Hi Iaffu, since you’re using H4 & fractals + trendline, how about creating a new thread? Because I think it’s a different system from the OP eventhough it uses breakout.
My English is poor but I hope you understand
I open the position as soon as the line is crossed or soon after. I place the original stop on the line drawn between the last two fractals on the other side of the PA. I will move the stop with that line if it moves in my direction, never increase the stop if the line travels in the opposite direction. I will also close the position if a new signal originates in the opposite direction
Cool method!will try this next week!
The fractals look great on a 4 hour chart. Are these valid entries? D you have a specific fractals indicator or just using the default in MT4?
thanks
I don’t use MT4 but a different platform. However, it is exactly the same: I use the standard fractal indicator similar to the one used with MT4. The entries you have on your chart are perfectly valid and they show how powerful this is on the 4H charts. Good work, try it on and let me know how you go.
Blizard - I knew this thread just needed a kick up the arse because I think its a simple system with great potential. However I must ask. You said you have been trading for years with this system profitably, but as soon as our suggestions are provided, you seem to have simply dropped the Fibs and gone for my piv suggestion. And are also now leaning more towards iaffius fractals over your swing ZZ lines.
Bit odd no? Did you open the thread because your system doesn’t work and hoped others would provide a solution? Just asking because I dont want to be dragged into a false sense of belief on this if your system doesn’t actually work.
thanks
Iaffiu - Do you not use pivs/fibs/round numbers for take profit levels? What do you use?
And I dont understand what you meant by placing your SL on the trend line. Please show .thanks
I will try to explain with a recent example:
The position (sell) is opened when the PA crosses the line linking the previous two lower fractals.
The stop is placed on the line linking the previous two higher fractals.
The stop loss is walked down along the same line as time goes by.
When a new fractal originates on the stop side, a new line is drawn between the last two fractals and the stop is moved down to the new line (never move the stop away if the new line goes in the opposite direction).
The position will be exited when the PA hits the stop.
In this example, the initial risk was 45 pips and the final profit was 75 pips (remember though that the risk gets smaller and smaller as time goes by and the stop is moving in your direction). Total time taken for the position to close was less than two days.
Hi blizard,
First of all - thanks for sharing this system, it looks really interesting.
Can you explain how do you draw Fibonacci levels to avoid bad entries? Do you use two most recent swing points, or something else?
Thanks!
Hi am a newbie. Is fractals the same as zz lines. Which one is the est to use for this system? Thanks
Hey all, the original system work with 80% accuracy with the swing_zz indicator and trend-lines. This is the staple of my trading day as it is very easy to follow. The 4 hour with fractals looks great also and i think an open discussion never hurts as we may find something that also works or inspires more traders. The fibs are drawn using the previous day open/close. I have attached the indicator.
thanks
AutoDayFibs.zip (1.47 KB)
Here are the setups for Friday just before the USA secession open around 8AM EST. I have attached the signal on 6 different pairs using the 1 minute chart with the minBars set to “4”.
The stop loss is always the opposite color dot as indicated with a horizontal red line. Very powerful, and i hope this system really helps struggling traders as it has myself really simplify trading.
Price action and nothing more! Keep it simple
Lets start banking some pips and i urge all involved to start posting your setups also.
Thank you Blizard, this is brilliant. I have been using your strategy on my demo system for the last two weeks with solid success. Over the last two years I have tried various approaches and the only thing I have been successful at, is the realization that I am a short term trader who loves to work with the 1 min charts and this is why this approach is perfect for me. I know it’s an obvious statement, but knowing what kind of trader one is and finding a strategy that fits the psychology is key to a traders success. Again, thanks for the strategy and the indicators - looking forward to moving this to my live account.
My pleasure. Its been quite a trip for me and i just hope this simple approach will help traders out there save some time and money trying to find a profitable system. Its amazing to me that something so simple can be highly effective.
Blizard, thanks for the dot to do strategy. And the other person why said they use fractals. However I cannot trade the 1 min and I do not find this works on a higher TF. This method is too loose. No rules for placing SL and TP. You cannot rely just on the break of the trend line to make you money… how do you trade differently in ranging markets compared to trending? these things amke a difference.
If you trade every time the price crosses the line you get caught out alot. You need more rules.
As the round numbers and fibs pivots dont look so good on the 4hr I have tested and am making my own system with fractals. I invite you to come and look at the thread I just posted. “my system in the making com with me” it’s called.
Thanks for this thread Blizard it was just the think I needed to see.
Hi Epidot, the SL is placed at the last dot of the opposite color. As far as trending or ranging markets, that’s the beauty of the 1 minute chart, you can still get the 8-10 pips without issue most of the time. The system works on all pairs on all time frames if the MinBars is set to “4”. I appreciate you playing the devils advocate. All I can do is keep showing the daily setups and i encourage you to do the same. I looked at your system, and it looks interesting but, ive seen a system like this many times before with many rules and its just not my style.
Your system works on the 1 min for sure and yes you dont need rules on that TF such as TP levels already decided. Price action is also not needed on the 1min. The trade goes to fast , its a scalp. The main reason I cant do that is because when I press buy or sell, for some reason the trade order gets stuck often for a while by which time the trade has been missed. If im already in the trade when the order becomes unstuck I can have lost a trade before I even know im in it. Just so you see a point I am making. Have you tested your method with many trades on a higher TF? im not sure you have. Placing SL on the last fractal often means a SL of 100,150200… so often taking trades with a much larger Risk than Reward. So you would then agree that you require a fall back plan to set a SL in that situation.
On a higher TF. Its no longer scalping in this situation and you will need a trading plan with set rules to filter out bad trades.
So I think were talking to different things. My system in development is not a scalp and rather different to this one.
I also prefer a 4hr where I can set and forget and not have to watch price and become stressed. I work also so a 1 min would be impossible. But this thread lead me to what im creating so thanks for that. This system deserved more attention which is good. Good pipping.
Blizard,
How do you get your zig zag points to show red and blue dots? I applied zz to my chart and can’t see the blue or red dots. How would I get around this?
Thanks
Right click on the dot and then choose “swing_zz(properties)”. then choose color and change to what ever you wish.