Simple Guppy Cap Reversals - MT4/MT5 Resources
This is a reversal trading system that uses the upper and lower bounds of the Upper Channel indicator to define trend exhaustion. This system has Heiken Ashi candles called APB candles that print buy and sell signals.
Trading pair: XAUUSD
Time range: 1 minute and 15 minutes. I prefer 15 minutes.
We let the price cross the upper or lower bounds of the Upper Channel indicator. Once this happens to the price, the band changes from yellow to green (see picture). Then we wait for the APB candle to change to the opposite color and print signal 1 and signal 2 (see picture). Below are the strict rules for trading.
Buying rules
1. The price crosses the lower band of the Upper Channel indicator and the lower band prints a green signal
2. The APB candle turns lime/bullish and a white circle with a dot in the center prints just below that candle (Signal 1)
3. Another smaller white dot (Signal 2) is printed in the same candle or in the next 5 candles. But there must not be any bearish candle between signal 1 and signal 2.
4. Take profit will be the middle band (1 minute) of the Upper Channel indicator and the opposite band (15 minutes).
5. The stop loss will be set below the white circle with a dot in the middle (Signal 1)
6. If the take-profit distance is lower than the stop-loss distance, do not place an order.
7. Do not trade during high-impact news events (close open trades 5 minutes before the news event and do not trade 30 minutes before the news occurs).
Other input slippage controls allow spread
Brief description of the indicator: The indicator you see on the chart was developed by GUPPY and is based on the 3, 9, 21, 51 SMA. IT prints Signal1 and Signal2 using these SMAs.
Questions are welcome.
Indicators and templates: https://www.forexfactory.com/thread/...0#post14966130
CAP channel not working? See this article: https://www.forexfactory.com/thread/...3#post14969423
Price action mechanism: https://www.forexfactory.com/thread/...2#post14969142
Trading pair: XAUUSD
Time range: 1 minute and 15 minutes. I prefer 15 minutes.
We let the price cross the upper or lower bounds of the Upper Channel indicator. Once this happens to the price, the band changes from yellow to green (see picture). Then we wait for the APB candle to change to the opposite color and print signal 1 and signal 2 (see picture). Below are the strict rules for trading.
Buying rules
1. The price crosses the lower band of the Upper Channel indicator and the lower band prints a green signal
2. The APB candle turns lime/bullish and a white circle with a dot in the center prints just below that candle (Signal 1)
3. Another smaller white dot (Signal 2) is printed in the same candle or in the next 5 candles. But there must not be any bearish candle between signal 1 and signal 2.
4. Take profit will be the middle band (1 minute) of the Upper Channel indicator and the opposite band (15 minutes).
5. The stop loss will be set below the white circle with a dot in the middle (Signal 1)
6. If the take-profit distance is lower than the stop-loss distance, do not place an order.
7. Do not trade during high-impact news events (close open trades 5 minutes before the news event and do not trade 30 minutes before the news occurs).
Other input slippage controls allow spread
Brief description of the indicator: The indicator you see on the chart was developed by GUPPY and is based on the 3, 9, 21, 51 SMA. IT prints Signal1 and Signal2 using these SMAs.
Questions are welcome.
Indicators and templates: https://www.forexfactory.com/thread/...0#post14966130
CAP channel not working? See this article: https://www.forexfactory.com/thread/...3#post14969423
Price action mechanism: https://www.forexfactory.com/thread/...2#post14969142
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