Hi Nasdin,
First I would like to say thanks heaps for all your help so far. Its been really appreciated.
What I think would be a real asset to this thread and to help out some of us would be to post some actual trades you place so we have an idea of what your looking at… Maybe a screenshot as you place it and a few quick circles over the chart to highlight your thought process. After a while I’m sure you would have conevered enough trades in various markets to highlight the system and how we can apply it.
Some helpful information for eacah trade would be.
market trend.
Price action for the trade
CCI
WPR
Divergence etc…
Similar to what you have posted above but for actual trades.
thank you for sharing your system. It looks very interesting and I really want to understand it. But to be honest I find it quite hard to get the actual process of checking the charts from your manual. I see all the little steps for different situations but I don’t know how to put them in the right order.
I am not asking for trade signals, and I don’t think anybody here wants signals. I was thinking if it would be possible for you to post past trades and document your thought process step by step? This would, at least for me, really help to clear things up.
Here is a rough check list I wrote up! Have I got the rough idea right? Anything missing or wrong?
ID the Trend Condition
Trending: EMA’s diverge or are moving together. PA is on the correct side.
Consolidating: Space between EMA’s and PA is in it!
Ranging: Overlapping/Converging EMA’s
Trading Trending:
Look at 1H.
Look for candles with long wicks.
If in trend direction check WPR. If not counter trend continue.
Check that long wick has a equal or greater volume than previous 3 candles.
If not check CCI’s and see if in oversold/overbought.
If one of these is the case Check 30 and 15 minute charts for long wicks. If there, set trade 3 pips above/bellow the 1h long wick candle.
If there is a divergence against the trade on the CCI but green is still in favor then we use the (61%) entry technique on that 1h candle.
TP1 is 1:1 risk reward and TP2 is 261% of the move we are catching the bottom/top of.
Counter trend:
Look for the same candle stick with longer wick.
Green CCI must be in favor of trade being more oversold/overbought than red.
CCI must have divergence in direction of trade.
Same entry conditions.
Trading Consolidation:
Look at CCI. Only take trades in the direction CCI greens oversold/overbought position supports.
Take signals only at the EMA lines.
If the lines are broken look for a V formation in the WPR to also support the trade.
Trading Ranging:
EMA’s are overlapping/converging.
Price breaks out of the EMA bands then within 5 bars:
A entry candle appears after a V forms in the oversold/overbought WPR.
Ensure CCI is supporting the move!
TP is the first fibb % line the other side of the EMA’s
Not quite a free trade signals lol.
All I mean is take the screen shots as you place your trades and as they progress. After the trades are over you can do a quick rundown of your trades Its easy to post charts after-the-fact, but the best way I have learned is to see live charts and the trades as they progress!
I think if you did a few winners and losers that cover a few different situations it could clear a lot of things up!
Your the man
Thanks for sharing your elaborate trading system. I’m trying to work it out but for the first part have my first question on it.
Looking at USD/CAD at the moment. At the 4H timeframe it is consolidating, on the 1H chart it seems to have broken the ranging conditions ( >12 bars above EMA’s). Which one is predominant in the trades you take, the 4H hour or the 1H? I.e. which conditions for trade would you consider?
Secondly if price is outside of EMAS for > 12 bars but emas still overlap (talking 1H USD/CAD again) do you consider it to be trending or are you waiting for ema channels to separate again (as they seem to be crossing over)?
Nasdin, the system has worked as a charm for me. As you said, it is very nice to start a trade and when you come back to the computer to see a nice gain. I have been using a pair that is not in your list, AUD/CAD, it has nice movements in 4H. For some reason I cannot save my screen pictures but when I figure it out I will upload some.
Thank you for wonderful and effective system.
Yes thats about right, but you’re missing the 4hr candle.
But actually trading 1hr alone is fine ( I do this actually)
Its much easier as you dont have to cross reference between the 1hr and 4hr market type.
But instead you have to do something extra, you have to make sure that price has just broken the 61.8 of a short term counter trend wave.
For example, Uptrend market,
And then theres a down move going against that uptrend market.
Measure a fibonacci retracement on that down move, then wait for price to close outside 61.8 (indicating that it has failed)
Although its easier, you might miss out on some pips.
Another advantage is that you don’t have to bother about the time offset difference between different brokers.
I just went to the AUD CAD chart, H4 shows it was ranging based on the SPIO trading system.
So you took a ranging trade then.
I was chatting with Christinaa about a new side system that I have came up with.
It’s actually for ranging markets, as soon as you see a ranging market, instead of looking at the candlesticks or setting buy stop/sell stops, what we do is to wait for WPR to form the V or /\ shape, then use a Sell/buy limit.
No need to measure fibs or whatsoever, its a great skip from doing all those processes and helps make a bit of money as you secure more pips.
Tp is the same, its the nearest fib level just outside on the opposite of the EMA channel.
ahh, I remembered making 500 pips a week when the market was heavily ranging sometime ago last year using this strategy.
Oh yea, there are also other things that you can do other than using it to trade ranging markets on either H4 or H1.
You can measure fibs on H4 waves, and if any of the fibs above 50 level to 78.6 coincidentally hits with a S/R level from the indicator, then you can set a sell/buy limit on it and just take profit on the next S/R.
I catch free 20 pips or more everyday just doing this.
Stop loss for above mentioned strategies would be 1 fib or S/R level above/below, whichever is nearer + spread
So its about 12 pips or so. An extra 1.5% a day!
alright, this is the H4 view, market is consolidating based on the ema channels and price being in the middle.
The CCI is green more overbought than the red so we are looking to only sell.
We can see that the market is still ranging, the breakout from the EMA channel is less than 5 bars.
We have WPR converging above the -20 level meaning that now is a good time to sell.
Using the side system, instead of putting a sell stop, I’m going to put a sell limit at the nearest line just outside the ema channel. So sell limit was placed there and now im short and got in right at the wick of the candle.
My stop is the line above this line+ my spread(X2) so its about 15 pips. The line above cant be seen in this picture.
My take profit is the nearest line on the opposite end of the EMA channels and that happens to be 84 pips away, its 2 lines below the line that I used as a sell limit.
All right everybody, the ranging trade finally hit tp after a few hours.
It was 84 pips profit from a 12 pip stop loss.
I got in using $6 a pip so I made enough to pay for my college needs.
Ahh I missed the days where I was managing large accounts, I don’t think any financial institution in Singapore would want to higher an 18 year old kid to trade, or as an analyst, even.
I also placed a buy stop just in case it flies up.
Do note that I did not place a buy limit to stop and reverse because there is no V shape in WPR
V shape in WPR is a MUST before we take a buy trade in a ranging type trade.
Its easy to post charts after-the-fact, but the best way I have learned is to see live charts and the trades as they progress!
