Wolfe Wave -Video
July 28th, 2011Wolfe Wave Trading System Explanation Videos
Wolfe Wave Video – Standard Situation
Wolfe Wave Video – Situation when Line 1-3 has been broken
Wolfe Wave Manual Trading Strategy
July 14th, 2011Wolfe Wave Theory
Wolfe Waves was introduced by Linda Raschke.
Wolfe Wave Construction
1. Wave 2 is the top of a bar chart.
2. Wave 3 is the bottom of the first decline after wave 2.
3. Wave 1 is then the bottom prior to the wave 2 top. Point 3 must be lower than point 1.
4. Wave 4 is the top of wave 3. Wave 4 should be higher than the wave 1 bottom.
5. A trend line is drawn from point 1 to point 3. The extension of this line projects to the anticipated reversal point which we call wave 5. This is the entry point for a ride to the target line (1 to 4).
6. The price objective of this pattern is from a trendline drawn from points 1 to 4. The initial stop is placed just beneath the newly formed reversal at point 5. It can then be quickly moved to break-even.
Note: You cannot begin looking for the Wolfe Wave until points 1, 2, 3, and 4 have been formed.
Bullish Wolfe Waive Pattern
Bearish Wolfe Wave
Wolfe Wave Trading Strategy
We successfully use this strategy within two years, but only now we’ve got to automate the process of finding Wolfe Waves. We were able to formalize the rules for finding the waves and create Wolfe Wave Indicator.
But it is possible to draw Wolfe Waves manually.
Trading rules
We use own (modernized) trading rules.
Bullish Pattern.
BUY when price touch line 1-3 (pint 5 )
Take Profit – point 4
StopLoss – double distance from 2 to 3
If the price moves in the direction of StopLoss (line 1-3 was broken) we should add position after N pips.
N depends from Time Frame.
In this case we should close all position when price touch line 1-3 from the bottom.
Bearish Pattern
Vice versa.
2011 © http://iticsoftware.com
Forex Manual Trading Strategy – Regression Channels Superposition
July 4th, 2011If you open m5 (5 minutes), m15 (15 minutes), h1 (1 hour), etc., charts, you can find several regression channels. Also you can find Support and resistance lines. The price will move between the boundaries of the minimal channel and after a while, will be close to the border of the next level channel or to the support/resistance line.
At this moment very important to determine what should happen:
- the price will be stay within the framework of minimal channel and next channel or support/resistance line will be breakdown;
-the minimal channel will be breakdown, and price will be rebound from the next level channel or from the support /resistance line.
For the significance of channels comparison, at a certain time, best suited two criteria:
1. Hurst criteria calculated inside channel
H = Lg(R/S)/Lg(n/2)
R – Max range of sample
S – SD (standard deviation)
n – Number of observations
Hurst criterion is an empirical evaluation of how far we are from the distribution converges to normal or evaluation of fractality of the market. Any convergent distribution with increasing degrees of freedom converges to the normal, which means – the possibility of the applicability of the mathematical statistics apparatus on samples of approximately longer than 30 degrees of freedom (bar). It cuts off the sample and test – because the algorithm is obtained by iteration) – the error will tend to zero.
When this parameter is closer to 0.5 – indicates that the white noise dominates.
When approaching the 1 – indicates the presence of stable structures,
to 0 – unstable structures.
Further interpretation of the applicability of the stable – the trend,
unstable – kontrtrend.
2. Distance from the price to the center of channel.
channel will be stronger in certain time, if price will be closer to center.
These rules can help to create different types of trading strategies. You can use these rul for short term trading and for long term trading as well.
Indicators:
LR-Channels – this MetaTrader 4 Indicator finds all possible regression channels on the chart and draws channels with minimal standard deviation. Indicator also calculates Hurst criteria.
i-BJF-SupResLines Metatrader Indicator – this Metatrader 4 Indicator draws support and resistance lines on the chart.
2011 © http://iticsoftware.com
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Reversal Forex Manual Strategy
June 28th, 2011Reversal Forex Manual Strategy Rules
Currency: eurusd, gbpusd, usdcad…
Conditions for open position
Buy/Sell only on Support/Resistance Level (i-BJF-SupResLines Metatrader Indicator)
Buy/Sell only in case of divergence between Stochastic and price (Stochastic Divergence Indicator)
Buy/Sell only if Hurst Exponent value between 0 and 0.5 (Hurst Divergence Indicator)
Stop Loss
We will use High/low TrailingStop (Expert Advisor TrailingStop-Toolkit)
High/Low Trailing (settings)
HLTrail.On = true HLTrail.ProfitReq = 70; // Minimum profit to activate the trailing, pips
HLTrail.Bars_timeframe = 0;// 0 is the current TimeFrame of the chart
HLTrail.Bars_shift = 1; // Get High/Low from the first closed bar (shift = 1)
HLTrail.ExtraPips = 0; // Add this pips value to High or Low on StopLoss calculation
Conditions for close position
Close position on Support/Resistance level
Close position if opposite divergence signal is appear and Hurst Exponent value between 0 and 0.5
Close half position if if opposite divergence signal is appear and Hurst Exponent value around 0.5
Hurst Exponent Rules
Value 0.5 – 1 = whatever is happening now is likely to continue
Value 0 – 0.5 = whatever is happening now is likely to reverse
Value around 0.5 = likely to go in any direction
Point 1 (22.06.2011 00:00 GMT +2)
Price has touch resistance line 1.44406 (i-BJF-SupResLines Metatrader Indicator)
Stochastic Divergence Indicator – sell signal
Hurst Exponent (Hurst Divergence Indicator) Value 0 – 0.5 – whatever is happening now is likely to reverse
Strong Sell Signal
Sell EurUsd price: 1.44000
Trailing H/L Stop Loss = 1.44700
TakeProfit = 1.41416 – Support Level (i-BJF-SupResLines Metatrader Indicator)
Point 2 (22.06.2011 18:00 GMT +2)
Price has touch resistance line 1.44406 (i-BJF-SupResLines Metatrader Indicator)
Stochastic Divergence Indicator – sell signal
Hurst Exponent (Hurst Divergence Indicator) Value 0 – 0.5 – whatever is happening now is likely to reverse
Strong Sell Signal
Keep position
Point 3 (23.06.2011 11:00 GMT +2)
Price has not touch Support/resistance line
Stochastic Divergence Indicator – buy signal
Hurst Exponent (Hurst Divergence Indicator) Value 0.5 – likely to go in any direction
Undefined situation – close 50% of position
Point 4 (23.06.2011 15:00 GMT +2)
Price has touch Support line 1.41416 (i-BJF-SupResLines Metatrader Indicator) 50% of position was closed by TakeProfit
Stochastic Divergence Indicator – buy signal
Hurst Exponent (Hurst Divergence Indicator) Value 0.5 – likely to go in any direction
Undefined situation – do not open buy
Point 5 (24.06.2011 13:00 GMT +2)
Price has not touch Support/Resistance line (i-BJF-SupResLines Metatrader Indicator)
Stochastic Divergence Indicator – sell signal
Hurst Exponent (Hurst Divergence Indicator) Value 0 – 0.5 – whatever is happening now is likely to reverse
Sell Signal Open Sell EurUsd price: 1.42009 50%
Trailing H/L Stop Loss = 1.42709
TakeProfit = 1.41416 – Support Level (i-BJF-SupResLines Metatrader Indicator)
Position was closed 27.06.2011 02:00 GMT +2 by Take Profit
Point 6 (27.06.2011 05:00 GMT +2)
Price has touch Support line 1.41263 (i-BJF-SupResLines Metatrader Indicator)
Stochastic Divergence Indicator – buy signal
Hurst Exponent (Hurst Divergence Indicator) Value 0 – 0.5 – whatever is happening now is likely to reverse
Strong buy Signal Open Buy EurUsd price: 1.41263
Trailing H/L Stop Loss = 1.40503
TakeProfit = 1.44406 – Resistance Level (i-BJF-SupResLines Metatrader Indicator)
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One more example USDJPy current situation
2011 © http://iticsoftware.com
Trend Line Breaks Forex System
June 9th, 2011Trend Line Breaks
Trend line break happens when the price reaches a trend line, breaks through this line and continues moving in the determined direction. The occurrence of trend line breaks is possible thanks to showing the most probable point of future support or resistance on the trend line, and this support and resistance is going to weaken at some time.
Using Trend Line Breaks For Trading
You may call trend line breaks as “counter trend trades”. The reason is that trend line breaks are based on continuation of price movement in its new direction against the previous trend. If we have an upward trend and trend line, there would be a short trade in case of trend line break; it means that selling would occur at a price near the trend line, and after that buying would occur at a price below the trend line. If we have a downward trend and trend line, there would be a long trade in case of trend line break; it means that buying would occur at a price near the trend line, and after that selling would occur at a price above the trend line.
As a rule, use of trend line breaks alone is counterproductive. Generally, traders combine trend line breaks with other information, for example, volume or price movement information. For instance, a trader might create a complete trend line trading system from the combination of strong volume in the correct direction and a trend line break.
The most likely location of the trend line breakdown is the intersections with the resistance and support lines . When prices approach the line of resistance or support we can estimate the value of Hurst exponent and Hurst exponent divergence. This will help you to find enter point with high probability and accuracy.
Useful Metatrader 4 Indicators:
- MetaTrader Indicator Support Resistance Levels
-MetaTrader Indicator Hurst Divergence
2011 © http://iticsoftware.com
Forex Trading System – Six Trading Concepts
June 4th, 2011Forex Trading System – Concept №1.
First of all, developing trading system (manual trading system or automatic trading system) you should decide whether you want to trade long term positions or sort term positions. After choosing your style of trading you should master your skills in that single direction in the beginning, because otherwise you will lose.
Concept №2. Multi-Timeframe analysis.
In case you use only one timeframe, even the best trading system in the world won’t help you to make profit and you’ll lose a lot. That is why Multitimeframe charting is one of the best indicators. First of all, it is free of charge, and, moreover, it is the true indicator of a trend.
Forex Trading System – Concept №3. Currency pairs divergence.
Currency forex divergence or spread is your way to big profit. What is meant here is SPREAD, but not MACD divergence or CCI divergence. The common forex indicators only show you the direction of trend, but they never tell you why this trend is moving in this or that direction. For example, if your forex indicator flashes sell signal when you trade GBP/USD currency pair, it could be that both currencies are losing strength, but one of them is just losing strength faster, for example, GBP. Are you really going to trade that? It is unlikely. You won’t do it because the first currency can start gaining strength again, or the second currency can start falling faster. In this case you will suffer losses. If you want to make profit, you should wait the beginning of forex divergence, i.e. when currency pairs start moving in opposite directions. For example, a sell of GBP/USD currency pair is possible only when one of currencies is rising, and another one is falling.
Forex Trading System – Concept №4. Momentum.
You can get it only in case you are able to get currency pairs divergence. The ideal forex difference is about 45 percent. For example, in case of a sell of GBP/USD, one of currencies should be, for instance, -35, and another one should be about +80. In this case a perfect trend arises, which will help you to make profit. Just remember, that such situation is very common and happens all the time.
Forex Trading System – Concept №5. Entry point.
Trading System entry points should be based on several factors, including pivotal points, forex divergence and momentum of all your timeframes. We recommend you using pivot points only for entry and trailing stops for gravity. Don’t use them for exit.
Forex Trading System – Concept №6. Exit
You should let your winning positions run and close loosing trade on time. One of the perfect ways for exiting a position is to use a middle timeframe by the formation of a reversal candlestick color change, For example, if you use three timeframes in yoiur forex system (15 minutes, 1 hour and 4 hours), you can enter a trade on the 15 minutes timeframe, and then exit from the trade with 1 hour candlestick color change. In this case you can simply ignore stop-loss and still make profit. If you are only a beginner, everything may end with account depletion, but, finally, you lose only money and not your life. That is why you shouldn’t restrict yourself to just one currency pair. Try to open several currency pairs simultaneously, but don’t execute orders on too many pairs. So, you will be able to catch up opportunities.
The given concepts are only clues. You can’t use them as a system, but you can search additional information about each of these items, and then you’ll succeed.
2011 © http://iticsoftware.com
Highly Active Manual Forex Trading System
June 1st, 2011This trading system based on a mixture of two forex trading styles of trading: forex scalping, trend following short-term strategy. You can use it for any currency. Time-frame M15.
Forex Indicators:
- Hurst Exponent Divergence
- Bollinger Bands Divergence
- Standard Deviation (standard MetaTrader Indicator)
First and most important step for this forex trading system and for any other forex trading sustem is determination of market condition. We will define three states of the market:
- FLAT (sideways) movement
- Trend reversal
- Continuation of the trend or flat
Algorithm for forex market conditions determination
Flat conditions ( Hurst exponent around 0.5 ; stdDev around 0 ) We will use forex scalping strategy.
Forex Trading System General Rules for Flat Conditions
- Open sell position when price touch or cross upper band (Bollinger Band Indicator)
- Open buy position when price touch or cross lower band (Bollinger Band Indicator)
- Close position when price touch or cross opposite band.
- Stop Loss under lower band for buy position and under upper band for sell position.
Forex Trading System General Rules for Trend reversal Conditions
Hurst exponent around Value 0 – 0.5 and tends to zero. stdDev grows
Trend following strategy.
- Waiting for Hurst or Bollinger bands divergence arrow and open position in the direction of arrow.
- Close the position if appeared an opposite arrow or(and)Hurst exponent tends to 0.5, or close at predefined target, or close By time
Continuation of the trend
Hurst Exponent Value 0.5 – 1 – We recommend to close part of position (50% for example) if you have opened it before. Or do not open any position if you do not have opened positions.
2011 © http://iticsoftware.com
Free Expert Advisor e-DayCandleBreakout
April 13th, 2011You can download free e-DayCandleBreakout expert advisor from our free experts page
Free Expert Advisor e-DayCandleBreakout Conception
Every day at TradeTime the expert sets BuyStop order above daily candle and SellStop order below daily candle. Distance from High/Low to open price is Delta option.
If BuyStop order triggered then SellStop order cancelled (OCO option) If SellStop order triggered then BuyStop order cancelled (OCO option) At CancellTime the expert removes all not triggered pending orders. At this point the expert is ready to work at next day. At next day the expert will place another pair of pending orders if there are no orders in the market.
Free Expert Advisor e-DayCandleBreakout Options
extern string _tmp1_ = ” — Trade params —”;
extern int AccDigits = 5;
// set 4 or 5 for all pairs (does not matter EUR, USD or JPY pairs)
// set 4 for 4-digit quotes: EURUSD = 1.2314, USDJPY = 100.17 etc.
// set 5 for 5-digit quotes: EURUSD = 1.23142, USDJPY = 100.178 etc.
extern double Lots = 0.1;
// lots volume
extern int Delta = 20;
// distance from daily High/Low to open price of pending orders
extern int StopLoss = 200;
// StopLoss, pips. 0 = no StopLoss
extern int TakeProfit = 100;
// TakeProfit, pips. 0 = no TakeProfit
extern bool OCO = true;
// if true then
// delete BuyStop order if SellStop is triggered
// delete SellStop order if BuyStop is triggered
extern int Slippage = 3;
// max. allowable slippage value
extern int Magic = 20110309;
// some unique orders ID
extern string _tmp2_ = ” — Time options —”;
extern int TradeTime.start_hr = 9;
extern int TradeTime.start_mi = 0;
extern int TradeTime.end_hr = 9;
extern int TradeTime.end_mi = 15;
// time to place pending orders (by ServerTime)
©2010 iticsoftware.com
3 Simple Forex Strategies
October 8th, 2010Although there are a lot of people who would have you believe that the best forex strategies are complex and complicated, the truth is that some of the best ones are simple and easy to understand for even a novice trader. These systems have a number of simplistic, yet highly effective, indicators which can really help to make a difference in your day to day trading. When you have a good idea as to the signal you should be looking for with each indicator, it will give you a way to find ideal market entries and exits.
Simple Balanced Trading System
The simple balanced trading system is a great choice for many different traders, because it can be applied to any time frame or currency. However, there are a few entry rules that you will want to be aware of with this strategy, including the fact that you will need to start buying when 5 EMA goes above 10 EMA. This is an important step to follow because it will determine whether or not it will actually work.
In order to buy with this strategy, the stochastic lines must be going up. It must not be in an overbought position, and the RSI will have to be above 50. The indicators for this system are 5 EMA and 10 EMA, and there are a number of advantages to using this system, including the fact that it enables you to filter entries, which means a much more accurate way of trading. However, the disadvantages of the simple balanced system are that the 5 and 10 EMAs can be slightly misleading in the sense that they can provide you with too early of exit signals.
Key Simplicity
Another great forex strategy involves being able to simply glance at a chart, and make a decision with regards to what you want to do. There are many different forex strategies, but this one is by far one of the simplest and most effective when it comes to using an indicator that will be able to tell you exactly where prices are headed in the near future. It is absolutely ideal for those who have especially busy schedules and need to find a way of making decisions without taking a lot of time to do so. The time frame for this strategy is just one day, and it applies to any currency. The indicators are 12 EMA, 5 EMA, and RSI 21.
Black MACD
This forex strategy is another good choice for those who already use Metatrader 4 with MACD. When you are looking for guidance, you will want to turn to the histogram to provide you with all of the information you need. You will have to set the signal line going across the match the background of the chart though in order to make it work for you. Anything above zero indicated buying and everything below zero indicate selling. By using some of these simple forex strategies, you will be able to increase your earning in no time.
