Tuesday, October 30, 2007

Setting up EUR/USD 4H.

As I explained in the last post: the mass move the most;

From now on I'll show the chart's configuration I use, and explain how to earn money from them;
I prefer 4H charts, that are less volatile then short-therm ones, and much more profitable. So I'll start 4h ones:

This is my E/U 4h chart.
As you can see it has a clean visual witch helps with the stress of hours of trading.
The indicators config:
BLUE - Moving Average
Period: 8
Shift: 0
MA Method: Linear Weighted
Apply to: Typical Price (HLC/3)

GOLDEN - Moving Average
Period: 21
Shift: 0
MA Method: Linear Weighted
Apply to: Typical Price (HLC/3)

DARK RED DOTS - Parabolic SAR
Step: 0.0026
Maximum: 0.5

GREEN - Stochastic Oscilator
%K Period: 12
%D Period: 12
Slowing: 5
Price Field: Close/Close
MA Method: Exponential
Fixed minimum: 0
Fixed maximum: 100
Add 2 additional Levels, 60 and 40. Remove 50 level.

RED LINE WITH GREY BARS - MACD
Fast EMA: 8
Slow EMA: 21
MACD SMA: 1
Apply to: Weighted Close (HLCC/4)

RED NUMBERS UNDER THE LAST CANDLE - Candle Timer
Just helps to see how much times still rest for the candle to close.

----------------

Entry signal:
Blue MA cross over the Golden EMA.
- If the Parabolic SAR is supporting(above the chart as in the picture) only LONG entries must be taken.
- If there's a MA cross in the oposit way of the SAR, then the SAR changes sides within 5 candles before the crossing, you are allowed to open that position, cause the trend has changed.
- If the Parabolic SAR is making resist (above the candles), then just take SHORT positions.
- If the Parabolic SAR is making support (underneath the candles), then just take LONG positions.
- The MACD helps you to see the crossover and avoid wrong signals. Wait until the crossover is confirmed by the MACD! Don't try to be the Smart S.
Write those two beneath, each one in the back of your hands, so you can keep your eyes on that while you type on your keyboard:
- Do not buy overbought currencies.
- Do not sell oversold currencies.



Exit signals:
If on a Long position, the Stoch must go UP the 80 level, and then go down. When it completly cross the 60 level you added, that's the right time to close your trade. When short, it must do the same, but going down the 20 level, then cross up the 40 level you added.
If a new MA cross appears - witch must not happens before Stoch crossing levels- close the trade, because it was a fake signal, witch is rare in this TS.

Profits shown:
This is a actual chart, as you can see, the clock on the matches the time I'm posting it. So, let me show you the profits:Who is good on math? 60+70+90+160 = 380 pips in the last 3 weeks. And I didn't had to get stressed or make huge analysis. That's simple.
So, a little more math?
380 pips / (5 business day * 3 weeks) = 380/15 = @ 25 pips/day.

And that's just one pair.

See you folks.



4 comments:

  1. Hello,

    Thanks for sharing your trading method... Seems nice and simple, would you mind if I post you method on my blog? Please leave a comment on my blog to let me know.

    http://forexkid.blogspot.com

    All the best

    ReplyDelete
  2. Thanks for the reply, I also added you to my yahoo and skype, will need to talk about a few things before I introduce ur system on my blog.

    Talk to u soon

    ReplyDelete
  3. Hey. Nice system you got there. I am impressed. Would you give us some information about how to know that the currency is overbought or oversold? Any links to read about that would be great.

    Thanks and happy trading

    ReplyDelete
  4. It`s amazing... I would like to keep in touch and know more anout it... Oscar Paats

    ReplyDelete

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