Hi Vahid,

I decided to post my question under this topic. My original question is below

One question, I saw from your trade analysis that, it seems that most of the time, when the price broke the support/resistance, the price pips to the next resistance/support is much smaller than the entry price to the last high/low, causing a negative risk-reward ratio. I.e (entry to stop) > (entry to price target), but yet you always maintain a profit target greater than your stop loss. Does it means that when the price stops going as what you plan for (for example, price retrace back the original broken support/resistance), you immediately close the trade to maintain a loss smaller than your original profit target?

But then again, the previous stop we chosed because if the price reached there, we are wrong. But now, we close the trade if does a retracement and not when it hit the price level when we are prove wrong. I am confused here.

I know some traders leave their stops until it is hit, some close it at the first sign of retracement due to experience, which way do you personally feel it is better? Thanks.

To make my question more specific, I am talking about trace setup where the entry happens when the price has already done a failed re-test to the old broken support/resistance and cross the previous high/low. At this point, we will put in the buy/sell stop order and place the stop at the previous low/high and the target at the next resistance/support at the same timeframe. This type of setup will produce the negative risk-reward ratio which I had talk about above. Please correct my understanding if I am wrong.


When I read my previous question, I am not clear about the question that I want to ask. I think I just want to know how can we achieve consistent profits if we


(1) Set a maximum stop greater than our expected profit, which is opposite from the books stating average reward larger than average risk.

(2) How do we manage the trade such that if that trade turns out to be a losing trade, how do we still maintain a 1:1 risk reward ratio?

I am sorry if my question is unclear, I try my best to be clear as my mind is trying to make sense of about what I read and learn from elsewhere and what I think should be right.


Wei

No, usually when we take a position, we will not touch it until it hits the stop or target.



The best way is waiting for the best and strongest signal, then taking the position and leave it to do whatever it wants to do.



I understand what you mean. We choose the positions in the way that they can hit the first target at least.




We don't do that.



We do not take the positions that their stop loss has to be bigger than profit.

Hi Vahid,


Thanks for the fast reply. Appreciate it when it is almosts 2am in Toronto.

Wei

You are welcome

Pls I need this system. fxsignals2009@gmail.com

It was posted as an attached zip early on in the thread!

dear sir,
i am olu omola from nigeria and a register member of forexoma. i will sincerely appreciate your kindness and love if you can send to me your auto surpport and resistance and auto macd divergence indicators. my e.mail address is atoluomola@yahoo.com,
i look forward to read from you soonest . thank you and God bless you the more.
regards,
olu omola

Vincent

Great work to you, I will like to have that of your support and resistance signal
forexvforce@gmail.com
thanks

I just wanted to thank Halvard and Vahid for providing inspiration for my own version of these indicators. Sorry Halvard, Trix is just not my cup of tea so I drop it. Instead I'm using multi-colored stochastic oscillators, so easy to read, especially when they form a tight pattern. I filled my chart with 4 arrow indicators, including Mac's. Check out 3 blue arrows (go long). It just triggers me to pay attention, now read candles, check trends, check position within Bollinger bands....say a prayer...LOL. I call my system Concensus....when many arrows say the same thing...better watch out! It is performing like a miracle...thanks again.

Hi DanChong.. Your system looks good, can you share it with me??

I also droped the Trix, just gave false signals..

Regards
Halvard
undforex@gmail.com

The arrows are automatically generated by 3 different indicators, enclosed. The main thing about my system is Spud's stochastic theory and it's not a plug and play...you got to learn how to use them, but they are right on the target and it is my main indicator. There is a whole thread from another forum by Spud, with full explanation...but I don't know if it is ok to post a link here. Admin/Mod, ok to post?

Hi,

I have been experimenting with the arrows and like them, however I am don't seem to be able to load multiple stochaistic indicators. Can you tell me hiow to do that please?

Thanks,

Colin

To set this up you need a 1H chart and 18 stochastic %K lines from 6 to 24...so 6,7,8,9,10,11,12,13,14,15,16,17,18, 19,20,21,22,23,24 all in one indicator window. (So each stoch is 6,3,3; 7,3,3 and so on)

Colour 6 to 13 thin blue - these are our lower time frame stochastcis and will be called LTFS (Lower Time Frame Stochastics).

Colour 14 thick red - 14 plays an important role and you'll probably see why I switched to 14,3,3 after you see this. This is our Base Stochastic and is called naturally the BS line. So when it let's us done we can say, "That dang BS line messed me up!" with all honesty.

Colour 15-24 are thin red lines and are called HTFS (Higher Time Frame Stochastics)

Hi, here is another system i´m using, this works very good for trend following )
I have to trade between the breakouts..hehe

Regards
Halvard

Hi Halvard,

Thanks for sharing your system. The indicators are lined up perfectly.

You are right. With this system and similar systems, you can trade between the support/resistance breakouts.

Hi again,

On your last screenshot, both trade setups are after a resistance breakout on the one hour chart

Hi Vahid, yes I noticed that
I think the system are working very well, if you just waite for the signals

Regards
Halvard

Hi Halvard,

Yes, it looks like a good system, but like any other system you have to wait for a trade setup. This is a general rule.

Actually the last screenshot shows two of the best and most typical trade setups. You always have to wait for something like that.

Yes you are right, and thats the hardest thing with the trading..wait and wait..hehe
But I think it can be used with your signals also, I think its good for confirming the signals??

But I have a request for you, when we are close to a breakout, can you please write the SL / TP?? you are
not always there when the breakout comes, so it would be nice for your members to know.. you can just write the
first TP, I think thats a good idea.

Regards
Halvard