Hello fellow traders,
I have seen some real amazing trading system on forums and honestly for those who spend thousands of dollars trying to learn forex, well i just wanna tell them one thing get active on forums and you will learn real amazing things.
My system is actually a combination of systems used on various forum but is based on strength and weakness of individual indexes.
You will need to download the metatrader software "sigtrader" who provide index data eg. eurlfx, gbplfx, etc.
Please note this is a simple trading method so please dont complicate it too much and also if you dont have patience then this is not the system you are looking for. I am a swing trader so i have never tried this method on scalping but you are free to experiment.
So now coming to the method and the basic indicators you would need.
1) Macd, please download the one i am attaching here.
2) RSI (3) trend indicator
3) EMA14
4) Heiken ashi candles
Ok now lets talk about the setup, there is some initial work involved but its worth it.
Firstly we have 8 individual currency index which are and these eight currencies can be paired in 56 different ways. I use two different metatraders.
In one of the metatrader i have created profiles which contain 7 pairs pertaining to every currency index.
Example for EURLFX the profile consists of EURGBP,EURUSD,EURAUD,EURCAD,EURNZD, EURJPY,EURCHF.
GBPLFX the profile consists of GBPUSD,EURGBP,GBPAUD,GBPCAD,GBPNZD, GBPJPY,GBPCHF
similiarly create currency profiles for every currency. The images below shall give you a clear under standing.
Now lets understand the concept. We will be tracking individual currency index and doing all our analysis on the index. I personally use a very simple RSI, MACD system.
Note: i use this is on a 4hr and daily timeframe. I am always on the lookout to see which currency is giving a RSI reading where all the RSI arrows are pointing down from HI to MN timeframe.
Whereever i see all the rsi arrows pointing down on any of the individual index that will be the currency which i am interested in trading. One of the best ways to catch all rsi pointing down is to look at the
individual currency index on the daily timeframe.
On day opening i look at the daily 3 rsi angle just to see where is the currency heading down or up.
We trade if and only if following situation arise. Each time you see the RSI 3 pointing down and is coming down from above 70 or going up from below 30 on daily tf then we shall see the arrow direction of the weekly and monthly. I like to see the arrows pointing in the same direction.
Example : on 12th september 2011 day open the AUDLFX index was pointing down and weekly and monthly rsi arrow also pointing down the lawgirl rsi indicator will give you a instant reading on top of your charts, however make it a point to check the 3 rsi visually by going into weekly and monthly timeframes.It doesnt matter whether a currency is on the base side or the counter side. Any pair can give you a trade.
So now that i know the aud index is going down , i will open the AUD profile which consists of all pairs where aud is involved which are audusd, audjpy, gbpaud, euraud, audnzd, audcad, audchf.
Again i am looking to trade only that currency pair which gives me a rsi reading where all timeframes are in the same direction and i ensure prices start trading above 14 ema. Here i use the heiken ashi to give me a more clear picture.
So on12th september 2011 day open you will be amazed to see that all aud pairs gave a trade but our point is to pick the best ones.
And the following pairs would show all rsi timeframes in the same direction, AUDUSD,AUDCAD and AUDJPY.
Note: If an individual index gives me a reading where the daily and weekly rsi is in the same direction but the monthly is not I still go ahead and check the profile for that currency to see if any currency pair is showing me a reading where daily weekly and monthly are in the same direction.
Exit strategy is simple I use the first macd cross after the point of entry to close the position. For example if i opened the above positions then i would close audusd on 15h september 2011
AUDJPY on 15th september 2011 AUDCAD on 15th sept for roughly 500 pips.
So in september itself, Cadlfx gave two positions one is on 6th september just the cadchf which went on for more than 1200 pips.
then it turned down on 19th of sept again giving you super positions on EURCAD,GBPCAD,USDCAD again for more than 2000 odd pips, you do the math.
Again NZDLFX gave positions on 21st sept, GBPLFX on 23rd, USDLFX on 2nd september.
If you follow the same method from the start of every month you will easily get a minimum of 5 - 7 highly profitable positions every week.
One interesting point to note is that the first 10 days of the month give the best trades maybe because the monthly rsi takes longer to take a certain direction.
Please check the images
From 1st week of november i shall provide all the trades i take on my account.
happy trading, questions are always welcome. Just keep it simple.
I am not a coder so EA's are welcome, any improvisations will only make it better.
Thanks
Capito
I have seen some real amazing trading system on forums and honestly for those who spend thousands of dollars trying to learn forex, well i just wanna tell them one thing get active on forums and you will learn real amazing things.
My system is actually a combination of systems used on various forum but is based on strength and weakness of individual indexes.
You will need to download the metatrader software "sigtrader" who provide index data eg. eurlfx, gbplfx, etc.
Please note this is a simple trading method so please dont complicate it too much and also if you dont have patience then this is not the system you are looking for. I am a swing trader so i have never tried this method on scalping but you are free to experiment.
So now coming to the method and the basic indicators you would need.
1) Macd, please download the one i am attaching here.
2) RSI (3) trend indicator
3) EMA14
4) Heiken ashi candles
Ok now lets talk about the setup, there is some initial work involved but its worth it.
Firstly we have 8 individual currency index which are and these eight currencies can be paired in 56 different ways. I use two different metatraders.
In one of the metatrader i have created profiles which contain 7 pairs pertaining to every currency index.
Example for EURLFX the profile consists of EURGBP,EURUSD,EURAUD,EURCAD,EURNZD, EURJPY,EURCHF.
GBPLFX the profile consists of GBPUSD,EURGBP,GBPAUD,GBPCAD,GBPNZD, GBPJPY,GBPCHF
similiarly create currency profiles for every currency. The images below shall give you a clear under standing.
Now lets understand the concept. We will be tracking individual currency index and doing all our analysis on the index. I personally use a very simple RSI, MACD system.
Note: i use this is on a 4hr and daily timeframe. I am always on the lookout to see which currency is giving a RSI reading where all the RSI arrows are pointing down from HI to MN timeframe.
Whereever i see all the rsi arrows pointing down on any of the individual index that will be the currency which i am interested in trading. One of the best ways to catch all rsi pointing down is to look at the
individual currency index on the daily timeframe.
On day opening i look at the daily 3 rsi angle just to see where is the currency heading down or up.
We trade if and only if following situation arise. Each time you see the RSI 3 pointing down and is coming down from above 70 or going up from below 30 on daily tf then we shall see the arrow direction of the weekly and monthly. I like to see the arrows pointing in the same direction.
Example : on 12th september 2011 day open the AUDLFX index was pointing down and weekly and monthly rsi arrow also pointing down the lawgirl rsi indicator will give you a instant reading on top of your charts, however make it a point to check the 3 rsi visually by going into weekly and monthly timeframes.It doesnt matter whether a currency is on the base side or the counter side. Any pair can give you a trade.
So now that i know the aud index is going down , i will open the AUD profile which consists of all pairs where aud is involved which are audusd, audjpy, gbpaud, euraud, audnzd, audcad, audchf.
Again i am looking to trade only that currency pair which gives me a rsi reading where all timeframes are in the same direction and i ensure prices start trading above 14 ema. Here i use the heiken ashi to give me a more clear picture.
So on12th september 2011 day open you will be amazed to see that all aud pairs gave a trade but our point is to pick the best ones.
And the following pairs would show all rsi timeframes in the same direction, AUDUSD,AUDCAD and AUDJPY.
Note: If an individual index gives me a reading where the daily and weekly rsi is in the same direction but the monthly is not I still go ahead and check the profile for that currency to see if any currency pair is showing me a reading where daily weekly and monthly are in the same direction.
Exit strategy is simple I use the first macd cross after the point of entry to close the position. For example if i opened the above positions then i would close audusd on 15h september 2011
AUDJPY on 15th september 2011 AUDCAD on 15th sept for roughly 500 pips.
So in september itself, Cadlfx gave two positions one is on 6th september just the cadchf which went on for more than 1200 pips.
then it turned down on 19th of sept again giving you super positions on EURCAD,GBPCAD,USDCAD again for more than 2000 odd pips, you do the math.
Again NZDLFX gave positions on 21st sept, GBPLFX on 23rd, USDLFX on 2nd september.
If you follow the same method from the start of every month you will easily get a minimum of 5 - 7 highly profitable positions every week.
One interesting point to note is that the first 10 days of the month give the best trades maybe because the monthly rsi takes longer to take a certain direction.
Please check the images
From 1st week of november i shall provide all the trades i take on my account.
happy trading, questions are always welcome. Just keep it simple.
I am not a coder so EA's are welcome, any improvisations will only make it better.
Thanks
Capito
