This is a compilation of the comments made in the 10.4 thread as we developed 10.6.

Even though some of what you read here was not put into the final edition it still is valuable teaching. This was an enormous work by JFonseca to copy, compile, and edit this material. JFonseca should be greatly thanked. Enjoy reading the thoughts and comments of my friends in the Forex trading world. One more point I often make the mistake of saying DO when I mean DP daily pivot. I hope you can forgive my transgression. NanningBob November 24, 2013 Here are STO7 and xx.00 lines. You could just trade this and probably be successful. Simple and straight forward, enter below the line and SL above. Follow price action until STO7 tells you there is a reversal or a candle pattern tells you there is a reversal. Just some thoughts on where this could go. But for a start I will use 10.6 put trade 10 pips above the line and a SL 10 pips below the line and go for 80 pips. A 4:1 trade ratio. If you get close to 50/50 on your trades you are profitable. Just a thought. Attachments

Looks like these greens are buy areas blues are sell areas. Just play from line to line because there should be more winners than losers. Use Steve's MPTM to protect you from reversals or the Jump EA.

One little note just in case: if your symbols dont have the exact same name as Bobs broker (i.e.: AUDCADm) profile wont load properly, in order to fix this youll have to edit with your platform closed each .chr file with the symbol name as shown in your broker (in my case was just without the m) and voila, profile with all pairs will open fine after that, I know this will be obvious for many but perhaps for not everyone; just trying to help a bit... The last post on page 662 asked a key question. Would I take this trade? I think I used 2 or 3 posts to answer the question and will give the simple basics if you read the manuals which get into the meat of the system. Just remember that STO7 replaces what the RSI2 and CSS did on the individual charts. The INFO page reads remain the same. Instead of Weekly Support and Resistance areas we now use the xxx.00 lines along with Weekly Pivot and Daily pivot to enter the trade with the STO 7 signal. The STO 7 will tell you if the signal is a trend signal or counter trend signal. The 60 MA gives you a reference point of about where reentering the trends should take place. That is it in a very short nutshell. Here is an example of a potential trade setting up. USD/JPY. 1. Price is above the 240 line 2. Price could be crossing back up past the xxx.00 blue line and MA60 3. STO 7 is pinning on the bottom and we are waiting its signal to go back up.

The new daily pivot will be lower at jpy market open. We can look for a cross back up into the trend and use the blue or new DP as our entrance back up into the UT. So this is an upcoming potential 10.6 trade. It is fun to see these develop. You have time to watch the signals and price action. OR it could continue its reversal back below the 240 line and no trade.

Also you can see on the previous candle a huge pin on the 4H candle which may be a reversal signal. You will see similar signals on the usd/chf and usd/cad if price goes back above the 240 line.

Eur/usd is just the opposite and shows a potential sell trade into the new DT. 1. Price has crossed below the 240 2. Look for price to possibly retrace back to the 60 3. Price action will probably be just above the new DP on market open. 4. STO 7 is pinning high so we wait on its signal to enter into the DT.

Eur/jpy has been ranging for several weeks now crossing back and forth over and back on the 240 line. You can play these going from line to line and with the clear STO7 signals or at least try. These are the kind of trades you want to use the MPTM and bring your SL up so you dont get whiplashed.

Gbp/cad UT seems to be over but with the Syria thing coming down this week it probably along with other pairs range until a final decision is made. But ignoring the news the trade could look like this. 1. above 240 line looking to buy 2. Retraced inside the 60 and DP will be above the price action 3. Looking for the STO 7 to give a buy signal Again if the market is reversing and it continues going down then we wont be in the trade as long as it doesnt break the DP. Which often happens in a trend change. If it goes into range trade we will have a nice trade of 40-80 pips. This is the kind of range trade we were not picking up with the 10.4/10.5 series.

Gbp/jpy since jpy bond sales still going on the jpy should continue to weaken this week. 1. Price above the 240 2. Retraced back to the 60 3. STO 7 starting its pin on the bottom. Wait for signal and take it for a ride. This trade has a potential of a couple of hundred pips during the week so I like this one.

There is a big elephant in the room this week in our FOREX glass house. Tuesday night the President of the USA will speak to the Nation and lay out his arguments for an attack on Syria. Congress will then debate and either approve or disapprove the move probably Wednesday. Big elephants, major fundamental changes in behavior, are not predicted by indicators or candle patterns. If whatever happens fits your system it is not the system you were just lucky this time. If the USA Congress approves it will cause the market to move. If the USA congress doesnt it will cause the markets to move the other way, probably even more. If the Congress doesnt approve and the President goes ahead anyway, that will really move the markets in ways you probably havent seen since OCT. 2008. If you want to trade this type of action I recommend you lower your lots sizes. If you get the big moves you will still make good money. If you dont get the big moves you can limit your losses so you dont damage your account. I wish I knew what was going to happen so I could profit from it but alas I dont. I have said this before and I will say it again, big news and/or Macro fundamentals will trump any indie. If the news is big ignore the indicators and go for the ride. It is really exciting when you grab the coat tails and youre on the winning side for a change. Time for bed for me, catch you all tomorrow. CSS read for today. Pound, dollar, aud on top and chf, nzd, cad, jpy on bottom all knotted up. Dang read. AUD and NZD being on opposite sides are not normal. So let us see how this all shakes out. Market gives you some profit grab it for it looks like they are going to muddle in the puddle. A gap in the eur/jpy gave me 35 pips this morning so off and running.

We saw the JPY gaps today but gaps like that are not abnormal. They happen quite often during the year. They did mess up my planned entrances into the xxx/jpy trades I had planned for later today. Yes if the USA goes on attack that will disrupt the markets. We also could see bond rates suddenly raise. The only thing you can do is take the ride if it does. The problem is brokers will enlarge their spreads and there will be some gaps. It will be a learning experience for all of us Even though STO is at the bottom it could continue. If you look at the daily charts the AUD and NZD are all at S/R points. If they dont continue I think they have found their new high/low. With the slowdown of the Chinese economy, what I mean by that is its rate of increase slowed down from 8-10% to a 6-8%, these two commodity currencies would need to find a new high and low at a lower range. If these are its tops and bottoms then they may not continue. Time will tell but this is what I am expecting to happen.

Hi Bob, so you don't necessarily wait for STO7 to be completely pinned down? It can be "around" the 0-20 zone and that is "one" of the signals to setup my pending orders? That is how we traded the RSI2. When it pinned we would start setting pending trades. It worked but we fought with DD sometimes. If you wait for the signal you will get a lot less DD. That is what I have liked about the STO 7 so far my DD is lower. My win to loss ratio is staying about the same but the DD is less. That seems to be the difference in the short time I have traded it.

How and why I sometimes take profit. The eur/jpy did a nice 45 pip run. Now what? It is hitting the top of its previous moves. Will break through or not?? I dont know but I am not losing my 45 pips so in the bank they go and I will set a new pending above these highs. If it runs I am in; if it doesnt I got the maximum of the run. Either way I am happy. If it goes on I dont beat myself up it if it retraces I am glad I did. This is a daily chart.

When to CT trade?? I like to look at a daily chart and see where price is holding or has held in the past. NZD/CHF is a good example. If price bounces and goes down I am in the trade. If it enters and breaks up take the SL. The news story made it jumped but didnt change anything.

Morning all , just catching up with all the posts and the new system, bob, what do you do when big news is breaking while youre sleeping, do you just put tight stops on any open trades, or close them out, Im looking what happened overnight, UK time, with the aud, your thoughts thanks Depends on what kind of trades; protect your profits or close them. As I have said many times I close out half way through sessions so most of my trades are not running. I checked my stat sheet and my average winning trade is 18 hours and losing trade is 54 hours as far as time in. The losing trade time in is high because I will hold onto trades longer when the market is ranging to see them come back up again. That time is a lot less when markets are trending.

The AUD had a news story so it spiked. Good for me I had CT trades on. Also had those on NZD but it went nowhere. I have closed all those CT trades because that is the nature of CT TRADING. Catch the retrace and get out. I go to bed every night around the EURO close so my trades are open all night during the last half of the USA session. Seldom does anything happen but drifts from the morning session most of the time so I just keep them going and close or set new trades. Basically my trades fall into two sections. JPY session and Euro session. I make some adjustments for the USA session but by the EURO close my day is done. If some look good I keep them, if some dont I close them. Well, I have done 10.6 for exactly 4 weeks now, 20 days. It has been done in not the best of markets but we have pulled some good trades. 232 wins 78 losers 17.4% increase of my account in 20 days. 75% win rate 4680 pips Wasnt able to keep up the 1% a day average but I dont mind. If I can be anywhere close to those kinds of results, I will be a very happy man. At some point between now and the end of the year I hope to completely revamp my booklets and post a final version. I dont see that I need to do mulch tinkering with what I have at this point. I think it pretty well cover any market condition and get you on the right side of the trade a majority of times. Now it is just a matter of developing the expertise to trade season in and season out. Hi BOB At this stage, using this breakthrough 10.6 system, would you recommend to trend trading only? Many thanks Yeah, stick with the basics until you got it. Not much CT trading from me but I still will do it. Almost all my pips came from the JPY session yesterday. Euro and USA sessions were kind of dead. I really hope the market picks up again they are much easier to trend trade than choppy markets.

OK CSS today shows AUD and NZD strength with EURO, CHF, and JPY weakness. USD and CAD going opposite directions so that is where to go look. Looks like some pairs are setting up some 10.6 trades.

If you look at the daily charts or weekly charts you will see they have stalled at a major R area. Some commentators are saying buy but I am thinking range. NZD head banker doesnt want it to raise sooooooooooooo .......... I am CT trading it but with a short SL if it breaks through.

FOR THOSE OF YOU WHO WANT MY ADVICE HERE IT IS:

Here is a dummies version. It takes from 10.5 the basic idea: Only buys above 240, only sells below. No stoch no weekly pivots, no 60 LWMA, nor round numbers. Just the daily pivot in combination with Heiken Ashi. If you are selling enter when the first red candle close below the daily pivot. Keep the trade until the change of color. (Opposite for buys) Re-enter at any time a red candle close below the daily pivot. I didnt want to choose a tricky example taken from a strong trend (where you only have winning trades), but an ordinary medium trend with 240 cross, etc. Applying this simple system you should have 8 winners and only a small loss. I have seen many systems using Heiken Ashi in combination with moving averages, but no one using the daily pivot. This is a powerful and simple combination. Maybe out of topic here, but I know Bob doesnt mind (sometimes even encourages) new approaches.

Bob -Thanks for your all your teaching I have learned so much from your forums over the years. I have been trading with 10.5 with mixed success since June. I like your improvements in 10.6 and have the time for at least the next few weeks to trade it full time. I have some questions: It looks like your current maximum total lot size for all open trades is just under 0.1 lot per $1000.00 { $0.04 / pip / $1000.00 times 24 pairs for a total of $0.96 /pip/ $1000.00 } And you recommend beginners use a max of 0.24 ( 0.01 lot per pair ) Is that correct? Because lot sizes are different from broker to broker .01 with one broker can be ten times more than .01 on another I use pennies per thousand to keep things clear. In my testing phase of 10.6 I started trading 4 pennies per thousand of my account. That is for one trade. I then went to 5 pennies per thousand but when the Syrian story broke I dropped back to 3 pennies per thousand of account per trade. Now that it looks like the SYRIAN thing is resolving itself I will go back to 5 pennies per trade after the Monday gaps. Using small lot sizes allows me to run 20-40 trades at a time. 40 trades at 5 pennies means I am putting 2.00 in total lots up for trade. I liken this to diversifying my portfolio as an investment scheme. So if one currency goes really bad, I am covered by others that hopefully will go good. How do you decide when to cancel a pending trade? I assume one would be if STO 7 reverses and crosses back across its trigger level? Any other reasons? That is trading experience, I just look at a trade and dont like it, or I have too many trades going at once and my total lot size is getting bigger than I like, a news story comes out and affects my trades, candle patterns dont look good, a major S/R line is broke, the market times dont lead to good trading so I lessen my risk, my wife wants me to get away from the computer for a while, or.............. many other reasons. Trading doesnt always fit a rule book. I want to trade up to 24 pairs as you do. Some of the trading statistics you have shared indicate that you have placed about 20 trades a day. Do you trade all pairs every day or only those that are moving counter to each other?

I trade pairs that look good to trade for me. Sometimes the whole market is moving, sometimes just a handful. It is a day by day decision. What trading all the pairs does though is give you a feel for the market. Like right now all the NZD pairs are banging up against S/R support areas on the Daily. I take notice of this and watch the AUD CSS line. If it goes down I set my NZD trades to follow. In a situation like you shared Thursday: OK CSS today shows AUD and NZD strength with EURO, CHF, and JPY weakness. USD and CAD going opposite directions so that is where to go look. Looks like some pairs are setting up some 10.6 trades. I would probably NOT TRADE aud/nzd, eur/chf, eur/jpy, eur/usd and other pairs going in the same direction. Correct? I seldom trade aud/nzd, eur/chf, and eur/gbp; they just dont move enough to interest me. Other pairs I will look at and will trade if I see opportunity. You have to remember I was a CT (counter trend trader) for years so I still do those. I just dont talk about them here. Those that followed my 3.0-5.0 systems know about CT trading. I still do it. The one year I posted every trade I took before I took them I made 19K pips in one year. With 10.4 I actually got close to doing that in April and May. So I still take them. The NZD setups I will be doing Monday are CT trades based on info from the 10.6 info page using regional currencies.

_____________________________________________________________________________ 10.6 EA Rules Trading rules H4 time frame.

Buy trade: o Bob's double moving average shows an uptrend. o Neither the Daily or Weekly pivot is between the market and the take profit (this filter can be turned off - see inputs). o Draw a pending buy line LineBufferPips above the next xxx.00 line. When this is reached, send the trade if: The first currency in the pair is > 0 on Baluda's CSS (D1), and the second is < 0. Stochastic 7, 2, 2 is > 20 and rising. All the optional filters are ok. See "Andy's filter" below. o Sell trade: Bob's double moving average shows a downtrend. Neither the Daily or Weekly pivot is between the market and the take profit (this filter can be turned off - see inputs). Draw a pending sell line LineBufferPips below the previous xxx.00 line. When this is reached, send the trade if: The first currency in the pair is < 0 on Baluda's CSS (D1), and the second is > 0. Stochastic 7, 2, 2 is < 80 and falling. All the optional filters are ok. See "Andy's filter" below.

Andy's filter Andy (MrLong) uses this highly effective filter (enabled by default):

Only go long if the H4 21 period EMA applied to the Close is > the 55 EMA and the distance between the two EMA's is diverging. Only go short if the H4 21 period EMA applied to the Close is < the 55 EMA and the distance between the two EMA's is diverging.

Take profit and stop loss by default, using a buy as an example:

The pending trade line is drawn 10 pips above the next xxx.00 line. The xxx.00 lines will move when the Bid crosses one of the boundaries. The pending trade line will not move if the market is moving upwards - otherwise there would never be a trade. It will move down if the market falls. Buy trades are triggered by the Ask, so you might want to have this showing on your chart. Take profit is 85 pips, so 5 pips short of the next rising xxx.00 line. Stop loss is 30 pips, giving a near 3:1 reward: risk ratio. This is one of the thingies we need to play with.

_____________________________________________________________________________ Looking for some trades. AUD/NZD looks good. Hopefully get 20-40 pips on it. Below the 240, at the xxx.00 line. Both the blue line and DP can be used to enter. STO7 angling down but weakly. Anyway I will take a shot. Also aud/usd similar position but will wait for the DP line to be placed.

http://www.stevehopwoodforex.com/phpBB3/viewtopic.php?f=38&t=1481&start=7330 CSS read nzd aud cad on top eur jpy chf usd on bottom I dont take much stock in that read though because any kind of breakout will change it quickly. I went to FF to read the news and predictions were EURO will rise this fall and EURO will take a dive this fall. SOooooooooo a lot of help there. LOL

Looking for some trades. AUD/NZD looks good. Hopefully get 20-40 pips on it. Below the 240, at the xxx.00 line. Both the blue line and DP can be used to enter. STO7 angling down but weakly. Anyway I will take a shot. Also aud/usd similar position but will wait for the DP line to be placed.

I trade everything. High Impact news like the FOMC statement today. Take a reasonable guess, like if they make a change USD will do up. Place a pending where it will pick it up and go with the flow. This is where xxx.00 lines become so valuable. For example if I saw this tonight I would see (red X) there is an xxx.00 line with DP line together. I would then take a previous DP line and place my pending. If it takes I am in if not I am out. 50/50 guess. However, it has been anticipated there is going to be some change so my chances improve to maybe 60/40 a buy would work. But I wont make these decisions until before the news.

Here is a better pic of what I am trying to say. I will see what price action is to the xxx.00 lines before the news story and decide then but that is what I will be looking for. These lines to trade off of.

Another way to trade them is to catch the retracements after the Euro close. Now I know that doesnt apply to the FOMC but if I see a big jump early in the USA session I will look for those 20-50 pip retracements at the EURO close or the USA close. The STO 7 will work on any TF. Just a matter of getting the direction right. You see it move up/down or it topping/bottoming. I dont see any reason to go to a lower frame and catch it when it crosses. It may work very well that way. I have a multi-TF STO I may work on this weekend and see if gives me an even more accurate entrance or exit strategy. The hardest thing in Forex is knowing when to exit the trade. I know I miss some pips sometime but you know I have talked about profiting halfway through a session. That is my most common formula so I take whatever that session gives me. If its ten I take ten if its a hundred, I take a hundred. I run so many trades it adds up even though maybe on some single pairs I leave pips laying around. The CSS has always been, to me anyway, the best strength indie I have found so it is one way. The other way is to just ride the 30 or 60 MA until it crosses back over. Works great on trends but not so great in flat markets or short bursts. I wish I could tell you that price was going to run 500 pips or 100 pips or 50 pips. I have never really figured that one out yet. SOoooooooo something on the agenda. I use CSS still on the info page but I didnt use it very much on the 4H chart. Taking profit near the blue lines seems to be the best right now that I can offer.

2 MA lines: the 240 which is the monthly trend line and the 60 which is the weekly trend line. When price is above both you have an UT and you buy only. The bar on the right side of the screen will be green. You can trade any TF to find a good entrance but for the 4H I have the STO7 to tell me to trade. Maybe we will update it to show which kind of trade it is signaling but for now you get a signal and a color. AUD/USD is showing green right now so we look for good buy areas to enter. The 60 MA line becomes the SL line or an xxx.00 line of your choice.

Sells will have a red bar; price is below both the 240 and 60 lines. This is a DT and we will look to sell only. This is the USD/CHF.

When an UT is finished for now it will come back inside the 60 MA line. You can now trade either ways buy or sell based on the STO7 signal. The 60 or 240 lines can become your SL line or you can use an xxx.00 line. Color is now an Olive color showing that an UT is now ranging or reversing. Once you see the 60 MA broken by price action, price will usually stall at this point so you can begin to look both ways to trade. However, ignore spikes for this rule.

When a DT is finished or stalls price will come back inside the 60 MA and you will get a goldenrod color. You can look to trade both ways when this happens. Again the 60 and 240 will make good SL points. Your TP targets are still the xxx.00 lines but most moves in these areas will be 50 pips or less on most pairs. Sometimes you will get a real strong move and price will just shoot right through both lines into the other direction. Also sometimes the 240 and 60 will be tight together signifying the market is fairly dead and you are just playing a 50/50 guess game if you trade.

So the rules are simple: 1.Green--buy you are in an UT 2. Red--Sell you are in a DT. 3. Olive--UT done for now price will range for a while or reverse. It may also rally a couple of times first but there wont be new highs. 4. Goldenrod--DT is done for now and price will range or reverse. It may dip a couple of times first though but there wont be new lows. I like the 4H chart so I will look for my entrances there most of the time. However, you can still look at lower TF to enter and exit from. TP targets are the next XXX.00 lines or if you think price will run you can stay in the trade until the bar changes color. For example bar is green; you like the trade and want to run with it. Stay in until bar turns the Olive color. The same will sells. As long as the bar stays red you can try to stay in until the color turns Golden rod. SL lines can now be the 60 MA for UT/DT or the nearest xxx.00 line. Range/reversal areas SL can be the 60/240/xxx.00/or the DP line. I took the WP line out but you can add back in if you like it. I am going to try trading without it because I really havent used it much lately. The eur/usd 4H UT 9.10 to 9.20 on the 4H chart. Several trades there if taken but to be honest mostly frustration as price was moving in spurts rather than a steady UT.

ON the 1H chart things look a little better as each STO 7 read during this time would give you something but most moves were not so hot 15-30 pips at best with a big one because of the news. But it does show you can get something during ranging periods where on a 4h chart you would be snoozing most of the time. You could have gotten some kind of trade every day. 1H trading is a little different. Here the 60 is a good place to wait for a dip in the UT and then play the cross back up. Where the 4H failed to catch both big moves up, they would have been gotten on the 1H chart. If price on the 1H dips back inside the 60 MA and STO7 gives you a signal up you can enter on the cross of the 60 MA and see how much you get. You can see here the STO 7 retraced back to the bottom every day giving you a chance to trade the eur/usd every day. Some days good some days not so good but with the green UT go and ugly market conditions you are still squeezing out some pips. This was my goal for 10.6 to still make something in ugly markets.

Here is the gbp/nzd DT starting 9.5. You can see some real good entrances off of the 4H chart.

However, on the 1H chart you can see lots of trades with some days 2 trades being produced on the GBP/NZD chart. Many of these moves are in the 50-150 pips range and are really solid trades. Just wait on the STO7 and a return behind the 60 MA on the 1H to enter off of. Some really good stuff

If you see your charts are jumbled when you first start them. Just click on the daily button and back to the 4H and everything will move to their correct locations. No matter what TF you go to the color bar always reflects what price is doing on the 4H chart. Have fun driving the EDSEL. I guess it cant get any simpler than this. Just follow the colors and then trade the 4H or 1H charts. Probably works on lower charts too but I will let you all study that. For me it is time for bed. Night. First the UT pairs: aud/cad, aud/jpy, aud/usd, chf/jpy, eur/cad, eur/jpy, eur/usd, gbp/cad, gbp/usd, nzd/chf, nzd/jpy, nzd/usd, usd/jpy Next the DT pairs: aud/nzd, eur/nzd, gbp/jpy, gbp/nzd, usd/chf

Range pairs aud/chf, eur/aud, gbp/aud, gbp/chf, usd/cad. Let us look on how to trade using 10.6 If trading the aud/cad you are looking for a signal to cross back up. That could mean waiting for STO7 to go further down OR seeing cross above the 40 back into the trend also crossing the DP and xxx.000 line. The yellow areas show what you will be looking for.

On the 1Hour chart you can see the DP, 60 MA, and xxx.000 lines are all at one spot. The breaking of these three lines would most likely make a great trade Monday.

The aud/jpy, aud/usd, cad/jpy, eur/usd, gbp/usd, nzd/chf, nzd/jpy, nzd/usd, All are giving the approximate same setup so pick and choose which ones you like best. USD/JPY is well above the DP at this time so we look at the 1H. The STO 7 is on the bottom so we wait until it heads up and enter. Price may or may not retrace back to the 240 line but it has been bouncing off of it wanting to go up. I marked in yellow key areas to watch. Eur/jpy and chf/jpy are a similar setup.

Eur/nzd may not be quite ready to drop again but you can see the setup coming on the 1H chart. You can see the entrance points of previous good trades. Gbp/nzd is a similar setup. Anyway those are some potential setups for Monday.

That was cool. Sto 7 said eur/jpy cross up with trend. Color was green price below the DP line. Place my pending. Took about 10 seconds. Neat. I like being a dummy

Bob If you look at the CSS on the H4 and a number of other issues, it isnt happening soon. That's my 2 cents that is why we use Pending trades. If it crosses the DP great. If it doesnt we are not in. I took the gbp/aud trade up 30 so far.

Made almost .4% of my account. If you didnt take those 15-30 pip profits probably didnt make anything yesterday. Price just popped up and then back down. Hopefully today will be a bit better. AUD and NZD starting to angle down, eur and chf going up, USD and JPY separating. The rule that if aud nzd go one way the jpy will go the other seems to be coming into play. We will see. USD continues down the toilet as the kindergarten class in Washington continues their cat fight. A sudden USD up would happen if they get an agreement, continued downward trend if they dont.

eur/jpy back into the trend day 2. Didnt take yesterday, a little early on that one so better setup today. Dummy bar green just hit the 20 line. DP above it

I like this trade for later in the day. The Euro has crossed the CSS on the INFO page and looks good on the dummy chart.

This should cover it for all types of trading. You have a clearly defined trend, range, and reversal areas. Take profit and SL areas. It is all there just need to get good at it. You know when you are violating the basic rules with those big color bars going on your screen. Cant miss those babies. It should leave your interpretation of the market to a consistent and profitable level. We will see how it all plays out. I took my profit just before the xxx.00 line and then placed a new pending above the line. It didnt break through so I pretty much got the max on that one. I got 32 pips. One of the most discouraging things in trading is to let a profitable trade turn into a non-profitable trade. I am having a good day with 14 winning trades so far but only 2 have been bigger than 50 pips. I see

profit I grab it and reset the pending above the next line. I trade line to line while the market is choppy or ranging. 454+ so far today. I am a singles hitter. I often am sneered at by so called big traders but they sit on a trade and try to get 100, 200 or more pips on a trade but that is very hard to do. I found out I can constantly take those 20-50 pip moves and they add up quickly. I am not out of big moves either because if it breaks xxx.00 it will most likely continue. Almost all my trades were in the Asian currencies especially the NZD. Almost half of my pips were in the gbp/nzd with three trades totaling 163 pips. NZD/USD and NZD/JPY I got 80 each on 4 trades. Thats an average of 40 per trade. All other currencies were small pops, grab and run. 10-25 pip bank em and run. I actually used the information I have been talking about for the last couple of weeks. When you see the AUD angle down the NZD follows and that is what happened. AUD down JPY going up and NZD follows. I traded that info and it worked. When price crossed the DP I went with it and grabbed the pips before they disappeared. See chart below.

What I saw. AUD on CSS going down. I saw the long pin bar. I followed the trade up. TP at xx.00 line first line. Picked up 2nd trade at xxx.00 TP at green line. Another trade crossing the green line and TP at xxx.00. 4th trade at xxx.00 line TP near the xxx.00 line. Now wondering how much should I push my luck? But that is how I made my decision. I didnt expect to get that much but that is where I found my best trades yesterday.

Quiet day except for the gbp/xxx crosses did well. I only got the gbp/nzd and gbp/cad but the gbp/aud crossed above the 240 line and the gbp/usd did a nice move also. Euro currencies seem to be on the way up, aud nzd usd cad on the way down. JPY doing its strengthening during the last week of the month thing again so those are good places to look. Washington still is bickering so I still expect USD weakness and looks like the CAD will be drug along with it. I played the gbp/cad to its previous high but it continued so I have a pending buy above the next xxx.00 line expecting the gbp to continue to strengthen.

I made an adjustment in the AEJ STO warning system. Now it reads: If above 240 and 60 buy If below 240 and 60 SELL If above 240 but below 60 reversal buytrend If below 240 but above 60 reversal selltrend So now it is letting you know price has retraced into the range area but is still giving you 240 buy/sell signals. These will be a more discretionary trade. Not a particularly great day. Just picked up a half dozen small trades. 31 pips on the chf/jpy was my biggest. But they all added up to .4% increase of my account or 156 pips total. I had a gbp/cad trade at 40+ and thought I would let at least one trade run and it went back down and I lost those pips. After that I just pocketed wins if they popped up no matter how big or small. I am glad I did because each one retraced back. Daily CSS show eur, chf, and jpy going up cad, aud, nzd angling down. I like the eur/cad and gbp/cad setups the best so will look at those today. 4H CSS showing things are flattening but eur, chf, gbp on top and aud, cad, nzd on the bottom so will play the euro gbp to strengthen and the commodity currencies to weakness. See how Friday goes. I am just over 3% for the week but most of that was from Tuesdays NZD a run. Have fun.

I had a long EurAud too as was expecting it to break the 240MA, hit TP so I'm out now. Btw, the stoch indicator shows that EurAud is on a long-term uptrend, despite price below MA line. I guess I'm trying to say the MA line is a lagging indicator, hence take it with a pinch of salt. It is why I added the 60 or weekly trend. You can catch the reversal and not hang onto the sell or buy too long. I have been in the gbp/nzd reversal for its 300 pip run now and has the perfect 1, 2, 3 swing trade going on the 4 H chart. If it breaks the 240 line also I will really catch this one for a long run. Getting close. No such thing as lagging or non-lagging indicators. The other term I hate is repaint. Indicators do exactly as they are designed to do. Take past information, put it into a math formula and then paint a pretty picture on your screen as lines, bars, histograms, etc. etc. If price goes up they change, if price goes down they change, if price stays level they sit. People get all hung up about these terms. I dont even use them because I consider them useless evaluation of price action jargon. When an indie gives a signal or gives you info. It is accurate for that moment. That you make some decision based on that info and price doesnt go the way you want is not the indies fault or because it was lagging. Whatever price action does, the indie uses its math formula and then shows you that pretty little picture on the screen. Even guys who claim to trade naked are trading an indicator called the candlestick. They also use S/R areas on the screen and trend line breaks. You can use the candlestick indie on the 15M chart, 1H etc. If you trade 1H candlesticks you are waiting (lagging) for it to complete and tell its story with that pretty little candle on your screen. If you truly want to trade naked, trade a blank screen or the tick chart. Now that would be trading with nothing. I love the guys who brag that they never use EAs and then go out and set pending trades, SL, and TP. They are letting the computer at the broker enter and exit trades instead of the one on their computer. Yeah Soooo ........... gives them something to thump their chests about. That is all it is. Sorry for the rant but those that know me know these are some of my favorite pet peeves. My other one is if you trade eur/usd and usd/jpy you are trading the same thing as eur/jpy. NOPE. But you dont want me getting off on that one either. Anyway time for bed, had a very nice day. Night.

The whole 10.xxx series has been a quest. A quest to define the movements of the market. 10.0 started with a definition of when a trend started and when it ended. Now I am going to add to that definition and give very clear cut definitions of when a trend starts, when it ends, when and where ranges and when is the reversal confirmed or new direction confirmed. If you can follow these definitions as imperfect as they may seem, you can have a successful trading career. First definition this is when an UT starts: when price is higher than the 240 and the 60 MA on a 4H chart. Most of the time that will be the 60 will be lower than the 240. It will break through retest and then go on.

After price goes back inside or touches the 60 MA the trend ends. It will then do 1 of three things, range, go back into the UT or reverse into a DT. Definitions for the range area are the previous high to the 240 is the range area. Below the 240 line will be the new DT and above the last previous high with start a new UT. See pics below. Yellow-New UT area, Olive-Range area, pink-New DT area. I will continue this later I have to go out for lunch.

Here is the chart showing DT moves. DT is below 240 and 60. Shows it in the Range area and the new DT/UT areas. UT yellow DT pink Range Olive Plan your trades..... Trade your plan. What are you in UT, DT, choose your poison.

So how should you trade range areas?? 1. Ignore them and just wait for trends. Probably find good trades every week. 2. Read the CSS info page and go with the strength of the move. If it is weakening go with sells in the range areas following the STO7 Sells on the 4H or 1H chart. If it strengthening go with buys in the range areas following the STO 7 on the 4H or 1H chart... Let us now learn how to project these so called lagging indicators into what happens in the future. With our definitions in place how will we then trade the eur/nzd this coming week. I have always loved trading this pair because it is one wild ride. However, if we can tame it with correct definitions we can see where we want to go with our trades. I showed the past DT move in pink and the future UT move in yellow. I marked the range area in Olive and the future DT in pink. So which way will it go??? We can get our info on the future from basic fundamentals or we can use the CSS. With the CSS info page we can come to a very clear cut decision on which way will it go. Barring a major news story breaking this pattern we can see the EURO is going up and the NZD is going down and at very steep angles. The EURO car is accelerating and the NZD car is decelerating both at a rapid speed. Until this pattern changes.

Watch now.......... I hope you get this.............. BUY THE DANG THING

Let us take a look at the AUD/JPY. It has been ranging for 2 weeks. Now what?? Will it break the 240 and go into a DT???

So what do you think the CSS is going to tell you? Looks like the AUD has jumped off the cliff and ready to go into negative territory. JPY is climbing very quickly. Guess I will try to SELL THAT BABY this week.

That 240 line looks like a big juicy steak to me.

Ok How about the eur/cad. How does it look for this week?

Yes I believe that CSS Car is telling us the EURO is accelerating and the CAD is decelerating. Time to: BUY THAT BABY

Now when I post these suggestions you are always wary of a sudden news event that can turn these angles on the CSS. But even more important you still take the time to enter at a good spot. Whether you use Candlestick patterns, STO 7, xxxx.00 lines, Daily pivots or whatever. Trading is being patient for that good entrance. So just dont go out there SUNDAY NIGHT/MONDAY MORNING and just willy nilly place those trades. Find good entrance points and let it ride. If price moves out and doesnt do what you are expecting, kill the sucker and move on. Anyway have a happy trading week. Well I am a teacher and school administrator. I am the only person I know that has taught every level from first grade all the way to PHDs and everything in between. This will be my last year teaching in a regular school. I want to go back and just teach oral English in a foreign country somewhere or.......... That was the easiest to do. Not so much work with grading, testing, reports, discipline, etc., etc. The 240 is based on the monthly 2MA: 2x4 weeks: 8 x 5 days: 40 x 6 4H periods in a day = 240 The 60 is based on the weekly 2MA: 2 x 5 days: 10 x 6 4H in a day = 60 The 7 STO is just a lucky guess, actually it was the best one in my back testing that matched up with the RSI 2 indie. The CSS is based on the TMA one of the most attacked indies for lagging and repainting at Forex Factory but I took an interest in it. It morphed many times until we used it to measure the movement of all the currencies at once and come up with a general strength of the overall currency compared to the other currencies. Ended up being a really nice tool. There are so many contributors to this system; I couldnt even list them all. Anyway CSS lets us know 4 things. 1. Which currency is running the strongest? 2. Which currency is running the weakest? 3. Which ones are flat? 4. Which ones are running away/together with each other? That last one lets us know they are moving and should see some good trades.

The xxx.00 are much better to use than the grid numbers used in MT4 and along with pivot lines gives us plenty of areas to enter and exit trades from. Put all together is by far and away the best trading system I have seen. It is the only one that defines UT/DT trends, range, and gives specific places to look for them and anticipate where they will be in the future. By what I just showed you, you know where you want to buy, sell, or stay put. And you know exactly how bad of a position you are in if you are in the trade the wrong way. If you are range trading and take a sell but it busts out into a buy trend you know to forget it and just move on. I think this really takes the guess work out. Now it is just a matter of mastering it. Even I have to do that now. Here is a question that I have: Looking at the Daily CSS for EUR & NZD. Eur is shooting up; NZD is jumping off the cliff as you said earlier. So, it must be the time to Buy EURNZD. Going back to EDSEL H4 of EURNZD, we are below 240 and we must sell only. How do you go about this? 1- Buy despite the 240 EURNZD 2- Sell despite the Daily CSS 3- Do not trade this pair. Look for other pairs where CSS & 240 agree your input is highly appreciated. Bernard When you are in a range area you can buy or sell. That is what marks a range. When price gets into a range area we dont know if it will go back into the trend, range, or reverse. The CSS may let us know what our best option is. This is a change from previous 10.4/.5 trades. We added the range area to our trading knowledge. Now we need to learn how to use that knowledge. The STO7 combined with CSS direction should give us our best option to buy or sell. This was what we found out about 10.5/.4 this summer. When price was ranging it was tough deciding which way to go. Now we have a better shot at trading this area. The 2nd principle is we now have an earlier heads up as to change of direction before we get back to the 240 line. This should make our SL decision smaller or we are not taking these trades. I double checked using this with some of my bigger losses and being less aggressive in the range area will help save me some SL pips. At least I hope so. In other words we have further defined the UT and DT definitions and we have added a definition for what is a ranging market or pair.

10.3 was crossing the daily pivot line, we are still doing that. 10.0 was the 8MA smoothed on the daily chart. That is similar to the 10 MA on the daily which is the 60 on the 4H. We taught if the candle was above the 8 MA we were in an UT and below DT and if it was touching the line high or low it was ranging. 10.6 use the same two things but defines them better. 10.1 We added S/R lines which we changed to xxx.00 lines in 10.6 10.2 used the daily, weekly, and monthly open with the early versions of CSS to determine trend. 10.3 was a simplification for scalping and range markets. 10.4 we added the 240 line and went to a longer view of what a trend is and we became quite profitable when the market trended well. It was still profitable in range markets but more difficult. 10.5 we added daily S/R on the 1H to help trade better in range markets but I was getting tired of missing trades that went beyond the weekly S/R points. So .......... 10.6 opened my eyes to the xxx.00 lines and how powerful they were both in trend trading and range trading. Changing from RSI 2 to the STO 7 gave us the perfect patience for reentering trends. The CSS reads became better learned. The point is all these 10.xxx systems laid the foundation to the next 10.xxx system. Some people have gotten frustrated saying I keep changing the system but the goal has always been the same. I am getting better and better at defining what the market is doing so we can more intelligently trade it. 10.6 EDSEL is far more specific than any of its previous of the 10.0 series. There are clear lines where if they are crossed you know, we are in an UT, or DT, or Range. You even now have predictions that I hope will be fairly accurate of where price probably will go next. I now know where to look for the breakouts on every currency if it is ranging, and I now know the most likely spot where price will stall on a trend. Am I still trading 10.3? Yes I also am still trading 10.0, 10.2, 10.4, 10.5; each one of these systems has key elements in 10.6. It is a combo of the previous systems wrapped into one. Each of the previous versions answered a certain question. 10.6 contain the answers to questions of those previous versions.

Just a quick question in regards to the STO7: 1) Buy - Trade: We only enter the trade if it is pushing over the 20 line. Does it make sense to reenter when it goes over 40? Does it make sense to enter when it is just below / just crossed the 80 Line? (If I am not mistaken the major moves still happen over the 80 line) would be great if someone could quickly clarify that - I couldn't find the post anymore where I read about this....

Yes, I had it give multiple signals in case you missed the first one. I often place trades on the other side of the xxx.00 lines just to see if it keeps running, something I was not willing to do when it got outside WS1 and WR1. If price does keep moving beyond those weekly S/Rs it is because it broke the next xxx.00 line and kept going. This is allowing me to stick with a trade longer and later in the week. One of the things that frustrated me with 10.4/.5 was if price hit the WR1/WS1 early in the week I didnt know what to do later in the week. It just seemed if I tried entering I would get busted by a retracement and if I didnt it would keep running. Now I can see those spots where it will bounce off of the xxx.00 and where it will break on through. I can play it accordingly and get those extra pips but stay out of the bounces. So if you see price break above 80 and you also see that xxx.00 line put a pending above it and if you have a running price run you are in again going with that strong trend. That is how I have been playing it. If you have a doubt then try a lower lot size and see what happens. Lower lot sizes help you in those areas you are not sure of but want to try. What does mean "REVERSAL BUYTREND" and "REVERSAL SELLTREND"? "REVERSAL BUYTREND" means Reversal trend or just retracement? "REVERSAL SELLTREND" means Reversal of trend or just pullback? How do we trade on these two signals? Thanks. That is what it says when you get a signal inside the 60MA and 240MA. It has been in a sell trend and now could be in reversal/range mode. The trend is over. How you trade inside this area should be determined by the CSS or fundamentals. For example you should be getting a lot of these kinds of signals from the NZD. The CSS is showing it is angling down sharply and showing that the UT it was on is done for now. So it is in the range-reversal area. If it continues down it will then enter back into a DT when it crosses back below the 240 line.

The best example is the aud/jpy right now. It touched the 60 line 2 weeks ago and has been in it range area since. It is now playing with the 240 line eager (I hope) to go into a DT. So that is what you look for. See pic below, aud/jpy should be giving reversal buy trend signal now and hopefully in the future sell trend.

I like to play a friendly game of poker and that article is very good about poker but Forex is businesses and governments exchanging funds. It is unpredictable because there is no control when Saudi Arabia cashes its checks for oil, Australia cashes its checks for Uranium, New Zealand cashes its checks for wool and cheese, and China cashes its checks for exported goods, and Germany cashes its checks for Audis and Volkswagens, and Japan cashes its checks for computer equipment, etc. etc. on and on. That is why traders get their brains beat in because they wont let the market breath. There is no pattern or indie or fundamental that covers Russia exchanging gas for Euros, or USD at any moment of any time. I have told this story before and I will tell it again. I remember a bad news story came out for the GBP and I went big into the trade. I said this is going to run. It did for about two hours and I was up up up. Little did I know nor could I know that the Bank of India and British Petroleum decided it was time to prop up the GBP. So they slammed everyone by buying big and my profit disappeared in minutes. Didnt know about it until the next day what had happened. Some people will run around and say the conspirators did this or the fox did that or the broker had to cover his negative positions and all sorts of other crap. Had nothing to do with it. Companies, govt., banks have a vested interest of keeping prices stable and within a certain range. Every time there is an exchange around the world in this 4-6 Trillion dollar daily business price is going to tick up or down and there is no predicting General Motors cashing their check from their 1000 truck sale to France.

Last week the USD announced we are not tapering. The market reacted and SLs were hit all over the place. I didnt have any SL hit because I know there was no fundamental change in what price had been doing. All the USD trades came back to the original starting point except eur/usd and the usd/chf within a day or two, but eur and chf had been strengthening anyways so that is no surprise. Long term trends can be seen on higher end charts. However, anything can happen at any moment at any time for just normal business transactions. Just the way it is. Would you go long on the break of the __.00 level at the place marked on the attached chart? Where would the s/l be? Thanks. I didnt but I could see why one would. I would prefer the STO to be on the low end. If you are going to take a trade high up like that, drop down to the 1H chart and try to catch the STO below 20 and ride it there. You have a better chance of getting positive pips quicker. See 1H aud/usd below.

However, I remember you saying in one of your posts that you often prefer to exit a long trade at __90 and immediately place a pending buy around __10 in order to stay with the trend in case it decides to continue. That makes sense too. Now, the re-entry order could trigger relatively quickly and that won't give the stoch enough time to go down and cycle back. How do you reconcile the conflict here? Thanks.

This is just part of trading. Price broke 240 bounced around for a while and went back up. Since the move came off of the gap there was no good entrance unless you put your position in on Friday. With the gap you didnt get a good entrance. Once price gaps I stay away until the market settles and it settled back into its range. The STO is on the bottom so it is a tough trade to take. If you did you have to wait it out, run a 2nd trade and go for BE, or take a loss. You still have to use some wisdom in your entrances. Just because the CSS is pointing down doesnt mean price will run on Monday. It may wait til Thursday or next week or whenever Congress gets around to doing its job or.................. Sometimes price will blow through the 240 line like the eur/aud did a couple of weeks ago, sometimes it bounces around first, and sometimes it doesnt. That is trading, get used to it. In both these cases, I took entries as I would normally take. However, I would like to know if your entry prices as recommended by the system were any different e.g.: gbp nzd: [1] on the open of the candle? After the candle that pushed the stoch above 20 i.e. at ~ 1.9572 (including spread). OR [2] using a pending order above 9600. Usdcad: 2 candles earlier during the wide ranged candle that broke above the last red candle in the preceding retrace swing down on H1. Thanks.

GBP/NZD I took the trade at 1.9600, between yesterday and today I have banked 100 pips on gbp/nzd. I want to place a pending above 1.97 again but waiting for a retracement. USD/CAD I dont know why I traded it during the JPY session but I took the break of the trend line on the 1H for 20 pips. For the USA session I have a pending above the previous high.

Early in my trading career I used to trade triangles. Here is the usd/cad on the 30M with a nice UT line. I would enter off of the break of the triangle. SL at the other end of the triangle. I dont have the computer time to sit around and look for these but this one brought back memories.

Eur/nzd playing off of the 240 line. If it goes up I am not in if it goes down I have pending trades at both xxx.00 lines. Sto gave a signal in a range area, will take a shot at it. I also have a pending buy above the line also

Sell USDJPY at yellow or red arrow?

Either one but you wouldnt have gotten a STO signal until near the pivot line.

Well, my eur/nzd sell yesterday would have worked. Anyway back to the buys.

Except for the USD pairs and Cad/JPY all currencies are in their range areas as defined by 10.6. Seems like everyone is waiting on Washington to decide. When Washington decides I expect there to be some fireworks. USD will go up and everyone else will break out into some direction. Until then range trading is where you will find most of your trades and using the 1H STO may give you better trades during this time. I've been working with this system for a little while now and so far, it's great! I feel I've grasped the basics of it from reading through the posts but I just want some clarity / thoughts on the use of the MA's on the H1 charts. When the price is ranging or between the MA's on the H4, I often move to the H1. My question is do you think the period of the MA lines on the H1 charts should be changed so that the lines are in the same place as on the H4 charts? i.e.: instead of having a 240 and a 60, we'd have a 960 and a 240 but they'd be in the same place relative to price as those on the H4. That way, when price is above, below or ranging, it would be the same on both timeframes. Would be great to hear your thoughts on this. All you have to do is add the 960, which would be the only change. I like using the 60 because it gives me a good marker to re-enter the trend when using the 1H chart. On the chart below I am showing how you can use the 60 and STO7 to mark good entrance points on the 1H chart. When they all agree: 1. Daily Pivot 2. 1H 60 MA 3. STO 7 You have the makings of a good trade. In the last 5 days there were 5 positive trades. Green lines are separating each day of the week.

AUDJPY where would you place your short order on this one? Below the pivot or higher somewhere or not at all?

At the break of the trendline if you were going to play it or the DP or 60 MA. I would look back for a previous DP that was around that area and place it there.

HI Bob, if I may ask, when you trade the New York session open, do you place your pending before the 8am forex open, or before the 9:30am stock exchange open? Thanks much from the Pacific Northwest USA! I never understand questions like these. Why would I wait? It is like the question, do you wait for the next candle to open? A signal to trade is a signal to trade. If price is moving, why do you wait for some man made time element? The answer is NO. Here is a potential trade set up. Eur/Cad to break back up into its range UT. I am not looking at this to reenter the trend but to go back up and maybe form a double top or a 1.2.3 reversal pattern. I will play the break of the xxx.00 line. About 50 pips and 60 MA becomes my SL after the entrance.

I am watching this aud ... nzd cross on the CSS. If it firms up and aud continues UT then we can look at buying into the NZD within a couple of days. If aud........ nzd both go up then the JPY should angle down and weaken. Keep your eye on this development.

Dont fret it still looks like a good trade. I have mine set up for today. See how it goes. This is the 1H chart.

Looking at the eur/jpy again. I closed at 25 pips yesterday even though it went almost 40. Popping out and retracing seems to be the order of the day. Anyway on the 1H it is set up again to reenter for another try.

Can anyone take the dummy lights and add a second color bar. I want to base it on trades for the 1H chart. For example: price below 60 and 240 Maroon. #price below 240 and above 60 red STO7 > 80. REENTER BUY TREND SETUP Price above 60 and 240 Dark Green #Price above 240 but below 60 STO7 < 20 REENTER BUY TREND SETUP

Just being lazy, a true dummy light system. Then you can look at your charts and know instantly a setup is at hand. I have been in a grab any profit I see mood all month. Price is just popping and then retreating so I grab and run. It makes it a slow and grinding grow slope but it is growing. The other thing I do is if I set a trade and it goes negative and then gets anywhere near BE I also close. This keeps me from taking quite a few SL hits. Get between 1/3-1/2% increase a day but I will take that while this whole mess is being played out. Up 4% for the month but it is a grind it out affair.

This is the type of market that separates the men from the boys and the profitable traders from the unprofitable ones. People keep thinking it is the trading system when it really is the ability to understand and take what the market is giving you. It is this type of market where the ratio guys get their brains beat in. You know the ones that teach you must have a 2:1 or 3:1 win to loss ratio? If you wait to get that 2:1 or bigger the profit is gone. I have scratched out only 1500+ pips this month so far and only 5 trades have gone for over 50 pips and none over 100. Those 10-30 pip pops across the DP line have been my bread and butter. Nothing spectacular, no big monster trades. Just taking what the market is offering and that is it. If I get 2-4 hours into a trading session and the trade hasnt gone anywhere I am done. I take the profit it has given me.

OK I made some adjustments to the 1H dummy lights. First bar is 4H bar 2nd bar is 1H bar If both bars are green/green perfect 10.6 setup - bid is above 60 & 240 on 4H chart and bid is above 240 on 1H chart but below 60 and STO7 20. This is what we call the perfect reenter UT trend setup in 10.6 Edsel. If both bars are red/red perfect 10.6 setup bid is below 60 & 240 on 4H chart and bid is below 240 on 1H chart but above 60 and STO7 80 on 1H. This is what we call the perfect reenter DT trend setup in 10.6 Edsel. If 4H is green and 1H is Olive then bid is above 240 and 60 on both charts and you will have to go see if you want that trade. If 4H is red and 1H goldenrod then bid is below 240 and 60 on both charts and you will have to go see if you want that trade. IF 4H is olive and 1H is green then you have a 10.6 buy setup inside the range area. If 4H is golden rod and 1H is red then you have a sell setup inside the range area. 1H Green always means there is a buy setup possibility either in the UT or UT range area. 1H Red always means there is a sell setup possibility either in the DT or DT range area. 1H Goldenrod or Olive always means use other factors if you want to trade they are caution colors not no trade colors. 4H green always means UT 4H red always means DT 4H olive means UT range or reversal area 4H goldenrod means DT range or reversal areaThis is a test version. If this works properly then the final version should be ready soon. GREEN 4H OLIVE 1H PRICE ABOVE 240 AND 60 BOTH CHARTS

GREEN AUD/CHF SHOWING UT 4H AND 1H UT SETUP POSSIBILITY Here is a 1H chart.

Aud/nzd red goldenrod bid is below 240 and 60 both charts

Here is a range UT goldenrod giving a buy signal in that range area. You can check to see if you like it or not. A goldenrod UT range with a UT buy signal. If you think you would like this one you could try it or you can pass on this trade. This is usd/chf 1h chart. I added a rules page at the bottom until you learn the different signals.

Sometimes I only get one dummy light (4h). EURAUD 4h ea.png EURUSD 4h eu.png That means there is no 1H signal. If the STO 7 is not below 20 or above 80 there is no signal. At least not at this point. You can check to see what you missed or what is about to be set up. Remember a 1H signal wont be given every day. Most currencies will get one 2-4 times a week. I once had the 4H CSS and Daily on the info page but I found it too much info. 4H CSS can give you a heads up on a move but I felt it could be greatly affected by a news story on one pair and that would distort the overall view. I feel the info on the 4H charts on each pair gives me the info I need to trade. However, crosses on the 4H can give you a heads up on a move. Anyway, top down trading is the emphasis on this trading system. 240 monthly, 60 weekly, CSS overall strength, go to 4H or 1H and find your best entrance. Let what is happening on the higher end charts influence you on how to trade the lower end charts. I think this gives you the best chance to trade the market successfully. Other tools can help a trader who is experienced in using them.

But if the best setups happen during late Asia session and trigger orders in early Euro session (midnight-5am my time), that's still hard to hit... When (if?) my schedule settles down a bit, and Bob gets Edsel finalized, I'll give it a go and see how it works for me. The best setups may not happen then but it is during the quiet times between markets that the indicators will settle giving you your signal. For example the STO will top or bottom out and the 60 MA on the 1H will catch up to price as it holds or retraces. You then see the signal and set up pending trades or wait for the STO 7 to move and give a signal. So I like setting my trades during those times. Often they wont enter until hours later, or even a session later. I seldom see an entrance take place but I check up later in a session and see what has happened to the positions I posted. Hopefully they are doing well. In one of the earlier 10.xxx series we used the CSS numbers to determine if price would run or not. For example as long as the number was bigger than 8.0 it was going to keep running and you let it run until it got back inside 4. Dont know if that would work with your EA but that was one determining factor in deciding to take profit or run. To me the best place to decide to let price run is using the daily or weekly charts. Everything else has too much noise to determine those factors. I am trading but nothing spectacular, up 6.5% for the month but also was gone for 5 days. So it has been steady taking wins and losses along the way. Just plugging along, singing a song. I will try to get 10.6 on the front page this weekend. I think it is ready, considering one more thing. The 15 MA on the 4H is basically the say as the daily open. Also the 60 MA on the 1H is nearly the same also. For EA purposes this ma15 makes it easier to program and also looking at the dummy lights using the 15 MA on the 1H version. This makes the dummy lights work more consistently or an easier to understand presentation and you would then confirm with the STO signal from the 1H chart. Here is the 4H chart.

This makes the 4H chart look like this. The NZD/CHF on the 4H was one big dive but hard to find a reentry point. If you know the fundamental of the move you would stay in but if you dont you have no good reentry point on the 4H. With the 15 MA on the 1H you can find entrance points.

Now here is the 1H chart and the signals would be sent via dummy lights if you are on the 4H chart. You can then flip to the 1H and look at the trade. So RED RED bar would be if less than 60 and 240 on 1H chart but greater than 15 then a green green signal. You would then confirm with the sto cross back into the trend or an EA that enters if price is less than 15, 60,240. This allows you to get back into these longer trends in good shape almost every day.

So the change I am considering is to have the dummy bars signal off of MA lines and you confirm the STO7 separately. That is the last piece of the 10.6 puzzle I am considering. The system then would work like this:

4H dummy lights Red if below 60 and 240 1H RED if below 60 and 240 but higher than 15 showing a setup This would also work in range areas where 4H colors would be olive or golden rod but the 1H could show a possible range trade buy or sell. This was the one area left I wanted the dummy lights to work.

This chart shows where you would get a green bar but the STO doesnt line up very well and price doesnt cross the 15MA with the uptick of the STO7. This shows a very weak trade and you know to get out or dont take this trade. Most likely this will be a get out trade.

This is what I am looking at, trying to filter out some of those bad trades that happen when price goes back into range or reversal mode. Once the 15 MA comes back inside the 60 MA you quit getting 1H signals whereas the STO 7 kept giving signals on the present system.

Hi Bob, I've modified the dummy lights, find attached the indie. Anyone downloading it wait for Bob to confirm it's working as intended before basing decisions on it please To make the rules clear, please correct me if I misunderstood them : H4 GREEN BAR : Bid above MA240H4 and MA60H4 H4 OLIVE BAR : Bid is between the two MA but above MA240H4 H4 GOLDENROD BAR : Bid is between the two MA but below MA240H4 H4 RED BAR : Bid is below MA240H4 and MA60H4 H1 GREEN BAR : Bid is above MA240H1 and MA60H1 but below MA15H1 H1 RED BAR : Bid is below MA240H1 and MA60H1 but above MA15H1 All MAs are LWMA / PRICE OPEN You can now right click / refresh to force redraw if there are no ticks incoming You can send me your request on Excel, I'm using it regularly in job and might give some help Bob - if I may. 10.6 etc. runs the risk of 'fitting'. I think you have to design a system and then stick with it. There is little point trying to search for the Holy Grail as market conditions are constantly changing and no system will work in all markets all the time. I speak with traders at large firms on a regular basis and the same thing comes through all the time. Study price action, strip charts back to basics, trade on horizontal levels and not diagonally. There comes a time when you have to and should work with what you have and stop trying to perfect a system that will never truly be perfect; otherwise you could run the risk of always chasing Icarus to the sun. I am not quite sure what you are referring to. If you are referring to the 15MA it is basically the same as the daily pivot. The improvement is it makes EAs and dummy lights much easier to program and use. It solves a problem I was having with the signals it was giving making it more consistent with the market move. If you are referring to the STO7 it gives the same signals as the RSI2 but is more specific. Now you have a specific signal to place a trade from instead of a general one. This also replaced the yellow area of the 4H CSS and is much more specific than the CSS was especially in range markets. 240 line remains the same, 60 MA added a definition of Range trade along with the already existing definition of a trend. This is an improvement that was necessary to the system. It is essential to have a consistent definition of a trend and range in trading. I know have a better idea when to switch gears in trading. The xxx.00 lines were a major improvement over the MT4 lines that come with the MT4 and also seem to be superior over S/R lines, FIB lines, etc. Price action really honors those lines better than any other horizontal lines I have seen in trading. I have added signals from the 1H chart because

reentering a trend trade (buying the dips in a UT, selling the rallies in a DT) is fundamental to trading but I have never seen actually defined before anywhere. You now have a specific definition and place for reentering a trend. 10.6 is 10.4 with refinements, 10.4 is the same as 10.2 with refinements, 10.2 was an overhaul of 10.0. It is not a fundamental change of the trading system but a continuous refinement of how we read the market. Each step is a refinement over the previous not a change of system or trading. The 15MA will refine the dummy lights so they work better and the signal is clearer and more specific. The 15MA will work better than the STO7 in the formula and also make it easier to program. It is not a change in the system. The Excel sheet, now that I have a working version, is an eye opener on how spreads affect profits. It is also giving me an idea to finally make a 24/7 EA consistently profitable. There is a reason why almost all EAs are not consistently profitable over the long run. It is not the constantly changing markets, it is EAs dont change very well when market conditions change. I believe it will give me a leg up in my trading because I will understand something I didnt comprehend very well before. The progression of the 10.0 series has been this. 10.0 What is a trend? 10.1 How do you add S/R levels to trading? 10.2 What is the importance of a strength of a move? 10.3 Daily and weekly pivots play an important role, how do you use them? 10.4 put these 3 previous questions together into a system, and added an overall market read with the CSS indie. The 10.4 info page is now critical to my trading decisions and one of the most valuable trading tools I have ever used. I can see the changes coming before guys write about the market move in the Forex news articles. I also can filter out hogwash articles using that info page. Guys write about NZD going up and I can see the AUD starting to go down and I know the NZD will follow. 10.5 added a daily read to 10.4 10.6 added definitions to when is price ranging and how do you re-enter a trend, dips in a UT and rallies in a DT. Dummy lights help newer traders get used to seeing market reads better. Anyway I appreciate your comments because it allows me to show that the whole 10.0 series is not changing a trading system jumping from one to another but it is a constant refinement of the basic concept I wrote over 3 years at FF. Mainly: What is a trend? When does it start and when does it end? What is a ranging market? When does it start and when does it end? What is a dip? What is a rally? When does it start and when does it end? What is top down trading and how can you best use the info of higher charts on the lower charts. 10.6 really nail these questions into specific answers. Now putting it together takes time and patience. There is simply too much money out in Forex not to be patient enough to answer that question. There is simply too much info for one person to do it by themselves. It is why Steve and others go public to learn rather hiding in a cubicle. The learning curve is so much easier with others helping.

Define those terms correctly and you will always be a successful trader. Then refine the indicators that help you see those things and you are off and running. I know I am very very close to a clear cut definable system of trading. Terms without definitions dont have meaning. My goal was to define these terms and I am very close to that goal. That is what 10.xxx is all about. Grimweasel asked a great question and it deserved a thorough answer. Even though he didnt ask it directly he was wondering where are you really going with this. The whole thing was I asked the question about 4 years ago, what is a trend? I couldnt find a straight answer. Then I began to understand why traders were failing. They didnt know what they were trading. The trend is only your friend if you know what it is. If you dont know what it is then it cant be your friend. Each definition then was followed by the next question. If this is a trend then what is a reversal? 240 line if you have a trend and reversal, what is a ranging market? And so on. Each discovery lead to a new question. Sometimes the answers were close but not close enough. So the quest goes on. 10.6 answer a lot of these questions that previous versions leave out. I am close to beginning to write the book on it and I think it will be definitive on most trading issues facing a trader. Of course it wont be infallible but if it is 75% or better in accuracy then you should be successful if you keep your losses under control. That is the goal, not the Holy Grail but a sound trading system that covers almost all the bases. Hopefully my 4 year quest of finding clear cut definitions to terms used by traders will bear fruit. Elixe wrote: Nanningbob wrote: I am getting a 3 bar signal. Looks like this and like this with an empty box. Is there a reason for that?? This is only two bars, but my parameters might be confusing as I wanted the H4 bars to be bigger than the H1 bar: you have, on the first capture, the Green H4 bar, an empty separator, empty H1 bar (this means no signal, I wanted to make it clear that the H1 box was there but without any signal to display) On the second capture, Green H4 bar, empty separator, Green H1 bar. If you don't want the H4 bar to be bigger than the H1 bar, you can change its width with numBarsRight, default is 7, and H1 width is always 2 if you want both bars to be similar in size, put 4 or 5 in numBarsRight. Seems to work well, will have to think about that third bar or double sized bar. Now the 2nd part is when we have an olive bar and a goldenrod bar or range/reversal time signals. I would like to have a signal of 4H olive/green and goldenrod/green when the Sto is below 20 on the 1H and below 15MA on 1H showing a potential buy during the range area. And an olive/red or goldenrod/red when STO7 is above 80 and above 15 showing a sell during a range time. We then would have goldenrod/red or Olive/red for sells during range times. Then goldenrod/green and olive/green for buys during range times. These will be alternative trades during range times is you want to take a look at them.

So the determining factors for Green/Red bars on the 4H to enter a trade would be different from the Goldenrod/Olive bars on the 4H to look for a trade. Simple but effective in what to look for. I really like 10.6 but I'm finding it very hard to let go of the 10.2 TMASlope indicator. I have found that it is very helpful when determining whether to take profit at the first #.000 or let it run further until the next #.000. The rule I am trying at the moment is (for a buy) if the TMA is above 0.8 when the price approaches the first #.000 then move the TP to the next #.000. If it is below 0.8 then take the profit at the first #.000. Anyway, keep up the great work. Chris The 10.xxx series will complement each other. In other words the different indicators will work with each other. So to mix and match is not a bad thing if you find something useful. I cant tell you how many times I will flip back to a 10.5 or 10.4 screen to compare how the reads are with 10.6. I find they complement each other very well. So dont give up something that is working for you. Here you go with the STO on ranging, I've also added the opportunity to change both bar width with numBarsRightH4 & numBarsRightH1 (5 & 3 default) rules are now: -- H4 (unchanged) -H4 GREEN BAR : Bid above MA240H4 and MA60H4 H4 OLIVE BAR : Bid is between the two MA but above MA240H4 H4 GOLDENROD BAR : Bid is between the two MA but below MA240H4 H4 RED BAR : Bid is below MA240H4 and MA60H4 -- if "ranging" H4 (OLIVE or GOLDENROD) -H1 GREEN BAR : Bid is below MA15H1 & Sto722 below 20 H1 RED BAR : Bid is above MA15H1 & Sto722 above 80 -- if "trending" H4 (GREEN or RED) (unchanged) -H1 GREEN BAR : Bid is above MA240H1 and MA60H1 but below MA15H1 H1 RED BAR : Bid is below MA240H1 and MA60H1 but above MA15H1 I've checked quickly on current market conditions, seems to be working fine.

Kindly look at the gbp usd h1 chart posted below. Would you enter short: [1] during candle marked 'A', the moment Sto reads < 80.... OR [2] at close of candle marked 'A', when Sto closes < 80...... OR [3] during candle marked 'B', the moment Sto reads < 80.... OR [4] at close of candle marked 'B', when Sto closes < 80....... OR [5] wait for ma15 (orange) to point downwards again and then take the next Sto short trigger? Thanks.

The break of a MA line or DO line would work. The signals are there so you enter the trade. It went about 70 pips off of last nights move. #1 forget the close of the candle garbage. I never trade that way. When price decides to move you go with it, waiting for the top of the hour never made any sense to me. #2 going with a break of a horizontal line (Daily/Weekly Open or xxx.000) or an angle line (trend line/MA) is always your best two options. Yesterday playing the break of the DO or Trend line were your best two options to enter.

By 'DO line', I assume you mean the Daily Open Line. Please confirm if that is correct. I have re-attached the chart drawing the TL (a bit differently from yours) using the first 2 troughs in that incline (as would happen in real-time). based on that, the following breaks are available: candle time -----15:00 - TL break at 6052 (by ~ 2 pips) 19:00 - TL break at 6063 (by ~ 6 pips) 19:00 - ma15 break at 6060 (by ~ 3 pips) 20:00 - daily open line (magenta) break at 6045 (by ~ 48 pips) a few questions arise: [1] how would you make your choice looking at those events, as they happen? [2] How many pips beyond the line being broken do you place your entry order? [3] Where would your s/l have been in the present case (we have the 1.6100 sweet spot about 40-60 pips above the listed break events)?

Well, when you get a signal you place your trade and PRAY. There is no way you can predict where price is going to go. However, you try to put the odds on your side and hope for the best. Most of the time if you have a trade back into a trend it is going to work. BUT, it may do it right away, 8 hours from now, or even two days from now, maybe never. You just see the signal, look at the trade and say to yourself, "Self, this looks good and go with it." Price will:

1. go for your SL or 2. Not go anywhere or 3. At some point goes in your direction. Any one of those places you mentioned would have been good enough if you waited long enough. Then again price could have ....................... but you know, that is trading. Heres something for your consideration: take a look at the h1 chart attached. It bears the new dummy lights. As you can see, the h4 light is olive, price being between 60 and 240 on that timeframe. So, one can take signals in either direction. The h1 light is showing green which would indicate that one should be looking for a long. However, if one looks at the way the ma's are stacked on h1: 15 < 60 < 240, one would be looking for a short with price rising above 15 and falling back below 15. Should the h1 dummy light not be red in this case, then? on the other hand, if 15 > 60 on h1 while both are still below 240, one would be looking for a long each time price dropped below 15 and rose back above it. The h1 dummy light would then be green. And, mutatis mutandis in the h4 goldenrod ranging scenario... kindly comment. Thanks.

4H chart showed it was in its range area so you had an olive bar. Price will either bounce up and stay in its range or break out and go into a DT. So in its range area it gave a buy signal. When it crossed the 240 line on the 4H chart it went into a DT. 4H bar color changes to red signal it as a DT. Price bounced back up tested the 240 line and then went into a strong DT move. If gbp/usd had ranged the signal would have been a good trade but price didnt stay in its range so now it is a DT. 10.6 allows you to trade both range markets and trending markets. So it was a valid trade signal if price ranges and if it breaks the 240 line on the 4H it is a valid trend trade. If you had played the buy range trade you know to get out quickly because it went into

a DT. If you played the break into a DT you had a good trade. If you played the dailypivot buy you probably are not in because the trade went below the 240 line before it went above the DO line. If you played the xxx.00 buy entrance it went about 20 pips to the good before reversing and crossing back south over the 240 line. Either way the signal is valid. You got a signal that was valid if price ranges, it was not valid if it goes into a DT. If you played the buy tight you would have been safe with a small profit or at least BE. If you played the DT you would have been in a good trade. Either way you should not be in a loser if you brought your SL up so your winner doesnt turn into a loser.

[2] How many pips beyond the line being broken do you place your entry order? I have no rule, I just place the trade. [3] Where would your s/l have been in the present case (we have the 1.6100 sweet spot about 40-60 pips above the listed break events)? I still use the 240 line like I stated in the original. I give my trades a lot of room and many times use multiple entrances. Would someone mind checking this for me please I have 2 green bars, price is above the 240 but not below the 60 on the 1 hr. . . . . Do I need to change some setting please? Or do I have the instructions wrong?

This is a beautiful 10.6 buy setup. Go to the 1H chart and look to place your pending buy around the 15MA, DP, xxx.00, or xxx.050 line. The 2nd green bar is telling you that a setup is showing on the 1H bar. The first bar lets you know if you are UT, DT, or range area. So you have two confirmation setups for a buy. Hi bob, that chart is already the 1 hr. chart. Isnt the price supposed to be under the 60 ma for that second bar (1hour bar) to show red? No not necessarily the key to the 1H signal is the 15. The 60 will miss too many trades where the trend is real strong. The 10.6 trade was designed for trades that couldnt be gotten (egad butchered the King's English) on the 4H chart.

Notice also the 1H STO7 will also give signals. So if you are on 4H chart and you get the double green, you then go to 1H chart and you will get a STO 7 signal also when it breaks the 80 line. The STO 7 works on every TF you have your chart on. The 4H bar and 1H bar are represented no matter what TF you are on.

Hi all, thx to Bob for this system, I'm still studying it, let see if I understand right with a live example on AUDUSD.... In H4 chart I see two red bars and sto7 is low so there is no entry as per 10.4 so I have to switch to H1 and see sto7 just crossed from above the 80 line, so I guess even if price is below daily pivot this is a sell signal as per 10.6, is that right?

Yes and if you used the xxx.00 line it moved about 20 pips. Not much of a move but still moved into profit. It then went back up for another run of about 10 and then finally back above the pivot line. Depending on how you played it, it was a small profit or a loser.

This is one reason why I profit each session and try to stay away from hanging onto trades until they become losers. If 10 pips is all I get then I take it.

The aud/usd now shows a standard a possible 10.4 trade and I will look to see if it makes a double bottom or goes into a 1,2,3 swing trade reversal. I will enter another sell at the STO7 signal. It also could continue into the trend since the move has not made the end of trend run mark yet. I will be posting on my 10.6 thread how you can know a run is over. There is a specific sign to look for.