West and East | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources
Hello everyone! ! !
I wanted to share this system, I've been using it for a while and then I moved to another system, but after all I'm back to the good old system.
This system has different names like Power Band, E-75, but the origin of this system comes from Steve Nison. In his books and DVDs, you can find candlestick patterns occurring at support and resistance levels, confirming S/R. He proposes using candles with Western techniques such as Bollinger Bands and oscillators, in our case Stochastic.
I trade using the M15 time frame, you can use higher time frames but I would not use lower time frames.
For the setup I'm using:
- Bollinger Bands Standard (Period 20, Shift 0, Deviation 2, applies to closing)
-random (9,3,3)
-Resistance and support levels
- Candlestick pattern
- EMA 100, 200, 365 (moving averages are for closing)
The main idea is that we need to confirm the candlestick pattern. The confirmation is Bands, stoch and S/R. We are looking for patterns such as engulfing, piercing, dark cloud cover, star, buzzer and doji. Dojis are not reversal candles, dojis mean the market is neutral.
What we are looking for is that the candlestick pattern must be in the upper or lower Bollinger Bands, the price should cross or touch the bands, there must be S/R levels, the EMA can be support or resistance, the Stochastic is overbought, oversold, or in some cases there is a divergence, normal and not hidden.
The currencies I use are EUR/USD, GBP/USD, and AUD/USD. These currencies move almost in the same direction, especially when the US dollar moves strongly. Let's just choose a couple, which will give us a better setup. I prefer the Australian dollar when in Asia, the British pound when in Europe, and the euro when in the United States. But again we look for the best settings.
Place your order after the candle closes. We are planning 2 or 3 plots.
The stop loss must be placed above the candle or pattern, I don't have an exact stop loss amount, I set the stop loss 15-25 pips from the initial position above the candle or resistance, opposite to the buy. The powerband system offers a 10% higher spread, and the E-75 is 3-5 points higher.
The targets are the middle and lower Bollinger Bands, which is true for selling and the opposite for buying. Because we have 2 or 3 plots of land. Positions should be closed at the middle line of the Bollinger Bands, and stop losses should be moved to flat. In some cases where there is support before the intermediate level, I will close the position and move the stop loss to break even in case the market stops at that support level. The second hand should close the position below the Bollinger Band, and if the market is in trend, I will keep the third hand to make more profits.
This system works well in range markets, in trending markets you have to wait for a pullback.
When you see a strong move in the market, instead of trying to catch the bottom or top, wait until the market stops.
Regarding trading hours, I start at 6pm ET, usually I am out by 10am ET, and if there is important news in the US, I close all positions by 7am ET.
Support and resistance levels, I will find the S/R from the weekly chart to the H4 chart and place them on the chart. I have M15 and H1 R/S on the chart but when it breaks I will remove it from the chart
Risk reward is very important. When you open a position, you should look for targets, first the middle line of the Bollinger Bands, and secondly the Bollinger Bands high or low point. When you open a trade, the risk-reward risk at the middle line of the Bollinger Bands should be no less than 1:1, and the risk-reward risk at the high or low point of the Bollinger Bands should be no less than 2:1.
I give examples and place diagrams every day. I'm a full-time trader and I'm always watching the market, so I'll probably place a chart at the end of the trading day.
You can apply this system to other methods you like, such as Fibonacci levels, harmonic patterns, and others
I will upload the stochastic indicator which shows the difference with alert, hidden and normal cases and we will only look at normal cases.
I wanted to share this system, I've been using it for a while and then I moved to another system, but after all I'm back to the good old system.
This system has different names like Power Band, E-75, but the origin of this system comes from Steve Nison. In his books and DVDs, you can find candlestick patterns occurring at support and resistance levels, confirming S/R. He proposes using candles with Western techniques such as Bollinger Bands and oscillators, in our case Stochastic.
I trade using the M15 time frame, you can use higher time frames but I would not use lower time frames.
For the setup I'm using:
- Bollinger Bands Standard (Period 20, Shift 0, Deviation 2, applies to closing)
-random (9,3,3)
-Resistance and support levels
- Candlestick pattern
- EMA 100, 200, 365 (moving averages are for closing)
The main idea is that we need to confirm the candlestick pattern. The confirmation is Bands, stoch and S/R. We are looking for patterns such as engulfing, piercing, dark cloud cover, star, buzzer and doji. Dojis are not reversal candles, dojis mean the market is neutral.
What we are looking for is that the candlestick pattern must be in the upper or lower Bollinger Bands, the price should cross or touch the bands, there must be S/R levels, the EMA can be support or resistance, the Stochastic is overbought, oversold, or in some cases there is a divergence, normal and not hidden.
The currencies I use are EUR/USD, GBP/USD, and AUD/USD. These currencies move almost in the same direction, especially when the US dollar moves strongly. Let's just choose a couple, which will give us a better setup. I prefer the Australian dollar when in Asia, the British pound when in Europe, and the euro when in the United States. But again we look for the best settings.
Place your order after the candle closes. We are planning 2 or 3 plots.
The stop loss must be placed above the candle or pattern, I don't have an exact stop loss amount, I set the stop loss 15-25 pips from the initial position above the candle or resistance, opposite to the buy. The powerband system offers a 10% higher spread, and the E-75 is 3-5 points higher.
The targets are the middle and lower Bollinger Bands, which is true for selling and the opposite for buying. Because we have 2 or 3 plots of land. Positions should be closed at the middle line of the Bollinger Bands, and stop losses should be moved to flat. In some cases where there is support before the intermediate level, I will close the position and move the stop loss to break even in case the market stops at that support level. The second hand should close the position below the Bollinger Band, and if the market is in trend, I will keep the third hand to make more profits.
This system works well in range markets, in trending markets you have to wait for a pullback.
When you see a strong move in the market, instead of trying to catch the bottom or top, wait until the market stops.
Regarding trading hours, I start at 6pm ET, usually I am out by 10am ET, and if there is important news in the US, I close all positions by 7am ET.
Support and resistance levels, I will find the S/R from the weekly chart to the H4 chart and place them on the chart. I have M15 and H1 R/S on the chart but when it breaks I will remove it from the chart
Risk reward is very important. When you open a position, you should look for targets, first the middle line of the Bollinger Bands, and secondly the Bollinger Bands high or low point. When you open a trade, the risk-reward risk at the middle line of the Bollinger Bands should be no less than 1:1, and the risk-reward risk at the high or low point of the Bollinger Bands should be no less than 2:1.
I give examples and place diagrams every day. I'm a full-time trader and I'm always watching the market, so I'll probably place a chart at the end of the trading day.
You can apply this system to other methods you like, such as Fibonacci levels, harmonic patterns, and others
I will upload the stochastic indicator which shows the difference with alert, hidden and normal cases and we will only look at normal cases.
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