System/methodology

[bbmac]

Hi

I don't post on boards often these days but just wanted to draw attention to this excellent thread over at forex-tsd board, if thats ok.

http://www.forex-tsd.com/general-discussion/8003-how-use-support-resistance-effectively.html

It's an excellent thread on support/resistance and price action by a guy with the username of ' Bubbles'

Support/Resistance and the phenomenon of Support becomes resistance (sbr) and Resistance becomes Support (rbs) are, along with price action arguably the single most important aspects of technical analysis. Your indicators merely give you a recognisable/repeatable pattern to fune tune the entry. Once you know where potential support/resistance/sbr/rbs is in any market, you can then look for high probability trading opportunities.

I have a successfull trading system/methodology that I am now prepared to give to any interested parties FREE GRATIS, ie no payment whatsoever, ...ever, lol. No catches, no hidden catches , ...I do not want anything in return, I have everything I need thank you.

Why am I giving it away? Because I feel like doing something nice, and in the long run I would like to have a chat room to 'hang out in' during my trading day where enthused, competent and serious traders can meet and share trading ideas/thoughts about the market etc free from silliness and ego that afflicts so many chat rooms, so that trading is a less isolating occupation. In recent times I have struggled to find a decent chat room, as they all seem to be good at first and then die off. If after looking at/using my trading system/methodology you wish to get a forex chat room going, whether or not you choose to use this particular system/methodology as your 'edge' in the market, please email and if there is sufficient a number of us, lets give it a go...I'll even stand the cost of any chat software we use. I just thought I'd have one last go at getting a decent chat room together for the mutual benefit of those that join, that is productive and enjoyable to visit, sharing ideas and commentary on the prevailing technical and fundamental conditions that are affecting the markets, and where no one person dominates. If it doesn't happen, so be it.

My trading system or more accurately described...methodology ...accurately identifies support/resistance/sbr/rbs in the market then identifies both with trend and against trend entries to the market via easily recognisable tech indicator set-ups centering around oscillator extremes/divergence and band/channel deviation, confirmed by price action itself.

The system/methodology utilises the triple screen approach favoured by Alexander Elder and although I choose to utilise it on the lower time frames to capture scalp/small intraday moves it can be used on any sensible combination of time frames such as 1hr (trigger), 4hr (intermediate) and Daily (longer time frame) for example, for longer 'position' trades. Effectively the system/methodology identifies high probability reversal and With trend trading opportunities.

What I should also tell you is that any trading system or methodology that you get from any third party, should really become a template for you to take the bits that you want and develop your own 'trading edge' that suits your particular tolerances/preferences/style that will be unique to you. My system/methodology will teach you the essentials of technical trading, ie support/resistance, trend, and price action, and then show you how to use technical indicators to fine tune your entry.

I should also tell you that although the system/methodology identifies high probability trading opportunities, ie the 'trading edge,' ...remember, as Mark Douglas (Trading in the Zone, The Disciplined Trader etc...) correctly states ,...the trading edge is the simple part, ...Psychology is 80%+ of trading, and I fully concur with this.

As a trader of some longevity my trading system/methodology doesn't ever let me down, but I have let it down. There have been times when I didn't take a signal or came out of a trade too early, or bottled out at smaller volume traded than I should have done etc etc....In other words I had not mastered the psychological aspects at play in my own trading.

In the perfect world, a trading edge should be executed with impunity,...when your trading edge sets-up, you should trade it, no if's but's or maybe's, None of us knows what will happen once we have entered the market. Trading is simply about probabilities, ......All we know is that we have a trading edge (s) that over a historical sample of set-ups produced an overall net gain, so that when it next sets-up we know that there is a greater probability of something happening than another. The Distribution of winning and losing set-ups of a trading edge over any given sample is not known to us in advance, how can it be, so all we can do is execute a market entry when we identify our trading edge and leave the rest to the laws of probability.

Mastering the psychology at play as a trader is the most difficult task we face, and in this respect, I am always learning. There have been times for me when Fear or Greed has taken hold, to say nothing of their cousins, Hope and Revenge....and exacted their damaging effects, meanwhile the trading edge continues to present itself, willing me to treat it correctly, lol.

My preferred charting is MT4 and my prefferred pairing is gbpusd, although any liquid instrument could be traded with this trading system/methodology.

Should you wish to have a look at my way of trading, please email me via this website, I have emails enabled. I will not pass your email on to anyone else and you will never get any email or other communication from me asking you to buy anything.

I am happy to send you my chart templates, indicators and chart profiles, as well as examples and instructions on how to quickly recognise the trading set-ups, how to identify support/resistance/sbr/rbs in your chosen market as well as how to identify trend on each time frame...when to trade and when not to trade, money and risk management parametres, and stop placement and trade managemnet techniques used by me. All fairly self explanatory really.

Please be aware though, that you will inevitably trade this system/methodology differently to me as your tolerances/preferences/style are likely to be different than mine, and as I am busy trading for a few hours most days, I am unable to mentor anyone over and above providing the system/methodology and the general discussion that goes on in a chat room, shoud there be sufficient interest to get one going.

I have no idea how many people may resquest the trading system/methodology so please bear with me. In any event, I will not be trading for about a week or so from today so will action any requests after that.

If any one has any webspace that I can upload the system/methodology to, please let me know, this may be easier so that I can post the link on it and people can download it for themselves.

bbmac.

 

[bbmac]

posting here

Hi

Doh!! .....Ive just noticed that you can actually attach files to these posts here up to 5.72mb , so after my break in about 1weeks time, I will put all the stuff together re the trading system/methodology and attach it to a post (s) here. I will probably have to post chart screenshots of each individaul trading edge set-up as .gif files on individual posts, on this thread. The indicators/templates/profiles will be a zip file and the instructions/explanations will be a worddoc.

Bear with me, and Ill put it togther during this next week or so when I'm off.

Thank you.

 

[jacinto]

Hi

Doh!! .....Ive just noticed that you can actually attach files to these posts here up to 5.72mb , so after my break in about 1weeks time, I will put all the stuff together re the trading system/methodology and attach it to a post (s) here. I will probably have to post chart screenshots of each individaul trading edge set-up as .gif files on individual posts, on this thread. The indicators/templates/profiles will be a zip file and the instructions/explanations will be a worddoc.

Bear with me, and Ill put it togther during this next week or so when I'm off.

Thank you.

that would be very nice bbmac, very kind of you.

j

 

[JTrader]

Yes, good stuff bbmac, will look forward to it!

 

[fibonelli]

Yes, look forward to it too!

 

[bbmac]

trading system/methodology instructions.

Hi

Further to my posts above attached is the instructions and information/advice regarding my technical trading edge (s,) in the form of a worddoc. I will post a further worddoc document that deals specifically with how to accurately identify support/resistance in the market soon.

I am having a break now but will on my return (in about 1weeks time) post a zip file containing the indicators and chart templates you will need to operate this trading system/methodology on MT4 charting.

In the meantime, the post (s) to follow shows screen caps of 2 recent set-ups on the 1hr chart identified by the trading system/methodology.

Best for now,

BBmac.

 

[trendie]

what! MORE reading!

(actually, thanks for posting your ideas, I look forward to it as another member has already intimated it is rather good, so I will pay extra attention to it)

have a good weekend and holiday, and we anticipate your return.

 

[bbmac]

Reentry type 2

Ok, the attached screenshot (yellow mark) shows an example of the Reentry type 2 set-up lifted from the 1hr chart. I have mentioned that actually I prefer the 1min as my trigger but I thought I'd post this showing the 1hr as a trigger for all those position traders.

The set-ups are exactly the same on all time frames.


bbmac.

 

[bbmac]

And another example on the 1hr as the trigger, this time the yellow mark showing a Reversal type C set-up. Note how price had exceeded the 1hr extreme fib tunnel (red,) and there was seperate peak regular immediate bearish divergence in osma and same/seperate peak regular immediate bearish divergence in macd too. The third cci based custom oscillator gave further confirmation , showing bearish divergence too.

bbmac.

 

[bbmac]

hi Gamma

Hi Gamma,

I'm well thanks, and thanks for the welcome, hope all is well with you too.

 

[bbmac]

support/resistance roadmap

Hi

Attached is the worddoc referred to above which gives advice on the accurate identification of prevailing reasons for support/resistance in the market.

bbmac.

 

[bbmac]

More example trade set-ups.

Hi

The attached screenshots again illustrate 2 of the set-ups , the first being the Reversal type A (ii) seq. See the yellow dot Sequential referring to the pattern of oscillator divergence as distinct from the strongest kind being regular immediate,..in this case we had regular sequential seperate peak/valley bearish osma divergence and regular sequential same/seperate peak/valley bearish macd divergence.

The second screenshot shows a Reversal type B see yellow dot)this time on a 15min chart, and you will note how the breech of the extreme fib tunnel (red) added to the confluence of technical reasons for shorting.

In both cases there was an acceptable high probability pattern of oscillator divergence from price that met the set-up rules criteria and the third oscillator (bottom) showed the divergence too.

bbmac.

 

[JTrader]

Thanks bbmac for sharing your efforts.

The first thing that springs to mind is that - there's a lot of indicators in use. Does this make the strategy difficult to implement?

 

[TWI]

bbmac
Big hand to you for posting your methodology.
I have only looked at the screen shots and I have to say I had a good laugh. Anybody who can get through to a consistent interpretation of that chart madness deserves to make money.
I think I am much to simple to understand it.

 

[JTrader]

I'm not trying to be funny.
The first thing that struck me about these screenshots was their uncanny resemblance to the screenshot i posted in this thread that i started.
http://www.trade2win.com/boards/showthread.php?t=25419

 

[bbmac]

replies to points made in posts bove.

Hi

Thank you for the replies to the posts above.

The chart screencap posted above looks like Ichimoko Kinko Hyo with psar or atr stop line and a 20bol in the main chart window with some oscillators underneath, on the 15min chart so bears little resemblence to my methodology.

The methodology actually uses relatively few indicators, Bollinger bands and fib tunnels plus osma and macd as the main oscillators, ...the 3rd oscillator (bottom) is a 'guest' oscillator and is essentially the 14cci overlaid on a 20 bol to confirm overbought/sold areas and divergence from price.

The methodology is essentially technical in nature, and revolves around the high probability set-ups of band/channel deviation and oscillator extreme readings/divergence from price at clearly identified support/resistance areas.

Using a 1min trigger will inevitably see a pay off in terms of indicator use to filter out the 'noise' on that low time frame chart, but if you can do this, your average daily sample of set-ups remains high, compared to say a 1hr trigger. Essentially I look for multiple set-up types on 1 pairing -versus- say, 1 set-up on multiple pairings.

Unless there are any specific requests to the contrary, I won't now continue with this thread, but am happy that I have made this trading system/methodology available to all.

bbmac.

 

[trendie]

[dont want to hijack this thread, but since its essentially been abandoned, might as well, rather than start a new thread!]


I am beginning to see how sup/res works.
however, I am uncertain as how to identify when support/resistance should hold or break.

this week, GBPUSD bounced off major support and rose.
but, it breached two sets of reistance before coming to a halt.
I acknowledge that breaches of sup/res need to be tested before being accepted as sup/res, but apart from general speed/force of action, can you determine which will hold/break.
also, if we wait for retests, we run the risk of missing decent moves, so sometimes taking the first test can be profitable. (dont know if this has good percentage win/loss)

(I must do pennance for losing money for the charity! )

 

[fibonelli]

[dont want to hijack this thread, but since its essentially been abandoned, might as well, rather than start a new thread!]


I am beginning to see how sup/res works.
however, I am uncertain as how to identify when support/resistance should hold or break.

this week, GBPUSD bounced off major support and rose.
but, it breached two sets of reistance before coming to a halt.
I acknowledge that breaches of sup/res need to be tested before being accepted as sup/res, but apart from general speed/force of action, can you determine which will hold/break.
also, if we wait for retests, we run the risk of missing decent moves, so sometimes taking the first test can be profitable. (dont know if this has good percentage win/loss)

(I must do pennance for losing money for the charity! )

Hi Trendie,

I do multiple time frame analysis to establish S/R levels and any trend channels and/or patterns such as triangles etc. I do this to help me put the intra day chart into context.

Looking at the chart you posted, I can see many momentum divergences and overbought/oversold readings. These can help you to assess the probability of (intra day) S/R levels holding or being rejected.

Fibonelli

 

[bbmac]

The zip file contains actual recent chart examples of the set-ups, on both the trigger (1min) and the intermediate+ time frames.

Remember that a set-up is strongest when confirmed by a set-up on the next time frame+. For example a Reversal Extreme on your trigger confirmed by a Re-entry type 1 on your intermediate (at an identifiable sbr/rbs area) would be a high probability set-up.

The set-ups that are suffixed with 'seq' for eg 'Reversal A seq' refer to the type of divergence pattern, being regular sequential seperate peak/trough bullish/bearish divergence in the osma...the lead oscillator and regular sequential same or seperate peak/trough bullish/bearish divergence in the macd for reversal set-ups. A Re-entry hidden divergence based set-up is stronger with hidden immediate divergence in both osma and macd, although there will be times when you will see hidden sequential in osma and hidden immediate in macd at the same time.

A quick recap of the identifiable set-ups:

Reversal types A, A(ii,) B, C, Extreme, Extreme (ii) -and- Reentry types 1 2 3 and 4.

Remember that the only difference in the Reversal A and Reversal A (ii) and Reversal Extreme and Reversal Extreme (ii) is that:

a. The Reversal A (ii) involves a 3 bol flip [10,20,40 inside the 60,] as opposed to a 4 bol flip on the standard Reversal A.

b. The Reversal Extreme (ii) involves the fastest bol (10) coming inside the 20 bol, at which time macd will have reached a higher extreme than osma, and osma will be showing same peak/trough divergence.

Please remember too that these set-ups have the highest probability of success at identifiable areas of support/resistance/sbr/rbs, ie the system/methodology requires the 4 cornerstones of 1. Oscillator divergence/extremes, 2. Band deviation, 3. Supp/Res and 4. price action confirmation for the highest probability set-ups.


Hope the examples help.

 

[ambiguous]

bbmac
I have been reading ur trading methods and would greatly appreciate it if you could send me the three e-books:

a. Alexander Elder...Come into my trading room.
b. Mark Douglas...Disciplined Trader/Trading in the zone.
c. Steve Nisson...Candlestick analysis

my e-mail is [email protected]

Thanks
Dave

The zip file contains actual recent chart examples of the set-ups, on both the trigger (1min) and the intermediate+ time frames.

Remember that a set-up is strongest when confirmed by a set-up on the next time frame+. For example a Reversal Extreme on your trigger confirmed by a Re-entry type 1 on your intermediate (at an identifiable sbr/rbs area) would be a high probability set-up.

The set-ups that are suffixed with 'seq' for eg 'Reversal A seq' refer to the type of divergence pattern, being regular sequential seperate peak/trough bullish/bearish divergence in the osma...the lead oscillator and regular sequential same or seperate peak/trough bullish/bearish divergence in the macd for reversal set-ups. A Re-entry hidden divergence based set-up is stronger with hidden immediate divergence in both osma and macd, although there will be times when you will see hidden sequential in osma and hidden immediate in macd at the same time.

A quick recap of the identifiable set-ups:

Reversal types A, A(ii,) B, C, Extreme, Extreme (ii) -and- Reentry types 1 2 3 and 4.

Remember that the only difference in the Reversal A and Reversal A (ii) and Reversal Extreme and Reversal Extreme (ii) is that:

a. The Reversal A (ii) involves a 3 bol flip [10,20,40 inside the 60,] as opposed to a 4 bol flip on the standard Reversal A.

b. The Reversal Extreme (ii) involves the fastest bol (10) coming inside the 20 bol, at which time macd will have reached a higher extreme than osma, and osma will be showing same peak/trough divergence.

Please remember too that these set-ups have the highest probability of success at identifiable areas of support/resistance/sbr/rbs, ie the system/methodology requires the 4 cornerstones of 1. Oscillator divergence/extremes, 2. Band deviation, 3. Supp/Res and 4. price action confirmation for the highest probability set-ups.


Hope the examples help.