Advanced system #6 (Picking Tops and Bottoms)

Hi Pani,

I'd trade that 5 min with a tight stop. There would be few pips to lose on 5 min TF, but if you were right about that trade, you'd get the best entry and a good reward.
At times when I see and obvious invitation to get in with small risks and high promises, I go for it... but every time you have to be sure your decision is well weighted and based on facts, instead of impulsive motives.

Regards,
Edward

THANKS ALOT BRO! I JUST LOVE THE FOREX COMMUNITY BECAUSE OF HELPFUL PEOPLE LIKE YOU! YOUR WORK IS ALWAYS APPRECIATED, THANKS.
FELLOW TRADER, UMAIR

Hi Ed - I'm been following this for ages now - great system, and it makes so much sense.

Quick question - if I'm looking at a pair that is > 30 ADX on 60, 30, 15, 10 etc. but the pair on 60, 30, 15 is trading much higher than the 20 EMA (assuming I'm looking at buying this pair) but I notice that my 5 min chart for this pair is just about to bounce of the 20 EMA - should I trade on this 5 min or not?

Also to answer a question way up in the posts with FXCM - if you want to get the 3 hour time frame or any time frame just go to the box where you click the time frame you want but click the text e.g. 60 minutes - when you click it the computer highlights the text so you can delete it and type in h3 - that will give you 3 hours. You can do m2 - 2 minutes (if you would want to!) or any other time frame - 3 days is d3.

Pani

Hi Nicknamed,

The charts look scary :), but I must say I was able to visualize exits according to the suggested rules. It works, from what I was able to see, however, when you add Pivot points on top of everything, it becomes terribly confusing.

The Fibonacci Bollinger bands contain in its base 20 SMA, so, frankly, even regular Bollinger bands would be better than FBB in my opinion (less levels - almost same result). What I would do is: if you want to exit as soon as possible before the move begins its first retracement, then you can use a very simple method: once price reaches an outer Bollinger band, move a Stop loss outside the most recent price bar. Trail the stop with each new bar until hit.

Regarding Pivot points, I would leave on the chart only daily S/R, daily pivot, weekly pivot and monthly pivot. If any of the BB levels merge with pivot lines, you've got a strong level of support/resistance there.

Keep up a good work!
Best regards,
Edward

Hi,
here another try to upload the screenshots.

STARC Bands are shifted 1 step ahead by default. Try it out if you like it. I do.
Regarding gann hilo - default is 10, but I also saw in some other system 3, just try out what suits best your needs...

The AutoPivots are not programmed well since every time you open template with them, you (at least I do) have to change the color in settings otherwise you simply do not see the lines as they are black (on black background)....

If anybody of you guys finds out which settings (possibly after backtest), please post it here.

Thank you Edward for the ex4 and mql files, I didn't know how to do that previously....

Gann_HiLo_Activator_v2.ex4

Nicknamed

Thank you, Nicknamed!

You've brought lots of good ideas to try out.
Where and when to take profits - this subject is very important.
I'll just add all the indicators, you've mentioned; myself, I'll take a look at it
in the upcoming week. Thank you!

Fibonacci_Bollinger_Bands.ex4
STARC_Bands.mq4
Auto_Pivot.mq4

Best regards,
Edward

P.S. Could you try uploading screenshots again. Without a link to the uploaded files there is no way we can find them :)

Hi all,
I am reading this for the first time and haven't tried it yet completely. Just drew it in Metatrader and what I would like to suggest regarding profit taking would be to look
1/at fibonacci bollinger bands (FBB) while price touching the lowest (for shorts) blue line, if there was any sharp move and STARC Bands (the lower one) crossed the lowest FBB line downwards
2/to see first candle close above higher FBB line when trend is ending
3/just a candle shape that signal trend end while in between lowest FBB lines
- all these indicatos with standard settings FBB 20 and STARC Bands 15
4/ one more idea to close the trade is when after longer trend downwards it crosses (and closes) above gan hilo (lookback 3)
regarding
5/ It would be wise to see price retracements to FBB lines even on higher timeframes than currently trading to see where the price might be heading to set proper T/P or even S/L.

Unfortunately this makes chart messed up with many lines making it worse readable, but that only needs some time to get accustomed to it....

Looking forward to test it all...the combination with S/R breakouts could be combined with indicator ###Auto Pivot I recently downloaded from forexperfect.com (it includes monthly, weekly pivots and some S/R lines - it focuses on longer time frames than a day so it could be usable even on daily charts). The problem here I see when you draw all possible S/R lines with fibonacci retracements, possibly regular pivots and camarilla pivots, there would be way too many lines and one would not know nothing....

I am attaching chart with that all....you might get more ideas when looking at that chart and I would be happy to hear them :)

More pips and less stress to all!
Nicknamed
PS. Thank you Edward, this website is super!

We use ADX from the previous (already closed) candle.
For entry we use a price bar that is currently traded (not closed yet).

Regards,
Edward

For this system, should we use the EMAs and ADX for the current candle as it's forming or should we use the previously closed candle's EMAs and ADX?

Hi,

Firstly, I've made some screen shots for everyone to follow.

Daily chart: ADX over 30.

3 hour chart: ADX over 30, trend line (dark grey).

If ADX is over 30 on daily charts, we ignore all other lower charts, no matter what ADX readings they have.
So, you've changed the rules by looking at smaller time frame.
(The right thing would be to stay with daily charts and wait for a test of 20 EMA; and ADX still being above 30).

One of the reasons your trade was successful was because you've found a valid trend line, which served as support level, in addition fortified by 20 EMA.
This confirms the importance of trend lines :)

Concerning the profit goal, it should be at least equal to risks taken, but better if it is larger than that.

Regards,
Edward

Hi Edward.

I understand one looks for the highest time frame first. I would like to know if this trade would of been a valid trade to your system or am i changing it. Today 14/08 (giving dates so you can check it up) i saw the EUR/AUD daily chart ADX @40, the 20EMA was at 1.6738, the price was at 1.7026. That is a far retracement, so i had a look at the 4hour chart, the ADX was above 30, 20EMA was being tested. I looked for any long term trendlines for a valid long entry, found one on the 29/07 connecting low of 11/08. I longed at 1.7005 and placed stop just below trendline and 40EMA at 1.6965. Price currently at 1.7040. Another thing i wanted to ask, is placing limits and same amount risked making me loose out on more gains? As i have 5pips to go before exit limit reached.

Thank you!
Your contribution and detailed insight are greatly appreciated!
I'm looking forward to testing it myself.

Happy trading,
Regards,
Edward

Hi again Edward.

Firstly i must say, i have read two of your posts, this tops and bottom and the trend line breakout. I absolutely love them both.

What i noticed today, trading the GBP/JPY, had i used the trend line strategy, i would of entered long to be stopped out then re-entered short for a profit. I applied ADX strategy and I noticed something very interesting.
I saw the ADX was trading above the 30 mark, and noticed the 20 and 40 EMAS trending down, hence did not want to long. Instead of looking for the most recent high, i went back some more, found two highs and drew a trendline. I then did not enter the break out for the long trade as it was trading just above the 20EMA, instead i looked to short trade at the longer trend line. The results were excellent.

What im trying to get at is, i am using the trendline breakout together with the ADX strategy and that works brilliantly. That alone will filter out the wrong direction trades, at least i hope so. I used the same strategies on others pairs to and all was successful.

I have one problem though, i am with fxcm, and use there market scope charts, nice to trade of charts, but i can only get the 1hour downwards time frames, and the daily. No 4hour chart or 3hour. I hope it will still work for me. I start at hourly time frames working down.

Thanks again for an excellent site, god bless!

Yes, EMAs and ADX are applied to close.

Regards,
Edward

Hi Edward

Is the EMAs and ADX is set applied to close right?

Regards
Jimmypippy