The Most Profitable Trading Pattern You Will Ever Encounter

[PhilipPirrip]

@maxximuz

Hi Philip,

Spotted this EURJPY, which I see it as a failed trade, for me, learning how to handle a failed trade is important, hence would like to hear your view…

1. Red vertical line = Cross down; Looking to short
2. 1st Grey vertical line = Stoch at OB and reverse, Short entry
3. Green vertical line = Crossed up; Looking to Long
4. 2nd Grey vertical line = Stoch at OS and reverse, Long signal; Exit Short

Thank you

I understood nothing from your chart or what you wrote. Please use 20 EMA and 50 EMA instead.

Plus, are you long or short? Did you use the RSI filter I recommended?

[PhilipPirrip]

Hi Philip
I’ve also entered this position and going well.
I was wondering about your exit prior to the election as that was not according to your usual plan, Fib extension as #4.
I also wondered about a 15 SL?
This trade is the first with your system for me and so there is nothing like going live to suddenly have a few questions.

"So you can follow GBPJPY exit" by trader motcha1 — published May 11, 2015

You can follow the trade here on that link as I have drawn the fibonacci extension on it.

I exited a portion of my position because the elections were a big risk event. You see we have gone up 400 pips since then, it could have been easily 400 pips down. I’m still in the trade, I just lowered my exposure.

[Wearethechamp]

Hi Philip,

You mentioned using the weekly RSI, how to set up it?
Is it set up a weekly TF and set RSI on it, with how many period?
Or set on 4hours TF and set RSI at period 7?

Thank you

[PhilipPirrip]

Hi Philip,

You mentioned using the weekly RSI, how to set up it?
Is it set up a weekly TF and set RSI on it, with how many period?
Or set on 4hours TF and set RSI at period 7?

Thank you

For now forget about the weekly RSI. Just use the 14 period RSI for the timeframe you are trading. Apply the advice I mentioned above.

[maxximuz]

@PhilipPirrip

I understood nothing from your chart or what you wrote. Please use 20 EMA and 50 EMA instead.

Plus, are you long or short? Did you use the RSI filter I recommended?

Sorry, maybe my chart is not clear at all, let me try again.

Yes, am using EMA20 (Aqua color) and EMA50 (Deep Pink color) without RSI filter.

Pls refer to the chart again:

1. EMA20 crossed down EMA50, and Stoch at OS
2. Stoch at OB, reversed and crossed down; Enter Short.
3. EMA20 crossed up EMA50 + Stoch at OB; Trend changed to UP while my Short position still active
4. Stoch at OB, reversed and crossed up; Long signal; I exit my Short here.

Here is the chart again,

[Wearethechamp]

@maxximuz

Sorry, maybe my chart is not clear at all, let me try again.

Yes, am using EMA20 (Aqua color) and EMA50 (Deep Pink color) without RSI filter.

Pls refer to the chart again:

1. EMA20 crossed down EMA50, and Stoch at OS
2. Stoch at OB, reversed and crossed down; Enter Short.
3. EMA20 crossed up EMA50 + Stoch at OB; Trend changed to UP while my Short position still active
4. Stoch at OB, reversed and crossed up; Long signal; I exit my Short here.

Here is the chart again,

Hi,

Your short entry should hit SL as you set before it hit a failed pattern.
You will only manually exit entry when the failed pattern is formed before the SL.
Based on your chart, it should hit SL rather than waiting the failed pattern to be formed.

[maxximuz]

@Wearethechamp

Hi,

Your short entry should hit SL as you set before it hit a failed pattern.
You will only manually exit entry when the failed pattern is formed before the SL.
Based on your chart, it should hit SL rather than waiting the failed pattern to be formed.

Refer to Post #15 on page 1; We don’t exit even it hit our initial SL, the SL is used to calculate the lots size but not for exit. We only exit when the system produce an opposite signal; that’s my understanding.

Unless I misunderstood what Philip said in Post #15.

Btw, I have another trade which EURGBP, where I enter Short, but market turn against me, and even went overshoot my initial SL, but I managed to exit with half my SL losses with the method posted by Philip at Post #15.

1. EMA20 crossed down EMA50 and Stoch at OS
2. Stoch went to OB, reverse and crossed down; Enter Short
3. EMA20 crossed up EMA50, trend changed, Short position still active
4. Market went above my initial SL; Short position still active
5. Stoch went down to OS, reverse and crossed up; Long signal; Exit Short with half SL losses.

I understand losses is part of the game, I am 100% ok with it, as since I follow Philip System, I only have 2 losses which is the EJ and EB, and my a/c grow 15% since 27-Feb till today. I am extremely happy with this great System, and really appreciate Philip’s kindness to share with us.

I still learning this great System, just wanted to confirm my understanding on handling failed trade is correct as per Post #15.

Thanks for your reply, Wearethechamp

Here is the pics:

[PhilipPirrip]

@maxximuz

Sorry, maybe my chart is not clear at all, let me try again.

Yes, am using EMA20 (Aqua color) and EMA50 (Deep Pink color) without RSI filter.

Pls refer to the chart again:

1. EMA20 crossed down EMA50, and Stoch at OS
2. Stoch at OB, reversed and crossed down; Enter Short.
3. EMA20 crossed up EMA50 + Stoch at OB; Trend changed to UP while my Short position still active
4. Stoch at OB, reversed and crossed up; Long signal; I exit my Short here.

Here is the chart again,

You exited at the right time. Sorry about your loss. The good news is now you can use the RSI filter. In the trade you shared for example, The RSI was 50.4. So you would have skipped that trade for one that has a lower RSI reading.

[PhilipPirrip]

@maxximuz

Sorry, maybe my chart is not clear at all, let me try again.

Yes, am using EMA20 (Aqua color) and EMA50 (Deep Pink color) without RSI filter.

Pls refer to the chart again:

1. EMA20 crossed down EMA50, and Stoch at OS
2. Stoch at OB, reversed and crossed down; Enter Short.
3. EMA20 crossed up EMA50 + Stoch at OB; Trend changed to UP while my Short position still active
4. Stoch at OB, reversed and crossed up; Long signal; I exit my Short here.

Here is the chart again,

You exited at the right time. Sorry about your loss. The good news is now you can use the RSI filter. In the trade you shared for example, The RSI was 50.4. So you would have skipped that trade for one that has a lower RSI reading.

[PhilipPirrip]

@maxximuz

Refer to Post #15 on page 1; We don’t exit even it hit our initial SL, the SL is used to calculate the lots size but not for exit. We only exit when the system produce an opposite signal; that’s my understanding.

Unless I misunderstood what Philip said in Post #15.

Btw, I have another trade which EURGBP, where I enter Short, but market turn against me, and even went overshoot my initial SL, but I managed to exit with half my SL losses with the method posted by Philip at Post #15.

1. EMA20 crossed down EMA50 and Stoch at OS
2. Stoch went to OB, reverse and crossed down; Enter Short
3. EMA20 crossed up EMA50, trend changed, Short position still active
4. Market went above my initial SL; Short position still active
5. Stoch went down to OS, reverse and crossed up; Long signal; Exit Short with half SL losses.

I understand losses is part of the game, I am 100% ok with it, as since I follow Philip System, I only have 2 losses which is the EJ and EB, and my a/c grow 15% since 27-Feb till today. I am extremely happy with this great System, and really appreciate Philip’s kindness to share with us.

I still learning this great System, just wanted to confirm my understanding on handling failed trade is correct as per Post #15.

Thanks for your reply, Wearethechamp

Here is the pics:

Again, RSI was at 50.5 when you entered. So clearly using the RSI would have been advantageous in some instances.

[Mish33]

You can follow the trade here on that link as I have drawn the fibonacci extension on it.

I exited a portion of my position because the elections were a big risk event. You see we have gone up 400 pips since then, it could have been easily 400 pips down. I’m still in the trade, I just lowered my exposure.[/QUOTE]

Thanks, that link showed the Fib Ext really clearly. Mine are the same.
I also scaled back my position to .04lots after your update on My FXbook hence my 15 SL query before.
So do we stay in it until the opposite signal is met or scale out at the Fib levels. Is this a personal preference?

[maxximuz]

Again, RSI was at 50.5 when you entered. So clearly using the RSI would have been advantageous in some instances.

Hi Philip,

Thanks for your reply and no worry, as losses is part of the game

As for RSI filter, refer to your post #1016, I summarize the rules as below:

For Short:

• RSI < 50 to 33.3
• No trade if RSI < 33.3

For Long:

• RSI > 50 to 66.6
• No trade if RSI > 66.6

Is that correct?

RSI(14) on Weekly? or

RSI(14) on the TF that am trading as per your post #1024?

Thanks again, Philip

[PhilipPirrip]

You can follow the trade here on that link as I have drawn the fibonacci extension on it.

I exited a portion of my position because the elections were a big risk event. You see we have gone up 400 pips since then, it could have been easily 400 pips down. I’m still in the trade, I just lowered my exposure.

Thanks, that link showed the Fib Ext really clearly. Mine are the same.
I also scaled back my position to .04lots after your update on My FXbook hence my 15 SL query before.
So do we stay in it until the opposite signal is met or scale out at the Fib levels. Is this a personal preference?[/QUOTE]

The way we exit is something called trail stop. For example, price has closed above the 127.2 extension. Now our stop is a close below 100 extension. we close our position after the first candle that closes below the 100 extension.

Now if price closes above the 161.8 extension, now our stop moves higher to a close below the 127.2. And if price closes above 200 extension, our stop moves higher to a close below 161.8 and so on.

[PhilipPirrip]

Hi Philip,

Thanks for your reply and no worry, as losses is part of the game

As for RSI filter, refer to your post #1016, I summarize the rules as below:

For Short:

• RSI < 50 to 33.3
• No trade if RSI < 33.3

For Long:

• RSI > 50 to 66.6
• No trade if RSI > 66.6

Is that correct?

RSI(14) on Weekly? or

RSI(14) on the TF that am trading as per your post #1024?

Thanks again, Philip

Yes correct. It is the RSI of the timeframe you are trading not the weekly.

[Wearethechamp]

Hi Philip,

Would you mind to share which of the pairs that are on your watchlist now?

Thank you.

[vasilis1961]

@PhilipPirrip

AUDCHF: the trade opportunity has passed. Based on the RSI tip I told you, we expect AUDCHF to reverse soon as RSI is above 50 for a short. The same applies to CADCHF, EURCHF.

Now I expect NZDCHF to come good but the trading opportunity has passed.

GBPCHF is developing a long position at the moment, you would have filtered the short trade out if you followed my RSI recommendations.

NZDJPY we are yet to get stochastic to overbought. Review the RSI as we get to that to make your decision.

The trading opportunity for NZDCAD has passed as well.

Recommendation: keep an eye on GBPNZD long for now.

First I would like to thank you for your answer.
Also, we have to clarify the weekly filter of RSI .
Below is weekly chart of NZD\JPY with RSI 45.34,but the set up weekly is Long.
Following H4 chart,we are waiting the SSI to get to overbought.,for taking Short entry as usual (of course taking into account the new price of RSI).
In addition, my purpose is we examine earlier entry ,when prices broken the red Trend lines with combination the yellow tops at RSI.
Thanks

[PhilipPirrip]

@vasilis1961

First I would like to thank you for your answer.
Also, we have to clarify the weekly filter of RSI .
Below is weekly chart of NZD\JPY with RSI 45.34,but the set up weekly is Long.
Following H4 chart,we are waiting the SSI to get to overbought.,for taking Short entry as usual (of course taking into account the new price of RSI).
In addition, my purpose is we examine earlier entry ,when prices broken the red Trend lines with combination the yellow tops at RSI.
Thanks

I’m not sure I follow what you are saying.

[PhilipPirrip]

Hi Philip,

Would you mind to share which of the pairs that are on your watchlist now?

Thank you.

I’m more focused on the exiting GBPJPY. Had I not been in that trade I would be looking for either GBPAUD long or GBPCAD long depending on what I mentioned in recent posts.

[Wearethechamp]

I’m more focused on the exiting GBPJPY. Had I not been in that trade I would be looking for either GBPAUD long or GBPCAD long depending on what I mentioned in recent posts.

If possible, for the benefit of beginner traders, may i request you to post your watchlist in this thread perhaps?
Thats will be great.

Example:
13-05-2015
Watchlist for long:
GBPJPY
GBPAUD
GBPCAD

14-05-2015
GBPJPY executed long position
GBPAUD pending
GBPCAD cancel.

This only suggestion, do or not still on your choice.

However, very appreciate you to share this such a great strategy.
Additionally, has you seen my modified 1H strategy?

Thank you and awaiting your reply.

[meads797]

If possible, for the benefit of beginner traders, may i request you to post your watchlist in this thread perhaps?
Thats will be great.

Example:
13-05-2015
Watchlist for long:
GBPJPY
GBPAUD
GBPCAD

14-05-2015
GBPJPY executed long position
GBPAUD pending
GBPCAD cancel.

This only suggestion, do or not still on your choice.

However, very appreciate you to share this such a great strategy.
Additionally, has you seen my modified 1H strategy?

Thank you and awaiting your reply.

In my opinion, it would be more beneficial for beginning traders to study charts and formulate watchlists for themselves. The system has been presented in [B]great[/B] detail, and it is up to each individual trader to utilize it according to their own needs and trading style.