Advanced system #3 (Neat entry: RSI + Full Stochastic)

Hi EDward...
I use mostly 1 and sometimes 5 min . charts exclusively.

So , do I really need SMA 150 , or a lower one , or any at all ???

Also, do I need to go to a larger time frame for confirmation of trend ?? It appears that the 1 minute

chart somehow " violates " the rules of trending !

I do use ADX 10. It seems to help as a filter.

THanks !

Fraser

Edward........

Wow , THis method is great . In fact , the Full Stochastic 6 , 3 , 3 is really all you need for entries and exits. Works best on Daily chart as you suggest , but with some modifications ,the smaller time frames look promising as well.

Hey.......you people out there , let's have some feedback on this !

Paul

Good stuff, George!
CCI indicator is a good substitution. In fact, CCI is a very interesting and powerful tool, especially when used on multiple time frames. In your case, 5 min + 1 min CCI should paint a pretty picture of trading opportunities when both time frame CCI are in agreement.

Played today also with Heiken_Ashi_Smoothed.ex4 as an alternative indicator.

Best regards,
Edward

Hi Edward-

Clint's comments and observations were quite good. However, I came across something I believe is even better re Advanced # 3

WHEN using 1 or 5 min. Candles ! For Daily charts , leave the original rules intact , but short term appears to need

Recently I did a Yahoo search on Heikin- Ashi candles , and another on Guppy's multiple EMA's (Rainbows ). I remembered that at

least a dozen Forum participants extolled the virtues of a much neglected and misunderstood indicator , namely......

CCI for both entries and exits , but mostly for the latter .

So, I put up CCI 8 and compared it with RSI. CCI had far fewer false starts and was uncanny on EXITS getting you out when the

H.A. Candles change as Clint noted. Also , CCI is less lagging than the other popular indicators , a big advantage on 1 min candles .

I have not finalized it yet , and for now am keeping RS and definitly Stochastics ( but NOT for Exit Option # 1 ). Do not need SMA

150 ,and may drop ADX as well

I hope some of you other participants on Edward's VERY valuable , and FREE , site will look at Clint's and

my suggestions and test some more !!

On another subject, Edward , someone named Paul Evans WAS selling a method named Soloist for $ 77.00, then started giving it away. It is exactly your Complex Strategy # 4 .

Cordially ,
George

Hi Paul,

For this strategy the time zone you use doesn't matter.

Regards,
Edward

Hello Edward, Never done long term trading before .

If using Daily charts, when do I look at the candle each day , PST ?

Paul

Hi Clint,

Certainly looks good. I like the idea.
Thank you for sharing.

Regards,
Edward

Hi Edward .
Using 1 or 5 Min. cand., Option no. 1 for taking profits gets you out too soon, using Stoch.

RSI 3 seems to be better suited for taking profits in SHORT term trades.. However , ( in an uptrend for example ) , instead of exiting

when the 80 line is reached , you wait for the RSI line to RE- CROSS the 80 heading down. Oftentimes , at that point , the Heiken-

Ashi candle CHANGES COLOR , or keeps same color , but flattens out , or develops a down tail, ALL signs of a change in trend !!

What do you think ?

Clint

Thank you for your feedback, Clint!

It is quite interesting to read about 1 min trading, thank you for this addition.
The strategy is very simple indeed, but it's also advanced and neat in the way it performs :)

Happy trading!
Regards,

Edward

Hey there " MR. EDWARD " . SIR !!

No wonder you call Advanced # 3 the " Neat Entry " as well as one of your favorites . I know you like the Daily , and do not favor short term trades, but I gave this a long test on Eur/usd with 1 Min Candles , NO SMA 150 , but adding ADX ( 10 ) at 20 or more value , and the results were remarkable !

Just one question. Why do you list this method under " Advanced " Methods when it is so simple ??

Clint

Hi Peter,

I wasn't able to find Full Stochastic for MT4, but I can say that (at least) Oanda's Full Stochastic graph is 100% identical to Slow Stochastic graph.

Regards,
Edward

Hi Edward,

It's a good site thanks for all your help! do you know if we can dowload a Full Stochastic indicator for MT4. It looks to me better then the Slow Stochastic.

Regards

Peter

Hi Jari,

You're reading it correctly.
However, there is no need to exit a trade sooner, although you may if you prefer to keep 200-300 pips, which is a good profit. Locking in profits is a good habit. You can always re-enter later on market retracement in the direction of the daily trend by using 4 hour charts momentum.

As you may have noticed, what on 4 hour could be a new entry/exit signal, on the daily chart is just a minor correction.

I'd recommend to seek entry and exit signals from daily charts - original choice. Then, for better accuracy, go to 4 hour charts where we need to remove 150SMA and focus on momentum, suggested by Stochastic lines cross.

Regards,
Edward

Hello all and thank you Edward for this great site!

I was wondering about a situation, where 4h chart signals to buy, and 1d chart signals to sell. Looks like that on EUR/CHF at the moment. Well, the price has come down for 200-300pips already, but I'm not sure if you should exit the trade sooner than usually, or am I just reading the signals incorrectly..?:)

Thanks,
BR,
Jari

Hi John,
I enter with a new candle, the one which comes after Stoch cross.

Regards,
Edward