SIGNAL APPROVAL FORM Ø This form applies to discretionary trades and non-system trades, plus hp10-20, macbos and trend retracement systems. Ø ALL COMPULSORY FILTERS HAVE TO BE MET (see exceptions rules: 3.1, 3.15 and 4.1) WHEN PROCCESSING THIS SIGNAL, REMOVE ALL THOUGHTS, OPINIONS, BIASES FROM OUR MIND AND CLEANSE IT, LEAVE IT FREE TO PROCESS THE SYSTEM TRADES. Trades are not valid if any of the compulsory filters are not met. Ø In strong classic trend breakout patterns, where trends are already established, on 15/30 min time frames or trend lines are established on 15/30 minutes. This applies to macbos trendline system and trend retracement system, macbos and trend retracement are classic trending systems. · It is not necessary to look for higher probability, these classic patterns are already high probability, but there are also many false trend breakouts and illusions of trends, so verify these for false moves and weak trends. · It is also not necessary to use this sheet or look for strong momentum, second breaks and correlated instruments strength (if the trend breakout is related only to this instrument), so verify these for false moves and weak trends. Ø Where strong classic trends have broken out, we ignore resistances (if we are buying) and supports (if we are selling) as they get broken, except: · The trades can be selling at support areas or buying at resistance areas and not have at least 15 pips to next support/resistance. · The trades can be selling at bottom of channel areas or buying at the top of channel areas, and do not have at least 15 pips to next channel lines. Trends become invalid and low probability , if longs are resistances and shorts are at supports , or in ranging markets. · Ø Look for trends, trend retracements, good clean set ups in range and predictive chart patterns Ø High probability check list applies to all systems Compulsory filter Ø .Use this check list before placing any trades on any system i.e hp 10/20 , trend retracement , macbos , classic trend breakout and 2br/2bs. After checking system for set up, if they are valid set ups , then do high probability checks and low probability checks , if they are passed then suggest signal.If high probability filters are not passed, then do not suggest trades.If high probability filters are not passed, then do not suggest trades.These h p checks are integral part of the system and are compulsory.. Trades are not valid if approximately 80 % of the high probability filters are not met. Ø Keep out of ranging marketCompulsory filterDraw ranging market boxes. Macbos or Trend retracement is not valid system trade in a ranging market TRADING RULES 1. General rules 1.1 Forex Factory calendar - Compulsory filter Look every morning before trading starts at daily schedule of news. http://www.forexfactory.com/calendar.php 1.2 News - Compulsory filter for all systems · Don't take any new trade 2 hours before MAJOR news (i.e. NFP, FED, ECB, BOE, BOJ, bank rates), and close all existing trades 15 min before. Enter 5 minutes after these, but let market settle and show clear set up. · Don't take any new trade 30 min our before high impact news, but don't close existing trades. You can open trades immediately within 5 minutes. · Do not trade until major Central bank conferences (ECB, BOE, BOJ and FED) are over. · Only high impact news to be considered, the ones that are marked with red on calendar. · Do not do any trades until the major central bank press conference is over, never put on trades during major central bank conferences. · Thin down (reduce) positions near the news time to avoid slippage. 1.3 Overnight range · Draw overnight range box first thing in the morning before beginning of trading. · from 10:30 pm GMT to 06:00 am GMT for Forex. · 10:00 pm to 08:00 am GMT for DAX. · 10:00 pm to 08:00 am GMT for FTSE. · 00:01 am to 8:00 am GMT for OIL. 1.4 Trading opening time – Compulsory filter · New trades opening time: 08:30 to 13:00 GMT and 13:30 to 19:00 GMT · DAX opens at 07:15 and FTSE opens at 08:00 GMT. Do no not trade for first 30 minutes until FTSE opens and market settles. · S&P opens at 14:30 GMT. Do no not trade for the first 30 minutes, until markets settle. · Do not put on trades, you have no interest in managing with less than half an hour to go until the end of session. · Monday mornings: After 10 am U K time (Indices can be traded from 10:00 am to 13:00), but for indices and oil after 15:00 hours when U S session opens. No trading on indices from 13:00 to 15:00. 1.5 Trading closing time · Close everything on Friday at 18:00 GMT and delete all pending orders. · Close all open positions at 19:00 every day and delete all pending orders , unless orders are allowed to be kept open overnight. · If position is open overnight, leave stop of 30 and target of 30. · Close all open trades on indices and Oil at 18:30 every evening except Friday. 1.6 Defining a trend Point is that every trader should choose 1 time frame (maximum 2), for their trend definition. This trend definition must always be 2-3, time frames higher than the one of entry. Example: entering on 15 or 30 min charts, use 4 hour for trend definition. · In a down trend the buy is 10 pips above the high of last two peaks. · In a uptrend the buy is 10 pips above the high of last peaks with full candle close. · In an uptrend sell is 10 pips below the low of last two troughs. · In an down trend sell is 10 pips below the low of last troughs , with full candle close. · Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend. · Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min) · Corrections to the trend /channel lines are not down trends in an up trend , and vice versa. 1.7 First and Second break - Compulsory filter · When there is more than half of 30 min candle (15 MIN FOR EXPERIENCED TRADERS) ,real body closed outside of overnight range box – First break · If price retraces after first break and then 30 min candle ( 15 MIN FOR EXPERIENCED TRADERS) full body closes above overnight range or box range – Second break · Our system trades the second break (we avoid the first break, although we can miss many good entries). We do not trade the first breakout of a ranging market, except when trends breakout on the same day. When two consolidation rectangles or triangles (including the first one i.e. overnight ranging) are broken, second break is not required. The second break is not required when two sets of major supports or resistances are broken, or a trend has broken out on the same day. There must be a clean break out with whole candles including wicks and body. · A FIRST BREAK IN TRENDS IS COMPULSORY , IF FIRST BREAK IN TREND IS USED , WHOLE BODE (OF AT LEAST 20 PIPS )MUST BE OUTSIDE OVERNIGHT RANGE 1.8 Order opening · As soon as set up is developing and at least 15 minutes before the close of bar, get tickets ready for entry of trades. · If you do not keep tickets ready, you will miss trades. · Write on Skype (in high probability signals ready for execution) 15 minutes in advance. Trade will be valid if price closes full bar above the high of previous candle close for longs or full bar below the low of the previous candle close. 1.9 Entry options Once a trade set up has been identified as a high probability set up, look for the earliest entry on any of the 16 set up entry options and take the first one. Do not enter late! 1.10 Chasing · Price must not be more than 40 pips away from lwma 18 on 15 minutes, if set up is missed on system second is allowed, but do not chase further late set ups. · If set up to sell a particular instrument (currency or indices) is missed or closed at a profit, do not re-enter on correlated instrument late or after closing first. · When price is more than 40 pips away from lwma 18 on 15 min or top of up channel for longs or bottom of down channel for shorts - this is chasing 1.11 Maximum number of trades - Compulsory filter · Maximum allowed is 2 trades per currency (euro as example) i.e. egbp, e yen and e usd longs, open only two out of three longs nett · Maximum number of open directional trades is three · Against the U S dollar or any other currency, we can have either two shorts net or two longs nett. · We can have long euro usd and long gbp usd (nett 2 longs), or long euro usd and short usd yen, long gbp usd and short aud usd (this equals nett 2 longs). · When we have two potential trades, we do not need to put on only the strongest looking pair, we can put on the first signal available · We can put on two trades with two pairs. 1.12 System 50/50 · Can be used when the signals don’t feel right. If the order is placed as high probability order, it must not be closed and it can be placed under system 50/50. 1.13 Never add to a losing position! Unless it is allowed by system rules. 2. Trading instruments The system set ups must valid on the instrument as high probability example n ftse it has to be valid on ftse (not s and p , dax , dow , nasdaq ) · 80 % of the compulsory filters must be valid on both gbp usd and eur usd. 2.6 Trading DAX and FTSE - Compulsory filter · They have to trend/move in the same direction in order to place an order. Look also at DOW and S&P; they have to move as well in the same direction. This does not mean set ups have to be valid on the other instruments; it means they just have to move in same direction. (S&P/Dow is more important than FTSE) · If FTSE and DAX are not moving together, then either FTSE or DAX orders are valid, only if S&P and DOW are moving together. · DAX opens at 07:15 and FTSE opens at 08:00 GMT. Do no not trade for first 30 minutes until FTSE opens and markets settle. · S&P opens at 14:30 GMT, so do not place new orders between approximately 12:30 and 15:00, until direction is clear. · If there is no news, do not open new trades on indices 1 hour before USA opens. · Trending definition: prices must be above lwma 18 for longs or below mas for shorts on 30 MIN (with slope, channel and trend line). · Rules 3.1, 3.15 and 4.1 will invalidate the compulsory filter (rule 3.12).It applies if DAX, FTSE, S&P and DOW are trending in the same direction. · Do not open new DAX position after 110 pips made in one day. · Do not open new FTSE position after 75 pips made in one day. · Always use s and p supports , resistances , trend lines and channels to trade ftse /dax /djia · The system set ups must valid on the instrument as high probability example n ftse it has to be valid on ftse (not s and p , dax , dow , nasdaq 2.7 Trading Oil - Compulsory filter · Trade only with momentum and strong trends only. Oil is not suitable for mixed and weak trends. Is trade valid? · Trade only in US session, after 13:30 GMT · Oil is a commodity that often rises when USD falls and vice versa. Look at USD index. · Also spreads are wider on Oil, so Oil is not suited to all Dollar sell offs or buy ups. Use lower spread pairs which are alternatives to USD. · Trending definition: prices must be above mas for longs or below mas for shorts on 30 MIN (with slope, channel and trend line). · Do not trade Oil Dollar strength or weakness due to wide spreads on Dollar. · Look at Dollar index and GBP/USD, EUR/USD and USD/JPY - if these are weak do not buy; if others are strong do not sell. · Do not open new Oil position after 150 pips made in one day. 3. Systems trading rules 3.1 Ranging market - Compulsory filter (Keep out of ranging markets) · Is market in a range? Is there a valid very high probability trade in this range? · Draw ranging market boxes and trend/channel lines on 30 min/1 hour/4 hour charts over last few days. · Draw ranging boxes and trend/channel lines on 4 hour charts over last sixty days. · 2 * daily range or 200 pips , whichever is lower , adds to trend definition (if the close is not above major support for shorts or below major resistance for longs ) on 4 hour charts · Trend breakout of a major 4 hour ranging market , price has to clear the lowest supports by 50 pips or clear the highest resistance by 50 pips . · Trend must make a new high above 2 * daily range or 200 pips , whichever is lower , and high must be above highest resistances or low below major support zones . within 10 days · If support = resistance (within 10 pips on 4 hour charts within last 60 days ) , there are two touches at resistance and two touches at supports ,draw a rectangular ranging box on 30 min charts Fundamental interest rates expectations announcements can invalidate ranging market filters , and make trades high probability in a ranging market . · Previous high in an uptrend is not a resistance. Unless it was a support and become a resistance. Previous low in a down trend Is not support, unless it was a resistance which has now become support. Brick wall zone .Where prices have touched a support area of approximately 50 pips and bounced off it , draw a brick wall zone on your charts , in purple on 30 min charts. · Draw overnight ranging boxes · If the prices are in a ranging market - do not trade, unless setup is very high probability. · Price must be above lwmas, up slope, up channel, up trendlines and stochastic up on one hour for longs (opposite for shorts). · Cable and EUR/USD are the most profitable pairs to trade. DAX is more profitable index to trade with FTSE aligned (S&P/DOW is more important than FTSE), when they both show strength in same direction (both strong and rising or both weak and falling. · In ranging markets it is not necessary to use all compulsory filters with very high probability price action setup. · If they are both either strong or weak with very high probability price action set up , compulsory filters 3.12, 3.13 and 3.10 can be eliminatedfrom analysis. · If there are high probability predictive chart set ups in ranging markets, compulsory filters can be voided. · Long positions: In major EXTREME down trends, all compulsory filters are valid. · Short positions: In major EXTREME up trends, all compulsory filters are valid. · Macbos or Trend retracement is not valid system trade in a ranging market 3.2 First and second breaks in ranging markets · Check if move is first or second break in ranging market. For additional description of first and second break see rule 1.7. · If first break – No trading! · We only trade second break, except in classic breakout patterns with high probability and correlated currency strength checks. · A FIRST BREAK IN TRENDS IS COMPULSORY , IF FIRST BREAK IN TREND IS USED , WHOLE BODE (OF AT LEAST 20 PIPS )MUST BE OUTSIDE OVERNIGHT RANGE 3.3 Inside range entries · These are only valid in trends with slope and when prices are above lwmas on 30 min. · They are valid in ranging markets, when there are predictive chart patterns or high probability setups. 3.4 Prices above/below lwmas on 30 minutes charts - Compulsory filter · Price has to be full/whole bar, including wick, above lwmas 18 and 30 on 30 min charts for longs. · Price has to be full/whole bar, including wick, below lwmas 18 and 30 on 30 min charts for shorts. · Lwma 8 and 120 are not compulsory and have low importance. 3.5 Prices above/below lwmas on tick charts - Compulsory filter · Price has to be above lwmas on tick charts for long or below lwmas on tick charts for shorts. · An up channel on 5 minute or on 200 tick chart must be in place, in last 60 minutes before long (buy) entry. · A down channel must be in place on 5 minute or 200 tick charts, in last 60 minutes before short entry. · After a price move of 40 pips plus or a single move, a new tick chart channel must be formed, enter after formation. 3.6 120 lwma on 30 min is a good trend indicator and dynamic support or resistance indicator · For long positions price should be above 120 lwma on 30 min chart. · For short positions price should be below 120 lwma on 30 min chart. 3.7 Distance of price from moving averages (chasing trades) · If price are more than 40 pips away from 18 lwma on 15 min. chart wait for price to retrace. · Look for an up channel or down channel on tick charts after retracement. · When price is more than 40 pips away from lwma 18 on 15 min or top of up channel for longs or bottom of down channel for shorts - this is chasing. · This rule does not apply to system 60/45 .5 or system 1 v2. 3.8 Resistances Compulsory filter · For long positions price has to sit (close) above resistance with full 30 min candle or at least with more than half of 30 min. candle real body closed above resistance. · Have you seen resistance become support on several points? · Don’t open long position if major resistance level price is less than 20 pips away from current price. · Is there newly formed resistance or down channel/slope on tick charts? Close long open position if formed! · Do not buy against newly formed resistance. Close open position if formed! · Do not buy below resistances ,tops of channels or below moving averages 3.9 Supports Compulsory filter · For short positions price has to sit (close) below support with full 30 min candle or at least with more than half of 30 min. candle real body closed below support. · Have you seen support become resistance on several points? · Don’t open short position if major support level price is less than 20 pips away from current price. · Is there newly formed support or up channel/slope on tick charts? Close open short position if formed! · Do not sell against newly formed support. Close open position if formed! Do not sell above support, bottoms of channels or above moving averages 3.10 Up and down trend lines/slope in last 24 hours on 1 hour chart - Compulsory filter · An uptrend lines in last 24 hours on 1 hour chartshas to be in place for longs. · An up slopein last 24 hours on 1 hour chartshas to be in place for longs. · A down trendlines in last 24 hours on 1 hour chartshas to be in place for shorts. · A down slopein last 24 hours on 1 hour chartshas to be in place for shorts. · We are not looking at 3 to 5 bars or a few bars, but looking at overall trend direction and continuation. · This filter applies to high probability price action or trend retracement intraday. · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter, if both Cable and EUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE) gets weak simultaneously. · Monitor both gbp usd and euro usd level and prices for invalidity of filter. This applies only to Cable and EUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE) 3.11 Slope and channel lines on tick (200 tick charts )or 5 minutes charts - Compulsory filter · There has to be an up slope or channel lines on tick chartsor 5 min chartsfor longs. · There has to be a down slope or channel lines on tick chartsor 5 min chartsfor shorts. · A channel must be in place on 5 minute charts or 200 tick charts in last 60 minutes. Up channels are required for longs. Down channels are required for shorts. 3.12 Up and down channels - Compulsory filter · Is there an up channel for longs or down channel for shorts on 48 hour, plus time frame on hourly charts? · This filter applies to high probability price action or macbos. · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter, if both Cable and EUR/USD gets strong simultaneously. · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter; same applies if DAX, FTSE, S&P and DOW are trending in same direction. · Monitor both GBP/USD and EUR/USD or DAX/FTSE (S&P /DOW) levels and prices for invalidity of filter. Applies only to Cable and EUR/USD. 3.13 Stochastic on 30 minutes charts - Compulsory filter · Stochastics has to be turned on up towards 60 (ideally above) on 30 min chart for longs. · Stochastics has to be turned on down towards 40 (ideally below) on 30 min chart for shorts. · Stochastic setup on 30 min chart is: 28, 6 ,10. · We use stochastics as filter to keep out of ranging markets (not for overbought or trend indicator). · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter, if Cable and EUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE) gets strong or weak simultaneously. · Monitor both GBP/USD and EUR/USD levels and prices for invalidity of filter. This applies only to Cable and EUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE). 3.14 Daily price range - Compulsory filter · Always check if price exceeded the daily range. · 120 pips is the maximum for most instruments, but this limit can be exceeded in extreme circumstances backed by fundamentals. · For detailed instructions about daily ranges for each instrument look under point 2. Trading instruments. · Do not trade when price exceed the daily range, except in extreme fundamental driver trends. · Daily range is calculated from lowest to highest price, certain instrument has made in trading day. · In calculating daily ranges spike ranges on false moves can be deducted. 3.15 Multi system entries for trending systems 20 supply line, system 31 macbos and system 35 · Eur/Usd and Gbp/Usd or DAX/FTSE (S&P/Dow is more important than FTSE), it applies to these pairs, if they are both strong or weak, · And markets are trending or very high probability price action set ups exist, compulsory filters 3.10, 3.12, 3.13, 3.14 and 3.2 can be eliminatedfrom analysis. · It is also not necessary to look at resistances, if price sitting above support of mas and trend lines · It is also not necessary to look at support, if price sitting below support of mas and trend lines · When we enter a long trade we ignore resistances, as long as we are sitting on support of mas, trend lines and support · When we enter a short trade we ignore support, as long as we are sitting below resistance of mas, trend lines and support · Look at support and resistance on macro view. · All support and resistance gets broken against the trend direction. · Long positions: In major extreme down trends on daily charts, all compulsory filters are valid. · Short positions: In major extreme up trends on daily charts, all compulsory filters are valid. · We ignore targets and LONGER PERIOD ABOVE 48 HOURS CHANNEL FILTERS for trending systems and multi systems. 3.16 When markets are trending and making higher highs or lower lows in strong trends on various time frames, entries are more important. We do not know the potential targets. · We ignore targets for trending systems and multi systems. We ignore supports for short trades and resistances for long trades. · In ranging and weak trends, make sure the trades are not selling at support areas or buying at resistance areas. There has to be at least 15 pips to next support/resistance. · In ranging and weak trends, make sure the trades are not selling at bottom of channel areas or buying at the top of channel areas. There has to be at least 15 pips to next channel lines. 3.17 Trade setup failure · At what point will the trade set up fail? · A set up becomes invalid, if for more than 120 minutes it remains within 10 pips. · If price has gone above resistance with full bar, but closes below resistance, the setup has failed. Opposite for supports. · Set up breaks down and closes more than 20 pips against entry (30 pips for DAX, EUR/JPY, Cable and Oil). 3.18 interest rates expectations Fundamental interest rates expectations announcements can invalidate ranging market filters , and make trades high probability in a ranging market . Future interest rate expectations take precedence over the headline rate If a country has a high interest rate, but no further increases are expected, the currency can still fall. If a country has a low interest rate but is expected to raise interest rates over time, its currency can still rise While it is easy for Forex traders to understand the logic of why investors move money from lower yielding currencies and assets to higher yielding assets and currencies. They may also believe that the simple mechanism of supply and demand is responsible for currency movement. However, this is only part of the story. The expectation of future interest rate increases or rate cuts is even more important than just the actual rates themselves. 4. Pre-entry analysis procedure Before putting any new order it is necessary to check many things in order to make quality analysis and find high probability entry points. Following procedure, in combination with above rules, will also help one to avoid picking wrong trades. 4.1 Cable and EUR/USD are the most profitable pairs to trade. DAX and FTSE (S&P/DOW is more important than FTSE) are the indices we trade. When they both show strength in same direction (both strong and rising or both weak and falling) it is not necessary to use all filters. This also applies in ranging markets. · If they are either strong or weak, with high probability price action or strong trends, compulsory filters 3.12, 3.13 and 3.10 can be eliminatedfrom analysis. · If they are both strong at same time or weak at the same time, with high probability price action or strong trends, compulsory filters are invalid and overridden. · Long positions: In major extreme down trends on daily charts all compulsory filters are valid. · Short positions: In major extreme up trends on daily charts all compulsory filters are valid. 4.2 Range boxes · First thing in the morning, before trading, draw overnight range boxes. See rule 1.3 for more details. · It is also necessary to draw bigger multi day range boxes, if price is not trending. · This will help one to avoid ranging markets and bad entries. 4.3 Supports and resistances · Draw supports and resistances, both horizontal and diagonal (trend lines). · Major supports and resistances has to be drawn and bolded. 4.4 Channels · Draw channels if price is in trending mode. · Avoid putting long orders near the top of channel and short near bottom of channel. 4.5 Daily range · Check if price exceeded daily range. 4.6 Check the dollar index · Check Dollar index: http://www.fxstreet.com/rates-charts/usdollar-index/ 4.7 Check the correlated indicator or look at context on correlated pairs to see strongest and weakest currency 4.8 Is this a single move up? · We do not trade single moves on hourly bars/charts. · Wait for a few bars on 30 min or a retracement and an up channel for longs or down channel for shorts, to form on 5 minute charts or 200 tick charts. 4.9 Is price sitting above diagonal support for longs or below diagonal resistance for shorts? · Have you missed any trend lines? · Have you missed any major support resistance lines? · Have you missed any range boxes? · Have you missed any channels? · Have you missed daily range levels? · Have you missed any other information from the charts? 4.10 Is the setup a fresh momentum trade or formed overnight? · Look on charts for a new fresh trend build up and check out first second breaks. 4.11 Is it a clear clean entry? · A clean clear entry is a non-choppy entry; it can be in a ranging market. · Clean clear entry is where there are more bars in same direction, rather than one or two bars up or one or two bars down i.e. 50/50 undecided .look at 1 hr , 4 hr and daily candles and count pips down and pips up . · If one 4 hour bar is up and another is down , OR PRICE MOVES 80 PIPS DOWN AND 80 PIPS UP , NET TREND OR MOVEMENT IS ZERO. · USE A FILTER OF 10 TO 20 PIPS TO FILTER OUT NOISE · It can be below resistance for longs and vice versa for shorts · In clean entries, wick and body of candlesticks must be fully above lwma 18 for long and below lwma 18 for shorts on 30 minutes 4.12 Is there a trend retracement entry, macbos, hp10 20 or classic trend breakout? · If set up is developing keep an eye in advance 4.13 What system should be used hp10/20, macbos, trend retracement, classic breakout or 60/45? · Use the first system to give the earliest high probability entry. Do not delay entry. Enter at close of bar on 15 min or 30 min. · Do not hesitate if there is a clear clean setup. Give clear instructions and not ask questions in real time, for instructions which are already given. 4.14 Does analysis meet approximately 80 % rules for entry? · The 80 % uses Rules 3.1, 3.15 and 4.1 and all compulsory filters, and is applicableto all trades. · If yes, enter the trade at close of current 15 minute bar or 30 minute bar, according to system set up. Do not delay. 4.15 Is the trade valid and should it be put on? · If yes enter in high probability ready signals on Skype chat , 15 minutes or 30 minutes before · If you do not have a ready professional signal, don’t post anything on Skype because we get influenced with YOUR amateurish thoughts and trades 4.16 Enter trade on Skype with following CLEAR AND CONCISE instructions · We have a signal developing on lower times on eur usd, but wait until support becomes resistance, for a short entry. · At close of 15 minute bar, we have trend retracement set up forming, provided price closes above 1.3300. 4.17 5 minutes before close of bar on 15 min or 30 minute, give clear concise signal Skype high probability ready signals chat · At close of 5 minute bar, we have trend retracement setup forming, provided price closes above 1. 3300. · Get two tickets ready as per system rules, one with target of x and second with target of y. · Do not look for further confirmation on high probability price action setups. · You do not have to be right and do not delay entry; miss entry or mess up in trying to be right about correct entry. 5. Staff issues 5.1 Are you hesitant to put on a trade due to this fear in your head about previous historical resistances? · In trending markets current momentum and trend mas has priority over historical areas. 5.2 Your mind is full of misinformation about useless historical indicators? So you are good at using indicators and have useless knowledge about using indicators? · We don't use indicators in the way they were designed and do not use them for overbought/oversold. 5.3 Which wins in trending markets? Historical market support for short trades? Historical resistance for long trades? Or current market trend and momentum? For amateurs, historical. 5.4 Do we compare which trade to put on, if we have a choice of several currencies? · We take the first valid signal, the first one to fit system criteria. We can take up to two trades per currency. · Later we can put on a second pair, as soon as it fits criteria for entry. · If it fits system filters put it on without hesitation and delaying, at close of current bar on 15 min or 30 min. 5.5 I am waiting for a better entry although I have a system fit entry. Amateur you miss trades waiting for better entries. · Are you a clueless amateur that wants to second guess a system, when entry is valid and ready to be executed? · Do not delay, enter late and miss trades because of amateur head. 5.6 I have other amateur issues, highlighted in staff problems. · If yes, is the trade valid due to staff problems and head issues of staff? (see staff problems worksheets) 5.7 Have you drawn trend lines and channels correctly, or is this just another half assed job? · Are trendlines drawn from wick to wick, as per our requirements? · A fucked up trend line image is shown in images , with a half assed trend line image (see worksheet biased missing trades) 5.8 Have you done a thorough job? You regularly miss many of the following, and incur losses of my money. · If no, stop wasting mine and everybody else's time. · Are you impatient? · Are you jumping into this trade? · Are you waiting for your need to be right and delaying entry? · Is this a revenge trade? · Are you exiting on emotions? · Are you exiting, not according to the system, but according to your emotional state? · Are you thinking rationally, after a loss? · Have you exited to satisfy your mood? · Do you not have the patience to wait for a high probability trade? · Are you going to remain a 50/50 trader all your life? · Can you not think like a high probability trader? · Can you not pass on this trade? · Are you putting on this trade impatiently, so you do not miss trades? · Do you not have the discipline to stick to system rules? 5.9 Head problems of signal provider. Get the out of here. · Sometimes there is a problem in the fucking head. Are you seeing Madonna or gorillas on mars? Are you seeing trends/setups which do not exist as high probability? · Do you have any biases, like in the picture on biases worksheets that prevent you from putting on a system trade? · Your fucked up head has problems calling trades, second guessing system trades, missing trades, delayed entries as in the picture below or any other mindset issues as per staff problems.
It is from the system 3.11 Slope and channel lines on tick (200 tick charts )or 5 minutes charts - Compulsory filter · There has to be an up slope or channel lines on tick chartsor 5 min chartsfor longs. · There has to be a down slope or channel lines on tick chartsor 5 min chartsfor shorts. · A channel must be in place on 5 minute charts or 200 tick charts in last 60 minutes. Up channels are required for longs. Down channels are required for shorts. 3.10 Up and down trend lines/slope in last 24 hours on 1 hour chart - Compulsory filter · An uptrend lines in last 24 hours on 1 hour chartshas to be in place for longs. · An up slopein last 24 hours on 1 hour chartshas to be in place for longs. · A down trendlines in last 24 hours on 1 hour chartshas to be in place for shorts. · A down slopein last 24 hours on 1 hour chartshas to be in place for shorts. · We are not looking at 3 to 5 bars or a few bars, but looking at overall trend direction and continuation. · This filter applies to high probability price action or trend retracement intraday. · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter, if both Cable andEUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE) gets weak simultaneously. · Monitor both gbp usd and euro usd level and prices for invalidity of filter. This applies only to Cable andEUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE) 3.11 Slope and channel lines on tick (200 tick charts )or 5 minutes charts - Compulsory filter · There has to be an up slope or channel lines on tick chartsor 5 min chartsfor longs. · There has to be a down slope or channel lines on tick chartsor 5 min chartsfor shorts. · A channel must be in place on 5 minute charts or 200 tick charts in last 60 minutes. Up channels are required for longs. Down channels are required for shorts. 3.12 Up and down channels - Compulsory filter · Is there an up channel for longs or down channel for shorts on 48 hour, plus time frame on hourly charts? · This filter applies to high probability price action or macbos. · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter, if both Cable and EUR/USD gets strong simultaneously. · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter; same applies if DAX, FTSE, S&P and DOW are trending in same direction. · Monitor both GBP/USD and EUR/USD or DAX/FTSE (S&P /DOW) levels and prices for invalidity of filter. Applies only to Cable and EUR/USD. 3.13 Stochastic on 30 minutes charts - Compulsory filter · Stochastics has to be turned on up towards 60 (ideally above) on 30 min chart for longs. · Stochastics has to be turned on down towards 40 (ideally below) on 30 min chart for shorts. · Stochastic setup on 30 min chart is: 28, 6 ,10. · We use stochastics as filter to keep out of ranging markets (not for overbought or trend indicator). · Rules 3.1, 3.15 and 4.1 will invalidate this compulsory filter, if Cable andEUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE) gets strong or weak simultaneously. · Monitor both GBP/USD and EUR/USD levels and prices for invalidity of filter. This applies only to Cable andEUR/USD or DAX/FTSE (S&P/DOW is more important than FTSE). 3.14 Daily price range - Compulsory filter · Always check if price exceeded the daily range. · 120 pips is the maximum for most instruments, but this limit can be exceeded in extreme circumstances backed by fundamentals. · For detailed instructions about daily ranges for each instrument look under point 2. Trading instruments. · Do not trade when price exceed the daily range, except in extreme fundamental driver trends. · Daily range is calculated from lowest to highest price, certain instrument has made in trading day. · In calculating daily ranges spike ranges on false moves can be deducted.
Enjoy Here is an options strategy on S and P (DIFFERENT FROM STRATEGY ON THIS THREAD). https://www.elitetrader.com/et/threads/s-and-p-options-thread.304097/ On this thread I TRADED IT LIVE on DAX https://www.elitetrader.com/et/threads/technical-analysis-dax-signal.303564/ DAX and FTSE (S&P/DOW is more important than FTSE) are the indices we trade. When they both show strength in same direction (both strong and rising or both weak and falling) it is not necessary to use all filters. This also applies in ranging markets. · If they are either strong or weak, with high probability price action or strong trends, compulsory filters 3.12, 3.13 and 3.10 can be eliminatedfrom analysis. · If they are both strong at same time or weak at the same time, with high probability price action or strong trends, compulsory filters are invalid and overridden. · Long positions: In major extreme down trends on daily charts all compulsory filters are valid. · Short positions: In major extreme up trends on daily charts all compulsory filters are valid.
3.4 Prices above/below lwmas on 30 minutes charts - Compulsory filter · Price has to be full/whole bar, including wick, above lwmas 18 and 30 on 30 min charts for longs. · Price has to be full/whole bar, including wick, below lwmas 18 and 30 on 30 min charts for shorts. · Lwma 8 and 120 are not compulsory and have low importance. 3.5 Prices above/below lwmas on tick charts - Compulsory filter · Price has to be above lwmas on tick charts for long or below lwmas on tick charts for shorts. · An up channel on 5 minute or on 200 tick chart must be in place, in last 60 minutes before long (buy) entry. · A down channel must be in place on 5 minute or 200 tick charts, in last 60 minutes before short entry. · After a price move of 40 pips plus or a single move, a new tick chart channel must be formed, enter after formation. 3.6 120 lwma on 30 min is a good trend indicator and dynamic support or resistance indicator · For long positions price should be above 120 lwma on 30 min chart. · For short positions price should be below 120 lwma on 30 min chart. 3.7 Distance of price from moving averages (chasing trades) · If price are more than 40 pips away from 18 lwma on 15 min. chart wait for price to retrace. · Look for an up channel or down channel on tick charts after retracement. · When price is more than 40 pips away from lwma 18 on 15 min or top of up channel for longs or bottom of down channel for shorts - this is chasing. · This rule does not apply to system 60/45 .5 or system 1 v2. 3.8 Resistances Compulsory filter · For long positions price has to sit (close) above resistance with full 30 min candle or at least with more than half of 30 min. candle real body closed above resistance. · Have you seen resistance become support on several points? · Don’t open long position if major resistance level price is less than 20 pips away from current price. · Is there newly formed resistance or down channel/slope on tick charts? Close long open position if formed! · Do not buy against newly formed resistance. Close open position if formed! · Do not buy below resistances ,tops of channels or below moving averages 3.9 Supports Compulsory filter · For short positions price has to sit (close) below support with full 30 min candle or at least with more than half of 30 min. candle real body closed below support. · Have you seen support become resistance on several points? · Don’t open short position if major support level price is less than 20 pips away from current price. · Is there newly formed support or up channel/slope on tick charts? Close open short position if formed! · Do not sell against newly formed support. Close open position if formed! Do not sell above support, bottoms of channels or above moving averages
When Nasdaq , Dow and S and p are aligned and above support buy . Easier to trade DJIA , monitor s and p , Nasdaq and all Dow 30 stocks on screener.Maybe also monitors European stocks as intermarket correlators. If it can be done with discipline , it can be good .