Read Bobs Thread http://www.stevehopwoodforex.com/phpBB3 ... =38&t=3871 for a detailed treatment of his new system.
My goals here are simple.
1. Demonstrate the best Secret Bob signals to take on a small time period like the 15 minute.
2. Point out the home run setup: consolidation zones where the 240 or 60 MA's merge with the two ribbons. Usually a setup for a large break out continuation trade or reversal trade.
3. Demonstrate how Four Hour and Daily CSS can give you confirmation of the likely direction of the trade and from that information how best to setup a pending trade.
4. Demonstrate the importance of factoring in fundamentals to the home run setup.
5. When to take a Counter Trend trade on the 15 minute and demonstrate how to use 15 minute CSS to point out high probability Counter Trend Trades even in a strong trend.
6. I will also from time to time show a Full Gann Analysis chart to point out:
a. Best places to place stops. b. Best places to exit. c. Best places to put tight stops where they probably will not get hit.
7. New Added the 240_2:1 Stochastic for a solid intraday trend
8. New Added the 60_2:1 Stochastic for a solid counter trend signal.
9. New ... HGI replaces the Secret Bob indicator.
I have already done most of this once in the thread and will continue to give examples.
So I started to look at a way to create a simple 15 minute system based on just two ribbons. The fifteen minute ribbon and the Five minute shadow ribbon. In reality this is a nifty way to trade the 5 minute with out the noise of the 5 minute candles. The strength of this approach is that the 15 minute time period and the 5 minute shadow ribbon present a very unique approach to trading smaller time periods. It is possible to scalp for a 10 to 20 pip CT trade or Trend trade. It is also possible to take a break out trade for more than 100 or more pips.
Secret Bob gives very strong signals on the fifteen minute time period... lots of them but some signals are stronger than others. So I have taken two ribbons, the 240 average and the 15 minute time period and developed an approach to using Gann with the Secret Bob indicator. The idea is to be able to filter the best signals. You can trade 28 pairs and have plenty of signals on the 15 minute but some will be better than other in getting into a larger trade or break out trade.
What this approach utilizes is the congestion zones and consolidation zones created by the close proximity of the 240 average and the two ribbons. Trading inside this zone is not very profitable. However as the 5 minute and 15 minute both separate from the 240 average opportunities improve. The big moves will be break out trades from a consolidation zone as I will illustrate first. Smaller counter trend moves work well in open spaces and when there is good separation between the five minute and fifteen minute ribbons. I created this approach so that it would be easy to recognize the strong moves and stick out the trades deep into the moves. A strong move up or down breaking strongly away from the 15 minute by the 5 minute with price above or below both ribbons is easy to spot.
As you see above a strong signal occurs and placing a pending trade above the consolidation zone for a break out entry would be very rewarding. Also the price trending strongly up and above the 5 minute ribbon would invalidate the need to take CT trades against this strong trend. Also within consolidation zones of the 240 average and the two ribbons you are looking for the Trend Signal not CT signals. You are at the at the break out point between a bearish and bullish move. However if there is a consolidation of just the two ribbons than you may have an option to trade counter trend or trend. As time goes a long with this approach it may be more apparent what works best. Gann is only acting as a filter to improve on what is already an excellent signal.
In the second trade spot at the top of the move you once again get a trend signal. However the Gann ribbons indicates that the five minute and 15 minute are telling a different story. They are creating a small congestion zone but you can trade this but resistance by the ribbons is evident and should limit your expectations of a large profit. This will give you assurance that a few pips in this instance is enough to get out with while you are ahead. The point here is that you have margin that may be better tied up with more rewarding moves on other pairs. There are so many signals to choose from that may be better there is no rush just to jump in. The goal is to take the best fruit from the tree and let the other on vine.
So on this more advance chart much of the Gann theory is relied on with the Secret Bob signals. Taking Trend or CT trades above or below both ribbons in the direction of the white edges makes for a strong trade. Some times you will see some retesting of edges or the 240 average.
One can trade between the two ribbons when they are separated more widely. Usually the five minute ribbon by its self does not display much resistance. Open spaces are good trade locations as seen on the chart below.
You can do quite well trading Bobs system just as he explains it. Gann however can give you insight on what may be more profitable and some good resistance zones to exit trades.
I just thought this would be a very simple approach to trading the 15 minute period. Bobs indicator does all the heavy lifting.
HGI ... See latest developments in thread.
New template below !! To be able to run it you will need the latest v2 HGI package from Bobs Thread.
I added a new version of line of zero this time with a DarkGreen line. You should have everything else.
