I’m starting with this thread (in July 15, 2013) to elucidate my system – AckelSystem – and share my perspective about buying and selling foreign exchange.
(Edited in July 22, 2013. I discovered different techniques named “Double Bollinger” techniques, with totally different approaches and totally different settings, indicators and metodologies. So I’m now renaming this technique to “AckelSystem”.)
I’m neither a guru nor an professional in foreign exchange. I’m only a dealer studying on a regular basis. As a result of I study on a regular basis, this technique can evolve to mirror my discoveries.
Linked to this thread is my Commerce Explorer. I hope the concepts I’ll share right here could be usefull to somebody.
Plus, English isn’t my main language, so please forgive my errors utilizing this language.
Lastly, I’m scripting this thread to myself, to clarify for me my ideas and to assist me to decide to the principles.
I’m positive that the criticism and interactions will to assist to place in verify all I find out about this market and about this technique.
Use two timeframes, one for filter trades and a smaller for entries. I’m utilizing H1/M15 timeframes, most of time, however in my template (see under) I all the time have the day by day timeframe in a minichart. Keep away of stories and the interval between finish of NY session and opening of Tokyo session. Check this technique in a demo account. Foreign exchange includes vital danger.
Important window (mw): Candles or bars, Bollinger 20/2. EMA fifty five shut. Any help/resistance indicator or put S/R strains by your self. Any information alerter (FFCal hooked up). SMA 10 shut. EMA one hundred forty four shut. EMA 233 shut.
Indicator window 1 (iw1): RSI 8; EMA 8 shut utilized at First indicator knowledge. Bollinger 20,2 utilized at First indicator knowledge. (Or Ackel_TDI_modified indicator, hooked up).
Indicator window 2 (iw2): ADX 14 with lvls 10, 20 and 30.
Adittional indications – divergences between worth and RSI (You’ll be able to change your graphics to line chart for simpler visualization). Enlargement or retraction of BB.
TREND – Development is recognized utilizing EMA fifty five (mw) and EMA 8 (iw). Worth above EMA fifty five recommend up development. EMA 8 above lvl 50 of RSI recommend up development. The other for down development. Trendlines (in worth, RSI and EMA 8 strains) and better highs/decrease lows idea are additionally applicables. The key development might be seen when EMA one hundred forty four and EMA 233 are aligned.
TRADE A: In a uptrend, worth come again to MA 20 (Bollinger in mw) and worth motion recommend indecision. MA 20 (mw) is ascendant. RSI cross above EMA 8 whereas worth motion recommend principal development will resume. Cease loss is put bellow final help degree. Take revenue is put bellow subsequent resistance lvl. ADX is rising and +DI > -DI. If ROI (relation between danger and return) is sweet, enter a purchase order.
TRADE B: In a uptrend, RSI is overbought. Higher if, after a robust wave, worth is way over higher bollinger band. Then worth motion (in or close to a resistance lvl) recommend a correction. RSI cross under EMA 8. Enter a promote order if the ROI is sweet sufficient.
TRADE C: After cross from under, worth was consolidating close to MA 20, then worth motion recommend it can proceed to hit the higher BB. RSI crossed above EMA 8 AND higher BB (iw). Enter a purchase order if ROI is sweet sufficient.
TRADE D: Bollinger bands are tight, candles are small, indicating low volatility for a while. A candle does a robust motion, breaking the higher BB and the MA 20 inclines to comply with this motion. BB expands in mw and in iw. RSI crosses above EMA 8 and higher BB. ADX is rising and +DI > -DI. Enter a purchase order if ROI is sweet sufficient.
Usually Commerce A and Commerce D setups are one of the best. Commerce B setup is sweet too. Commerce C is dangerous however but worthwhile with good cash administration (MM). Commerce A&D > Commerce B > Commerce C.
About cash administration and much:
About commerce administration:
The “Twilight’s Channel” –
2 good setups and 1 dangerous setup
Commerce 1 and 2 are examples of a “Commerce A” Setup. Commerce 3 just isn’t good
as a result of MA 20 is just not ascendant (P.S. – I noticed that in “Commerce C” setup MA hardly might be ascendant, as a result of worth crossed from under). Additionally there are resistance lvls between entry level and goal.
By the best way, I took the quantity 3 commerce too, within the blue candle, in fact. Once I obtained this pic the purple candle already was in formation.
I’m but preventing towards the shortage of self-discipline.
Have you ever handed this part?
Similar display, however with some extra particulars:
I feel there are a ‘Commerce C’ setup in commerce quantity 4.
Additionally, about commerce 3 we might place our stoploss in decrease lvls, however the ROI wouldn’t be good. EMA 8 is beneath lvl 50 of RSI (and OMG there are a
divergence distinction between worth and RSI ?). So,we should not take this commerce.
Notice: I’m talking concerning the setup, okay? Ultimately I may even win this commerce, however the setup just isn’t good.
P.S. – I moved SL to BE +5 and acquired stopped. Not dangerous for a nasty setup.
Within the display under I draw some blue trendlines in worth and in RSI, in GBPUSD day by day.
Notice the correlation between each indicators (sure, I feel candles are indicators too).
- Most merchants assume in trendlines and patterns solely in worth, however you possibly can discover these prospects in indicators too.
- Trendlines can be drawned in EMA 8 (the inexperienced trendlines), serving to development identification.
- In “N” I draw the breakout of a “W” sample previous an uptrend. In “O” and “I” you possibly can see “M” patterns previous downtrends.
- Divergences in thirteen-B, 14-O, 5-G, and 7-I previous revertions. These are outer divergences. M-10 is an inside divergence and I dont know easy methods to interpret it at this second. I would like learn what do you consider this.
Metatrader indicators and templates – final up to date in In the past 15, 2013: