The Power of W

This system, might not be called a system.

This system came about since yesterday.

Take a look at the pictures on my 2 trades today.

My trade is mainly 10pips TP, 20pips stop loss

So far, I still do not know when is a good entry.. Just goes in based on guts feeling.....

Confirmed exit is 10pips TP.

All indicators you see in the images, i still have not used it... in this 2 trades which u see below...

Everything is really based on guts feeling...

The First one is EU in M5

http://i49.tinypic.com/2qx3q6q.jpg

This one is very lucky.. Once I got my TP 10pips, it crash down... I got in in the yellow vertical lines.

The 2nd One is UJ

I have 2 pictures for it.. 1 in M5. 2nd One is in M15

http://i46.tinypic.com/351eo45.jpg

http://i45.tinypic.com/jzwcad.jpg

Still testing & finding ways to improve it....

But 1 thing I can confirm... The bigger the time frame if u see a W.... the more pips u can gain....

Test it at yr own risk. Me too...

Edit on 21st jan 2010:

I have change the pictures.... Without the indicators.... as i am not using any indicators. It causes too much confusion.

Re: The Power of W

I dont realy understand what chankle is trying to do.

where is the sistem?

Re: The Power of W

@Chankl78,

Thanks for sharing the system and screenshots. What indicator is the big blue arrows on the chart window?

Re: The Power of W

this system need to have very high win rate. yr SL is bigger than TP

Re: The Power of W

So were do we download this system

Re: The Power of W

Actually, I am solely using price action......

For the indicators, u see in the screen shot, I still yet to in corporated into this system.

I will send out my template in a while.

Thanks for reading.

-- 21 Jan 2010, 08:24 --

chetachukwu,

Maybe you r right.. I am still not sure what I am trying to do...

But, I am trying to find a good way to trade W.

It is like when are the prices start to form the "W" word as u can see in the picture...

Maybe, I should get some image editor to draw out the W.

Will come out with a indicator free image. Sorry for the confusion.

Think will also replace the above image without the indicator.

-- 21 Jan 2010, 11:10 --

Just updated all my pictures.

hope it is clear. But anyway, like I say in 1st post, i still yet to come out a system out of it.. Purely price action..

Please help me to find a good system out of it..

First, I will try to put in yarman indicator & sandee Fip_Line indicator. See if it fit nicely into this W system for entering the trade.

Wish myself luck.

Enjoy.

-- 21 Jan 2010, 11:11 --

lerxst,

The big blue arrow is from sidus indicator.

It has super high repaint rate. So, I am not using it anymore.

Just taken it out of my template.

-- 21 Jan 2010, 17:14 --

http://i45.tinypic.com/2hgaiqb.jpg

Saw this inverted "W"

This one is 1 tip lower than the other.

Got my 10pips....

Now, I am using saendee FIP_Line as my guide.....

look for the most beautiful W & then just whack it...

-- 21 Jan 2010, 19:58 --

http://i46.tinypic.com/1zcpbuc.jpg

I got another trade in UY.

Seems getting better.

So far, I am trading with the trend....

I think I can incorporate Yarman's indicator inside...

Seems very matching & always in line with the indicator.

Target... 20 straight wins starting from last trade.

Re: The Power of W

Your Idea i quite unique.

This the type of strategy system marketers will like to sell out to people. you know what i mean...

:geek:

Re: The Power of W

I think this is basically taking the breakout of previous high. If the 2. swing low of W is higher than 1st we can call it a 1-2-3 formation where 1 is the 1st swing low of W 2 is the swing high in the middle and 3 is the 2. swing low. If 3 is higher (around 50% or higher than 61.8% of 1-2 distance) than you have a good chance, that the next momentum will be enough to have a full height swing, which is the length of 1-2 leg measured from point 3 as a take profit. In ranging market this is very dangerous, you have a higher chance to have a big correction at the edge of the range.

I think if it is ranging than better sell at the top and buy on bottom. If breaks out from range put stoploss above/under 1.23 ratio of the range. If broken out upwards, buy on when the upper border of the range holds as support (price turns back to test (touch) the top of range). Many traders buy here. stoploss under last swing low (testing of support). 1st takeprofit is the hight of ranging or other fib level.

Re: The Power of W

U mean I can come out a system & sell it??

Haha,... i not good at it in that.... I am a bad salesman

Think it will be good to leave it here free to everyone...

-- 21 Jan 2010, 22:14 --

kopaszn,

oh I see... Think I need to refine it will some indicators for ranging...

So that I will not go into loses..

Some of the image is really barely make it for 10pips...

Re: The Power of W

practically you see if it is ranging or not no need for indicator. You watch for the V in the W on bottom and top as well. if you can draw a nearly horizontal line on bottoms or tops - so no new higher low or lower high out of that range, than there is no trend on that timeframe. The Vs can be smaller and smaller so you see a triangle, which is a form of consolidation - many trader trades these breakouts. Until it breaks out of this range you consider it ranging whether it is in the upper or lower part of the range. when it breaks above or under the range, you still have a chance of a false breakout (price goes back to the range). That is why it is not advisable to take simply the breakout as there are many false ones, and price shoots back to range even worse many times breaks out on the other side and you collect a huge drawdown without proper stoploss. You have to wait what happens to price after breakout. If it stays above the range, you have a chance that it will start to move againaway from range and start a trend for a while in that direction (higher chance for a longer trend is when the break out is in the same direction as the trend before the range). If price starts to come back to the range, but in the example of an upper brake it stops at the border of the range (actually the line you drove above the range) or just touches it a little (may be a little hasitation of the price) then this is the moment when it will form higher lows and higher highs (uptrend).

-- 21 Jan 2010, 22:13 --

I made a picture for you how I read the USDJPY (and would have bought the market twice and sell the after false breakout). This is during the same time of your last USDJPY trade, I changed it to 1M timeframe to see price action better. A lot of trader scalp in the range, but needs lots of practice and very fast reaction.

This shows how uptrend goes into ranging, and breakout aginst the main trend.

OF course it is much harder to see this how it unfolds, but basically this should be seen live as price goes ahead and do everything on time.

http://i47.tinypic.com/256vllv.jpg

Re: The Power of W

kopaszn,

Thanks so much for the insight. I think it will take me sometimes to master it.

I think I am also belong to the newbies type... As described in your picture, I might really goes into this trade if I see this "W"

Just now, I got into this trade...& got out with 10pips.. Maybe this is also luck...

Think really need to look into this Power of W..... If not might really screwed up one day.

Or this W is not suitable for M1 timeframe cos it changes too fast?

http://i50.tinypic.com/29aqo5.jpg

Re: The Power of W

As the retracements are very steep, probably I would take more 50% of lots out as it reaches previous swing low, and watch for price action whether there is a stronger bullish power on the market.

http://i45.tinypic.com/2gtwup3.jpg

Re: The Power of W

http://i48.tinypic.com/dbla43.jpg

At the Blue circle, is it where u enter trade?

So you set a sell stop (or limit stop or whatever they call it)?

Do you using trade in M1?

What is the 2 Red vertical lines means?

There is a Red down arrow... Does it means that once it break the triangle, you will enter trade?

Sorry for asking so many questions. Trying to learn & gain as much knowledge as possible from expert.

Thanks

Re: The Power of W

no, actually it was your trade, just didnt write there anything. It is a resistance level, you traded the upward breakout, can be, but look for very fast trade and sudden movement against you. My entry would have been, on the other side at red arrow. Probably a sell stop would have been good, and would have done it when saw the breakout to be false.

if new swing doesnt want to be much lower, tighten up stoplosses or close part of trade. We are around the end of the the 4H timeframe breakout, so we have to be cautious, as here lots of trader close sell order (looks buy).

http://i46.tinypic.com/x0z81s.jpg

-- 21 Jan 2010, 23:20 --

I would be all out now, on the lower support line or at my last stoploss

http://i45.tinypic.com/2s992wz.jpg

-- 21 Jan 2010, 23:23 --

that last massive bullish movement looks a reversal. We can enter later with a sell at the end of the retracement.

-- 21 Jan 2010, 23:33 --

We can see that on 1H timeframe our earlier bearish targets are already reached, still bearish senerio but sooner or later there will be a bigger bullish correction, so watch sells closely

Chart:

http://i46.tinypic.com/312g5s9.jpg

Re: The Power of W

Thanks so much...

It is too late in the night now (1am soon).

I will analysis it tomolo morning...

Thanks for your explanation. I feel I gain a lot thru this session.

Re: The Power of W

This is why you have to read price action, and see wther market is around destination, and struggeling to move further. You dont want to see this with your sell order --> use stoploss. Market realized, that cant make a lower low, after making a higher high. Closing a lot of sell trades here (the ones looking at 1H or 4H timeframe as well). Now it is sure it will be a decent retracement with a short term bullish trend.

http://i48.tinypic.com/fv8gsp.jpg

-- 22 Jan 2010, 00:25 --

http://i48.tinypic.com/dbla43.jpg

 

So you set a sell stop (or limit stop or whatever they call it)?

you can use all order type: if you have feeling that price moves down, and you want to enter the trade but not late, you use sell stop, if you feel that newer lows are getting harder to reach for the market, you can put a takeprofit (like I draw the lower pink line where there is resistance - if market reverse, these levels just touch for a short moment, you dont have time to close trade on those levels, and it is statistically profitable to close on takeprofit than on stoploss, but can be too early as well if you think the market is exhausted but in reality it isnt, if you just want to close out partially on takeprofit you can set a buy limit at the level of takeprofit for a fraction of your sell order, and close out the buy and same amount of sell order later when market slows down, I would use sell and buy limit - price is under/above your future sell level) in ranging as well, and with a preset tight stoploss

 

Do you using trade in M1?

no, you have to draw all timeframes, of course there are overlaping, start on monthly, and go to smaller, use different colors on different timeframes fro trendlines, when you go to smaller TF adjust the lines as MT4 usually puts them not so precisely

What is the 2 Red vertical lines means?

Do oyu mean the pink? The wide one? It is the same copy (ctrl-left mouse click on original) of the first one, and shows the heights of the triangle(from the first highest retracement to the bottom) of the first one - gives your estimate target for triangles and ranges

There is a Red down arrow... Does it means that once it break the triangle, you will enter trade?

yes it broke, and it broke both of the trendlines, these things happen very fast - that is the reason to enter here with sell stop, with preset stoploss above the false breakout or if you are more aggressive above the resistance - on the level where you entered a buy previously

Sorry for asking so many questions. Trying to learn & gain as much knowledge as possible from expert.

Thanks

-- 22 Jan 2010, 00:36 --

 

At the Blue circle, is it where u enter trade?

So you set a sell stop (or limit stop or whatever they call it)?

These are the other 4 types of orders int metatrader:

http://i47.tinypic.com/2i6zuo.jpg

Re: The Power of W

So for your orders, how many pips will set away from your trendlines?

Basing from your images you post, it is like around 5pips..

I will try today drawing trendlines. See if I am really understand it.

Re: The Power of W

trendlinea , support & resistance lines, 5pips is not exact, just it should be lower than.

look for james1*6Group in indo, they have a lot of talking about price action.

Re: The Power of W

trendlinea , support & resistance lines, 5pips is not exact, just it should be lower than.

look for james1*6Group in indo, they have a lot of talking about price action.

Thanks.. I will look at it...

Just now, I got another 10pips looking at W only...

But, I am using Seandee Fip Line to goes in in M1...

After got 10pips, it immediately bombed...

I think I must learned your method fast. Quite Safe also.. Will read into James 1*6 Group now.

Thanks

http://i50.tinypic.com/282oy76.jpg

-- 22 Jan 2010, 16:19 --

kopaszn,

Are you using the indicator in that tread?

http://indo-investasi.com/viewtopic.php?f=19&t=2063&start=0

Is it useful?

Re: The Power of W

I caught your message before it is been deleted away. Not to worry.

Very interesting. Looks like I need to study more..

But it is quite difficult as I still need to work....

So very difficult to find time to work & at the same time trade.

Anyway... Will work towards my goal to have consistent monthly profits.

Re: The Power of W

that is perfect:

work, and trade on daily and weekly timeframes, the bars that are mentioned here and deleted.

get the knowledge, and if you are constantly profitable for 6 months, can go to lower timeframe.

But please read the recommended thing:). I can PM you the link if you want.

Re: The Power of W

Thanks.. I have received the link .... I will read on it..

Indeed most of the times, My trades are killed because of lagging indicator..

So that's y I always feel my entry is always so bad.

Hope from that link, I can learned something out of it.

I am now relooking at all the explanation u send to me. Hope to master some of it from now. Especially drawing of trendlines.

Just got another trade exactly at the same spot.....

http://i49.tinypic.com/xpy4pe.jpg

-- 22 Jan 2010, 21:47 --

http://i46.tinypic.com/2qav2hj.jpg

This time, I went in a bit early when it going up to form the w....

Think this is the 6th straight win....

14 more to go...

-- 22 Jan 2010, 23:18 --

http://i45.tinypic.com/2eat8c6.jpg

This is the 2nd time, I enter the trade while forming the last side of W.

Another win...

This is because adopting what I have learned today from kopaszn... but in M5...

Buy at lowest, sell at high. Hope I apply correctly..

it is 7th... Can last until 20th??

I hope.

-- 24 Jan 2010, 01:23 --

that is perfect:

work, and trade on daily and weekly timeframes, the bars that are mentioned here and deleted.

get the knowledge, and if you are constantly profitable for 6 months, can go to lower timeframe.

But please read the recommended thing:). I can PM you the link if you want.

kopaszn,

Thanks for letting me know about the pinbar. I will start learning it.

Below is what i found from the link u send to me... Very good material.

Will try trading it also...

Good luck to all who going to try this.

http://[email protected]/file/205232801/715ed54f/PinBars.html

-- 25 Jan 2010, 19:15 --

http://i47.tinypic.com/ankhtj.jpg

Wowow..

My W theory is working.....

8th Straight Wins. I am looking forward to see if can get 20 straight wins

Again, I enter the trade forming on the / of W.

This time, I did set Quik Setting so that's y instead of 10pips, I got I think 28pips....

TP = 50pips

SL = 20pips

LockPips = 10pips

SetBreakEvenAt = 10pips

TrailingStepAt = 10pips

Steps = 3pips.

-- 26 Jan 2010, 09:20 --

http://i50.tinypic.com/2hrkgzo.jpg

Yesterday, I am trying on timeframe M15.

It is a very long trade & I close it in 1pip profit manually.

Will not consider this as my 9th Straight wins as it is not significant win.

Just to tried out if it can works in other timeframe.

I think after analyse.... Higher timeframe needs higher stop loss.

I shifted my stop loss from 20pips to 50pips....

It went all the way down to 46pips before it went up & i close it in 1 pip profit.

This is my first experience in higher timeframe... Will not tried it again soon..

Haha.. So I think I better stick to M5 which I am very comfortable.

-- 26 Jan 2010, 17:24 --

http://i47.tinypic.com/2u4jvup.jpg

I saw a the green bar which is in the picture.

So I just went in without hesitation. & got a 4pips. Cos stop out by my trail loss.

Nothing related to W....

But wondering if this is a pin bar..... If someone kind enough to explain.

Still No sign of W as of now...

-- 28 Jan 2010, 22:09 --

http://i47.tinypic.com/2ih46so.jpg

A few reason why I went into this EY trade.

1) Saw a pin bar in M5, I have circle in blue

2) My fib indicator on the right. It is at very nice 4 Hourly Short

3) My Fip_Line, It had change to red colour.

4) Guts Feeling

So in the end, I got a 50pips out of it.

Immediately I went into this trade, I saw another one in EU.

http://i48.tinypic.com/nlcxva.jpg

A few reason too.

1) Saw 2 pin bars in M5. I have circle it also.

2) My fib indicator on the right. It is at very nice 4 Hourly Short position too

3) My Fip_Line is in red colour

4) Also Guts Feeling.

In the end, I was stop out by trailing stop using quik trailing.

Anyway. This is my 4th trade & 5th trade. Loss a trade today.. Around 12pips.

Still working on Price Action Trading. Learning & learning.......

Re: The Power of W

Chankl78,

I think you got it now, keep working, you had nice trades!

Re: The Power of W

U mean I can come out a system & sell it??

 

Haha,... i not good at it in that.... I am a bad salesman

 

Think it will be good to leave it here free to everyone...

 

You missunderstood my point.

are you crazy :))

what i meant was... marketers would luv to peek on this your unique idea and make it commercial, sure we will strip them naked.

Re: The Power of W

It looks like you've discovered Elliot Waves or Wolfe Waves :). I fail to understand how what you're pointing out would be something innovative