11-06-2007, 01:09 AM
I found this post on the FX Egypt Forum and it looks like an interesting system.
http://fxegypt.com/forum/showthread.php?t=1119
I'm giving it a demo test at the moment. If anything it could give better targets for the chat room signals if it doesn't work out, but look back at the history it could be quite profitable.
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The River is a method based on Rob Booker's 5/13/62 which has always been popular, but with a few twists. There have been many trading this method in different ways because it works. Understanding Fibonacci and trend lines will increase your success with this method
River Trade
Currency: GBPUSD, GBPJPY
Timeframe: M15
Indicators:
1- Envelope
2- 62SMA
3- Non lagging ZIGZAG_V2
1- Create an envelope, period 62, MA method simple, at close, with 0.05 deviation.
Upper color: Blue; Lower color: Red
2- Create a 62 SMA at close, and add the levels -30, +30, --60, +60, -90, +90
MA color Black; Level color: Gray
3- Insert Non lagging ZIGZAG_V2 indicator, with price=0, length=100 and PctFilter=2.0. Use it to help set your Fibs
Entry: You should buy when the first candle forms completely (High, low and close) above the upper band (Blue) of the envelope, then enter at the beginning of the next candle or sell when it’s below the lower band (Red), with the same entry rule.
Take profit:
1- Use Fib levels, support and resistance, etc
2- Look for reversal candles and formation.
Stop loss:
1- Use Fib levels, support and resistance, etc
2- Use the other band, if you´re long, set the SL at the lower band, if you´re short set SL at the upper band
3- SL of 50-60PIPs or 5 pips below or above other band. Whatever comes first.
Currency: GBPUSD, GBPJPY
Timeframe: 15 min and for long term D1
Carry Trades
When: Use it only for long positions in high yield currencies, to take advantage of the swap rates. Ex: long position in GBPJPY.
Settings: The same as above
Enter: Buy when the first candle forms completely above the +90 level of the 62SMA, or Sell when the first candle forms completely below the -90 level of the 62SMA
Take profit:
1- Use Fib levels, support and resistance, etc
Stop loss:
1- Use Fib levels, support and resistance, etc
2- SL of is on the other side of the River
http://fxegypt.com/forum/showthread.php?t=1119
I'm giving it a demo test at the moment. If anything it could give better targets for the chat room signals if it doesn't work out, but look back at the history it could be quite profitable.
-----------------------------------------------------------------------------------------
The River is a method based on Rob Booker's 5/13/62 which has always been popular, but with a few twists. There have been many trading this method in different ways because it works. Understanding Fibonacci and trend lines will increase your success with this method
River Trade
Currency: GBPUSD, GBPJPY
Timeframe: M15
Indicators:
1- Envelope
2- 62SMA
3- Non lagging ZIGZAG_V2
1- Create an envelope, period 62, MA method simple, at close, with 0.05 deviation.
Upper color: Blue; Lower color: Red
2- Create a 62 SMA at close, and add the levels -30, +30, --60, +60, -90, +90
MA color Black; Level color: Gray
3- Insert Non lagging ZIGZAG_V2 indicator, with price=0, length=100 and PctFilter=2.0. Use it to help set your Fibs
Entry: You should buy when the first candle forms completely (High, low and close) above the upper band (Blue) of the envelope, then enter at the beginning of the next candle or sell when it’s below the lower band (Red), with the same entry rule.
Take profit:
1- Use Fib levels, support and resistance, etc
2- Look for reversal candles and formation.
Stop loss:
1- Use Fib levels, support and resistance, etc
2- Use the other band, if you´re long, set the SL at the lower band, if you´re short set SL at the upper band
3- SL of 50-60PIPs or 5 pips below or above other band. Whatever comes first.
Currency: GBPUSD, GBPJPY
Timeframe: 15 min and for long term D1
Carry Trades
When: Use it only for long positions in high yield currencies, to take advantage of the swap rates. Ex: long position in GBPJPY.
Settings: The same as above
Enter: Buy when the first candle forms completely above the +90 level of the 62SMA, or Sell when the first candle forms completely below the -90 level of the 62SMA
Take profit:
1- Use Fib levels, support and resistance, etc
Stop loss:
1- Use Fib levels, support and resistance, etc
2- SL of is on the other side of the River
