354# TFX Reversal Trading System

Submit by Janus Trader 20/06/2012 Written by Martens-enterprice

 

When I began using this system, I noticed there were a lot of false signals when using just 1 chart. I tried many different many different indicators to try to alleviate this and came up with a few good ideas that help keep me out of bad trades. So here’s what I’ve done to modify the system…

Use at least 2 time frames such as 15M & 1H . The must agree or at least be close in order to enter a trade.

Use a 55EMA (green) as a trend indicator.

Use the TFX Reversal Indicator at the default settings.

 

I also pay attention to the trend very closely. If the price is above the 55EMA and a short is signaled, if I decide to enter, I will only use ½ as much money as I would if the trend agrees. A lot of times the 55EMA will act as a level or support or resistance as well.


rules to this system…

 

Long Trade Entry Criteria

Both short and long time frames must be in agreement with trend and channel break

Candle closes above 5SMMA

RSI above signal line crosses above 50 level in TDI Indicator

TFX Reversal signal close to entry time on higher time frame

If the above is met but price is below 55EMA, if entry is taken, use only ½ as much money

Short Trade Entry Criteria

Both short and long time frames must be in agreement with trend and channel break

Candle closes below 5SMMA

RSI above signal line crosses below 50 level in TDI Indicator

TFX Reversal signal close to entry time on higher time frame

If the above is met but price is above 55EMA, if entry is taken, use only ½ as much money


The reason these channels work so well is because institutional and bank traders will utilize similar channels to make trading decisions. And when the price moves out of the channel, these traders get into the market and move it heavily. It works best on the GBP/USD so take advantage of it.


In the picture TFX Reversal forex system in action.

TFX Reversal
Forex Trading System
TFX Reversal.rar
compressed file archive 11.0 KB

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