The 5 minute TF S&R trading system

Well its been over 2 years since my last post and the reason for that is i took what i learned and constructed a profitable way of trading. Whether you get info from forums,books etc. you must make them your own with your own rules for entry, stoploss and most importantly money mangement. Ok here we go. Support and resistance will be done only on 5 minute charts. 123 patterns are a part of support and resistance as well as broken 123 patterns which are 123's where the 3 point takes out the 1 point its a quasy 2b pattern. Indicators needed (NONE) when resistance is broken price will come back and test it to see if it turns to support this is high probability because of market structure. Here are some charts to show what i mean

THOUGH ALL THE INFO FROM POST 1 TO 63 IS THE SAME METHOD START FROM POST 64 SINCE I AM ONLY USING LINE CHARTS.

Well the way i would answer it is this; its not how many trades you put on a day but how many winning trades to put on. My money mangement goes as follows if I get and 123 at end of trend and i enter on the break of point 2 and it goes to a win i usually call it a day since i risk 3% i trade with mine and my clients money. If i have a loss and price doesnt make a new low but just takes my stop out if it goes threw point 2 i reenter if it wins i wait till it retraces to enter again so basicly i enter up plus 1 on the day maybe with 1 pair 10 to 15 trades a month via 1 session

I have recently started studying 123 patterns so I am very interested in following this strategy. I also believe in no indies and keeping it simple.

Your charts make a lot of sense and I will look for past patterns to study and get to grips with myself.

If you were studying just one pair, maybe EUR/USD on this timeframe, how many setups would you expect per day?

I am fortunate enough to work from home, so I can keep an eye on the charts during the day and make manual trades.

At the moment I am concentrating on strict SL and Money MAnagement to get disciplined.

Keep up the good work and I will follow with interest.

Thanks for sharing

 

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X-Man's Super Simple System (S3)

X-Man's Super Simple System

Here I am going to show you the very easy way of trading that won't need much thinking but just executing. If you follow my rules then you will be on your way to making a lot of pips and become a very very profitable trader.
This thread is very very similar to the Trading made simple but here we are looking at specifics and wont be trading Just any cross on the TDI, which is very important because as traders we want to keep the pips we make without giving the market back the pips.
Everyone will be welcomed to this thread, we must all work together as the S3 Team. Fighting will not be allowed on this thread.
This thread is dedicated to BIG E for he showed me the way to profitable trading.
just as Big E said I request all you traders out there that will be following the S3 method to get yourself a huge wheelbarrow to load all those pips you going to be making.
Before you start reading this thread you should read babypips to get the basics about forex.
Our pip target for the month will be around 1000 pips per month which will be around 50 pips per day.
With the system you about to learn , it would be easy to make that amount of pips per month.
Guys I am a full time trader and use these 2 methods , So i have full faith in them
So lets get pippin guys.

This thread is dedicated to Big E (my mentor)

Theres a word document and PDF attached to this post discussing all you need to know about the 1H E/U method and the 4H method


To master this system i request all the S3 traders to do lots of back testing. This will help you develop your trading edge and will allow you to execute trades with much more confidence.
This is the perfect place for a noob to start his trading career as this method concentrates on just 1 pair to learn patience and discipline and then when mastered a trader can start trading different pairs.

This trade plan is for the daily trades i take to get around 40 to 100 pips a day.
Your chart must be clean and simple so that will allow you to execute your trades without doubt.

The next trade plan i'm discussing are for those long swing trades where TP will be at 100 to 300 pips a trade. I want to show you a method to stay in a trade for long periods without getting stopped out using a channel and an EMA. This will be discussed in my next post.

Guys this link is to show you guys how to install the indicators on your MT4 platform

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Forex Profit Monster Forex System v3-Updates

Forex Profit Monster is an easy to use mechanical trading system that helps take the guesswork out of trading the Forex market.  It's a manual strategy based on momentum and price action that includes a set of custom indicators and custom templates to automatically set up your charts.

Forex Profit Monster comes as a complete forex trading system including several e-books on how to trade Forex, so even if you've never traded before you'll get everything you need to learn to trade! 

Forex Profit Monster is designed to be used with the FREE MT4 trading platform and will provide clear entry and exit signals on all Forex pairs. 

If you're unfamiliar with MT4, Forex Profit Monster includes complete instructions on how to get your free copy of this professional charting platform,


and comes with a list of brokers that provide free practice accounts with real time Forex streaming data so you can practice and learn to trade without risking a penny of your money!

Forex Profit Monster will take your MT4 charts from looking like this:

if you can tell up from down and green from red, you can learn to be profitable trading with Forex Profit Monster! 

The Forex Profit Monster 'Dashboard':

Forex Profit Monster is made up of the following components as numbered above: 

1. FPM Entry Alert Arrow Indicator 
2. FPM Fast Trend Indicator 
3. FPM Slow Trend Indicator 4. FPM Trend Power Indicator 
5. FPM Average Daily Range Indicator 
6. FPM Real Price & Price Channel Indicator 
7. FPM Support & Resistance Indicator 
8. FPM Clock and Broker Spread Indicator 
9. FPM Exit Arrow Indicator 

All Forex Profit Monster components and how they're used is explained in detail in the 35 page Forex Profit Monster Installation Guide & User Manual.FOREX PROFIT MONSTER ENTRY METHOD 
 Entries are as easy as 1, 2, 3 with Forex Profit Monster! 

1. Get an FPM Arrow Alert that the trend is changing; 
2. Wait for the FPM Fast Trend to agree; 
3. Wait for the FPM Slow Trend to agree... and you're in! 

Below is an example of a "short" or "sell" trade: 

FOREX PROFIT MONSTER EXIT METHOD 

 Exiting a trade with Forex Profit Monster is just as easy. You have 3 choices of how to exit; 

1. Exit at the FPM Support or Resistance (automatically plotted on the chart) or... 
2. Exit when you get an FPM Exit Arrow (small white arrow) or... 
3. Exit when the FPM Fast Trend Indicator no longer agrees with the FPM Slow Trend Indicator. 

See the example below of the three types of exits: 

Download

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Extreme TMA System

At the request of many of you, I am starting today what I hope will become a thriving laboratory of ideas that will make each of us, each day, a little better trader than we were. Firstly, I must say that I have never done something like this and I will rely on the help and contribution of you to make it a success.

The history of a trader, like my own, is a tough road full of failure, despair and loneliness, as well as fulfillment, excitement and triumph. It is a hard road full of obstacles and temptations to lead you astray from the path and in the end, only a determined few will succeed in conquering the many mines and potholes in the way and acquiring the discipline and knowledge necessary to succeed.

My own history is a good example of what most of us go through. Luckily, because I had a successful company, I was able to draw funds to pay my "tuition" in the University of Trading. Over the first few years I suffered very heavy losses. Read many books, talked to everyone that I met that knew something about the field. Over and over again, I stumbled over the same obstacles. I couldn´t figure out why if I had been successful in other areas of my life, I was having such hard time with this. I quit several times, only to give it "one more try" and continue on my quest. As I look back on these years now, I truly believe they were necessary to forge the discipline and determination necessary to succeed. Yes, there are traders that have never experienced the "Valley of Despair", but they are few and far between. For the rest of us the way is hard but full of promise and a daily constant battle to control ones ego and remember the lessons learned. After 30 years, I can say I have learned a bit, but there is more to learn every day. The finish line is never reached and that is the wonder and thrill of this profession.

Up front I ask for your help and contribution. Let us be constructive and share our knowledge. If we do, this will have been worth while.

The System: Extreme TMA.

The market, like a pendulum, is a never ending sequence of extremes. It forever tries to reach the mean but never succeeds, constantly overshooting it´s mark, reversing and trying it again but always failing to reach balance. This system attempts to capture those extremes. It is a compendium of my understanding of the market, brought to it´s simplest expression.

The principles are not complicated. The first indicator, the TMA shows us the average of the path that the price action in the market is following. As such, it is a backward looking indicator and attempts to determine the future from the recent history. It corrects itself by repainting itself. It has two outer bands that show us the outer boundaries of price movement that we are searching for. Our second indicator, the TMA Slope indicator will show us the relative change in the slope of TMA as compared to previous candles. It determines in which direction a trade must be placed and also shows divergences to price. For example, if price is rising but the slope indicator is dropping, it is announcing a high probability of a drop in price in the near future. The steeper the drop in the indicator the higher the probability of a drop in price. The same concept applies in reverse in the case of a dropping price and a rising slope indicator. A third use of the slope indicator is for divergence detection. If you see 2 or 3 green mounds, each smaller than the one before it, there is a strong likelihood that price is about to drop. 2 or 3 Red mounds, each smaller than the one before it, indicates a high probability of a price rise. On the right side of the Slope indicator you will see the value (grey) of the current chart time frame. Above it the slope value of the D1 time frame and below the trade status (Ranging, Buy Only or Sell Only) of the current chart TF. The third indicator is TMA Slope MTF which gives us the slopes of all 3 time frames. The final indicator gives us the D1 slope values of all currency pairs. A great tool to determine which pairs are possible trades.

MTF TMA: 

Included in the templates are 3 TMA indicators. The H4 TMA (dotted magenta lines), the D1 TMA (dashed blue lines) and the W1 TMA (dashed green lines). All 3 will be visible on a M15, H1 or H4 chart. The H4 time frame are for trades of 1 to 5 days and potential gain of 170 to 250 pips. The D1 time frame are for trades of 5 to 30 days and potential gain of 200 to 400 pips. If you set the chart to D1, you will only see the D1 and W1 TMAs. If you set the chart to W1, you will only see the W1 TMA. If you are a short term trader, a good alternative option is to add the H1 TMA and use the other 3 ( H4, D1, W1) for trend direction. Having several TMAs on one chart is extremely helpful for determining longer time frame trends and combined, they have high predictive value of future market moves.

Stop Loss Use: 

There are various options in this department and I won´t recommend any particular one. A natural level to place your SL would be above a previous high for a short and below a previous low for a long. I myself use only an emergency SL very far away from the PA (100 Pips). If a trade goes against me, I will use Recovery Trades to exit the trade at breakeven. I have included detailed instructions describing the Recovery system in the Documents folder contained in the Packet.zip file. The extreme TMA system works much better when you leave price plenty of room to move.

Entry Rules:

1- We will first determine trend in the 3 TMAs by using the TMA Slope indicator values.

Ranging TMA (-0.40 to 0.40): Trades can be placed in both directions.
Buy Only TMA (Above 0.40): Place ONLY Long trades.
Sell Only TMA (Below -0.40): Place ONLY Short trades.
Super Range: Above 0.80: Hold longs till slope value drops under 0.80, at which point you should close all longs.
 Below -0.80: Hold shorts till slope value climbs above -0.80, at which point you should close all shorts.

H4, D1, W1 slope values must be either Ranging or higher for Longs or Ranging or lower for shorts.

 2- Once trade direction is determined, we will look at the D1 and W1 TMA and determine that there is enough room for the trade to move in your direction before reaching the outer band of both. Example: If you decide to go short, there must be enough room between the current price and the lower D1 band (At least 150 pips) and the lower W1 band (At least 250 pips).

3- We will now wait for price to climb above the top band of the H4 and D1 TMAs at the same time, before placing a Short trade or below the bottom band of the H4 and D1 TMAs at the same time, before placing a Long trade.

4- The Trigger: Once Rule 3 is complied with, the trade will be entered once price turns around and touches the H4 Upper TMA band for Shorts or the H4 Lower TMA band for Longs. Refer to Rule one again before entering trade to make sure that the 3 TMA slope values are still Ranging or in the direction of your trade. If they are not, wait until they return to the correct slope values for your trade and enter then.

Even though not explicitly mentioned in the rules, it is always a good idea to sell from under tested support and buy from above tested resistance. This is always a good rule to follow. It will prevent getting into a trade too early and will increase your percentage of winners. Valid support and resistance areas are: 50 or 200 MAs, TMA centerlines, daily, weekly and monthly pivot lines, etc.


Exit Rules for each type of trade:


Short Term Trade (If used): 

Close the trade when price reaches the opposite H1 TMA band. Reenter trade when price retraces to the centerline of the H1 TMA. Make sure all slope values continue to be either ranging or in the direction of your trade before reentering. You can do this several times during a strong trending move.

Medium Term Trade (Standard trade):  

Close the trade when price reaches the opposite H4 TMA band. Reenter trade when price retraces to the centerline of the H4 TMA. Make sure all slope values continue to be either ranging or in the direction of your trade before reentering. You can do this several times during a strong trending move.

Position Trade: 

Close the trade when price reaches the opposite D1 TMA band. Reenter trade when price retraces to the centerline of the D1 TMA. Make sure all slope values continue to be either ranging or in the direction of your trade before reentering. You can do this several times during a strong trending move.

Attachments: 

I am enclosing a Template and Indicators compressed as a Packet.zip file. Extract it and as usual, place the indicators (.mq4 and .ex4 files) in the Experts/Indicators folder of your MT4 installation. Place the Template (.tpl file) in the Templates folder (not in the Experts/Templates folder). The Extreme TMA - New Version template is designed to follow one currency pair on one screen. Also included is the new Dashboard (!ExtremeTMA v37) which informs us of what pairs are complying with the rules in real time.

That´s it ! The system is simple in concept and easy to trade. I recommend that you handle it with care. Use demo accounts or small lots until it shows itself to be consistently profitable and you acquire confidence in it. A trading system will only work consistently if you truly believe in it. As we move forward, I´m sure we will improve it and make it ever more reliable.

Good luck and welcome to our New Adventure !

Hall of Fame: The following members have collaborated or have made a positive impact on making this system a better one. The underlined names have made extraordinary contributions:

Crodzilla , shahrooz67, Paradox, lologo, NanningBob, Zznbrm, X-Man, Favorite, EasyRyder, mladen, Argonod, Olarion1975, Ever E. Man, Faxxion, flaw, Riddermark, slowpokeyjoe, beto21 cwb, Trainman, Baluda, bassramy.

 Download

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MACD signal reverse

Hi traders,

Simple system. Indicator used double line macd with 12, 26, 9 settings. Time frame 5 minutes. Buy when macd line cross zero line from above, sell when macd line cross zero line from below. Stop loss 30 pips. Take profit anything above 60 or use strategy which suites you. The point is you do not cut your profits short. Stop using signals once the trade is in profit. All comments to improve, ridicule and even ditch the system (if not useful) are welcome.

 Thank you

For example

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Buy/Sell Line for Daily Chart

 

I have been looking for a system based on daily charts because I have a full-time job and can only look at the charts 2-3 times per day max. I read the thread started by 60minuteman titled "Buy sell line trading", and liked the idea of using price action for entries. Even though his thread was not mainly focused on daily charts, I did some backtesting on EUR/USD daily chart for the past 3.5 years and found it to be worth pursuing.
 
Here are my backtest results from the start of September 2009 through the end of February 2013 using IronFX demo data (because they do not have Sunday candles):
 109 trades
 45 wins
 22 breakeven
 42 losses
 Take profit is always 2 times the stop loss amount
 7,074 pips
 48R (which means it made a total of 48 times what was risked on each individual trade)

Here are my rules for trading which are slightly different than 60minuteman's:
Look for buys if the candle has closed above the 50 simple moving average and if the 50SMA value is higher than the value 4 candles back.
The signal candle will be a candle that has closed higher than the previous candle's open, and that previous candle must have an open that is equal to or higher than its close.

Another type of signal candle will be one that has the lowest low of the last 3 completed candles and has a close that is in the upper 25% of the candle height. If this candle does not have a close in the upper 25% but the following candle does, then that candle will be the signal candle.
Set a buy order 0.1 pip plus spread above the high of the signal candle.
If the order is not triggered by the end of the day, then cancel the order.
The stoploss will be 0.1 pip below the low of the signal candle.
Move the stop to breakeven after price has advanced the same number of pips that you are risking.

The take profit is always 2 times the amount of the stoploss.
For sells, the rules are the same just vice versa.
I did not use any S/R lines or any discretion because I wanted as little bias in the backtesting as possible.

My main reason in starting this thread is to find someone who might be interested in making an EA of this system for the purpose of backtesting. I don't have a lot of time to backtest since I work a lot and do the backtesting manually. I would like to find out if this system is profitable with other currency pairs. I'll attach my spreadsheet of the results for your information. I'll try to post some pics of examples later.
Thanks.

 Here are 2 examples of trades:

The green arrow signifies a signal candle that had the lowest low of the last 3 candles and closed in the upper 25% of the candle height. The red moving average line is the 50SMA which has a higher value than 4 candles back. The green horizontal line is the entry buy which triggered on the candle after the signal candle. The stop was moved to breakeven on the Jan 10 candle after advancing the same number of pips that were risked. The green check mark is the take profit level which is twice as much as the stop loss.

 The yellow arrow signifies a signal candle that had a close higher than the open of the previous candle (also the previous candle had a close lower than its open). The red 50SMA is higher than 4 candles back. The yellow horizontal line is the entry buy which triggered on the candle after the signal candle. The yellow x mark is the stop out level.

EU Backtest.xlsx

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Fibo zones - the relation between today & yesterday OHLC

Hi everybody,

I'm starting this new trade because some months ago I've found a great piece of tool in another thread in this forum (high probability Fibonacci zones).

 As I'm sure of the basic meaning of OHLC ratios in trading, that tool was just the cherry over the cake.

Indeed it is an application of Joe Jackson's method that is proven to be very effective; it is an excel calculator that is supposed to indicate the most probable direction that price will follow in the daily session and the levels at which you can expect the price to bounce back, and i can assure that it does its work very well with unexpected precision.

 I'm using it for my real money trading since 3 months with very good results, but there are some features I still am struggling with to understand and unfortunately the thread where I found it is closed since 2010. 

 So the purpose of this thread is to find someone that knows this calculator in its whole details to explain them and , to improve the knowledge about it and the concept it is based on for all the people that have an interest in.

Of course the tool is attached for everybody.

 Thks to all.

 

FiboHenryZone Calculator Sign.xls

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