A Simple System that you can Personalize:

- ALL CREDIT GOES TO TEB63 FOR PROVIDING THIS AMAZING SYSTEM -

Tools or Indicators or -Oscillators to be used on this thread

Also I have seen thread after thread die on FF
Because people add this and that and in a few week its not the same thread
Only the follow tools can be used 5 &12 EMAs and 20 RSI on our charts
- No other tools - indicators and/or -oscillators.
SDZ, Trend Lines and Support and Resistance Levels (SDL) are ok.
And also Normal Candles- no RSI Candles or trading bars.
Lets all do the same thing and its easier to see and understand
Anyone posting anything else will be banned - its the only way
Tools:
20 RSI with 45, 50 and 55 levels shown - I normally put a red line at the 50 level
EMAs - 5 and 12 closed
Standard Candles - Momentum Candles (MC)
Supply and Demand Zones (SDZ) Round Numbers (RN)
Time Frames:
Main Time Frame is the one hour - In a real strong trend I drill move down to 15 minutes chart.
But only if I miss the trade on the hour - This is still really an hour trade
Look for a good stop on Hour or the 15 Minutes Charts
Must be a strong trend on the cover chart(s) - The Four hour & Day show this with the 20 RSI on
those time frame.
Look for Targets on the 4 Hour &/or Day Charts. (Sometimes weekly)
Trading Chart - One Hour
Trend and Target Charts - Four Hour and Day (Sometimes Weekly)
Trigger charts - 15 Minutes (and Hour)
The Secrets:
1. Is to get a good RewardtoRiskRatio(RRR)
2. To do this you have to have great - S.E.T. Rules: (Stop Loss & Entry & Target)
3. Its a great Trend & Retracement System - not a Tops & Bottoms System. You want to get the
sweet spot in a trend.
Entry: for a buy : (reverse for a sell)
1. 5 EMA breaks over 12 EMA - (Retracement)
2. Price breaks over or is over the 55 Level on the 20 RSI (Trend)
3. Trade is in line with Big Trend on the Four hour & Day use the 20 RSI on these charts (Big
Picture)
4. A good Target and good Stop Loss- so a good Risk to Reward Ratio (RRR)

5. A Candle Entry that is simple to see and understand (Entry)

with the hour charts

these are the pairs I watch
the Gold pairs are best or the safest

The cooper pairs will make some very funny moves

Best times to trade

Anormallydonotstartuntil8amonMonday(onthissystem)ItradeintheNYtimezone.
(sometimeafter5ambutitsafertowait)
IwanttoseewhichwaythebigboysinLondonandEuropeseethewindblowing.
AlsojustbeforetheeuroopeningonMondaytherecanbewildmovesaspeoplereposition
Esp.afterNFP

ThenIjustcheck2or5timesadaythemoretradesIhaveonthelessIlook
Icanlookin10minuteseasyand3minutesmoreifIlooktoputtingatradeon.
AsIsaidIliveintheNYtimezoneso
Imaycheckat,
(i)IfIamuparound4amto5am9(HKD&SGDclose)
(ii)7:30amto9am(newsandFXNYopen)
(iii)Aroundnoon(LondoncloseNYLunch)
(iv)AroundNYclose(Audopen)
(v)Maybearound8pm(JPYopen)
OnMondayandTuesdayImaycheck5timesonFridayonce
Ilikebeinglightontradesovertheweekend.
(NormallyclearhousebeforeNFPFriday)

Ilike3to5winningtradesaweekwiththissystem
ItendtohavemorelosesonMondayandTuesday
InfactIhaveoftenthoughtofnottradingonMondayoratleastaftertheNYclose
I see everyone trying to figure out the market I am not sure you ever can really. But the best chance to do that is a top down system.
This System is not designed to do that for sure - its a bottom up system.
We re-act to what is going in the market and we do not anticipate it.
Look at our charts 3 or 4 times a day - less when you have trade(s) on.
Don't care what was going on yesterday or even 3 hours ago- it doesn't matter
- I wiped all my charts on Friday so on Monday I will be totally clean.
Think of this system as a dance and the market is the man or the lead and we are partner.
- the market is Fred Astaire and we are Ginger Rogers
We you do everything the market does but backwards and in high heels (LOL)
Have a great Weekend

Trade Examples

Questions & Answers

Quoting 4xplosion

Do you trade during news time or make adjustments (move sl etc)?

if I am trading on the hour not so much.
- with this system I really do not care about the news I might watch NFP - and not trade that day.
If an interest rate or national bank pres is speaking on a day esp the fed I might keep that in
mind.
most times news just lets me get in on a retest or has no effect.
The day 20 RSI filters out most of the noise of the news.

Quoting dvanderlinde

{quote} Had some fun with this last night up 70pips on EJ will post pic when
I'm home

TEB do u have a minimal RR? ~Dustin

normal at least 3 to 1 RRR + a little

Quoting Zokynho

Hello TEB63, Would like to know is this strategy advisable for Gold? Thanks
in advance

You can for sure, having said that Forex is the best trending market in the world and so this
system is better on forex.
commodities and stocks are more about SDZ and Trend lines and less about Trend.
so you can but likely not as good
cheers

1.Do you enter after candle close or right away when PA penetrate through rsi 45/55 lvl on 1h
chart?
always candle close entry
2.Do you leave trade to hit your SL or TP or sometimes you close on BE.
Normally I let it run - I may only change to B.E. if or when there is a ...

1. NFP
2. Interest rate changes or talks
3. A change in trend on the 240 minute chart
4. A war or something
other wise I normally let it run
3. DO you have some kind of alarms when PA breaks through 45/55 levels?
No I eye ball it a few times a day
4.How do you pick pairs for that week, or on daily basis?
I Eye ball all the pairs I showed before, a few times a day. I trade on this system bottom up.

Quoting ralf86

Are the 5&12 EMAS so important in this strategy? I think maybe its enough
to check the RSI crossing above 55 by closed candle. Just would like to
understand a bit better which roll the emas are playing...

The 5 & 12 EMAs are to get in on a retracement - to get a better entry.

The RSI(s) are to read the trend.
Candles are to enter.

Quoting ralf86

I dont want to drive you crazy with my questions, so im sorry for asking so
much ^^ but this is very interesting. Honestly i dont understand what you
mean with that this is a bottom up system and the other one a Top down
one. For me they are like similiar because we are looking for "the best entry
based on currency strength and best moment to enter after looking different
timeframes". Again sorry for asking stupid questions, your thread is very
helpful to me.

well its the thought process

here I look every few hours at the pairs.
and see if I get a 5 & 12 Cross on the hour.
Then I look at the trade from there...
I next look at the 4 hour then the day charts
... so Bottom up

so its ...
hour - 4 hour - day ---- Bottom up
On the currency strength we find the best pairs and watch for a trade set up
so its ...
day - 4 hour - hour ---- top down

Quoting Zokynho

{quote} Hello TEB63, Can you comment Aussie please to see your thoughts
1.On weekly basis i see double bottom and divergence on RSI 2.On Daily
there is RSI above 55 lvl,PA is really quite preparing for new push up 3.4h
chart could go up at least up to previous high and form 3 top or break
throught 4. trigger 1 hour chart preparing for new push above 55 lvl and we
can enter on good candle Would you enter in this trade or is you thing that
bull move is exausted for now? Thanks in advance... {image} {image}
{image}
You cannot know if a trade should be entered
- until you identify all your S. E. T. Rules -Esp. your Stop Loss and targets
Then you can see if you have a good RRR.
Finding good entries is easy ...finding good trades is a little harder!!

Quoting Zokynho

{quote} Understand what you mean,i still creating own MM rules but wonder
would you consider this trade on 1h chart when it show all rules on 1h chart
from post 1? Cause i see that this trade could be per rules when everything
line up but I am interested would you enter in those kind of trades from your
experianceor you would miss.In this way i could learn faster (i have
experiance not newbie but trying to get feel and thoughts from you and your
system) I personally wouldn't enter in this one but trying to see are you
trade this more mechanically...
Again the most important point is your RRR... what is your RRR on the trade.
The entry is only 1/3 of the S.E.T rules.
How can anyone judge something without all the facts. (there is not even prices on the sides of
the charts)

Also I really do not want to get into telling others what do to what to trade please take what you like from the thread and make your own trades.
Trade on a demo - trade lots on the demo - & make mistakes and learn.
You will loss almost every trade at 1st - the more you trade your winning rate will rise.
(with this system you only need to win 1 out of 4 to break even!!)
I have been playing with this system for like 8 yrs. So I know very well
BUT!!! You can not take my screen time and make it yours. you have to put in your own screen
time in.
So, on a demo take lots of trades- loss lots of demo money.
& every trade that works out or not see why and learn from it.
cheers

Quoting sirwolf

Hello TEB! Love your thread! Keep it going. I could use a little help on your
general SET rules. I always struggle on determining stop loss and TP. Can
you offer some advice or some of your general rules? The 3:1 RR is great.
Thanks in advance! SirWolf {quote}

The S.E.T. rules;

This is the learning side! The screen time side.
I look up for targets - 4 hour & day Charts
I look down for entries and stop losses - Hours and 15 minutes charts
I like - SDZ - and - Round Number- and Swings Pivots.
when I mix it all do together I want to get at least 3 to 1 RRR (I like 4 to 1 to get 3 to 1 really)
I am not sure what less to say on that.
cheers

Quoting 4xplosion

for Buy Entry rules: when confirming the 1 hour you get further confirmation
on 4hour and 1 day.... does that mean that RSI has to be broken on both
timeframes OR only on 4 hour? If it requires both timeframes to be broken,
then you are essentially entering on the 1 hour retracement......correct? And
from there you then require a 15 min retracement for entry I would
assume....

ok
(i) Hour
The RSIs have to be over the 55 on all three- hour, 4 hour and day
then we look for a retracement.
(ii) 15 Minutes
The RSIs have to be over the 55 on all four - 15 minutes, hour, 4 hour and day
then we look for a retracement on the 15 minute
I see this as still a trade on the hour chart. In fact there needs to be a set up in effect on the
hour.
And you are looking for a second buy signal on the 15 minute chart after missing a signal on the
hour.
YOU NEED A STRONG TREND IN EFFECT

Quoting bappafx

hi friends, I am new to this thread and try to understand this system, I have
some question to clear my confusion 1: in GBPJPY 15 min and 1 hour show
rsi under 45 approx. but in 4 hour and daily shows rsi above 55, so I want to
know if we get short signal 1 hr tf can I take it from 15 min or I have to wait
for 4hr,daily to coming rsi under 45 ???? 2: if rsi come above 55 in 1 hr and
15 min then can I take long entry ??? because 4hr and daily already in long in
rsi ????? waiting for answers sorry for my bad English I like this system and
try to understand...

Ok The system is really day, 4 hour and Hour - it work on those three charts and we think about
these 3 charts.
15 minute chart
the 15 minute chart really is more of an advances version - you do not need it for the system.
(i) Its an add on.
(ii) Its always an after thought.
(iii) If you have a strong trend on the main 3 charts and you missed an entry on the hour.
Then and only then do you look do you look for a re-entry on the hour by looking for a signal on
the 15 min.
(iv) An hour entry will always be safer in win rate - the 15 minute entry will always risk less money.
In fact the real trading chart is always the hour.
Weather the entry is on the hour chart or the 15 minute charts.
I hope that helps

Quoting ralf86

{quote} But what if i have RSI up on all but there was still no ema retracement? Can i go
to 15m to wait for a 15m ema retracement and enter from there?
Yes for sure that is the point of the 15 min.
All I am saying is think of it an a re-entry on the hour rather then an entry on the 15 minute.
Then your stops and target will be based on an hour chart rather then 15 minutes chart.

Quoting ralf86

{quote} Yes, then i switch to hourly as its an 1h trade. But as it takes longer
for 1h candles to go down (retracement) and go up again so we have ema
cross&enter; i just wait for that process on 15m. But then i look at higher
timeframes for targets.
Yes I think you got - but just to be clear for others
There would have to be a full enter signal on the hour already!
That would be ...
Both the 20 RSI and the 5/12 cross in place . - not just the RSI cross like in the 4 hour and day.
Then and only then do we drill down to the 15 minute chart and look for an entry - which is really a
secondary entry on the hour.
Quoting Zokynho

{quote} Hello Teb63, Is there any particular reason why you choose 5 and 12 EMA's?
Regards!
lol
You really want to know?
Well 10 years ago now two of the main entry triggers that were a rage everywhere were....
5 & 12 EMAs cross
and
5 EMA and 8 SMA cross
As the two pairings have almost the same entry place, I simply choose one.
I have used it ever since.
Both have hence gone out of favour.
I think in fact at 1st they had to do with the number of Days on a daily charting,
ie. 5 is a week etc.
Then these MA pairings were moved down to lower time charts for no real reason.
Which is were I 1st saw them and that is where I picked them up,

In fact I do not use then as an entry signal but rather as a retracement signal.
They work out to be about the same as a Stoch or CCI or other crossing tools with the same
settings
but with two advantages
1. Less boxes on the chart (just the main chart one and the box for the 20 RSI)
2. We see the EMAs inter- play with the candles then self
Very scientific reasons for them (lol) but they seen to work for me.
cheers

Quoting Zokynho

{quote} very scientific reasons for them...

lool Have question about Money

management: You have some fixed rule like 'I can be only in 3 pairs exposed if 7 gives me
entry or you will enter in all 7 pairs if you see that there are good opportunities? Regards!

I do not like more then two trades that are closely correlated.
I will normally only have one trade for the cooper list - maybe two.
But if I have trade(s) that are up 50 pips or more I may discount those trade(s)
....(I really should move those trade(s) to BE - Sometime I do sometimes I do not)
I normal do 4% per entry.
I do not like having more the 16% in - again unless some trade(s) are way in the money.

Quoting bappafx

{quote} hi , please explain me about TP, i am little bit confused about closed
trade thanks

TP is take profit when the compute closes your trade down at your profit level
I closed the other 2 trades because it is NFP
I have lost more money NFP Friday - then all most all the other days of the month put together,
so I normally close out if I think there is anything funny.
today is funny.
I would rather not take chances.
I added over 3% to this account this week I am happy with that.

Quoting ralf86

{quote} Then i think i understood something wrong. In an uptrend the EMA

retracement has to happen on 1h? i though i could enter from 15m ema

retracement if i dont see 1h retracement. Because if move is very strongon

1h the emas are not making retracement (they "separate"). Thats why i
moved to 15m to look for retracement. Ill be glad if you clear this point as
its very important. Sorry for inconvinienve. I read whole thread many times
but understood this like this.

I think you have it now.

but no you never enter on the 15 minute chart unless you missed an entry on the hour.
that is why I said
- do not see your self ever trading on the 15 minute chart rather only the hour.
- the 15 minute entry is still an hour entry
The EMAs on the hour will likely close a little - not always.
But you must still be in a clear trend.
Its best to get in on the 1st retracement on the 15 minute chart
after the entry signal on the hour chart by the way.
That's it for we for the week.
I hoped it was helpful to everyone
I am starting a mini vacation and next week back to my normal weeks
cheers

Quoting bappafx

{quote} i mean we not get daily entry with it in one pair, right ?? i have to
wait for complete all conditions to take trade, sometimes i have to wait 2-3
days to get perfect entry ,right ?? hope you understand sorry for to many
questions
well yes we have to wait for all the conditions always or we have no edge.
Again you are trying to anticipate a trade on one pair or maybe a few pairs.
It does work that way, you can go weeks and not trade a pair.
ie
the eurchf is a bad pair to trade it can snake for months in chop.
other pairs
like the eurusd or the audusd you can likely take a trade 1/2 the days.
you have to see what the market gives and take that only
you do not need a lot of trade to make a lot of pips
just a few good ones - I took 5 trades that is a great number for a week.
normally more trades means
(1) more loses - and that happens! Losing trades last a short time so you end up with more
trades-.

(2) your trades are highly correlated which is like taking the same trade 2 times - good if you win
not so good if you lose.

Quoting Zokynho

{quote} Hy Teb63, What is your winning % on trades...I know this is very

individual but just curios as you working with this strategy long time and
have good understanding? Regards
lol
Well some times really good- like this week sometimes not.
- but at 3 to 1 RRR it always works out ok for me.
- I think you as a new person should be shooting for a 50% win rate.
To be clear if all the trades were the same 100 pips SL
Then at 50% win
2 loses @ 100 pips = 200 pips (loss)
2 wins @ 300 pips = 600 pips (Win)
A total winning of = 400 pips (Win)
Quoting bappafx

{quote} thanks for explain it, bdw i like to trade in jpy pairs only, audjpy,eurjpy and
gbpjpy is on my target, i was backtest with this three pairs and yes these results are
amazing with this pairs. waiting for monday. and also i am agree with you that we have to
see what market want to say , because market never care anyone, its going with his
rules, we have to understand what market want, we all know that trend is our friend .

you may be to small in what you are looking at

the pound and eur are very close
the aud is quite different of coarse
and of the majors for any trend system the JPY is the hardest pairs to trade
go for 3 to 1 RRR for sure as you will have lots of stop outs
good luck

Quoting dvanderlinde

Would you advise this system at all for say 1 hour, 30 min as trend and 5
min entry? during certain sessions? Lemme know

the 30 and 60 not big enough difference.

try 2 hour (4 hour if you only have it) 30 min and 5 min
only 3am to 11am EST you might get away.

but do 3 to 1 RRR
because you will be stopped out in the crazy time lol 5pm to 7pm EST

Quoting smilee89

Can someone please explain me that: If RSI is above 55 at Daily + 4h + 1H,

what is the unique strategy for long in this thread? One can enter a trade at
any point when these 3 conditions are met and be in profit as long as R:R is
good. Correct me if I'm wrong.
you can lose for sure if all you are doing is entering with three trends calls on the RSI with Good
RRR
The MAs may not be in line with the RSI are at all.
I have always said finding a good entry is rather easy finding a good trade is not

Quoting maadz

Hello Teb, Thank you for your efforts. According to your minimal and clean
charts you use, What about using RSI indi in mtf, so we can use only one
chart for pair H1 of M15 instead of 3 charts (H1, 4H, and D1) for each pair?
Post: http://codebase.mql4.com/8938 Video:
http://www.youtube.com/watch?v=CqGZT-TXCnw{file} {image}
thanks for all your hard work on this!
I do not do MT4
This might be good as a screening things.
I think there is great value in seeing all the charts.
After a wail you can look at say a day chart.
and you can see that price is below the "45 level"
but its snaking up and down and so the trade maybe just ok
etc

Quoting HelpMe

Imo i think this system is fantastic, but i think it could be further improved by
having some exit rules. I understand Tebs has mention that he does it by
having a good R:R and also based on some resistance levels, but i believe
R:R are not set in stone and we cant always expect to win a 100 pips just
because we are risking 50 pips. Rather that putting it that way, why not
have some method/indicator to measure when the trend is going to stop for

a while and perhaps doing a pullback so we can take some profits too just
incase the trend reverse. Or...
For sure find the exit rules that work for you!
But I never said nor would I never say I have to look for a 100 pips target for 50 pips stop to
trade
(1st in a trend system that RRR will likely lose over time - because of spread and slippage.. and
Stop running)
Rather I see what is the stop to entry - then what is the entry to target and will that give me a
good RRR
I would not force the trade - if its not there I would not take the trade
that is why I say its easy to find good entries its hard to find good trades
also I personally do not really work with resistance or support levels

Quoting lucariga

Hi guys and great system TEB

I'm backtesting a bit, I've a doubt and
don't think (and hope) wasn't asked already. If : - I have a good cross on
1H - I watch 4H and RSI is above 55 so no problem - I watch Daily and RSI
is above 55 on this candle at this time, but the last Daily candle was in CHOP
ZONE Should I wait for a Daily candle to CLOSE above RSI 55 or should I
take the trade immediately and take the risk of a daily close in CHOP ZONE?
I've seen we've already talked about the candle close, but it was referred to
the 1H candle. What...
well yes and no.. (lol) this might be a bit strange
I do want the candle to be closed
on the 4 hour candle chart always
on the day chart I have a silly little rule - (because Oanda closes at mid-night)
So I call between 4 pm and 5 pm (the NY Close) as the close and not Mid night.
(but it would be safest to wait.)
so my closed candle keeps moving.
but I always want at least a 1/3 of the candle 1st candle over the 5ema.
But to be honest you do not need to be in a hurry
as there will be lots of entries - re-entries -re-tests and Limit Orders

Quoting piprac

Is a 1H cross as good as a resumption of the trend after a pullback?

Assuming of course that the rsi on the 4H & D. comply. p.
J
the cross is the resumption of a trend after a pullback - that is kind of the point

Quoting arlucad

Which candelstick patterns you look most? And trade you fulltime? Thanks:-)
I trade when I like
candle patterns mostly Momentum patterns - ie. best outside Candles- rail way - pins

Quoting ralf86

Hmmmm so i just learned something new now. I didnt know that the EMA
retracement in 1h could have happened BEFORE than the RSI`s under 45. As
i see in first example, there was an EMA retracement on 1h and after that
the 1h RSI also went under 45. I thought i ahve to look for the RSI`s first
and then wait for retracement after that...

it doesn't really matter .

But be careful that the two are not to far away,
its safer that the RSI crosses 1st - remember its the long term

Quoting Macdon

{quote} Hi TEB63. You trade the 1HR and drop down to the 15MIN. What
timeframes would you recommend dropping down to if you were to trade
on DAILY or 4HR timeframes? I would assume 4HR for the DAILY and 1HR
for the 4HR, but then do you recommend still dropping down further into
lower timeframes? Thanks.
I would never trade this on anything less then 60 mins - the 15 min is still an hour trade.
as to day and 4 hour charts I would concur

Quoting ralf86

Today i see some pairs (as AUD/CAD) that have retracement, RSI's on
upper side and everything where it should be to enter a trade. However, a
question appears to me. How do we manage this system in relation to S&D
Zones and RNs? Because I see a possible long trade but near a supply zone
and i also see a long that just crossed a RN... Or does this system NOT take
into account this SD & RN?
only trade if you see a good target that will give you a good RRR
if you have a Stopping SDZ look at your stop
the stop have to make since to the Target
RN are secondary to SDZ

Quoting ralf86

Ok. So i better dont take the trade as i got SDZ and RN too near (no good
RRR). Thanks TEB
yes but it matters what chart your target is coming from
ie. your target is from the day chart
and you have stopping SDZ on the hour
if your stop loss is beyond where price is likely to go back to on the hour
you might take the trade if you can get good RRR.

Quoting 12hrman

TEB63 After you are in a trade are you adding to your positions after any
bounce off the 55 or the 45 level?
sure if I can get good RRR
and I am not over my % rules

Quoting TheDDReport

TEB63 how would you manage a trade like this? Would you exit after seeing
such a strong bullish reverse candle? would you exit because RSI crossed
back above 45? I got short @ the yellow arrow once RSI crossed below 45
and how is my stop placement? If this a good area to place it or I am asking
for it to get hit here? thanks in advancee. {image}
if this is the smallest time frame of the 3 charts no I would let it ride
if its one of the others two then I would
cheers