160# Secret Weapone Trading system
Submit by Joy 22 18/12/2011 (Written by Ray)
An intraday trading strategy using the ema and ma crossover indicators. I use the QQE MTF5as a confirmation indicator only. This strategy can be used on any timeframe but I prefer the 1 hr timeframe. You are free to test other time frames if you so desire. You can use the 30 min and 15 min timeframe for better entry points.
When you get a signal from the MA crossover indicator and the M15 MTF signal turns to black , it is time to trade. Make sure that the 5SMA crosses up and over the 12 SMA for better entry points and the M15 MTF indicator either turns black or the opposite color They will usually cross before the signal is generated. The signal is just a confirmation signal only.
You trade in the direction of the arrows. Do not trade if the QQE has not crossed. 85-90% of the time the QQE will cross before you get an up or down signal so that will eliminate the false breakouts. Your take profits will be your 1st Fib Support or Resistance Line or you can use the points are on your chart under daily pivots. You the trader will make that decision. When you are trading this strategy make sure that trend is going in your direction. I prefer a strong trend which is over 75% but by that time your move may be already ready for a retrace. As long as your other indicators still agree with one another it is still a safe trade.
Just move up your stop losses to minimize your losses or lock in profit if the trade suddenly reverses. When the trend starts dipping to the 50-50 level and the QQE starts turning in opposite direction, I will close my trade regardless of the situation as this usually means a ranging market is in store or the short term trend is reversing.
Now we will get into the daily pivot strategy
Look at your chart. Observe the bold tomato colored line. This is your daily pivot point. Details of what a daily pivot was outlined in the auction
To utilize this strategy look where the price action is compared to the daily pivot. If the price action is significantly higher or lower than the daily pivot then there will be no trade at this time. You can utilize the other strategy at this time.
When the price starts getting near the daily pivot then a possible trade setup is near. We only enter the market if the price closes above or below the daily pivot and above or below the 200 sma on the 1hr chart only. For example, if candle closes above the daily pivot and price closes above the 200 sma, then you would be in a buy position. If the candle closes below the daily pivot and candle closes below 200 sma, then you will sell. Make sure the QQE indicator is in agreement before entering a trade as it may range for a few hours before the price starts going below or above the daily pivot. Make sure the candle closes above or below the 200 SMAbecause a lot of times there will be a significant bounce off that level so be prepared to adjust your stop loss accordingly! Use of an additional momentum indicator is recommended. It is pre-loaded in your metatrader platform Setting should be set to 10. You can also use the 15 minutechart but instead of using the 200SMA use the 100 SMA
There are 3 daily pivots that we will speak of and the only 2 that is worth mentioning is the London daily and the US daily. This indicator automatically adjusts for these time zones. London daily pivots starts at 3amEST and US starts at 8amEST. Most of the big price moves are in these time periods and therefore are the best times to place your trades.
I have also included an additional daily pivot indicator called the Exit_-_1hr
This calculates the daily pivot point thruout the day. Add it to your charts and you take the value of the top line, subtract the value of the bottom line and divide that value by 2 to get an up to the hour daily pivot
For example if top line of GBP reads 2.0400 and bottom line says 2.0250 you would subtract:
0.0150/2 = .0075
2.0325 would be your daily pivot
a). Simple Moving Average
5 Close and 100 close
c). Level stop Reverse
Use ATR mode True
Non-ATR stop pips 40
ATR Periods 28
ATR Multiplier 2.0
ATR Smoothing 0
D).QQE on 1min and 15 min time frames (3 indicators)
Smoothing Factor 60 (QQE 60)
Smoothing Factor 5 (QQE 5)
Smoothing Factor 1 (QQE 1)
E) MOM – Momentum
F) Daily Pivot points at start times
Pivot set 1 = Daily (1=daily, 2=weekly, 3=monthly)
G) Trading Hours
3AM EST to 3PM EST only
How to spot a trade opportunity:
After you get the two signals (Arrow & QQE 60 cross signal) you enter after the QQE5 or QQE1 cross the 50 line.
Only take the short trade if the signal generates below the Daily Pivot level.
Only take the Long trade if the signal generates above the daily pivot level.
If QQE5 cross to the opposite direction you must exit the trade.
You can re-enter a trade when QQE1 touch the 50 line and cross back towards the QQE60. When you get the proper entry set up, check for the 1hr momentum. If the 1hr momentum and 15 min Momentum on the new confirmation bar shows a very promising trend continuation (45 Degrees plus bent) you don’t have to wait until the 5 SMA touches to enter.
When the momentum shows a sharp bent on any given TF, it indicates a retracement is due to 5sma of that particular TF. I'm always hesitant to introduce the Momentum indicator, since on a trending market if the momentum changes to the opposite direction some traders blow their account by trying to catch the retracement. When ever you catch a retracement you are going against the trend. You only suppose to use it to find better entries to go with the trend
SL is closet support or resistance around 60pips
Applying Daily Pivots & 100sma to minimize the fake calls.
15 QQE60 crossed above the Daily Pivot (15 Min Timeframe Only)
Price is above the 100 sma & LevelStop-Reverse
I also use 1hr QQE5 to identify the trend direction
Applying Daily Pivots & 100sma to minimize the fake calls.
15 QQE60 crossed down Below the Daily Pivot (15 Min Timeframe Only)
Price is below the 100 sma & LevelStop-Reverse
Share your opinion, can help everyone to understand the forex strategy.
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