I recently discovered a setup quite similar to the original one I began this journal with. The only difference is that it is based on a very short time frame and the indicators have been modifed for more responsive signals. I have always enjoyed posting my trades here, especially when the results were better than I expected. I hope some newer traders can benefit from this very simple setup and follow along. Since the new setup is on a 5 minute timeframe, the stops tend to be much smaller than previous versions of this setup although the profits tend to be about the same. This setup tends to signal in very fast markets giving the added benefit of immediate gratification, something hardly experienced in trading. 5 minute chart Ma Fibos (based on a 34 Ema) 64 Bar Murrey Math Frame Bollinger RSX (not cci, this is a JMA RSI, or an approximation of one) 5 day high and low Buy setup: *Price must pierce the lower fibo *Price must be at or below the Murrey Math 1/8th Octave *RSX crosses up through the mid line Bollinger *Price must be above the 5 day low (I am not sure if this will improve the results, but I suspect it is a good indication of the markets desire to stay in a range) *Stops are -10 pips below the -2/8ths octave. *Exits can be taken at the 4/8ths octave or scale out selling half there and holding the second lot until another signal in the opposite direction is seen. Shorts are the exact inverse of the Buy setup. Since Saki's Forex Journal has been through so many setups here are the exact indicators attached as a template. You need Metatrader 4 installed in order to use these indicators. Please install the template in the template folder and the indicators in the indicator folder. Happy hunting and peace be with you, Saki
Here was yesterdays trade: USDCHF drops violently but then rsx signals a reversal, everything is in check, a quick score and a happy weekend.
bollingers on an indicator. hmmmm..... all kindsa light bulbs going off... looks great. thanks for sharing.
my pleasure JR! Keep in mind that there is a nasty article saying that, statstically speaking, there is no corelation between bollingers and a cci--This was written in a trading magazine last year. However I have seen quite different results in my own experience!
That doesn't make sense... because any time series of data is going to have a statistical mean and deviations. Maybe the correlation of bollingers on a price chart vs CCI might be a stretch, but the correlation between bollingers on CCI to CCI values would be a direct correlation. Unless I"m not getting something.... anywho. Have you tested the concept on any other oscillators?
of course you are right. i was being slightly ironic. the point is that there is an article in a trading magazine saying the correlation didn't generate signals any more accurate than if theindicators were used in their conventional sense. I beg to differ and that's what i was trying to say. I am using a modified rsi called rsx and it is much smoother than the cci. take a look in the zip file I posted on the previous page.