Hey All,
I was trying to get help making an EA out of this & it was suggested that I post it here so people will get comfy with it.
Before I get into it I have a few things to say.....
Yes you will lose.
But with proper money management & practice you can do pretty good.
All the tools needed are available for download. This system only works on MT4 brokers.
Heres how it works.
On a 1 hour (aggressive) or a 4 hour (optimal) chart, place the ZIGZAG POINTER & NON LAGGING ZIGZAG indicator with the inputs supplied, on a candle chart with period separators.
This is a 4 HR chart:
This is a 1 HR chart:
How To Enter 4 Hour Chart
When you see an arrow & the Zig-Zag Line, go in that direction. Place your stop according to your risk appetite. I use at 60 on a 4 HR & 20 on a 1 HR depending on which pair you use (I use the EUR/JPY or GBP/JPY 1hr or 4 hr) & your risk appetite, you can set your goals. Your trade will go until you hit your goal or the next bounce with an Arrow.
If you dont see a new arrow yet, this trade MIGHT not be done. You have 2 options.
1)You can get out & wait for the next arrow.
2)You can adjust your stop to capture some pips & ride it out.
The reason I say that is because I have noticed that more than a few times the trend will bounce & retrace for a while, then continue. I have used the bounce as stop & a chance to add to my positions.
A few points are if the overall trend is long & you see a short signal, chances are its a small retrace so it is more risky. However its a good chance for a quick profit.
How To Enter 1 Hour Chart
If you choose to use a 1 hr chart I recommend that you get out at each bounce or your specified targets.
This is a serious trading system. I have been scoffed at about this but I have been using it.
If you have the time I think you should demo it.
Before I forget, yes the arrows move. If a new high/low is established, the arrow will move to the next PROBABLE reverse point. So backtesting is useless. Only forward testing applies & thats why I know it works.
Constructive comments & suggestings are welcome.
Thank you for your time
Bear-