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

Hello Mr. Teodosi, I'm Kushal. Thanks for posting the great system but don't mind I am little bit confused with understanding the candlestick, If we are in a strong up trend and our indicators are in oversold mood but the candlestick is in doji, or Tri Stars, or Gravestone Doji then what we can do with this. Please explain it. Thanks once again for posting it.

Great system!!!
No doubt about it....

No problem

hi Edward,

Please accept my appologies for spelling your name incorrectly.

Hi Edaward and Teodosi,

I think the system looks great; thanks for sharing it with us. I tried it on a demo account, so it does seem to work. I am new to forex. I have a query which I hope you would be able to clarify for me.
I am a little confused as to what the values should read for the RSI(7) and Stochastics(5,3,3) for them to be considered overbought and oversold. Thank you in advance.

Hi Edward,

Seems like I am not the only one from Argentina profiting from your forum. Thank you very much for answering my questions, I subscribe to everything Fer said, your web is probably the best in terms of forex education, I have learnt a lot more here than in any other web or ebook...Thanks a lot.

Chelo, Argentina.

Hi Edward,
Thank you for your real, deep and genuine commitment to people who try to profit from forex.
Your explanation is always clear, simple and usefull. Your team is excellent and the website ABSOLUTELY UNPARALLELED.
Thanks also to Mr Teodosi for his generosity shearing his systems with us.
Fer, Argentina.

Hi Chelo,

I've been waiting for the Author of the system to reply to your questions, but since Teodosi is not here, I think it is time to answer those questions.

"Which candles the author is talking about..?"
ii) I believe, it should be read as "Sell when..."
iii) should be read as "Buy when..."
(I've fixed that already in the original rules). Thank you for pointing out.

Look at your charts and notice the most recent closed candle. You will need to compare it with an upcoming one. If a current candle is black (bearish), then if the next one comes white (bullish) and on the close it reaches at least half-way the length of the black one - we enter a trade.

I've made a picture to support that description:

Hope you find it helpful.
Regarding unknown bands on the original screenshot, those look very much like Bollinger bands, however the settings are not known to me. Same for other than 1 hour time frames: testing is needed, and, hopefully, now there will be no difficulties in doing that.

Kind regards,
Edward.

Last quote: "...down candle which has closed at least at the middle of the last up
candle."

at least at the middle means what? at least from the way up for short? form the way down for long?

On the top image, are those Bollinger bands? if so what is there setting? because it seems to me that another thing to check out is wether the top band is close to the price for selling, or the lower band close to the price for buying, they always are in the examples given.

I hate feeling dumb, but this is the third try to understand this one, I am not that keen on following instructions without understanding what I am really doing. That should be a good trait for trading...

Thanks again
Chelo

Edward,
Thanks for your reply

There was no intention on my previous post of being obnoxious, well, maybe a little, sorry about that. It is so frustrating to read about a 1500 pip/week strategy and not being able to figure it out, so these are my questions: (I quote what i did not get from the strategy)

i) "If I have strong up trend and my Stoch and RSI are overbought, and we have
down trend candle (black candle) close at the middle of the last
(in this case white one) I enter my trade."

Which candles should we be looking at?

ii) "Buy when RSI and Stoch are bought or they are close to overbought (75)
line, and we have down candle which has closed at least at the middle of the last up
candle."

Again I do not get what candles he is talking about

iii) "Sell when we have oversold RSI and Stoch and we have up candle which has closed at the middle of the last down one."

Same thing here

iv) Which is the time frame for this strategy? I notice he uses 1H, but does it work on other time frames. (I know I should test this question on my own, and I will gladly do once I get which candles he is talking about in the previous questions)

Thanks a lot for sharing and patience
Chelo

Thank you for your kind note.
We've published this Forex strategy the exact way it was submitted by its author. I think we could add some commas here and there to make it more readable.
In case you have any specific questions about the system, please do not hesitate to ask.

Regards,
Edward.

Is this supposed to be a simple strategy or is it nor properly explained? English is not my first language, but I do understand most of it, and this is the first of your published strategies I dont understand. Is it possible to give alittle bit more detail on how you pick when to enter? which candles are you choosing? Thank you...

PS: a comma here and there does not hurt.

but sometimes stoploss is difficult,ok?

hello it`s better to use only to 1h and 4h not less because you could get more false signals.No i don`t mean that i use stoch and RSI only to know where is price and look candles to know where exactly is goes.Cadlesstocks are fastest indicators known to us and we will use this!Every day i make more than 200 300 pip using this system to trade only GBP/JPY i`m sure that you all will have same success as i have with this system ...

mr.teodosi. u mean to sell at overbought level and buy at oversold level.