Thanks for your response, it makes sense. I’m looking forward to learning more about the way you trade since I’m in the process of building a system along similar principles.
Retracement is taking place in all the major pairs like: eurjpy, eurusd, gbpusd, gbjojpy, aususd, nzdusd…you can see a mini up trend in the 4h charts, this is perfect to look for short daily entries in the daily charts and let it ride for a month.
I will be looking for a good time to re enter short with the downtrend! 
- There is also the possibility that this is a reversal of the downtrend, but let the price tell you first what it is, before pulling the trigger. Dont get married to a trend. In order to make money inf forex you have to consider all posibilities and know EXACTLY what you will do in every scenario.
So far we have:
1)First you identify the main trend on bigger timeframe.
2)Once you indentify the trend, you only look for entries and setup in the direction of the main trend:
—> 4h entries: If price is above middle band on the daily chart, then you look for long entries on 4h chart. If price is below daily middle band on daily chart, then you look for short entries on 4h chart.
—> daily entries: If price is above daily chart 50sma, then you look for long entries on daily chart. If price is below 50sma on daily chart, then you look for short entries on daily chart.
Definition of an entry: middle band in your favour and price breaking the middle band in the direction of the trend.
If the middle band is against you, then be careful because you are in a retracement. In both cases entering the trade after the break of the middle band is an indicator of the end of the retracement and the continuation of the trend. You can add as a filter a break of a previous day high/low. So the entry order would be placed at the break of the previous day high/low and break of the middle band.
Hey surindm, here is the information you asked:
—> 4 winnings in a row, and 2 losing trades in a row. Since we are trading big timeframes there are few trades a week. I assume you asked this information in order to calculate your risk and be prepared for drawdowns. Is a ggod questions, but remeber that I have developed this my system after looking at hundres, thousands of patterns, that is why I have little drawdown. Dont think that if you start using the system you will only get 2 losing trades in a row. I would advice that first you get familiarized with the system, with understanding the market…and only then increase little by little the risk
Here is an example of a trade with the middle band AGAINST you. This is one of the last trades I took last month: Aususd on the daily chart.
As you can see the first thing is that price is below daily 50sma, so we know the trend still is down, but has weak momentum and is facing a retarcement. When price breaks the middle BB you enter the trade, because is an indication of the end of the retracement and the continuation of the trend.
REMEMBER: middle band agaisnt you means weak momentum, and middle band in the direction of the trend means strong momentum.
You can see the same pattern at NZDUSD daily chart, at early september
Thanks a lot Gasanvill
Your Advice is very much helful for me
Happy trading:8:
Hi gasanvill,
Thank you for sharing your system. I am little confused if you can please help.
- post 1 SMA settings: 50, 100, 200
- post 63 SMA settings: 20, 50
should we use SMA 20 on daily chart to find entry on H4 chart?
I use MT 4 and BB settings are:
period= 20
shift= 0
deviation= 2
apply to close
do you think my BB settings are correct?
Regards,
Hey FX
-
Is correct
-
When I say 20SMA im talking about the middle bollinger band which is a 20sma.
Yes your settings are correct!
Ok guys time to look for short entries on the daily chart, market is overbought, and the retracement might be over any time.
Bump bump
Waiting eagerly for the continuation gasavill
Yep, To trade the bigger timeframes you need PATIENCE
Absolutely. I was thinking about those other entry methods you mentioned for the june and july entries from earlier in the thread. I’m quite curious to learn about that as well as anything else you want to share.
I’ll be patient though
Ok guys…take a look at daily charts. Setups for short trades are developing. If we are lucky we can get the entry this week
EURAUS, USDCAD, NZDUSD and AUSUSD with the middle band pointing down (daily charts)
EURUSD, EURJPY, GBPUSD and GBPGJPY with the middle band pointing at 3 o clock (daily charts)
We have 8 good setups. Lets see if price gives an entry this week.
EUR/USD D1 short is setting up, but at the same time EUR/USD H4 long was looking likely.
Is this something like you’re talking about Gas?
Hey NB,
Yes 4H long is setting but, I dont take long trades on the 4H charts when the dailly trend is still down.
SO if I want to take long trades on the 4H charts, I first need to see a daily up trend developing. One indicator I look is the daily 50SMA, to determine the daily trend. Right now price is below daily 50SMA so I only look for short entries on 4H charts. Going long right now would be buying into RESISTANCE, and AGAINST the main trend, which can be profitable but that is not the way I trade. I NEVER TRADE AGAINST THE MAIN TREND.
If in the next week price breaks up the daily 50sma and an uptrne starts to develop, then I will look for long entries on the 4h chart.
Am I correct then that for a 4H trade you want both the daily 20SMA and 50SMA to be above price for a short trade and vice versa?
That’s how I understand it but I want to check that I got it right.
Yes, you got it right. Thats an indicator that the daily trend is down, so you look for short entries. My rule number one is: trade with the big trend.
With this system, you really need to be patient, it os not for people who loves to be in front of the computer all day. This system you only get a few trades a month, usually you get like 6 or 7 trades the same day in the daily or 4h chart, and thats it. You only need a few trades to make money. If you can make that every month, then you are consistantly profitable. It doesnt matter if you make 4 trade s amonth or 20 trades a day. Is all about consistency.
Ok Im placing entry orders:
EURUSD, EURJPY, GBPJPY, GBPUSD, NZDUSD: SELL orders below the middle band on daily charts
USDCAD: buy order above middle band ond daily chart
Would you trade all these at your normal position size?
They are all betting on risk-off sentiment. If that changed to risk-on, they will likely all lose together.
I never risk more than 5% of my account, so Im trading a little less than 1% per trade.