AckelSystem | Foreign exchange indicator download-MT4/MT5 resources-MetaTrader 5 resources

AckelSystem v.5.1
by Alex Michael

Introduction <br> Hello everyone!
I started writing this post on July 15, 2013, to explain my system - the AckelSystem - and share my thoughts on Forex trading.
I have had very good results using this trend following system. Of course, I still have a lot to improve and learn.
Because I am learning every day, this system can (and will) continue to evolve to reflect my findings. I hope the ideas I share here are useful to someone.

General advice <br> Use two timeframes, one for filtering trades and another for entries. Stay away from the news and the period between the end of the New York session and the opening of the Tokyo session. Test the system on a demo account. Foreign exchange involves significant risks.

index
1) Candle or gold bar. You can also use Heiken Ashi with the usual bars above it so you get the smoothing effect of HA and using the bars I can track price action signals.
2) Moving averages: SMA 3 closing price, SMA 3 opening price, EMA 20 closing price, EMA 40 closing price, EMA 110 closing price, EMA 200 closing price.
3) MACD 6,13,4 3 levels. MACD must be below the sell level and above the buy level.

Comment chart

See picture above.

1 - EMA 110 and 200 represent the long term.
2 - EMA 20 and 40 represent the medium term.
3 & 4 - SMA 3 (Close and Open) along with MACD crossing the signal line give the short term outlook. The MACD also gives strength and momentum, indicating how horizontal and sloping its lines are.
5 - The AckelSystemArrows indicator (colored arrows) shows when the signal first occurred.
6 - Another indicator, AckelSystemSignals, shows the entire progress of each signal with colored bars in a separate window.

The system is designed to protect funds. You can see the stages of the trade in the 4 rectangles of this chart:

1. In the first stage ( 7 ), we are in an uptrend. Trading is low risk, but you need to get the timing right to enter each trade correctly. Trends are your friend because impulses are bigger than corrections.
2. In the next stage ( 8 ), I do not trade this currency pair. There are many other trading opportunities, and this is the most dangerous time to trade. You don't know if the market is correcting or if it's going to completely reverse. Less predictable. EMA 20 is below EMA 40 but above EMA 110.
3. Trading can take place in the next stage ( 9 ). If there is a partial adjustment, then you can continue but consider risking less, such as 1% of your capital instead of the regular 2%.
4. In the last phase ( 10 ) we are in a downtrend, all EMAs are aligned and we are once again in our preferred environment.

How it works (Bearish example in trending markets)
1) Alignment with higher time frames (EMA 20 < EMA110 && EMA200).
2) To the right of market sentiment at a given time (price < EMA 20; MACD < 0).
3) Follow the trend (EMA aligns and slopes downward).
4) Identify opportunities to enter and exit the market (SMA and MACD cross the trend direction; MACD < sell level to enter a sell order).
5) Identify the most profitable opportunities (SMA close to EMA20, MACD close to 0, EMA20 close to EMA110).
6) Signal: When a candle shows strength near the SMA, it is a signal candle. Sometimes I will enter a sell when a candle or series of candles shows rejection of overhead resistance (the upper shadow). Trendline breakouts (at the end of a correction, resuming the trend) are also common events here.
7) Trigger: After the signal candle closes, the entry candle opens near the SMA 3 closing price, and the signal candle breaks out.
Stop loss can be placed above the signal candle or above the entry candle. On M5 charts, this is usually 70 to 100 pips (7 to 10 pips). In the M30 chart, it is around 200 pips (20 pips). But please pay attention to the support/resistance levels. Don’t blindly set a fixed stop loss just because you’re used to the “X” value.

NOTE: This system does not operate blindly. You have to apply your experience to see results. Understanding price action, support and resistance levels, and market structure is crucial.

Trading based on divergence <br> When the market is overextended and there is divergence between price and MACD, I can trade against the trend, like in posts #257 and #270.

About fund management and batches <br> Every trader should use a stop loss on every trade to limit the total risk on the account. It is generally recommended that the risk should not exceed 2% of the account at a time.
If you have $1,000, you should risk up to $20 each time. I said "every time," not "every transaction." So if you have two open trades, your risk on each trade should be 1% or $10.
Then you have an entry setup. For a risk of $20, what should your investment size be?
If your entry setup requires a stop loss of 200 pips (20 pips), then divide $20 by 200 and you have 0.1 lot. If your stop loss is 400 pips, do 20 USD/400 = 0.05 lots.

My exclusive indicator <br> Note: The use of these indicators is optional. Please do not ask me for .mt4 files. The .ex4 file is at the end of this article.

1) AckelSystemPanel - with market information, signal monitor and main signal alarm. It also plots the previous day's high and low.
2) AckelSystemSignal - main signal alarm relative to each bar in a separate window .
3) AckelSystemArrows - displays the entry column for each trade.
4) AckelSystemMACD - a custom MACD configured specifically for this system. Automatically plot levels for currency pairs and time frames.
5) AckelSystemHA - Customized by Heiken Ashi.
6) AckelSystemSR - shows certain support and resistance levels for H1, H4, D1, W1 and MN time frames.
7) AckelSystemRainbow - Displays multiple MAs just to visually reinforce the role of the main MA.

Final words <br> I hope this system works for you. Please leave your comments and impressions about the system and ideas on how to improve it.
It works great for me, but I'm always open to learning and improving my trading.
I wish you all success and peace.

Where to go from here <br> I started this topic (July 15, 2013) using a system based on Bollinger Bands and EMA50 in the main window and applying Bollinger Bands and SMA8 for RSI in a separate window. I don't use these indicators anymore. As I've said from the beginning, systems will evolve, and they do. August 15, 2013 (Post #117) I started adding larger EMAs to give me a wider view of the market, which gradually became a key aspect of the system. On December 7, 2014 (Post #179) I announced version 4 of this system, when I abandoned Bollinger Bands and adopted MACD instead of RSI.

Due to these changes, you can continue post #209 after this initial post. Older posts are optional reading.

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