rostaus wrote:

ronald123 wrote:

spotdespot wrote:[...]

Moving on.

I can say that I have been doing something similar to you - i.e. RSI flat - set pending trades at nearest S/R/pivot. It seems maybe we need to give the setup a bit of room and wait for the RSI to start moving away from the extreme before the trade is triggered - OR in a practical sense - don't put the pending trade too close to the price as the RSI STARTS to flatten?

I am listening with an open mind cmeade.

Cheers,
Dave.

Hi Dave. Interesting point you make here. I'm trading this 10.4 system live for the last week or so and it looks pretty good. However, of course nothing in forex is full proof: I've been trading mostly with the trend, taking retraces now and then too, but sometimes what you think is a retracement turns out to be a reversal, or your order gets triggered and then price goes the other way - the market remains unpredictable. As a side note, yes, I'm aware of 'the news', but do I always include it in my preparations? Hell no

Anyway, the point you made, about waiting for confirmation from the RSI is a very good one, in my humble opinion, 'cause sometimes the RSI stays at the extreme top/bottom for a long time, while price continues to wiggle up/down - I had pending orders triggered in those situations too, as mentioned above

I've put an extra RSI on my charts now (period 14, with a 14 MA inserted), gonna do some back testing, to find out if this makes more sense than mechanically putting in pending orders when the RSI2 tops or bottoms out. Don't wanna start complicate things - seen enough of that in other threads - but, while simple is good, over simplifying might not be...

UPDATE: I got this idea (adding a RSI with included MA) from another cute little system, called 'Forex Power Pro', from Russ Horn - it's a free one - although he uses an RSI period 10 and 10 MA, which I'm also trying out on this system now, 'cause a 14 period might be a bit slow. What I like about this is that, while it might get you in a bit late, it also prevents you from getting in too soon. Just ignore me if you feel I'm only complicating things - I'm sorry then, don't mean to.

10_4_added_rsi_14_with_ma_14.gif

10_4_added_rsi_10_with_ma_10.gif

Will keep following this thread, very interesting stuff here and you guys are just great!

Regards,

Ronald

Thanks Ronald I found that useful.

spotdespot wrote:Here's an interesting one - AUDCAD.

This is where I would excercise caution (yet again - must be old ) but the red line path is possible so if I were looking at this pair I would give myself a bit of room with the pending above the pivot.

What do people think?

Cheers,
Dave.

Gertje wrote:

cjthomson wrote:

Gertje wrote:

mjws00 wrote:I'm gonna be naughty and enter GBPNZD short here. We may waffle around 1.8400 a bit but I need a nap. Bulls don't seem to have any momentum currently and we have major resistance here. I'll add at the pivot either above or below. H1 RSI hasn't gone overbought, and may not make it on this leg. I'm comfortable. AO has turned, but that isn't the trigger. WMR2 Baby. Reject and burn south .

R1 just triggered on my chart .....

EDIT: and even the AO changed colour, so this can't go bad... right?
[although I see higher high's and low's on the H4]

Gertje - did you just get triggered into GBPNZD on a touch of the Mid Res 2 ? Just asking in an effort to try understand your thinking but is that not too early ?

No, I set a pending and when price went down to 1.8347 it triggered the pending.
Of course after that the price flew up again....

RSI[2] is flat since last night 20h00 [EU time] and PA is below 240MA -> sell
Since the pending triggered, the AO colour changed back to green again I noticed.

As far as I recall, Bob wrote that there are only TWO indications out of the possible FIVE needed to decide to enter a pending;
1. Above/ below 240MA
2a. RSI flat
2b. AO coming from below/ above '0'
2c. WP cross back into trend
2d. AO colour changes.

See a snippet from Bob's book below;

BUY TRADES BEST CASE SCENARIO.
1. When price is above the white 240 MA line on a 4H chart, you set your pending trades with the following signal(s). The signals can be used together or separately. You do not need each one to agree to set pending trades you can go with only one signal and the 240 MA line.
2. RSI 2 is flat-lined on the bottom
3. AO is below its 0 line
4. You will be crossing the WP back into the trend.
5. AO has turned to a green bar showing an UT has started.
SELL TRADES BEST CASE SCENARIO.
1. When price is below the white 240 MA line on a 4H chart, you set your pending trades with the following signal(s). The signals can be used together or separately. You do not need each one to agree to set pending trades you can go with only one signal and the 240 MA line.
2. RSI 2 is flat-lined on the top.
3. AO is above its 0 line
4. You will be crossing the WP back into the trend.
5. AO has turned to an orange bar showing a DT has started.

mjws00 wrote:

eevra wrote:

nanningbob wrote:Here is a set up trade. Price is right on the line and and the signal to buy is given with RSI 2 bottomed out. I set two pending trades. One above the pivot and on above the mid pivot. TP is WR1. It is in a possible cross position so i will remove the trade if price goes below the 240 line (white line)

Thanks a million BoB for your systems, whcih I am using for a little over a week. Seems pretty THE BEST in the world.

I am curious to know where to get the kind of indi ( RSI 2 & NT TMATrueSlopeHisto MTF ) in the bottom window which almost figures in all your posts? These are not found in the packs at Post1.
Sorry to divert your attention.
Pls respond at your convenience.Nt all that uegent. many Many thanks.

P.S . I am trying to trade NSE50 Futures from NSE ( India).

The indicators are in the packages. That is where we all got them. Please ask these questions here:
Sams Basic 10.4 Thread

sponn wrote:One quick question. According to 10.4 manual we should move SL to BE right after second (and every next one) trade opened. I have got some nice setups on last few days - with two orders opened and 90% of them (except one e/aud) were closed on BE...

I know that this way system is very stable and has got very small amount of loses but in the other hand most ot these trades were go for their TP just after (or couple of bars after) my close at BE.

Any thoughts about this ?

cmeade2 wrote:Looks like the Jpy is finally giving it up.

Not sure of the implications for 10.4 since all of the yen pairs are below their 240 MA.

mjws00 wrote:GBPNZD. Since we're all betting. I say. We tag 1.8383ish where we had serious supply 4 days ago... and this is around LO/NY high yesterday. We'll go sideways just a touch. London or NY spikes it to take some stops in or around 1.8400. Lets go with 1.8407... If the bears can't get their act together last weeks pivot is in play. I'd be selling WR2 up there all day long.

I'd give my pendings a ton of room and let them trail and come online, getting me in on a surprise spike down. If I could only have a 10 pip stop I'd long this sucker and sell into the high, where I'd reverse on weakness. But I got no crystal ball.

What do I win?

cmeade2 wrote: Which way are you thinking. I have already made a bunch of money on the way down, but that was against the rules. And I got out because it seemed kind of tired. Again, if you want to go long, I think you need to wait for some movement in the RSI(2).

cjthomson wrote:

cmeade2 wrote: Which way are you thinking. I have already made a bunch of money on the way down, but that was against the rules. And I got out because it seemed kind of tired. Again, if you want to go long, I think you need to wait for some movement in the RSI(2).

cmeade - when you say 'wait for some movement in the RSI', what exactly are you talking about and how are you using it? Are the trades you're making very short term.