2George
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THIS IS FOR THOSE TRADERS WHO HAVE NOT YET FINALISED THEIR TRADING SYSTEM.
The positives I have learned are that oscillators are the best of all the indicators.
I have had many discussions with many traders, some at very high positions in international banks, and it was clear to me that everyone has their own way and method of trading.
If you are looking for reversals, new trends or swings or perhaps for bigger scalps then this will be of interest. It is not the entry that determines profit, it is more often the exit. Exits are the most difficult to get exactly right and this will help all traders.
Mine is a system that has four elements to it, timeframe specific ema’s, divergence, support and resistance levels and trendlines.
1. The ema’s are to show where a trend started and how long it has been going,
2. Divergence is necessary to show where the price could have gone wrong,
3. Supports and resistance are necessary as stops should the trade go wrong and
4. Finally trendlines are used to enter and act as an exit guide. Trendlines are drawn over the open price of bear candles and under the open price of bull candles and IGNORE SPIKES.
I have posted an attachment here with 3 illustrations, but I have not shown trendlines as the charts become too ‘messy’ to view.
The first illustration on the attachment shows a close up of the GBPUSD on 5m timeframe with supports (dark blue) and resistances (red) drawn in. The arrows are where tiny divergences occur. The thick red horizontal is the last low of the previous down move. It has no significance except to give me a visual line of where the last major support was found and the battle that takes place around it.
The second illustration on the attachment is a bigger zoom of the same chart to show how these trades are managed. The black vertical line is the starting point of the last low of the previous down move, the thick red horizontal. What is important is that the main upper resistances stay unbroken so it is a simple matter of waiting till there is a trendline cut.
The third illustration on the attachment is the whole picture, the initial down move, the primary support area, and then the breakout from that area.
The oscillator I use is the Commodity Channel Index simply because it was designed to check to see if computers were counting correctly. I found that this eliminated several of the false moves.
One of the benefits of the CCI is that it recognises divergence – this is when the price moves one way and the CCI moves the other. These are unimportant by themselves but when they are associated with current supports and resistances it becomes a more powerful tool. The CCI works in real time and does not rely on historical theorems to assess supports and resistances.
Although I combine trendlines as a final confirmer into my own trading system, if the oscillators are correctly set for the timeframe you are trading, then trading becomes a less stressful profession.
If you put the time in learning first, then trading, you will reap the benefits.
Regards to you all.
George
The positives I have learned are that oscillators are the best of all the indicators.
I have had many discussions with many traders, some at very high positions in international banks, and it was clear to me that everyone has their own way and method of trading.
If you are looking for reversals, new trends or swings or perhaps for bigger scalps then this will be of interest. It is not the entry that determines profit, it is more often the exit. Exits are the most difficult to get exactly right and this will help all traders.
Mine is a system that has four elements to it, timeframe specific ema’s, divergence, support and resistance levels and trendlines.
1. The ema’s are to show where a trend started and how long it has been going,
2. Divergence is necessary to show where the price could have gone wrong,
3. Supports and resistance are necessary as stops should the trade go wrong and
4. Finally trendlines are used to enter and act as an exit guide. Trendlines are drawn over the open price of bear candles and under the open price of bull candles and IGNORE SPIKES.
I have posted an attachment here with 3 illustrations, but I have not shown trendlines as the charts become too ‘messy’ to view.
The first illustration on the attachment shows a close up of the GBPUSD on 5m timeframe with supports (dark blue) and resistances (red) drawn in. The arrows are where tiny divergences occur. The thick red horizontal is the last low of the previous down move. It has no significance except to give me a visual line of where the last major support was found and the battle that takes place around it.
The second illustration on the attachment is a bigger zoom of the same chart to show how these trades are managed. The black vertical line is the starting point of the last low of the previous down move, the thick red horizontal. What is important is that the main upper resistances stay unbroken so it is a simple matter of waiting till there is a trendline cut.
The third illustration on the attachment is the whole picture, the initial down move, the primary support area, and then the breakout from that area.
The oscillator I use is the Commodity Channel Index simply because it was designed to check to see if computers were counting correctly. I found that this eliminated several of the false moves.
One of the benefits of the CCI is that it recognises divergence – this is when the price moves one way and the CCI moves the other. These are unimportant by themselves but when they are associated with current supports and resistances it becomes a more powerful tool. The CCI works in real time and does not rely on historical theorems to assess supports and resistances.
Although I combine trendlines as a final confirmer into my own trading system, if the oscillators are correctly set for the timeframe you are trading, then trading becomes a less stressful profession.
If you put the time in learning first, then trading, you will reap the benefits.
Regards to you all.
George
