of the current trend in place. So I would not trade that.

I’m just trying to look at the charts and see what you see. I feel like there’s some daylight between the rules and what you actually trade. Again I concede that I could be missing something.

But overall this system is a winner, and I can’t overstate how appreciative I am to you for taking time to help out people like me who don’t understand quite what the hell is going on half the time. This is a great system and a great thread.

Sorry if this was too lengthy.

Candles are closing so I have to go!

Thanks
gr

513

Ah, yes…rich dad poor dad spells America, what this country can still give you if you work for it and stuff all those people who say you can’t into closet somewhere…I like what he says about how the entitlement mentality is so destructive…I like to earn something worth the work and time, this strategy has been doing that for me…BTW no trades on this candle for me, only have one open, very close to full TP…good night until the next candle!

514

@SithJawa, may I ask you what do you refer when in the intro post you said “pin bar (or reverse pin bar)”?

I know what is a pin bar, but don’t understand what you are describing as reverse pin bar. Thanks

515

@GamblersRuin: welcome to the forum :smiley: I understand completely what you are saying and i absolutely hate to seem in genuine at any point in time, as i pointed out a few posts ago i haven’t been able to trade this system to its potential and i myself have made a few mistakes this week, and have not been able to be at my computer so i’ve had to roughly calculate percentages on my iphone which obviously won’t be 100% accurate

That being said the first indecision candle in post 505 is valid :3 i double checked just now to be 100% sure as well, it could be a difference of brokers we have that have slightly differing prices but on my forex.com account it is valid :slight_smile: I am aware there have been a few times my calculations have been flawed and i have admitted and apologized for them, And the morning star is an interesting question, MOST traders would agree with you, in fact i would say like 99% :stuck_out_tongue: But that is not how i see it, typically stars happen in times of overall market indecision at the extremes of price, meaning at the high or low of a swing the current momentum stalls, and then reverses

to illustrate this point take a look at the three 4 hour candles before the first candle in the morning star formation, it is hard to tell exactly where price has moved and there are many long wicks and the bodies show little movement, then zoom in to the 1 hour, and the 15 minutes, it should be much much clearer then… You can see clearly that in the first half of the candles we are drawing direction from price is moving steadily up and makes higher highs and lower lows, but then you can see price begins slowing and then drops suddenly, and forms lower lows and lower highs, this is clear downward movement that isnt quite clear on the 4 hour chart sometimes, the way i deal with this is similar to the inside bars, i realize this type of question hasn’t come up yet so my example of how to determine direction for stars was kind of crappy as opposed to the inside bars, but it is very similiar

I hope this clears things up: Basicly when we see a potential star formation we know three things at first, these three facts are obvious and completely independent of all other candles around them, these facts are that the three candles can be defined as follows:

  1. A candle that is not an indecision candle (meaning the movement is not indecisive, the candle has definitive movement in one direction)
  2. A candle that signals indecision (long wicks, small bodies etc. the definition of an indecision candle)
  3. A candle that is not an indecision candle (meaning the movement is not indecisive, the candle has definitive movement in one direction) that shows movement COUNTER to the first candles movement

After these three things have been established within the three candles of the potential signal you can start looking to see if the movement of the first candle is of the trend or momentum in place, the way to do this is to see who has gained more ground in the past 4 candles INCLUDING the first candle in the potential star formation, either the bears or the bulls, to do this find the highest and lowest price in those 4 candles then compare those two prices to the close of the first candle in the potential star formation, If the close of the first candle of the potential star formation is farther from the highest price then the movement is downward and the candle must agree, if the close of the first candle of the potential star formation is farther from the lowest price then movement is upward and the candle must agree

I hope that makes sense :\ basicly average out the highest and lowest price in the 4 candle period and if the first candle in the potential star formation closes above the average, it has to be a bullish candle and would then form a morning star, and if the first candle in the potential star formation closes below the average, it has to be a bearish candle and would then form an evening star, the ideas behind this system is looking for areas in the market where price slows down and the bears and bulls power struggles the most, and from these points we can pick high probability entries, indecision candles are the literal interpretation of that, stars are slightly more advanced indecision patterns that happen over longer amounts of data, and inside bars show places where the market consolidates and is ready for potential breakout

I hope i was able to help clear things up, again i dont mean to be inconsistent :\

516

@pipcompounder: absolutely, i’ve met the guy in person and can say he is a smart guy who knows what he is talking about :slight_smile: I’m glad you’ve been able to profit this week from the strategy, and no trades for me either, i probably wont be trading tomorrow :\ i have stuff to do, bleeeh

@medisoft: I am editing that now, Pin bars and indecision candles are the exact same thing, meaning when i said reverse pin bars i just meant that it doesnt matter which side the wick is on the candle :3 i was using the term pin bar at first so people would have atleast an idea of what i was talking about, im sorry for the confusion :\

517

Dear SJ,

Please clear me a doubt ! (May be I am wrong :51:). Is the first buy signal on your chart (2nd candle from Left) is a valid one ? Though the body length is less than 30 % (It is 24% on calculation), the longest wick is having a length less than 50% (It is 42% on calculation). So I didn’t enter the trade. Please advice, If I am mistaken. :34:

518

@everyone: I would again like to apologize for the inconsistencies and confusion i’ve caused in some of my posts, I have no excuse for it, this is a mechanical system and should be traded exactly as such

@Gamblers Ruin & Bijoymj: Again i want to PROFUSELY apologize, I just triple checked my calculation and i discovered that you are both in fact correct, i calculated it wrong :\ I don’t want to mislead anyone or post false signals, I have been very busy and sleep deprived this week and my trading has payed the price, again i am very sorry :\

519

Jawa, you’re doing a bad job of checking this thread once per day!

I’m still a bit confused on the first pinbar. It really looks to me like the entire candle is about thirty five points, and the longer wick is about fifteen points. But I’m okay with chalking it up to different brokers and moving on, thank you.

Great explanation on the morning star. That one I still kind of struggle with more than anything, so that explanation will help me a great deal.

I’m now into positive territory for the week, tres bien.

Quick response time, great explanation, you can’t beat that. You’re the best, thank you very much.

gr

Also- you have nothing to apologize for. This is a great system and you’ve been incredibly helpful. Above and beyond, really. If anything I’m being overly demanding, expecting complete inhuman perfection.

520

@Gamblers Ruin: I can’t help it, I dedicated myself to helping people learn to trade like I have and i don’t think i have ever given less than 110% to anything, and yeah i just posted that i calculated it incorrectly :\ and thank you, i’m glad i can help even if i have been messing up a bit lately :slight_smile:

Yeah the concepts i employed in my system are very new to most people, it was a struggle for myself even because i see all the S/R lines and fib levels and question the possibility of some of my signals being accurate, but for the most part they are because they rely on the right data at the right time :slight_smile: But that is the way i like to see price movement, by looking at the smaller timeframes to get clearer pictures, i’m glad you have been able to be profitable with this system and i hope you can continue to do so :slight_smile:

521

It’s me again Sith Jawa hehehe I have another doubt on inside bars. You said that you trade it with a stop order, but if the order is not triggered, how many time do you wait or how do you declare that trade invalid and delete the pendant stop order?

EDIT:

Another question. You said

The biggest problem he has is not following the system, he forgets some of the basic rules:
For an order to be valid the first and last candles wicks have to be traveling in the direction of the trade (the wick of the first candle must be higher/lower than the wick of the last candle)

For a buy, the upper wick of the first bar must be lower than the upper wick for the last bar?, or is not “lower”, but smaller in size? or is inverted, and the first wick must be higher than the last wick?

Thanks :slight_smile:

522

@medisoft: the stop order cannot be deleted by an opposing signal, even by an opposing stop order on another inside bar, but all stop orders should be deleted after three days :slight_smile: once the order is filled all orders opposing the stop order should be closed

EDIT: that statement i made was when the system was different and not finalized so it is irrelevant now :slight_smile:

523

@Jawa: once the stop order does get filled, do you close all opposing trades?
I’m pumped to get trading again, missing the feeling of being in the action, even if I wasn’t winning!