A powerful simple system

[vivid]

A powerful simple system for trading lower time frame,it use bolliner bands,stochastics and EMAs only:-
Look for the the bellow requirements for a long set up

a)Is price touching or piercing the lower
Bollinger band;if yes follow rule 'b";if
no then do not trade

b)Is stochastics oversold and below the
20 line;if yes follow rule "c";if no no trade

c)Do you see any one of the candle formation as bullish pin bar;doji;long bearish candle and immedietly long bullish candle approximately of same height.;if yes follow rule "d";if no no trade

d)Is candle formation is in conflunce with one or more of the following support areas;
Trendline/horizontal support line/50 ema/200 ema/Price round number.
If yes it is a high probability trade.If no then also you can enter into a trade.This
trade is a low probability trade.

NB:-stochastic %K=8;%D=3;slowing=4.
BB period=20,deviation=2
Reverse the rules for a sell setup.

 

[vivid]

Hey Vivid,
Have you tested this strategy and what is the profitability.
Is there any risk reward that works the best, like maybe even 2:1 can be achieved majority of the times or something like that.
I will also bast test this and try it out myself.
Thank You for posting.
Happy trading :thumb:.

This strategy works best in consolidation .So do not use this when price has already began to trending.
ie that when you see that the price is trending then do not use this strategy.Then you have to switch to trending strategy!
The stategy can be confirmed with other indicators such as money
flow index.You shoud scalp half of the quantity till price reach 20 EMA and
then ride the rest till momentum decreases or when price reach the upper BB band in the case of long trade.You can also exit when the haiken ashi candle color change.

 

[C_R_Kumar]

Price is consolidating or trending can be usually seen after movement has taken place.
So how to decide whether to use this strategy of not.

 

[vivid]

Price is consolidating or trending can be usually seen after movement has taken place.
So how to decide whether to use this strategy of not.

You have to determine first whether the price is in trending or trading phase.
using any method like as when the ADX is above 25 reading ,it means that
the markets is in trending mood and also using higher time frame chart you can derterminne it.Just stay with the present condition.Price may change from trading to trending mood at any time.

Pls reread above post

 

[vivid]

Here two longs trade and a short trade.You should exit when price reach the upper band
in the case of long position.

 

[travi]

Here two longs trade and a short trade.You should exit when price reach the upper band
in the case of long position.

You image didn't attach.

 

[vivid]

Can anybody say how to insert an image?

 

[Hugh Jackman]

Hi
When you go to post a reply, in the message box, in the row below the fontsand sizes, 5th symbol from the right.

 

[Purushotham]

Can anybody say how to insert an image?

@ vivid

goto postimage.org
choose upload image
then choose the file
copy the link of HOT LINK FOR FORUMS
then paste the link in the forum, it will shoe direct chart i the forum

 

[vivid]

upload photo
Two sell signals .First is a pin bar and is penetrated to theupper BB.Now stochastic is over bought and is reversing.
The second is a engulfing pattern and is bearish sign on the penetration of the
upper BB and also the price is rejecting the 200 EMA.
It is also a double top reversal.
Stochastic is over boght and is reversing.


Here since after the second sell signal ,the trend has changed from consolidating to down trend,so only exit when 5EMA cross above 10EMA.Otherwise exit on the touch of the lower BB.