Forex trading strategy #8 (Teodosi's simple system)
Submitted by User on September 20, 2007 - 04:59.
This Forex system was sent us by Teodosi.
We are proud to have such users willing to share their thoughts,
ideas and systems so that others can learn and trade Forex even more successfully!
Thank you, Teodosi! Your contribution is greatly appreciated!
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"Hello guys i`ve been using one very profitable system and i want to share
it with all of you. If anyone has any suggestion i`m open to hear something
new to add in it.
This is my system.
I use 1h chart on GBP/JPY with Stoch(5,3,3) and RSI(7). My idea is this ...
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Teodosi suggested:
Stop loss = 100 pips.
Take profit = when the opposite signal comes. E.g. when Long, as soon as the signal comes to go Short: close Long and go Short.
Kind regards,
Edward
Is anyone able to explain the take profit and stop loss?
Hi Joan,
It will work well on 4h too.
Best regards,
Edward
WHAT ABOUT USING THIS SYSTEM IN 4 HOUR PERIOD???
THANKS IN ADVACE
JOAN
thanx for this wonderful system.my trading has really improved.i make about 350 pips a day as against 70 pip i made previously.
That's interesting indeed, because when we include such long shadows, we can no longer apply the rule literally as follows: "A white candle has to exceed 1/2 length of the black candle, where length includes shadows."
I would say next:
When the shadow of the black candle is this long (double the candle body length or more), it implies that buyers have been pressing strongly enough and the dominance is quite evident at that point. Although it's not that simple: such candlestick formations as "shooting stars" and "hammers" are pointing to an unfolding reversal pattern, while other formation with long shadows may not.
Therefore:
image #1 - valid to trade, no doubt.
image #2 - valid.
image #3 - the Close is below the midpoint & looking at the shadow of the black candle: the Sellers still showing strength. I wouldn't trade it.
image #4 - same as image #3, but the Sellers' strength here is even more convincing.
image #5 - valid, good to trade.
Best regards,
Edward
hi, i'm visualizing my question now... i sketched some candle combinations, can somebody tell me are these valid signal combinations and is the center line measuring ok for such candles?
is it acceptable that centerpoint of first candle is outside of body and on shadow?
Hi zbx,
everything is correct, and it's acceptable for a centerpoint to be outside the candlestick body.
Best regards,
Edward
Edward. Thank you. That's all.
hi, i'm unclear about candle formation... ok, first i have to measure first candle lenght including all shadows, then i have to find centerpoint of this candle... is it acceptable that centerpoint of first candle is outside of body and on shadow (in case something similar to on hammer or hanging man)?
thank you
zbx
The "down candle" here refers to the Bearish candle.
Regards,
Edward
i understood all the explanations except the 'down candle'could you pls if this system is still working explain this?
fxpedia()yahoo.com
It doesn't depend on a platform - use any you want.
Backtesting will not give the same results as forward testing, it's a well known fact.
How does this work for metastock? I've backtested with it and it don't do very well
For AvaFX you would have to use:
Stochastic: Observation period 5, Average period 3
RSI: Observation period: 7
It should produce the same results.
Regards,
Edward
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