Regret the delay, but now I am back and on top of that with even better news. First the "bad" news though - we have tried unsuccessfully to make an EA for this method. Believe me we tried and the coder who tried, went an extra mile without the success that we are seeking. With what is to come, the chances have improved "dramatically" and I will NOT be surprised if someone beets me to the "market" with their version before I do as my testing criteria are very stringent. (I know that you areeading this Charl & Naira)

I know that what is to be revealed will make you more pips consistently as I have the proof in the Bank.

Best wishes.

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"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

No Chris, thanks to Mladen it does NOT. You may be referring to changing between time frames when you will see different readings as I warned about in the very first 2 Pots. If you still do not understand what we are saying, reread the section on Multi-timeframed indicators as I mentioned in Post 2.

Best wishes.

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"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

To all my friends and "loyal" supporters, thank you for understanding that I had to attend to my very ill mother. However, I am back now and will immediately get back in upgrading this method. having said that, I think I may have to start a new Thread, the reason will be very obvious once you read the first Post. I will however kick off with the first Post here and then may move the entire Thread to a new heading.

Looking forward to sharing with you again.

Best wishes, always.

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"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

The first chart I look at every DAY, is the Weekly chart to see where we may be heading for the coming week.

Here I place a screen-print of that chart with some explanation for you newbees in particular. I was also a Newbee once and if someone would have told me way back when that I had to start here and explained it properly, I may have been a better tarder long time ago.

Make NO mistake, we still FOCUS on the H1-chart as we are intraday traders, but I hope to get you to see the golden link between the weekly, 4-Hourly; Hourly and finally the entry-chart which is the M5. (once I transfer the Thread to a new heading, I will repeat the names of people that I am indebted to in my struggle to improve what I have had. The XO-method was very good, but we were not taking all the opportunities and hence the need to improve on what is otherwise an excellent method.

Please note that I have "seperated-out" the 2 most important RSIs to prevent any form of confusion. These are the RSI-2 and RSI-4. Very simple and very accurate.

I have added 3 only EMAs to finish off the chart and they are: 25 / 40 and 100. Once you have them up you will immediately see the obvious and it needs no further explanation. (Presently the GBP/USD is busy "painting itself into a corner" (CT = contracting triangle) before we will see some major moves imho.)

All you have to understand here is that the RSI-2 will give you the clue as to overheating and also when there is a directional change.

The important RSI is actually the RSI-4.

The important levels for the RSI-4 are 70 and 30 respectively.

Let us take a LONG scenario to explain how to read the RSIs:
The WEEK of February 10th, 2008, the RSI-4 comes back up from being underneath the 30-level (bottom window for better visual effect). Secondly, the RSI-2 crosses the RSI-4 (in first window for visual) and we can now expect that the direction has changed to LONG.

Further confirmation is the divergence on the RSI-2 and RSI-4 as marked with a Yellow-trendline in both windows.

Yet another confirmation is the fact that the price had "bounced-off" the 38% Fib retracement level and finally the 100-ema.

Looking at the SHORT scenario:

The week of March 2nd, closes with the RSI-2 being overheated @ 96,1% - a sure sign that a possible retrace is in the offing. The week following we see that the price do continue higher, but closes 20 pips lower than the prvious week. The RSI-4 now touches the 78.6% level from where it bounced the previous week and now drops.
The following week sees the drop ensuing and ends on the 23,6% level of the RSI-2. Also the previous 23,6%-Fib-level now as SUPPORT. Interestingly, the PRICE now stays under the crucial 40-EMA and the ensuing weeks, that level is NOT broken.

This week the RSI-2 bounces off thew RSI-4 amd the RSI-4 is in the process of crossing the 50-line. Either the direction is SHORT for tis week to come if it breaks the 23% Fiblevel @ 1.9767 or it may go sideways to complete the Contracting Triangle (or CT). Please remember this abbreviation - I am not one to use abbreviations, but this is one we can remember.

I suggest you study this set-up carefully and wait for the H4-chart that follows on this.

I will also let you have my Template and the 2 indicators before I start zipping the indicators for the charts to come.

Your comments are most welcome.

Attached Images

weekly.gif (32.4 KB, 684 views)

Attached Files

	VALEO WEEKLY.tpl (8.8 KB, 175 views)
	RSI_Label_A.mq4 (4.3 KB, 174 views)
	RSI_DOTS-2.mq4 (3.4 KB, 178 views)
	RSI-4.mq4 (3.3 KB, 175 views)

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

Due to space restrictions, I could not load the final indicator for the template above, so here it is now.

Best wishes.

The next will be the H4-chart and its details in full and that is when we will make the decision to rather MOVE this to a new Thread. You may decide with me.

Attached Files

RSI_DOTS-4.mq4 (3.4 KB, 164 views)

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

Hey Valeo, great news you are back !

Directly from Mladen about the repaint of the indicator :

For non repainting, you must chek false on the last option :"Justlastbar"

This will clear things much better.

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Picasso is the best !

Hi Joe, thanks for the nice "reception" - good to be back. Also for drawing my attention to the "Just last Bar" which I forgot to mention.

Best wishes.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

ValeoFX - We have missed your guideance and support for too long. Welcome back and we look forward to your enhanced scheme.
Best regards,
Joe SDF

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A Trader's greatest enemy is boredom.

Valeo......see the bad news re the EA, but what was the good news?

I think this is the good news...the new thread, the new version of the system --- and the fact there is no ea and we can be traders!