Forex trading strategy #8 (Teodosi's simple system)

Hi Aariff,

There is a medium resistance at 155.50 and a major resistance at 157.50
You sold into support around 154.50, which wasn't a good idea.
So these are your reference levels now.

At this stage there might be some up and down moves following the retests of mentioned support/resistance levels, so you can try exiting on the next approach of each level, hopefully with some minor losses.

I'm not looking to manage it out completely, since giving any financial advice is prohibited by this website policy.

Regards,
Edward

Hi Edward,

i am not sure whether this is the right place to place my query...but i am fed up and worried...kindly help me...

I am new to forex...i made a mistake and now i am worried about it.

i did 2 buy at 156.14 and 156.28 in GBPJPY currency. i got struick up in breakout and expecting a u turn...

finally the loss went to -3800 dollars...

i did 2 lots of hedging there at 154.51 and 154.55.

now my current loss is 3800 and its running...

now i am very much confused and worried about how and when to close thes 4 position without loss..

my account is critical stage...kindly help me...

Aariff

Hi MG,

It would certainly help seeing your screenshots.
You can register an account at our forex forum, create a new topic and upload a file there.

Regards,
Edward

My upload file tab seems deactivated so can't upload the image of my trade.
MG

Hi Edward,
I entered 2 trades on GBP-JPY and GBP-USD on demo but was stopped out on yen pairs while the other was in negative.
I took the trade at the point indicated by vertical trade line as i dont know how to draw circle on the chart!
Stocs n RSI were up and there was a bearish candle long enough after bullish candles,then again a pullback candle and oops,trade goes long instead of short!
I just want to know whether what i am doing is right and this was just the losing trade or there something more i need to learn.
Please guide,
miraclegirl

Stop loss should be set at previous swing high/low and moved only when a trade shifts into a positive territory and maker makes +30 pips or more. Then you can move SL to breakeven and allow the trade to run.

Regards,
Edward

Hi Edward/Teodosi,

This system looks simple and easy..Thanks for the same.

Can you tell me how to place stoploss...few times i was with trailing SL with 25 pips difference...but i was hit many times...my profit goes away and i end up in loss..

tell me how to avoid false breakouts. sometimes after an uptrend, a bearish candle is formed and Stochastic and RSi are behaving as mentioned but the next candle forms bullish and takes away the profit and hit SL.

Kindly help me.

hi guys,
this system seems so simple n easy to use but is it really giving u profits it mentioned in the original post?just curious...
Thanks
Mircalegirl

The same settings.

hey. what setting of stochastics and RSI u suggest for trading in gold with your stratergy.?

Definitely with you, Rob. Great advice!
Also same mind set from Andre, worth trying!

Very good system, thnx for posting.
For better results I suggest checking RSI and Sto on 1day chart after getting buy or sell signal for confirmation.
If you get a sell signal on 1H chart and you check 1Day chart and both RSI and Sto are overbought then sell.
Vice versa for buying.

Andre

Or maybe just consider having a more modest target of say 50 pips for trading against the main trend? Or use a low Fib level?

Thanks,

Rob

I also suspect that it may be best to look at daily chart for direction and only trade with the main trend, rather than taking retracements.

Thanks,

Rob

This looks like a great strategy - and one I will be testing - combining the power of candlesticks analysis with technical indicators.

I'm guessing you could use this strategy with other candlestick reversal patterns?

The candlesticks described are effectively Dark Cloud and Piercing Line.

I don't see why other reversal patterns, such as Harami, Abandoned Baby, Morning Star, Evening Star, Hammer, Doji, etc etc., can't be used as well?

Thanks,

Rob