this is a system/method/pattern i have read about that i want to post for you to read/improve/share/talk/love
i will post it here and also in the ELITEAM thread
this is how it works:
it is applied by reaching definite goals - if not reached - we are out of the game
Open a 5 MIN. chart
Find a trend - meaning a series of candles that form higher highs or lower lows - that its highest/lowest point differs from the lowest/highest point by at least 40 pips, once done we move on to mission 2
call that trend Active Wave 1 - that is its name from now on.
Active Wave 1 is the nearest in time to our current time, meaning that there can be lots of possible AW’s but we take the nearest and MUST be over 40
Draw Fibbonaci’s Retracment levels on that same AW 1 - levels of Fib. used: 0, 0.25, 0.38 , 0.61 , 0.75
wait for a candle to close between 0.38 - 0.61
once achieved - next mission
wait for a WHOLE candle to either pass the 0.25 or the 0.75 level - you may be asking - which direction?? well it depends on the AW you drew and on you Chart software - if the AW was going up and the candle passed through 0.25 or 0.75 meaning it is closer to the top of AW - then we are about to get a BUY signal, if the candle closed below 0.25 or 0.75 then we are about to get a SELL signal, but wait.
Before deciding on your own whether you are right or not - look at the D1
and if the RSI(14) indicates on a values larger than 50 and we had a BUY signal from MISSION 5 - it is a BUY, otherwise it is not.
if the RSI(14) indicates of a value smaller than 50 and we have a SELL signal from MISSION 5 then it is a SELL, other wise we are still out.
Make the order and place a 50 pips STOP LOSE - Which will remain the whole way at the SAME LEVEL - no trailing stop no move to even, nothing.
we will trail the stops on our own special way
this was the entry - getting out:
once we ordered ,meaning we already bought/sold, we exit once we get in the same way of applying MISSIONS 1-6 a reversed signal - if we bought something we wait for selling signal, if we sold we wait for a buy signal.
MISSION 7 - wait to Exit the trade:
after drawing AW 1 - wait for a new AW to form, in any direction!
once formed - delete the previous AW and FIB. Retracement and draw a new one on the new AW - in this specific wave for a BUY/SELL signal - if it is reveresed to your current order - exit the trade, otherwise wait for a new AW.
the trade is exited/closed either by getting a reversal signal or by reaching the 50pips stop loss we set at MISSION 6.5
that is it - unless i forgot something i will now post 2 images i have right now from last nights trade i enterd - i will post it even if i go -50 pips only to show you how it works, in general, i think you can learn more by posting losing trades than by posting winning trades
for questions - hit me on!
MANY THNANKS TO ELANG WHO SHOWED ME THIS AND SOME OTHER STUFF - heheh