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Hello everyone.
This is a simple visual setup using very few indicators. I would like to share this, maybe some traders are interested in using it, suggest improvements and changes, and/or criticize ( hopefully constructive) I have tried to reduce the amount of indicators to a minimum to see if a trading setup could be made as clear, simple and reasonably successful. Remember, always works – if you are not sure, consult a higher time frame.
I would like to make one thing clear – this is not an original system or approach. I am not the author of any of the indicators used. Most of it is from other systems from all around. For that reason, i will not be posting the indicators used. I will list them here, so you can google them – they are all available from original sources. – most from ff. I will post the template.
So, first, we are using 2 EMAs, 50 and 35 for trend bias. We are also using RSI candles(forexprofitsupremebars) and GannHiLo histogram. In addition, we have MTH Kiads clock and fibonacci pivots. Thats all. How I trade it> The EMAs are used for trend bias. If 35 is above 50 we are buying and vice versa. What we are looking for is pullbacks within the trend when the gann changes color, and possibly the rsi candle. We enter the trade in trend when both gann and candle are of the same color. The best trades most of the time are those launching from the EMAs, most notably the 50 Ema. Time frame, technically any, but higher the TF reduces false entries. I prefer 30 and above TF. Once the conditions are met, i enter 3 trades, targeting the next fibonacci pivot, and 2 others. Stop loss is discretional, but i use recent high/low plus a few. Once the first target is reached, Stop loss for 2 other trades is moved to entry point. I have marked several entry points on the charts.
So, this is my first attempt at KIS. Comments, critics and suggestions welcome.
Best, Michael
Hi Edington,
From what I see from my charts, ema50 seems to be magnetic line for PA, I looking mostly on TF15. Correct me if I am wrong.
By the way what are the setting for ema? You are using exponential and HL/2?
Thanks for the visual
scissors
Nice thread Edington. I’m here and subscribed already…
Nothing has ever motivated me more than this...
The moving averages are exponential, 35 and 50, no shift, applied to close. If you have a preference to HL/2, you can change it, but the difference is marginal. 50 ema is, on virtually any chart and timeframe the usual support/resistance/bounce point. It is just a number, but it works because majority of traders recognize it.(in theory lol)
One thing i wanted to mention – another reason for going KIS – i wanted to get rid of oscillators like Stochastics. The reason is that – they all lie…or they only tell the truth some of the time. That makes them unreliable and can navigate your trading in the wrong direction. Telling you, dont buy here, its overbought…then the price goes up 1000 pips. As someone has recently pointed out to me, unlike stocks, in Forex the overbought/oversold is an illusion.
Scissors, if are going to use 15 min, i would change the gannHILo setting to be less sensitive. Also, maybe for the candles – this way you might reduce the false entries.
Best, Michael
Hi,
Thanks for the useful advice, will look into it :)
Scissors
i wanted to get rid of oscillators like Stochastics. The reason is that – they all lie…or they only tell the truth some of the time. That makes them unreliable and can navigate your trading in the wrong direction.
Hi,
If you want to learn why Stoch and similar oscillators are having problems in displaying a great deal of the swing spectrum correctly, you might be interested in reading the following article: http://www.stockspotter.com/files/PredictiveIndicators.pdf
Focus on those paragraphs titled ‘Spectral Dilation’.
unlike stocks, in Forex the overbought/oversold is an illusion
I support that! Very unfortunate term, to say the least.
simplex
A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)
Thank you Simplex. A very interesting read. I am now exploring the idea to see if I can apply it.
Best,
Michael
Hi Brother, Great to see You open Your thread, Congratulation .. and allow me to Subscribe…
Best Regards
MTH
Intuition, Experiences and Common sense..
http://www.binaryoptionsedge.com/
Hello traders.
I have been thinking of of adding another GannHiLo to the chart from a higher timeframe to supplement the trend bias given to us by the EMAs. The idea is to reduce false entries and give more stability…particularly in the lower time frames. But here lies a problem. The approach is used as a confirmation, or a visual aid, but considering that a higher TF is used, the Gann can hypothetically change before the candle is closed relative to its timeframe. Now this is relative, because if you use 15 min to 30 min(2x), it should be negligible. It might become a problem if you use daily to weekly for example (x7) In terms of trading it – as long as the higher tf keeps its color, trend is still going. If they both change, you must re evaluate the situation, consult moving averages – either a sharper pullback, or a reversal. Also, i have taken some trades – might have used 4 trades instead of 3, but this was a rather sharp move.
Best, Michael
Hi Edington,
I like the simplicity of this, and will try it next week, subscribed
cheers
hannele
Which is the bottom indicator?
Hi Guys
I am newbie in this forum. This is really very useful information for all hoping great time ahead.
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