Submit by Joy22 19/04/2011
This is the heart of the system and the instructions for the 3 trades that you want to make each day.
Step 1: Open up yourMT4platform each morning after 5am EST but before 7am EST and on the small chart
on the Right with the time frame set to 1hour, manually move (double left click to grab the line) the top GREEN horizontal line to the high of the candle between Midnight EST and 5am est.
Step 2: Move the RED horitontal line to the low of the candle between Midnight EST and 5am EST.> That is the candle that opens at 4am est and closes at 5am est.
If you can not find the 2 lines on your DAILYSETUP chart you just need to change the time frame to weekly to see the 2 lines.
Please check to make sure that the 7:00 GMT time is correct and that it is in fact the Midnight est candle as some MT4 servers run on different server times.
Here is a link to an online timezone converter that will help you find the correct time for the timezone you live in.
Step 3:
AFTER YOU PLOT YOUR 2 LINES TAKE THE DIFFERENCE BETWEEN THOSE TWO PRICES AND THEN
DIVIDE THE DIFFERENCE BY 3.
EXAMPLE: price high= 1.4881
price low = 1.4828
difference = 53
53 divided by 3 = 17.6
Your profit target on the first trade is the difference of the high and low you plotted divided by 3.
From the above example that would be 17 pips. You can move the 2 horizontal purple colored first trade profit target lines on the Dailysetup chart to these profit points so they are easy to see. Save the chart template each day after plotting your lines so the lines are there in the general price range when you open your charts the next day. BELOW ARE THE INSTRUCTIONS TO EXECUTE YOUR 3 TRADES PER DAY.
I will not go into patience or emotions or posistion size and management here as I write about those things elswhere in the added text
within the system. I will just explain what your are looking for and what to do to execute each of the 3 trades.
TRADE #1:
For trade 1....Look to enter as the price moves above (BUY) the GREEN line that you plotted on the
"dailysetup" chart OR below the RED line (SELL).
Confirm your entry by looking at the indicators on the larger 5M "Enter Exit" chart.
That is to look for the top bar indicator (FX trend ) to turn red for a short break (lower red plotted line) or green for a long break (upper green plotted line) as the price is about to break one of your plotted lines on the Dailysetup chart and as the candle color (TTM TREND) on the Enter Exit chart is the same color. Then you will look for the MAXMA indicator (red or green "dots" on the enter Exit chart) to turn the same color of the FX trend indicator and the candle color from the TTM indicator. You will also be looking for the Line in the center of the "Enter Exit" chart (Audio Alert Line) to change color in acordance of the break.
The Confirmation of the plotted lines break should be from the above stated indicators conditions. (A non coresponding/delay or no change of the AAL indicator color could be a sign of a week trend or a false spike).
Either exit the trade at your calculated target as in the example above (and included example pictures) or when the YELLOW SDX lines appear on the dailysetup chart (reaching either a high or a low depending on the direction at the time) or a significant support or resistance according to your pivots on the Enter Exit chart. The session pivots (Orange lines on the MULTIFRAME charts and TREND chart) should be respected as likely places the price will change direction. Sounds tricky but after some practice and mainly watching the trades line up each day it is not as difficult as it sounds.
Please note that the yellow SDX breakout indicator is set at #3 in its TIMEZONE OF DATA properties by default. You might have to change its setting # to have it appear properly for your peticular timezone. The rule will be to have the SDX appear about 4 hours after the London open. The SDX will appear plus or minus and hour from 7am est (or 4 hours after the London open). This is what it should do. Once you have it set to consistantly appear do not change the setting as it will calibrate itself each day to give a heads up for the entry of trade 2 depending on the previous several hours of price action.
TRADE #2:
After closing trade 1.... Reverse the trade position and look for the price to pull back to the 30M Audio Alert Line for a conservative trade or to the 1H or 4H AAL for an aggressive trade again useing the 5M "Enter Exit " chart for confirmation of the reversal.
TRADE #3:
If you have executed these 2 trades sucsessfully it may be best to quit for the day and enjoy your profits.
But if you still want more or did get stopped out, the 3rd trade will be to look for the breakout of the YELLOW SDX indicator.
Either a break low (Sell) or a break high (buy). This trade will be confirmed the same way you confirm trades 1 and 2 useing your "Enter Exit" chart. Typically if the Yellow SDX indicator that you are starting to see a break of developing is above the GREEN horizontal line you plotted, the price will breakout high. If the SDX indicator is below the RED Horizontal line you plotted the price will typically breakout low.
Look to exit after 20 pips or at support or resistance on the Enter Exit chart. These 3rd trade breakouts can run 100 pips some days so I'll leave the exits to you. The added BASIC chart is just to give a quick visual of the daily price action and is good to use on the 4Hour time frame also to see trend breakouts comming, after you get familiar with the 3 trade entries and exits and over all daily price action.
STOP LOSS RULES
ON ANY OF THE 3 TRADES YOU ARE BEST TO CLOSE A LOOSING TRADE IF THE CANDLE OPENS (AGAINST YOUR DIRECTION) ABOVE OR BELOW THE AUDIO ALERT LINE ON THE 5M TIME FRAME. This will be the red and green line on the "Enter Exit" chart in the main MT4.
You can enter again if the breakout tries again, but it is probably best to go outside for some fresh air since at this point you are either in
profit for the day or at a small loss. Tomorrow is another day and it is best to walk away up or with a small loss instead of risking having a not great trading day turn into a real bad one. Remember also that the names for the 3 trades are just that.."Designations". They are not nessasarily an order of the trades to be taken in. Trade 1 is trade 1 or the first trade, but if trade 1 fails to make its calculated target it is still valid and can be taken after trade 2 is complete. Some days trade 1 and trade 3 will complete together after trade 2 is complete. Also remeber that complete is only when any of the 3 trades makes its profit target. If the trade is not "complete" it is still valid if the parameters for entry as outline above are met.
Take a look at the picture "examples 1 thru 7" inside the System folder for a better visual understanding of the 3 trades. The best thing you can do after setting up your charts is to watch the market each day until you begin to see the daily price patterns. You will begin to see reversals and continuations well before they happen and that will have you making large pip gains and trading like a pro in a few weeks of practice.
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