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X50 - M5 Trend Following From Canuckct: Main Pairs

This document discusses the X50 trend following strategy from CanuckCT v1.0 for trading major forex pairs. It identifies the most volatile pairs as GBPJPY, GBPCHF, and EURJPY and more relaxed pairs as EURUSD, AUDUSD, and EURCHF. It provides guidance on using MACD, stochastic, angle separator (AS), and moving average indicators to identify entry signals, with tighter stochastic values and AS separation indicating stronger signals. Specific trade examples are discussed, along with minimizing heat on trades by targeting 10-20 pips and waiting for confirmation signals.

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krishna murti
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72 views18 pages

X50 - M5 Trend Following From Canuckct: Main Pairs

This document discusses the X50 trend following strategy from CanuckCT v1.0 for trading major forex pairs. It identifies the most volatile pairs as GBPJPY, GBPCHF, and EURJPY and more relaxed pairs as EURUSD, AUDUSD, and EURCHF. It provides guidance on using MACD, stochastic, angle separator (AS), and moving average indicators to identify entry signals, with tighter stochastic values and AS separation indicating stronger signals. Specific trade examples are discussed, along with minimizing heat on trades by targeting 10-20 pips and waiting for confirmation signals.

Uploaded by

krishna murti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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X50 - M5 trend following from CanuckCT v1.

0
http://www.forexfactory.com/showthread.php?t=65703

Main Pairs
Volatile: GBPJPY, GBPCHF, EURJPY
Relax: EURUSD, AUDUSD and EURCHF

Misc Comments
A good setup is
• MACD had crossed zero
• Stoch 5-3-3 has crossed 50
• Stoch 14-3-3 also heading up...is doesn't need to be over 50 but if it's following the
Stoch 5-3-3 it will be by the time AS confirms.
The tighter the Stoch 5-3-3 and Stoch 14-3-3 are, the better.

I regularly have 20-30 pips of heat on GBPJPY or GBPCHF and 20 pips on AUDUSD or EURUSD
or EURCHF. That's reality. If your stops are tighter than that, you'll probably going to have
problems.

I'm waiting for candles close to make decisions on a trade and will only jump early if it's real
obvious that the trade setup is going to be in play.
If MACD crosses back on the next candle, then you probably entered too soon and need to be
wary. Part of the system is the crossing of MACD, so when it crosses back immediately, you may
lose.

About rhythm indicator


The indicator is a measure of the strength of the trend re price and a number of moving
averages. You could ignore this indicator and you’ll be fine with the signals. When it's weak, I'm a
bit weary.

About Stoch indicators


The tighter the Stoch 5-3-3 and Stoch 14-3-3 are the better.

About AS indicator
The cross and steeper angle seems to coincide with a good entry.
Look for separation in AS for confirmation. The more space between the two AS the better.
Good Trades

Closed at +24.

Because of low
momentum this
time of day,
waited for 2 bars
on MACD as
confirmation.
Trade over in less
the 15 minutes
with no heat.
Entry rules met and
price had touched the
pivot twice.

Closed for +30.

I should have stayed


as 14-3-3 stoch never
really went above 20
for more than a
minute or so...an
indication of a
retrace.
First is a buy and target would have been the pivot.

Second trade is either another buy after the retrace and close over the pivot. Re-entry
like this seems to be a better move. MACD was already above zero and stochs and AS
indicate a buy.

Third trade is a sell, target would have been pivot. If you had stayed you would have
done a lot better.

Each trade would have netted you a minimum of 10 to 15 pips with little
heat
Was up +10 on this trade and didn't take profits. Closed for -3. 14-3-3 stoch moved
above 20, following the 5-3-3.
Sold EU, was looking for price to go to 1.4500. Closed for +35.
Entered at 205.89, exit at 205.73, +15.5 after spread
stochs turns back down, macd below
zero and AS moving apart. Closed for
+40.3
14,3,3 crossing
above 50, the
5,3,3 was
already there,
MACD going
above zero and
the AS crossing
nicely. +20 easy
pips.
There are 3 vertical lines.

The first line is where stoch


crosses 50 and you have a
heads up. Agressive traders
would enter here because
macd looks like it's turning and
As looks like it will cross due to
slope of red line.

The second vertical line is the


first bar of MACD cross,
another entry point and the
standard one...all conditions
met per the first post.

The third line is the first


bullish candle after the setup.
You could also enter here, it's
a bit more conservative and
price closed over 208...a round
number.

Three ways to play it as I see


it.
I see 6 points of interest for EJ today.

The first is after the news and the cross of MACD...that trade would have been a loser -
I'll be discussing earlier entry on a setup like this one because it could have been a
winner.

The 2nd is a winner.

The 3rd is re-entry based on stoch and is a winner.


The 4th is re-entry based on stoch and is a winner.
The 5th and 6th are crosses of MACD and are winners.

All of the entries could have been made with little heat and close for 10-20 pips and
trades # 3 and 5 for a lot more.
Two charts to look at...both very profitable trades. Entry on GC was early.
trade 1
5-3-3 stoch went above 50 and crossed back down...was good separation on as so sold
for +10 pips

trade 2
same...5-3-3 stoch went above 50 and turned back down...was good separation on as so
sold for +28

trade 3
this time 5-3-3 went all the way to 80 which was the 208 round number and turned.
Once it cleared 85 sold and closed for +22. This trade was a bit tricky because AS had
crossed. However stochs and macd in agreement and as never really separated much
before it cross back. Was only looking for 15 or 20 pips...down to 208.50.
Bad Trades
The setup on this one was good and was even up 8 pips at one time. Waited an extra bar
on the entry...was waiting for AS to cross a bit more. If I had entered on macd cross,
would have hit target. Didn't like price action. Closed for -2.
The only comment I'll make is that for ideal setups the AS indicator should cross and be
pointed in the opposite direction...the steeper the angle the better and both the blue and
red lines should have crossed their respective signal lines. Not sure what this would have
looked like live...probably looked great, judging by the 4 bearish candles. But looking at
it now, it seems like the AS indicator lines still quite close even though they have
crossed. Better luck on the next one.
Possible MM Technique
I entered too that trade on EU but i'm adopting another method to handle the trade.
Basically I enter 2 lots per single trade adjusting my risk size accordingly.
I exit first lot whenever first indicator turns against my trade (usually it's stoch5), then
remaining lot will continue to be in place until all indicators turns against my trade.
So in this trade I already closed my first lot at 1.4501 because Stoch5 went above 50 for
a +35 gain and I'm still short with second lot waiting when all indicators will turn for a
long.

after first lot is closed we can move the sl to the be for the second lot that will be a free
trade
Closed second lot at 1.4580 for a nice 57 pips profit.
Combined total profit for this trade : 35+57 = 92 pips

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