Two armies trading system

[B]Hi,[/B]
my name is Milan and I am from Czech Republic.
SORRY FOR MY ENGLISH :wink:
I am not profesional trader (I am 24 years old). I trade about 5 years. I have learned from my grandpa (50 years experience) who traded specialy commodities but all strategies are easily aplicable in forex.
Everything is free.
[B]YOU DON’T NEED TO PAY IF YOU WANT TO KNOW SOMETHING[/B].
Now you can ask yourself why I write this thread … well in fact it is not because I want to be mentor or because I want to make good deed. No. I’m doing it for myself. I want to summarise what I have learn what I know and what I still don’t know. If it helps someone then I will be happy but it is not my primary goal. Don’t think that I am mentor.There is only ONE who know everything and it is not me ;).
In fact I hate threads where “mentor” tell you: “You are newbie? OK here is my strategy … it works for me so it must work for you. Don’t ask me about details, this strategy works and that is all what you need to know. Now lets go trade.”
[B]NONSENSE[/B]
You cannot trade if you don’t know what is FOREX how can you trade if you don’t know how strategy works???
I know that right now you think that you know what is FOREX but I want to make this thread unusual. So I want to give you unconventional examples. Something what can understand normal human and not only someone with 10 titels and 20 years of experience in trading. I want to give you something different something what can “open your mind”. Don’t worry I promise it will be fun :).
So I want to start from basics and then I tell you about my trading strategy.
I call my strategy TWO ARMIES.
There will be link to my web (maybe in future) (everything will be free, no member section or something like this) there you can read everything about this strategy and about forex. This is my view to forex and trading. So be critical but please constructive. I don’t want there pessimists and destructors. I will post new articles to my web because I want to make it all together. I want to make it clear. In future I will post live setup to my web too.
When will be an interest I can try to answer some question but again I AM NOT A MENTOR, TEACHER, MASTER
So I post some basics (first post) and rest will be on my web. OK?
[B]Of course only when there will be an interest.[/B]
So lets go to amazing world named FOREX.

FOREX
Do you want to know what is forex?? Do you want to know who trade on forex and how it works?? OK.
Look at this video.
The Best Fights (movies) Mortal Kombat Theme Song ! - YouTube
Do you understand? People in forex are these warriors do you want to go fight with them without special skill or because you heard that “forex is easy money”. Good luck.
All I want to tell you is that everytime you open your trading software you are in danger. It is not about nice coloured candles or about great thread on babypips with lot of very kind people. NO
When you trading on forex you are in jungle, boxing ring, battlefield, you are in war. In fact you are there where noone normal want to be ;). Everyone want your life. What is your life?? Hard question but in forex it is easy. YOUR LIFE = MONEY. When you don’t have money you are out of this game in fact you are dead for forex. Easy and very important!!!
So my advice:

  1. Forex isn’t game. If you want to play a game you can buy Mass Effect
  2. Forex is harsh world if you want survive you must be a predator not a prey (I don’t want to say that you should sit front of your PC with hammer in your hand, it is more about trading psychology)
  3. Look at it this way, everyone who trade on forex is fighter with special skills. How can you beat them?? You must know something special you must have special skill and then you can win. You don’t need to know everything. You must know something special and use it in special time … that is all. You must wait and strike in the right time.
    So we will practise one special skill. Do you know what Bruce Lee said?
    “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.”

HOW FOREX WORKS

Well forex is about buyers and sellers. That is all.
When people buy … price go high.
When people sell … price go down.
But how to understand it???
Look at this video.

This battle is not only in movie. In fact in forex are these battles every day. And these battles are so big and important that they litterely have power to change the world. That is amazing. It is neverending fight between buyers and sellers. So what is your task as forex trader??? You must choose right army in right time and fight with them. How to do this?? Well you must buy or sell that is all. When you do this, you have chosen your army.
You are only one soldier so you have minimal affect how the battle ends. Big corporation have strength to affect the battle but they trade with huge amount of money (soldiers). You don’t have strength but you have brain and you must use it, you must be clever. You must choose bigger army and be part of it. You must use strength of this army. You as a trader always want to be part of bigger army. If you choose right army where are big corporations these corporations will fight side by side with you. I think it is nice imago. :slight_smile:

WHAT WE MUST DO

How to choose right army? Well if you want to choose army you must predict where is this big army accumulating (that is place where we place ours pending order and SL). You must find place where were opposition in the past and you can predict that there will be opposition in future too. When you choose place where will be opposition you don’t need to go to the battle immediately. You can wait for confirmation that there is big battle and your army is winning … than you can place your orders and hope that your army will make huge move because that is what you want to see. Big move. Because you make money when you conquer territories.
Look at this picture

Do you understand? It is all about two armies. And your decision which one is stronger and where you can enlist in the army.

PAIRS AND TIMEFRAME

Ok. This will be probably very controversial topic but please!!! Try to think about it :).
I trade all pairs where isn’t huge spread. I use NEW YORK CLOSE charts and I recommend it to all of you. Now timeframe. I use M15 and higher. I know that now you will argue that patterns on lower timeframes aren’t relevant… there is only little information inside the candle (only 15 minutes) and for price action we should use 4H and higher timeframes. You don’t want to sit before your PC and check every 15 minutes all charts. You are afraid that it is full time job … sitting 12 hours and look to your screen.
Look at this pictures:

Now we can debate where is more information. 1D chart or in M15 chart? Of course on 1D chart but there you see information as a whole, you don’t see details but in M15 chart you can decompose this information into peaces. That is big advantage and we can and must use it.

Where is trick??? You must zoom out. I zoom out how much is it possible. Of course you can do this with 1D charts to and in this case it will be very strong strategy. Problem with 1D chart is that there will be only few trades per year (1-2) and you will be in trade for a very long time. That is nothing for me. I want to hold my position only few days max few weeks.
Look at this picture. Amazing result.

My advice: Zoom out
I am always lost when I zoom in. In that case I have no idea what’s going on :).

WHAT WILL WE USE

Well you must use something obvious for everyone. Orc army is not very clever. You must use something what everybody use and what is obvious at a glance. You don’t want to be part of small skirmish which solve nothing you want to be part of big battle with big potencial. This battles happens in obvious logical places. There is no magic or a secret.
So we will use only [B]support/resistance lines, trend lines[/B] and little bit of [B]pivot points[/B] and [B]big round numbers[/B]. That is all. I don’t use MACD, RSI, STOCH, CCI or something like this. For me they are too slow, they give you entry signal when the battle is over and territory is conquered. So I don’t use it.

When we define place then we usually wait for confirmation that the battle is developing how we want. Basically we are looking for [B]PIN BAR, ENGULFING BAR, 2 BAR REVERSAL[/B]. I don’t want to explain what is pin bar. Use google ;). That is another reason why use it. You can google it. It is nothing special what nobody knows. Everybody knows these patterns and that is reason why they are so strong. Trust me. Power is in a quantity :).
What I want from this signals??? Well there is only three criterions:
[B]MUST BE OBVIOUS[/B]. They must be so obvious that enemy army say yourself: “Jesus we are losing we must run away. This battle is lost.”

[B]MUST OCCUR FAST[/B]. I don’t want to see long time indecision. It mean that forces are balanced. (there is big fight and I don’t want to be part of it).

[B]BIG VOLUME[/B]. This is only one indicator that I use. Bigger volume = more reliable signal. If there is nice pin bar but small volume = not so reliable. I don’t say that volumes must be the biggest on the screen but it is good to look at it.

That is all. No complication. Take it easy ;).

There is no clasification for entry signals. Something like A+ signal, A- signal, B signal … NO.
There are only good chances or nothing. If you see confluence (trendline, S/R zone, round number + entry signal) it is good chance. If there is nothing like this … no trade. EASY
There are no strict rules but if you use your brain you will be profitable. Maybe not immediately but very soon.
There is only one strict rule. Use obvious S/R zones and trendlines!!!
Look at this picture:

Woooow, what an amazing thread… Cant afford to miss the next update.

Hi Milan, My name is Ambrose from Ghana. I just want to let you know that i have a got some mad love for your strategy even though i am a beginner in Forex Trading , i would love to learn everything offered here in your thread more especially your "Two Armies Strategy ". Like they always says , you got to learn from the masters lol.
Best Regards
Ambrose,Ghana

Argh! I’m not an orc!

Teaching forex with images from the lord of the rings movies.
Epicness lvl: EXTREME!

Bp needs more threads like this!

LOTR ??? Ok I am sold count me in the fight

I am very happy that there are people who think that this strategy can give them something. In future I will write some details about trading in trending market. And trend lines because I think that it is basic strategy for everyone … trade with trend.
This week I don’t want to discuss about live trading opportunites. I want to give you full trading plan. There will be no strict rules but some basic recomendation that help us to become better traders. I hope :wink:

Patiently waiting …Milan :slight_smile: i have sent you a friend request, you got it ?

Hi,
there are some charts. I want to show you how you should draw S/R lines and trend lines.
Use your eyes. Don’t think about it too much. And draw only 2 lines. One above and one below current price. Other levels aren’t important. If price break through one line you are looking for another S/R line.

I thought S/R are drawn automatically by the trading platform? Or there is a way of drawing it manually?

Don’t know what platform are you using. I use metatrader4 and there is nothing like automatical drawing [B]support and resistance[/B]. Maybe you can download indicator (mq4) but don’t do this. Use horizontal lines and draw obvious S/R zones. People aren’t robots. [B]Never[/B] use software to draw S/R lines.
Look at it this way: S/R lines are psychological areas, software can’t show you where are psychological levels. Software think in different way than human. Most trades on forex are made by human (some use EA but that is only small part), you are human you have big advantage against software because forex is game of emotion.
Don’t trust any stupid software. Trust yourself.

[QUOTE=“bambino358;547350”]
Don’t know what platform are you using. I use metatrader4 and there is nothing like automatical drawing support and resistance. Maybe you can download indicator (mq4) but don’t do this. Use horizontal lines and draw obvious S/R zones. People aren’t robots. Never use software to draw S/R lines.
Look at it this way: S/R lines are psychological areas, software can’t show you where are psychological levels. Software think in different way than human. Most trades on forex are made by human (some use EA but that is only small part), you are human you have big advantage against software because forex is game of emotion.
Don’t trust any stupid software. Trust yourself.[/QUOTE]

Milan, thank you very much , i have a lot to learn from you and from all the people who are in this thread.

Milan, where are you ?

I also like S/R lines a lot…nice to see a thread mainly about S/R lines/zones…