XO_Method REVISED - Page 53

ValeoFX · #**521** (**permalink**) 06-09-2008, 07:41 AM

Quote:

Originally Posted by suk1000k

Would just like to add that it can be considered a "Shamu" trade - one of the major CCI patterns from the Woodies CCI book I think (as well as ZLR) because previous CCI15 trend was long.

RE: XO_Method REVISED

See also Trading Woodies CCI System by Jeff - The Patterns by Jeff Gannon

Thanks Suk, always appreciate your input.

Best wishes.

ValeoFX · #**522** (**permalink**) 06-09-2008, 10:38 AM

This morning the H1-chart gave the direction away. 08h00 candle-close had RSis crossed for Long and the XO full Green. Therefore, just find entry on M5.

First "give-away" was the bouncing off of the RSi-2 of the RSi-4 @ 08h45 and the CCis cutting through the zero-line. Although the H4 RSi-set-up was not in place yet, the H1-template showed you enough evidence that you could enter Long @ 08h55. You should of course at that late stage of the H1-chart, wait for the H1-candle to close before entering @ 1.9701 at 09h00, but it was legitimate to enter 5m ahead of time.

I closed the first run @ 09h45 for +23 pips due to divergence on the M5 RSi-set-up and re-entered again @ 10h15 when we had another H1-RSi-set-up bouncing off the RSi-4 and the CCis going through the Zero-line, very much like the first entry.

Good exit was @ the 270* Gann which confluenced with the R1-Pivot @ 1.9780. (incedentally, the 90; 180 and 270*Gann levels are MAJOR TPs)

Best wishes.

unicorn · #**523** (**permalink**) 06-09-2008, 10:40 AM

Quote:

Originally Posted by ValeoFX

Thanks Unicorn, appreciate your kind words. Please refer to the Post number so that I can get to it immediately as your reference is in April. I will then respond immediately.

Best wishes.

Hi Valeo;

I am referring to post #372.

kind regards.
Unicorn.

ValeoFX · #**524** (**permalink**) 06-09-2008, 12:14 PM

Quote:

Originally Posted by unicorn

Hi Valeo;

I have studied your method. Thank you for presenting it.

By the way I strongly believe that the new method, not being xo driven should be moved to a new thread. I have spent quite a few days studying the xo_method, only to find that you have switched to an rsi(2) cross rsi(8) trigger method, filtered by cci(15). what would the proper name be for this method? mtf_rsi_cross?

A couple of questions on your entries on this chart:
The first entry marked on this chart is triggered by the rsi(2) crossing rsi(8); but cci(15) has not crossed zero yet.I do NOT wait for the CCi-15 to cross the Zero-line Are you not taking into account price level relative to ema? (i.e. above or below ema(28)?) is the proper entry at 8:05 or 8:10 ? My concern is that the 15-EMA be broken, BUT when the retrace is on, I waive that rule and trade purely on the RSi performance, which in this case was correct. Due to a power failure, I could not reproduce my chart the way it was in real-time, but with an overheating RSi-4 (NB) that retrace was as good as gold.
What is the entry price? where was your exit? Entry @ 1.9744 with an exit when the price bounced on the 100-ema and retraced @ 11h15 with a price of 1.9723 (( +21 pips))

On the second trade:
the H1 rsi(2) is below rsi(8): does this inhibit the trade or not (i.e. you care only for the H1 rsi(8) value being > 50?) No, my reading comes off the RSi-2 crossing the RSi-4 and the entry was good (Readings were good at the time, but unfortunately you cannot see the RT situation. In future I will not post charts like these again and strictly speaking I should delete this one for that very reason. SORRY.

Regarding the short: it is counter-trend; thus NO GO (as your method is trend following - what was the xo(240) signaling at the time?). That is the reason why I did not trade it in the first place, but it was good enough for those that wanted to trade it.Nevertheless you could study these setups and come up with a complementary counter-trend method. I have no desire to study such counter-trend set-ups as it creates a whole new ball-game that I have to teach everyone. I believe in keeping to my strategy even if i make 20 pips or so less per day; at least I am not stressed out.

Keep up the good work. I can only keep up what I am doing if people can see the value and help me fine-tune it or improve it; like I did by changing from the original XO-based method.
Cheers.
Unicorn.

It may be a good idea for you to comment on the more current entries even if it is just to tell me whether you see my strategy work or if you disagree with my entries.

Best wishes.

suk1000k · #**525** (**permalink**) 06-09-2008, 01:23 PM

I also took long this morning, including 2 small 10 pips trades before 8am, including the 7.55a.m. candle (10 pips).

Would like to add that I believe the setup this morning mentioned by ValeoFX is an absolutely prime example of a technical trade setup in a book written 20 years ago. I like to compare stock traders technical analysis and apply it to forex because these analysts explain away the why of what happens in the market.

Without being too much more vague, the trade setup involved a horizontal area of low volume "zone" (first blue rectangle) followed by a breakout "zone" (second blue rectangle - on above average volume according to my broker) and then a retracement - followed by the resumption of the upmove (third blue rectangle "zone"). I note that the top "resistance" of a zone becomes the support area for the next zone. Price can dip in to previous zone but tends to close above the support, such as at 10:10 on my chart.

The little red arrows show a breakout of resistance in a respective "zone" - a hint to continued upmove imminently. The shakeout (zone 2) will have caught out the many, leaving the privileged and knowledgable few with huge profits from the subsequent long.

I will quote the book if I can find it online - it is one I think definitely ValeoFX will agree makes a terrific read after I recommend it.

I notice also (this is the "original XO method" chart - adapted) that the retrace after the spikey high (PPI news) goes to the 61.8% fibonacci retracement of the move and also that the 28 EMA has held particularly well with no closes below it all day so far.

****note that on the RSI system this EMA is now 34 I think****

My own instinct today was long because I "feel" GBP has been undervalued. There are many reasons for this, including research from one of my favourite analysts, predicted PPI and other factors. I'd like to reiterate non-trading of news though, as a general rule. Principally, this system appears to be technical, but sometimes a real sense of intuition coming from practise and time in front of the currency pair can be the most accurate perception of them all.

Uncanny chart to study after for me (eg the fibonacci)! I love finding patterns that work on the M5 chart. Often the market seems to play "oldest trick in the book" to new traders. Be patient and watch how market behaves and be smarter than that broker you may love to hate.

Suk1000k (suck 1000k out of the market!)

unicorn · #**526** (**permalink**) 06-09-2008, 02:41 PM

Quote:

Originally Posted by ValeoFX

It may be a good idea for you to comment on the more current entries even if it is just to tell me whether you see my strategy work or if you disagree with my entries.

Best wishes.

Thank you for the clarifications Valeo.

I am in the process of understanding how you apply your method.

Having studied your initial xo_method, I concluded that the initial method's edge is in the xo Trend indicator and the multiple time-frame analysis of TREND.

Now that you updated / upgraded the method, I concluded that the new method's edge is in the multiple time-frame analysis of MOMENTUM using the rsi(2), rsi(4), rsi(8) crossover, and the use of rsi(2) and rsi(4) that is also an edge according to Larry Connors and Ashton Dorkins.

Do you agree with my conclusions regarding the method's edge? ( I regard the cci as a good trigger as opposed to an edge).
Is there an additional consideration that I have missed, regarding the core of the method?

Thank you again for presenting your trading method.

I will study your recent posts and will comment and/or ask questions.

Kind regards.
Unicorn.

unicorn · #**527** (**permalink**) 06-09-2008, 02:47 PM

Quote:

Originally Posted by ValeoFX

This morning the H1-chart gave the direction away. .............
and re-entered again @ 10h15 when we had another H1-RSi-set-up bouncing off the RSi-4 and the CCis going through the Zero-line, very much like the first entry.
.

Hi Valeo;

did you enter the trade before the British PPI release at 10:30am (your local time?)

cheers
Unicorn.

suk1000k · #**528** (**permalink**) 06-09-2008, 03:29 PM

I cannot resist this kind of news trade I'm sorry. The technicals set it up for me, with a new H4 candle coming up I took the risk all on and whipped out the pips (albeit in smaller volume to ensure profits from this morning locked in). Besides, could have waited until close of news candle and played the breakout of the purple triangle for 20-30+++. Doesn't work every time. Trade with luck on your side.

Please note the trades I place here are an adjunct to what ValeoFX says, not a replacement or advice, just adding my own insights to try to add another angle to the thread.

unicorn · #**529** (**permalink**) 06-09-2008, 04:08 PM

Quote:

Originally Posted by suk1000k

I cannot resist this kind of news trade
........

Suk,

Thanks for the chart.

what are the two parallel light-brown curves on the price panel?

Looks like a Hi-Lo channel.

cheers.
Unicorn.

ValeoFX · #**530** (**permalink**) 06-09-2008, 04:36 PM

Quote:

Originally Posted by suk1000k

I cannot resist this kind of news trade I'm sorry. The technicals set it up for me, with a new H4 candle coming up I took the risk all on and whipped out the pips (albeit in smaller volume to ensure profits from this morning locked in). Besides, could have waited until close of news candle and played the breakout of the purple triangle for 20-30+++. Doesn't work every time. Trade with luck on your side.

Please note the trades I place here are an adjunct to what ValeoFX says, not a replacement or advice, just adding my own insights to try to add another angle to the thread.

Please mark your entries for us to see, Suk. I do appreciate your contribution very much and read the first Post with great interest. Thank you.

Best wishes.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

LinkBacks (?) LinkBack to this Thread: http://www.forex-tsd.com/xo-method/5845-xo_method-revised.html
Posted By	For	Type	Date
scammers on TSD? - Page 4 - StrategyBuilderFX	This thread	Refback	06-16-2008 07:39 PM
scammers on TSD? - Page 4 - StrategyBuilderFX	This thread	Refback	06-16-2008 11:38 AM
scammers on TSD? - Page 4 - StrategyBuilderFX	This thread	Refback	06-16-2008 11:36 AM
Forums - 500$ - How to start??	This thread	Refback	12-02-2007 04:21 AM
yForexzMetaTrader Part ‡WyCFD,&Futuresz	This thread	Refback	08-25-2007 03:23 AM
Forex TSD\| Metatrader Indicators and Experts Advisors	This thread	Refback	08-05-2007 09:39 PM

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Some Revised Indicators	Maji	Indicators - Metatrader 4	19	06-11-2008 12:30 AM

Register in Forex TSD!
Trading Systems Leaders in this forum (automated trading systems) are winning more than 3000 pips in a month (30000$ investing one lot every time). Click here to register and get more information