10.6 EDSEL

[nanningbob]

This is the usd/cad with a double green bar so you know what it looks like.

[nanningbob]

So we will review the basic buy/sell trend trades:

10.4 buy trade is found on the 4H chart.
1. When the first bar is green means price is above the 240 MA and the 60 MA on the 4H chart. This means that price action is trending in an UT both on the monthly and weekly trend. We are only going to look for buy trades.
2. A buy trade happens on a green bar and the STO7 is on the bottom. When the STO7 gives a signal that it has risen above the 20 line it is giving a signal that price probably will continue its trend move and we look to enter. We are looking to buy into the prevailing trend. It will give a 2nd reminder at the STO7 40 line. REMINDER: most of price action will usually happen above the STO7 80 line so be patient with your entrances. You are trading the 4H chart so patience is key.
3. We then enter by place pending trades at either the DP (Daily PIVOT line), or the nearest xxx.000 (solid line) or xxx.050 line (dotted line) on the screen.
4. Take profit lines are xxx.000 or xxx.050 lines or mid way through a trading session. I will go over that later.
5. SL are the 240 MA, 60 MA, a previous xxx.000/xxx.050 line or the last swing low.

[nanningbob]

So we will review the basic buy/sell trend trades:

10.4 sell trade is found on the 4H chart.
1. When the first bar is red means price is below the 240 MA and the 60 MA on the 4H chart. This means that price action is trending in an DT both on the monthly and weekly trend. We are only going to look for sell trades.
2. A sell trade happens on a red bar and the STO7 is on the top. When the STO7 gives a signal that it has fallen below the 80 line it is giving a signal that price probably will continue its trend move and we look to enter. We are looking to sell into the prevailing trend. It will give a 2nd reminder at the STO7 60 line. REMINDER: most of price action will usually happen below the STO7 20 line so be patient with your entrances. You are trading the 4H chart so patience is key.
3. We then enter by place pending trades at either the DP (Daily Pivot line), or the nearest xxx.000 (solid line) or xxx.050 line (dotted line) on the screen.
4. Take profit lines are xxx.000 or xxx.050 lines or mid way through a trading session. I will go over that later.
5. SL are the 240 MA, 60 MA, a previous xxx.000/xxx.050 line or the last swing high.

[nanningbob]

So we will review the basic buy/sell trend trades:

10.6 buy trade is found on the 1H chart.
1. When the first and second bar are both green it means price is above the 240 MA and the 60 MA on the 4H chart and price is between the 15MA and 60 MA on the 1H chart. We look for these kind of trades when price is moving strongly and price action is not retraceing behind the daily pivot (DP) line. This means that price action is trending in an UT both on the Monthly and Weekly trend and is not retracing from day to day enough to show up on the 4H chart. We are only going to look for buy trades on the 1H chart. So you will switch to the 1H chart.
2. A buy trade happens on 2 green bars and the STO7 is on the bottom on the 1H chart. When the STO7 gives a signal that it has risen above the 20 line it is giving a signal that price probably will continue its trend move and we look to enter. We are looking to buy into the prevailing trend. It will give a 2nd reminder at the STO7 40 line. REMINDER: most of price action will usually happen above the STO7 80 line so be patient with your entrances.
3. We then enter by place pending trades at either the nearest xxx.000 (solid line) or xxx.050 line (dotted line) on the screen or even above the last swing high looking to play the breakout. The DP line is not in play.
4. Take profit lines are xxx.000 or xxx.050 lines or mid way through a trading session. I will go over that later.
5. SL are the 240 MA, 60 MA, a previous xxx.000/xxx.050 line or the last swing low.
6. The 2nd bar can also be green/green during a 10.4 trade setup so you can play the 1H chart also if you wish.

[nanningbob]

So we will review the basic buy/sell trend trades:

10.6 sell trade is found on the 1H chart.
1. When the first and second bar are both red it means price is below the 240 MA and the 60 MA on the 4H chart and price is between the 15MA and 60 MA on the 1H chart. We look for these kind of trades when price is moving strongly and price action is not re-tracing behind the daily pivot (DP) line. This means that price action is trending in an DT both on the monthly and weekly trend and is not retracing from day to day enough to show up on the 4H chart. We are only going to look for sell trades on the 1H chart. So you will switch to the 1H chart.
2. A sell trade happens on 2 red bars and the STO7 is on the top on the 1H chart. When the STO7 gives a signal that it has fallen below the 80 line it is giving a signal that price probably will continue its trend move and we look to enter. We are looking to sell into the prevailing trend. It will give a 2nd reminder at the STO7 60 line. REMINDER: most of price action will usually happen below the STO7 20 line so be patient with your entrances.
3. We then enter by placing pending trades at either the nearest xxx.000 (solid line) or xxx.050 line (dotted line) on the screen or even above the last swing high looking to play the breakout. The daily pivot (DP} is not in play.
4. Take profit lines are xxx.000 or xxx.050 lines or mid way through a trading session. I will go over that later.
5. SL are the 240 MA, 60 MA, a previous xxx.000/xxx.050 line or the last swing high.
6. The 2nd bar can also be red/red during a 10.4 trade setup so you can play the 1H chart also if you wish.

[nanningbob]

Now for some definitions:

What makes trend? First we look at an UT (uptrend). An trend is based on two lines. The 240 MA and the 60 MA on a 4H chart. Those numbers come from the monthly 2MA and the weekly 2 MA. The logic and reasoning is found in the 10.4 booklet http://www.stevehopwoodforex.com/phpBB3 ... =38&t=1481
and the future 10.6 booklet which will be found page 1 post 1 of this thread.

So the 240 MA line is the monthly trend and the 60 MA is the weekly trend. Our first definition then will be if price is above both weekly and monthly lines it is in an UT. If price is below the weekly and monthly trend then it is in a DT. Looks like this on a chart.

During a 5 week period the EUR/NZD was in a DT in weeks 2 and week 5 and in an UT in weeks 3 and half of week 4. The other periods were range times or reversal times. Week 1 is a range period with a DT bias.

During the DT periods the first bar will be red and during the UT periods the first bar will be green.

[nanningbob]

So a trend starts when price breaks down from both the 240 and the 60. A trend ends when a high hits the 60 MA and you will no longer look to sell back into the trend.

[nanningbob]

This UT also lasts for 7 days and then goes back. You know by these definitions if your trade is in trouble and how big of trouble it is in. So even though the eur/nzd is bouncing between a high and low on a large scale range of 700 pips, you can pick up the UT/DT with that range.

You look for buys when the bar is green and sells when the first bar is red. The bars let you know what side of the trade you are on. When price hits the 60 you want to start looking for your best exit or be wary of entering more positions.

[nanningbob]

The reason I chose this chart is because it shows you many kinds of price action.
Week 1= sell bias range. The first bar will be red sometimes and goldenrod yellow at others. If price is between the 60 and 240 and price is below the 240 but higher than the 60 you will get a goldenrod color with the first bar. This shows you price is ranging or reversing. So now you need my definition of a range trade. The definition comes in two parts.
Definition 1:
If price is between the 60 MA and the 240 MA and price is below the 240 is will be an goldenrod color.
If price is between the 60 MA and the 240 MA and price is above the 240 is will be an olive color.
When you see these two colors it means price is ranging or reversing direction.

Here is a aud/usd DT that is coming to an end. The bar just turned goldenrod.

[nanningbob]

What could this be telling you.
1. price could go back down and hit a double or triple bottom.
2. price could swing down and do a 1,2,3 swing trade, head and shoulder, or some other reversal move.
3. price could range between the previous high and previous low like week 1 in the eur/nzd did.
4. price could swing up into an UT like the eur/nzd.
5. but this is your signal that the DT is ending for now.