Comprehensive Trading System/Methodology

[bbmac]

Example of no 5min supporting set-up but decent 15min

A minor previous swing lo (still a swing though) on the 1hr chart at which cable found support [@ point circled in white] in this early London/European morning session, see screenshot below

The 1min trigger set-up is here, no 5min main chart supporting set-up, but a 15min Rev Aii supporting set-up with supporting o/s conditions on small charts to 5min...the set-up has seen +70+ pips available at time of writing.

The supporting 15min Reversal A ii set-up is here;

Always worth checking the 15min (and above) if there is no clear 5min supporting main chart set-up to the 1min trigger set-up @ pre-identified potential supp/res/sbr/rbs, as well as the conditions on the small charts.

 

[bbmac]

a Reversal set-up in next t/f ranging conditions

Nice example in gbpusd this morning, a 1min Reversal Extreme set-up @ the 5min potential support zone shown below;

Notice how rangy the overall price action conditions were on this next t/f up from the Rev Extr set-up, the 5min chart, so when a 1min Reversal set-up developed at an obvious previous swing lo (circled in white) = potential support zone shown inbetween the red horizontal lines and circled in green, this was a hi-probability set-up, as effectively the Reversal set-up (on the lower 1min trigger t/f) was not against a trend on the next t/f (+,) ..this 5min intermediate t/f,...see screenshot below;

The set-up has seen +40+ pips gain available at time of writing.

As for the set-up note that the cci had local bullish divergence (one of the 2 exceptions to the general condition of a Rev Extr set-up, - that of the opening of the first reversal candle appearing when the cci has already hooked back in it's bol from an extreme)

Note too how price had breecehd both the 2nd extreme fib tunnel and donchian channel on the 1min small chart and the 1st extreme fib tunnel on the 5min small chart, thus adding to the confluence of technical factors to support a market entry long here. Note it was the 1st extreme fib tunnel on the 5min and 2nd extreme on the 1min that had been 'in play' this early london/European morning session.

 

[bbmac]

You will see from screenshot below where the 1127am 1min Re-entry type 2 set-up developed, @ the next t/f-5min potential sbr zone....the 5min beginning to trend down again, co-existent with a minor 30min downtrend,...there being 3 LH's on that t/f including the LH circled in white where the re-entry set-up on t/f below-1min developed.

Note too the macd histogram was crossed down through it's axis on that 5min t/f into whose trend the re-entry was sought on the t/f below-1min, after a pullback;

Note too the 30min (and indeed 1hr) were crossed down and/or pointing down too;

Thus all conditions (and more re 1hr macd hist) were met for a hi-probability trading opportunity.

The set-up has seen +30+ pips gain available with a notional LL made below the last L shown on 5min chart above

 

[bbmac]

Think intelligently about your trading.

There are really only 2 types of trade;

a. Those in direction of a trend
b. Those anti-trend

As you will be aware now, this system/methodology seeks to identify hi-probability Re-entries (to next t/f [+] trend after a pullback) -and- hi probability Reversals against next t/f trend [+] or in next t/f's range,...both trading opportunities indicated by the confluence of individual price action trigger within one of the repeating indicator set-ups @ pre-identified potential Support/Resistance/Support Becomes Resistance (SBR)/Resistance Becomes Support (RBS.)

When acting at a Reversal set-up think about the following

a. What price action conditions are you looking to trade a Reversal set-up? - If a trend on next t/f (+) how many t/f's does the trend extend to? ie how strong is the trend?
b. How strong (how much confluence of potential supp/res factors) is the potential supp/res at which you are looking to trade a reversal set-up?
c. If reversing against a trend, what is the character of that trend...shallow pullbacks/depper pullbacks?
d. How many t/f's does a clear Reversal set-up extend to beyond the trigger t/f?

When acting at a Re-entry set-up;

a. What is the trend you are re-entering (after a pullback)
b. How many t/f's does the trend extend to?
c. What is the potential strength of the sbr/rbs on the t/f above the set-up (providing the trend extends to that t/f) at which you are acting?
d. What is the character of the trend you are re-entering...deep pullbacks/shallow pullbacks?
e. Are there any factors that may affect the chances of a with trend follow thru to a new LL or HH in the trend from the set-up you are acting at? These may include;

i. The re-entry does not develop at an immediate LH/HL on both the time frame it sets-up on and the t/f into whose trend a re-entry is being attempted.
ii. Clear obvious Reversal set-ups (that indicated the anti-trend reversal opportunity)extending past the t/f that the re-entry set-up develops on, may suggest at least a deeper pullback/out and out reversal.
iii. Is price already extended past it's average pip range?

G/L

 

[bbmac]

Confluence of potential resistance factors

The screenshot below shows the first test of the 1hr decsending Res t/Line circled in red, the area coinciding with a previous 1hr swing hi=prev res=pot res, and offers touted by mni;

...the 1min rev extr set-up had supporting conditions on small charts to 15min although no clear 5 min main chart supporting set-up

Another confluence of technical factors making for a hi-probability trading opportunity, the set-up see-ing +30+ pips gain available at time of writing.

 

[bbmac]

Confluence of potential Support factors

Good example of the confluence of potential support factors this early London/European morning session in Gbpusd.

Screenshot shows the 1hr ascending support trend line and previous swing lo zone=prev supp=pot supp.



The 1min trigger set-up is attached as screenshot B The set-up saw a supporting 5min Rev Extr main chart set-up and 15min Rev Aii seq main chart supporting set-up as well as supporting conditions to the 5min small chart. The set-up has seen +100+ pips gain available .

 

[bbmac]

Good re-entry set-up...but what was the potential sbr??

You can see the re-entry set-up that devloped on the 1min chart of the pullback from the Reversal extreme set-up in post above. A sound re-entry set-up into a then developing 5min downtrend (5min macd hist was crossed down and 30min [and 1hr] were crossed down, pointing down at time of set-up.)

The 1min Re-entry type 2 set-up is here;




A very clear set-up re-entry set-up on the t/f below that the trend exists upon, but what was the potential sbr?? well you can see from screenshot below the prev 5min congestion zone prior to the downside break...and it was this that acted as potential sbr...(this is discussed more in the document attachments to this thread on page 1 and 10-that outline the system/methodology.)


The set-up saw +40+ pip gain available but did not see a 'with trend' follow thru to a new LL, see-ing instead a HL in the 5min trend and a new H above it's LH.

Look at where the re-entry set-up fell on the 1min t/f, @ a HH although still a LH on the 5min t/f into whose trend a re-entry was sought. So a non optimum position, still resulting in pips but no 'with downtrend' follow thru to new LL's. (The subject of the optimum overall price action position of a re-entry set-up on both the t/f it sets up on and the one above into whose trend a re-entry is sought is well discussed elsewhere in this thread.)

 

[bbmac]

Trading truisms.

The people I know who are successful at trading are passionate about it. They fulfill what i think is the first requiremnet; developing intuitions about something they care about deppely, in this case trading. They are the ones who study years of charts...They develop a deep knowledge of whatever form of analysis they use. Out of that knowledge, their trading ideas, insights and intuitions emerge.
Charles Faulkner



The perfect speculator must know when to get in; more important when to stay out; and most important when to get out once he's in.
Unknown

 

[bbmac]

How the trend can change

The screenshot below shows the change in 5min from a downtrend to a new uptrend on Gbpusd and @ the 2nd HL a Re-entry to this new uptrend opportunity (after a pullback) on the t/f below, the 1min, at the previous swing hi's = pot rbs, that coincided with 23.6% fib of the then move up from the current 4363 intraday low.



At the time of the set-up the 5min macd hist was above the axis now and the upmove had dragged the 30min above and pointing up (as it had the 1hr too.) The set-up came at an optimum immediate HL on both the t/f's, ie the 1min itset-up on and the 5min (circled in white on screenshot above,) into whose uptrend a re-entry was sought. In terms of potential at time of set-up the daily range was 120 L-H so well below the average daily pip range of the instrument...the set-up has seen +80+ pip gain available at time of writing.

The 1min Re-entry type 1 is here;

 

[bbmac]

A Reversal @ potential Resistance zone

The potential 1hr gbpusd resistance zone is shown below;



The confluence of a repeating indicator based set-up on the trigger t/f chart, (in this case a Reversal Aii seq) with a supporting reversal set-up on the intermediate t/f (5min) ...a Reversal A, along with the small charts supporting o/b conditions to 15min, @ this potential resistance zone, made for a hi-probability trading opportuinity against the prevailing uptrend at the area circled in white on screenshot above.

The 1min trigger Rev Aii seq set-up is below;


The set-up has seen +45+ pips gain available at time of writing.

 

[bbmac]

Trading Trusisms

The people who excel in any field are the people who realize that the moment is there to be seized-that there are opportunities at every turn. They are more alive to the moment.
Charles Faulkner


I began to realise that the big money must necessarily be in the big swing
Jesse Livermore

 

[bbmac]

Speaking of the above truism about seizing the moment, BOE/Mpc lower rates to 1%, and as the charts always know (!) a decent looking 5min Re-entry type 1 set-up results in Gbpusd @ the area circled in green in screenshot below with a 1min Rev B set-up trigger @ the 1hr potential rbs zone shown below;



The 5min supporting main chart Re-entry (to next t/f trend after pullback) type 1 set-up is shown below. The re-entry was into the 30min trend and the 30min macd histograms were above axis with the 1hr pointing up. The set-up came @ a L on the 5min and an immediate HL on the 30min into whose up trend a re-entry was sought, and saw +150+ pips gain available as the market reacted to the BOe/MPC rate announce.

 

[bbmac]

Change in fundamental responses

Have you noticed that the market's response to certain fundamental data and indeed the emphasis it places on it changes in each stage of an economic cycle.

The BOE/Mpc's rate cut to 1% is a typical example today, whereas the market bought £ in an expansive growing economy the market would more normally sell it as the initial reaction.

Notice too that in recessionary conditions the emphasis is on employment data whereas in expansive growing economies there may be more weighting may be other fundmantal factors

 

[bbmac]

Truisms

The beginning is the most important part of any work
Plato


Confidence comes from success to be sure, but it can also come from recognising that a lot of carefully examined failures are themselves one path to success.
Denise Shekerjian

 

[spreader_legger]

Thanks for all the useful info!

Just a quick question regarding MT4 setup.

Howdo you get OSMA and CCI?
What parameters do you use. I can get Macd, but am unsure which options to click.
Similarly, I can get the bollinger bands all up, however would like to get rid of the central lines as my charts are far more cluttered than your examples.

Many thanks,


Stefan

The Indicators and Chart templates are in the zip file attachged, and also here is the MT4 Charting Help guide if needed.

 

[miko4x]

This is a great strategy thanks for sharing it!

Regards

 

[spreader_legger]

I've figured it out.

OSMA is moving average of oscillator, whilst CCI is Commodity Channel Index.
However, I'm still trying to figure out what parameters to use.

Any help would be appreciated

 

[bbmac]

Thanks for all the useful info!

Just a quick question regarding MT4 setup.

Howdo you get OSMA and CCI?
What parameters do you use. I can get Macd, but am unsure which options to click.
Similarly, I can get the bollinger bands all up, however would like to get rid of the central lines as my charts are far more cluttered than your examples.

Many thanks,


Stefan

Hi,..the answers to your questions are below;

1. The Osma used is indeed the Moving average of oscillator standard in the MT4 charting package, 8/15/9 settings.

2. The Macd used is again the one in the indicator list of the Mt4 charting package, and you need to overlay the attached mc indicator on the same 8/12/9 settings (drag and drop it from the custom indicators list to the macd indicator window on chart.)

3. I attach the Bollingers bands with optional centre line (BolNocl indicator attached,) ..in the inputs tab of the indicator properties just click false on the centre-line;

4. The CCi indicator used is the attached Zee-Zee-i and you need to overlay this on top of the BBFlat indicator that gives the bol band. Use CCi setting 14 in the inputs tab of the properties and then configure the colours used as follows;

5. The above CCi indicator should be overlayed on the BBFlat indicator and the input and colour tab properties of this indicator should be as follows;

The indicators mentioned above are in the zip file attached to this post. There is also the 1min template attached to this post too.

All main chart templates are the same no matter what the t/f, save for the extreme levels on the osma and macd indicators. The extreme levels come into play with a Reversal Extreme or Reversal Extreme ii set-up but it is really the CCi and breech of minimum the first Supp or Res Channel (61.8) that is most important in these set-ups, so don't worry too much.

G/L.

 

[bbmac]

This is a great strategy thanks for sharing it!

Regards

Thanks for the sentiments, It's a pleasure to share it, G/L

 

[bbmac]

Supp/Res Channels used in Rev Extr set-ups

http://www.trade2win.com/boards/for...prehensive-trading-system-methodology-44.html Post 351 Is the link explaining the settings for the Support/Resistance Channels on the price window of the main chart templates.

G/L