Since December, I have tested and traded my system in 1 MTF with some good results. But the trade were not as smoothly as I expected and I have been tinkering for some adjustment in my system. I decided to drop the Stealth B&S and LCD and the FxPrime indicator. The basic ideas of using the laguerre (the lag) indicators as fully explained by Imran Sait and the Double CCI that was advocated by Ken Wood( Woodie) in his website www.WoodiesCCIclub.com and forwarded by Canadian Dude at Forex Factory Forum will be maintained.
For support and resistance (S&R), the fibo retracements and extensions as explained in my previous post and the pivot point system are used. Bollinger Bands (BB) and RSI(8) is to gauge the trend and the overbought and oversold position is similarly applied as before.
Moving averages as been previously explained are utilised. The moving averages are; long term moving averages, 60 period ema(the blue color) and 200 period ema (red color), medium term 20 period sma(the middle band of BB) and short term 13 period ema (magenta color) and 5 period linear weighted ma (black color).
My 1 minute scalp trade will have a stop loss of 10 pips at entry with target price at 20 pips or more if it is a trend trade. For counter trend I take what the market give...sometime as low as 5 pips. Normally my mental stop loss will be 5 pips for buy and 8 pips for sell. I will trade only USDJPY during Asian and US session with my target of earning 30 pips per session.
There are four main indicators that I refer for my entry.
1. The lag indicators i.e crossing over the 15 and 85 level
2. The cross-over of 5 period ma and 13 period ma. If the 5 ma cross-over 13 ma from below I refer as positive cross (blue arrow) and 5 ma cross-over 13 ma from above which I refer as negative cross(red arrow)
3. Double CCI with SMA- two CCI cross-over with simple moving average.
4. BB- MACD- a derivative of MACD and Bollinger Bands.
The first two have been fully explained in my previous posts and the last two will be fully described in my coming post.
