I marked with DodgerBlue arrows (wedges if you wish) in the first window on the H4-TF, where the RSi-2 did not close below the RSi-4. These are extremely important clues!!

Also see the ZLR (Zero-line Reject) on the CCi on the previous candle @ 08h00. Adds fuel to the fire > patience, patience, patience!!

Had you traded the H1 chart, this entry may not have been for you, but the combination with the M5 is very accurate.

Any questions?

Best wishes.

Attached Images

h1- entry may 16.gif (35.9 KB, 305 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.

Thank you very much for this explanation, Suk. Much appreciate your time and assistance.

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.

I was asked why I did not trade this short @ 0h50. Very simple - it is too close to the close of the 08h00 candle and secondly the Pivot is only 10 pips away. I do not trade high risk trades and it was further confirmed 2 candles later when the CCi-5 overheated as well as the RSi-2 moving into overheating zone. Those 2 together makes me sit out.

Hope it makes sense.

__________________
"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.

Here is my entry for this afternoon's run.

Note that the H1-RSi gave the signal 4 candles prior to my entry @ 15h25; the reason being that I waited for the 15-EMA to be broken by the price!! This trade was worth ±70 pips and paid well for once patience during the straddle.

You may have entered (or added to your trade) at the close of the 16h00 candle (price @ 1.9499) for ±37 - 40 pips.

Wishing you a good and restful weekend. Be blessed.

Attached Images

this afternoon's entry m5.gif (32.1 KB, 285 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.

Good morning all. Wishing you pips in abundance this week.

GBP/USD-Market is pretty overheated at present IMHO judging from the H4 TF down, although I cannot get to see the H8-chart due to my platforms being unable to provide me with such "luxury" - I wish the brilliant people from MT4 will give us such an option.

First thing I notice this morning was that the price remained stagnant while the RSi-2 on H4 was dropping like a stone! Sure sign that a Long was imminent. So, you wait for that signal to go Long at the very first opportunity. Next time, I will take a screen-shot of this phenomenon next time and post it so that you can see it while it is happening.

My first signal for a Long on M5 was @ 9h35 on my charts (marked with Yellow Vertical line) - the H4 Rsi was still SHORT at this point, but keep in mind what I have just said about the H4-chart. We are expecting a Long to be imminent!! As we wait for the price to cut through the 15-EMA, we see that the RSi-2 is too high and wait for the retrace, before we enter on the close of the 10h00 candle @ 1.9572 for ±40 pips with ease.

Also note the ZLR on the 9h55 candle as well as the H1-RSi's bounce. Excellent signs for the Long entry on the next candle close.

Exit was also easy this morning as everything overheated at the same time.

Trust you all made pips, but once again PATIENCE was what was needed to take this trade.

Best wishes.

Attached Images

this morning's entry.gif (33.1 KB, 219 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.

latest pdf w/ new forum entries.

Attached Files

Valeo_FX_latest.pdf (985.8 KB, 66 views)

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Dreamers Never Sleep, Neither Does FX --- http://www.starfxcapital.com

So it happened sooner than expected. Here is the H4 chart very similar to this morning's set-up and the reason why I see "divergence".

First look at the candle: the spike just touched the 15-EMA before it pulled back, BUT the RSi-2 has already reached 6.4% and therefore overheated. Same for the CCi-5, it has been sitting @ 166,66% for a while now and if the direction stays like this, there should be a retrace at the close of this candle 92% of the time.

Watch out for clues like these in order to make informed decisions regarding direction to be traded.

Hope it helps.

Attached Images

h4 divergence.gif (35.5 KB, 195 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.

ValeoFX could you expand a little on thanks.

__________________
Dreamers Never Sleep, Neither Does FX --- http://www.starfxcapital.com

Good morning Suk,

I have to go back into the Thread to find my exact Post where I have tabled my research to show that when the CCi-5 overheats, the direction changes immediately 92% of the time. If I am in the trade at the time that it happens, I usually wait for the next candle to show me whether the direction is still intact or not. If I am waiting for an ENTRY, I also wait for the next candle to close first before I take the entry and I will if the next candle is in the same direction.

What is very important though, is that once you are in the trade on the M5 and such an occurrence happens, you have the option to look at the H1 and H4 TFs to see if it warrants you staying in the trade and to sit out the imminent retrace. However, having said that, when it happens on the H4 chart, you have to look at the possibility that the trade may continue its course (like it did yesterday) and not get "spooked" - but be aware that it may not be for too long. Yesterday was a case in point where the market still fell by 56 pips before the retrace happened. These are usually very powerful signals.

I will update this Post once I have found the reference.

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.

Good morning guys,

This morning is a very difficult morning for me regarding the entries. The first signal was @ 07h05 where the Yellow Arrow is. As I only trade from 08h00, that was therefore not a signal for me as I was not here.

07h35 candle overheats the CCi-5 and immediately retraces. Next was 08h15 but it did not break the Fib-line and by now I was convinced that the level (in Blue) @ 1.9542 needs to be broken first before I would attempt an entry. When that happened @ 09h00, the indicators were too high with RSi-2 @ 96% not to mention the H1 and H4 RSis.

Next best entry was @ 10h10 when the price retraced to hit the all important 34-EMA where the CCi-5 overheats at the same time as the RSi-2 and one could have entered at the lowest point right there as the Trend is still Long.

Entry on next candle close @ 1.9554 @ 10h15 opening for at least 20 pips and possibly the next Pivot level @ 1.9586 for ±30 pips.

This is how I still learn every day and all it needs is patience. If you did not trade any of the entries, don't be upset about it. Better safe in a situation where you are unsure of an entry.

Best wishes.

Attached Images

this morning's entry.gif (31.7 KB, 157 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.