10.4 A Complete System

[Nidolap]

Trading accordingly the CSS on the range area seems a great idea. I am no programmer but one idea to help us on the CSS would be to calculate the angles between those lines and give us the most potential trades. This used with the STO7 could provide a top list of potential markets to be watched closely.

Just wanted to ask you how you got the 60ma and 240ma, the 240 comes from the monthly 2ma but did you backtested it or found it on trading books?

I am not questioning the use of those, but this trading way is starting to be my bread and butter method and would really like to go deep on every detail.

Once again, thanks for all your time and effort. Have a great weekend!

[erikskenne]

Nanningbob you are pure teacher all the way, a good one, thanks for your never endig effort to light our bulbs.

[IanV]

Bob,
Thank you for such detailed explanations.
Any uncertainties have been totally removed.
Only a teacher would spend so much time and effort.

[nanningbob]

Trading accordingly the CSS on the range area seems a great idea. I am no programmer but one idea to help us on the CSS would be to calculate the angles between those lines and give us the most potential trades. This used with the STO7 could provide a top list of potential markets to be watched closely.

Just wanted to ask you how you got the 60ma and 240ma, the 240 comes from the monthly 2ma but did you backtested it or found it on trading books?

I am not questioning the use of those, but this trading way is starting to be my bread and butter method and would really like to go deep on every detail.

Once again, thanks for all your time and effort. Have a great weekend!

Well I am a teacher and school administrator. I am the only person I know that has taught every level from first grade all the way to PHDs and everything in between. This will be my last year teaching in a regular school. I want to go back and just teach oral English in a foreign country somewhere or .......... That was the easiest to do. Not so much work with grading, testing, reports, discipline, etc, etc.

The 240 is based on the monthly 2MA: 2x4 weeks: 8 x 5 days: 40 x 6 4H periods in a day = 240
The 60 is based on the weekly 2MA: 2 x 5 days: 10 x 6 4H in a day = 60
The 7 STO is just a lucky guess, actually it was the best one in my backtesting that matched up with the RSI 2 indi.
The CSS is based on the TMA one of the most attacked indies for lagging and repainting at Forex Factory but I took an interest in it. It morphed many times until we used it to measure the movement of all the currencies at once and come up with a general strength of the overall currency compared to the other currencies. Ended up being a really nice tool. There are so many contributors to this system, I couldnt even list them all. Anyway CSS lets us know 4 things.

1.Which currency is running the strongest.
2.Which currency is running the weakest.
3.Which ones are flat.
4.Which ones are running away/together with each other. That last one lets us know they are moving and should see some good trades.

The xxx.00 are much better to use than the grid numbers used in Empty4 and along with pivot lines gives us plenty of areas to enter and exit trades from.

Put all together is by far and away the best trading system I have seen. It is the only one that defines UT/DT trends, range, and gives specific places to look for them and anticipate where they will be in the future. By what I just showed you, you know where you want to buy, sell, or stay put. And you know exactly how bad of a position you are in if you are in the trade the wrong way. If you are range trading and take a sell but it busts out into a buy trend you know to forget it and just move on. I think this really takes the guess work out. Now it is just a matter of mastering it. Even I have to do that now.

[Nidolap]

Thanks Bob.

I am in this for the long run...and feeling very lucky to come across you and this forum on the web.

[pipyoda]

Cheers Bob, for your continued hard work and tutoring on this great system. Pip

[bernard]

Hi Bob,
For me you are a symbol of selflessness. I admire you as a person and regardless of Forex, pips, DDs, losses and profits, I have lots of respect for you. I am sure there are hundreds of people out there who have developed a profitable system and do not say a word.

Here is a question that I have:
Looking at the Daily CSS for EUR & NZD.
Eur is shooting up,
NZD is jumping off the cliff as you said earlier.
So, it must be the time to Buy EURNZD.
Going back to EDSEL H4 of EURNZD, we are below 240 and we must Sell only.
How do you go about this?
1- Buy despite the 240 EURNZD
2- Sell despite the Daily CSS
3- Do not trade this pair. Look for other pairs where CSS & 240 agree

Your input is highly appreciated.
Bernard

[nanningbob]

Hi Bob,
For me you are a symbol of selflessness. I admire you as a person and regardless of Forex, pips, DDs, losses and profits, I have lots of respect for you. I am sure there are hundreds of people out there who have developed a profitable system and do not say a word.

Here is a question that I have:
Looking at the Daily CSS for EUR & NZD.
Eur is shooting up,
NZD is jumping off the cliff as you said earlier.
So, it must be the time to Buy EURNZD.
Going back to EDSEL H4 of EURNZD, we are below 240 and we must Sell only.
How do you go about this?
1- Buy despite the 240 EURNZD
2- Sell despite the Daily CSS
3- Do not trade this pair. Look for other pairs where CSS & 240 agree

Your input is highly appreciated.
Bernard

When you are in a range area you can buy or sell. That is what marks a range. When price gets into a range area we dont know if it will go back into the trend, range, or reverse. The CSS may let us know what our best option is. This is a change from previous 10.4/.5 trades. We added the range area to our trading knowledge. Now we need to learn how to use that knowledge. The STO7 combined with CSS direction should give us our best option to buy or sell. This was what we found out about 10.5/.4 this summer. When price was ranging it was tough deciding which way to go. Now we have a better shot at trading this area.

The 2nd principle is we now have an earlier heads up as to change of direction before we get back to the 240 line. This should make our SL decision smaller or we are not taking these trades. I double checked using this with some of my bigger losses and being less aggressive in the range area will help save me some SL pips. At least I hope so.

[nanningbob]

In other words we have further defined the UT and DT definitions and we have added a definition for what is a ranging market or pair.

[nanningbob]

OK this weeks big elephant in the room which would cause the markets to jump:

Congress fails to act by Monday at midnight. Yes it is time for the USA govt. to play chicken with our tax money again. Short term, no deal Monday USD probably goes down. Deal made I would expect a nice jump up. We will see. These type of stories take precedence over anything an indi will tell you. So have fun.