Comprehensive Trading System/Methodology

[bbmac]

Hi BBMac I am just playing about with the idea of bol flips combined with divergence.

Was there a 1min reentry opportunity on Cable at 9.27am, SBR off the 14800 level.
10/20 bol flip with hidden macd divergence?

Also, how would you manage the position once in a trade. Set a fixed target or simply trail the highs?

Thanks.

The screenshot below shows where the set-up you describe occurred...Note though on this occassion it was a re-entry only into the 5min downtrend, there being rangy conditions on the 30min...and 30min macd hist was above the axis at the time of set-up, but pointing down at time so good sign (well better than pointing up, lol,) but a good 1min re-entry into the 5min downtrend and nice potential sbr at the previous 5min swing lo=previous support=potential sbr.

As for targets, I encourage you to read the docs on page 1 and 10 of this thread if you havn't already done so...the general rules of thumb being

a. The more time frames a supporting set-up exists upon above the trigger that support , the bigger the potential target.
b. For a re-entry to trend set-up, the more time frames the trend exists upon, the bigger the potential traget.

An over simplification there really, but I do encourage you to read the docs.

G/L

 

[bbmac]

What time do you trade by the way?

I tend to do 5hrs anytime between London/european open and Close...was just up early this a.m.

 

[bbmac]

Here is where I got the SBR

I refer you to post 169 as a general rule of thumb, Dly Pivots are only minor factors in the potential supp/res equation as 24hr fx trading means they are subjectively calculated re OHLC...but yeh i see why you would have done this.

 

[bbmac]

Look at the 1min chart below, you can see at points a, b and c there were potential reversal set-ups, (a = Rev Extr [local bearish div in cci] b = Rev Extr, c = Rev B) Point d is a Rev C and this is where price sold off, but how do you know not to act at a b or c ?

Well, 2 things are missing from the onfluence of factors needed to make a high probability set-up

a. a supporting 5min set-up

b. No identifibale potential res @ points a and b....not even a prev 5min swing hi/lo for the 1min set-up in the absence of a 5min supporting set-up...there was however a 1hr prev sw hi but it was a wide zone so you really would have needed to see some other potential resistance factor in order to decide that point d was in fact the one to act upon. [The optional small charts helped a little with this, as does experience) but you really need to see a confluence of as many factors as you can identify, and if they are not there, they are not there.

The 1hr previous swing hi is shown on 1st screenshot below;

 

[bbmac]

4 attempts on this area now re potential resistance whilst approached rom the underside. Could be potential rbs if tested from the topside in a pullback if an uptrend develops.

 

[bbmac]

Shown below is my interpretation of the 1hr chart re the most immediate potential support and resistance zones...potential support zones [=previous support=previous swing lo's] shown inbetween the green dotted lines @ d,e, & f, and potential resistance [=previous resistance = previous swing hi's] inbetween the red dotted lines @ c,b & a.

Fibs of the recent down swings would most likely be from points X and Y

Confluence, Confluenec, Confluence.

Correct at time of posting

 

[babymush]

New Entry
12/10/08 0910 FXCM 1.4786

M1 Reversal Setup
M5 Reversal Setup
Support M30

Stop moved to 1.4786 Previous Swing Low M1
Stop moved to 1.4794 Previous Swing Low M1

Trade closed 12/10/08 09:32 FXCM Stop hit for 7.9pips

See picture

 

[babymush]

P.S. Just wondering how many people is using this system currently or trying it out. Was thinking if a chat room would work What do you think BB?

 

[bbmac]

New Entry
12/10/08 0910 FXCM 1.4786

M1 Reversal Setup
M5 Reversal Setup
Support M30

Stop moved to 1.4786 Previous Swing Low M1
Stop moved to 1.4794 Previous Swing Low M1

Trade closed 12/10/08 09:32 FXCM Stop hit for 7.9pips

I saw the 1408pm gmt Reversal type B on 1min trigger (screenshot below) that has seen a good pip gain the entry occuring at the first 1hr potential support zone shown in screenshot above (d.) There was no 5min supporting main chart set-up but good 1 and 5min small charts confirmation.

 

[bbmac]

P.S. Just wondering how many people is using this system currently or trying it out. Was thinking if a chat room would work What do you think BB?

I know of a few that use it successfully, and they have basically taken it's 4 components and developed their own take on it that best fits their own trading style/tolerances/personality. I think on first glance it looks complicated but actually it is all about support/resistance and price action. You could like Trader_Dante does over on another thread on longer time frames trade just on support/resistance, and price action triggers like pinbars and insidebars at such pre-identified potential supp/res/sbr/rbs. On these shorter time frames I just prefer to have repeatable indicator patterns that add to confidence in taking a trade and help to really pinpoint the entry, as price action can be noisier on the 1min trigger.

I don't think there are sufficient numbers to make a chat room worthwhile, and in any event they can be off putting to one's own trading if it is mainly centered around the system author. There are over 400 downloads of the main doc on page 1 of the thread so I'm guessing that someone might have got something useful, other than your good self.

 

[babymush]

Saw this setup just now in M5. Did I get it correct?

 

[babymush]

Thank you for the comprehensive documents and yes I am practicing it. I agree at first glance I really had a lot of figuring out to do and after some time, it became better and hopefully I will learn and you can guide me along.

Thank you

 

[bbmac]

Saw this setup just now in M5. Did I get it correct?

You certainly had regular immediate bullish divergence in the 5min oscillators (which is good to go long) but no real set-up so far as the known repeatable set-ups indicated by this system/methodology is concerned.

 

[bbmac]

Thank you for the comprehensive documents and yes I am practicing it. I agree at first glance I really had a lot of figuring out to do and after some time, it became better and hopefully I will learn and you can guide me along.

Thank you

Yeh, I Think the docs on page 10 entitled Parts I II and III are better at explaining the system/methodology (basically a re-hash of the pdf docs on page 1, into a better more understandable format.)

 

[babymush]

Oh yes I thought it was a Re Entry setup with the Bols 20 to go inside the 10.

But as a reversal setup, we need the bols to go for the 4 bols flip first.

Thanks for reminding.

 

[bbmac]

see how at 1507pm gmt there was a Rev Extr on 1min trigger but although some bearish seq div in 5min osc no real supporting set-up...but at 1520pm gmt you had a 1min Rev B supported by a 5min Rev A seq in that 1hr potential res zone that saw +20pips gain,...sometimes you gotta wait for the set-ups to develop.


1hr ascending support t/line now as 30min and 1hr macd hists are above the line and pointing up.

Done for today, will answer any posts that may arise later this eve.

 

[bbmac]

The screenshot shows the 1521pm gmt Rev B at point a, described in posts above, and then the Rev C at point b, in the same 1hr potential Res zone decsribed in screenshot in post above here. Both points a and b had a 5min Rev A seq supporting set-up and the small charts shown in screenshot confirmed with breech/touch of 2nd fib tunnel (red wide dotted) extreme and breech of upper donchian channel (pink)

G/L

 

[bbmac]

re post above, 5th test of that 1hr pot res zone now..

 

[babymush]

12/10/08 10:43 FXCM Time Entry 1.4850
M1 Reversal Type C
M5 Extreme Reversal ii
M30 Resistance Zone

Please advice. Currently in 22pips profit. Not closed yet.

 

[bbmac]

12/10/08 10:43 FXCM Time Entry 1.4850
M1 Reversal Type C
M5 Extreme Reversal ii
M30 Resistance Zone


Please advice. Currently in 22pips profit. Not closed yet.

See comments in posts above about the 1507pm gmt Rev Extr.
re 1538pm Rev C, good entry but both the 1521 Rev B and this 1538pm Rev C on 1min trigger had a 5min Rev Aii seq supporting set-up not a Rev Extr ii (for Rev Extr ii need 10 bol inside 20)

Well done...I was happy with the gain, and you got 22pips gain! - the market looks generally rangy-mildly bullish now.