7 CANDLES STRATEGY
This Strategy will help you become a Successful Forex Trader if you follow the Rules as described here.
The system is to follow the Trend and buy 2 pips above the High of the 7 Candles and Sell 2 pips below the Low of the 7 Candles. I will explain below how to set up your charts and how to take the Signals and with the Help of an EA your Stop Loss and Take Profits and Trailing Stops will be placed for you automatically.
SETTING UP YOUR CHARTS
Lets start by opening a One Hour USD/JPY Chart as shown below:
Now press the Contol and Y keys together. This will place the White dotted vertical Separator lines as shown in the following chart.
You also need to load the Auto Stop Loss and Trailing Expert Advisor again as shown below in the chart. You will find the EA and the Indicators in a zipped file sent out to you.
Now you need to place 2 Vertical Lines, one 3 candles before the Separator Candle and the other one 3 Candles after the Middle Separator dotted line as shown in the shart below:
You need to set the first Vertical line at 21:00 and the second one at 03:00
|You need to put the Trend Arrows now and this will show you where the Markets are heading. Have a look at the chart below:|
Now you need to place the Blue Box as shown in the chart below:
You may set the Start time as 21:00 and the End Time as 03:00 also the Session End Time at 03:00 and the Maximum Box size in pips to 100. The Boxes will also show you how big they are. If a Box is 60 pips or more then it is a NO TRADE. Do not trade that pair.
To find out the Trend the Trend Arrow is not enough, therefore we need to add some more Filters. The first Filter I add is the 3 Period Smoothed Close Moving Average coloured Yellow and the 6 period smoothed close Movng Average in Cyan colour.
When the Yellow line crosses the Cyan Line and goes up it means that the Market is in an UpTrend and we shold be looking for the Long Trades and when the Yellow Line crosses and goes below the Cyan Line it means that the Trend is Down and we should be Selling.
|We will add one more indicator to confirm the Trend Direction and also to give us Exit Signals. This Indicator is called Fisher_No_Repaint. Now here is the Final Chart as shown below:|
HOW TO TRADE|
The Blue Box contains 7 Candles. As soon as a new candle opens outside the Blue Box, you need to place a Pending Buy or Sell order depending on where the Market is moving. The following Indicators give you the Market Direction:
The Moving Averages
First look at the Moving Averages, If the Yellow line is above the Blue Line, it means the market is going up and then look where the Trend Arrow is. If its also a Yello Arrow below and previous Candle, it means the Market is going up and then look at the Fisher Indicator, if the Histogram Bars are Green, this too means that the market is going up. After confirming the direction of the Market you need to place a Pending buy order 2 pips above the Blue Box.
As soon as you do it, the EA will automatically place your Stop Loss and Take Profit. All you need to do is check all the following 28 Pairs to find out which pairs to select:
28 FOREX PAIRS TO TRADE
Once your Pending Order is filled in, the Auto SL abd TS EA will take over and Manage your trades for you. There are 2 ways to set the EA.
1) TP=10, SL=30 Trailing Stop=0
I use the Fisher Indicator to give me Signals to get out of a losing trade before my Stop is hit. If I am in a trade, say in a Buy trade and before I reach my profit target, the market starts reversing and a red Fisher bar appears, I close my trade with a much smaller loss then let it go all the way to 30 pips Stop Loss.
This System can give you more than 100 pips daily. But please practice it first for at least a month on a Demo account to understand it thoroughly.
This syem is a bit similar to my Z-20 ADVANCED BREAKOUT System
For those of you who are New to Forex Trading, I have a FREE Home Study Course for you here: http://www.z4x.co.uk/Z4X/LearnToTradeForex/
WISH YOU ALL THE BEST
Click here to DOWNLOAD the Template and the Indicator Files