XO_Method REVISED - page 46
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Dear Valeo,
Sorry for non responses, i got healthy problems
RE where do I find the indicators
If you go to the most recent post with the pdf file attached and go back to the very first page of the pdf then look up that post on this thread, you will find that with the original explanations of W1 chart, H8 chart, H4 chart, H1 chart and M5 chart, ValeoFX added a zip file with the indicators and template.
The confusion is that really the original method of this thread was XO_Method.
This is what post 2 is about.
This evolved (on the thread) after ValeoFX took a break in to a new version which only includes 4MTF XO on H1 chart (see the ebook/pdf).
So really it is 2 methods.
I personally continue to have a M5 chart with an adapted version of XO_Method and a separate M5 chart with "RSIFX_Method."
This is why there was discussion of new thread being started.
I think it is neccessary to understand XO_Method to learn RSI Method due to various things such as MTF (multi timeframe) concept, especially of EMAs, also EMAs and their relevence in this system as support/resistance and trend direction indicators. In addition, XO.
Once you understand what all the components "do" you realise every component has it's use and is there to help rather than hinder your interpretation of what is going on in the market.
This entry on M5...........
Good morning all,
Just want you to see the entry on the M5-chart a few minutes ago. The entry is marked @ 08h40 candle when the RSi-2 shot through the RSi-4 on the H4-TF (marked with an arrow in DodgerBlue) This is legitimate as the H1 is not ready yet, but the H4 determines the Trend.
Concern was the RSi-2 being "overheated" on M5 TF and we would expect a retrace which came 3 candles later. Overall concern was that the H1-chart (next post) was not showing a clear direction, but if you look at the overall picture, the chances of a break-out to the top were better than short. Reason being that if you watched the H1-chart's CCI-5 during the previous candle, you would have seen that it was overheating very badly and the directional change was imminent. (Watch out for clues like that by using the CCi-5 - brilliant, brilliant, brilliant)
The trade was good for 40 pips at least and you may have stayed in if you obey the 8-EMA rule.
Good trading today and every other day.
H1-TF this morning..........
I marked with DodgerBlue arrows (wedges if you wish) in the first window on the H4-TF, where the RSi-2 did not close below the RSi-4. These are extremely important clues!!
Also see the ZLR (Zero-line Reject) on the CCi on the previous candle @ 08h00. Adds fuel to the fire > patience, patience, patience!!
Had you traded the H1 chart, this entry may not have been for you, but the combination with the M5 is very accurate.
Any questions?
Best wishes.
Suk #459
Thank you very much for this explanation, Suk. Much appreciate your time and assistance.
Best wishes.
Why did I not trade the short @ 07h50..........
I was asked why I did not trade this short @ 0h50. Very simple - it is too close to the close of the 08h00 candle and secondly the Pivot is only 10 pips away. I do not trade high risk trades and it was further confirmed 2 candles later when the CCi-5 overheated as well as the RSi-2 moving into overheating zone. Those 2 together makes me sit out.
Hope it makes sense.
pdf update
latest pdf w/ new forum entries.
H4 "divergence"...............
So it happened sooner than expected. Here is the H4 chart very similar to this morning's set-up and the reason why I see "divergence".
First look at the candle: the spike just touched the 15-EMA before it pulled back, BUT the RSi-2 has already reached 6.4% and therefore overheated. Same for the CCi-5, it has been sitting @ 166,66% for a while now and if the direction stays like this, there should be a retrace at the close of this candle 92% of the time.
Watch out for clues like these in order to make informed decisions regarding direction to be traded.
Hope it helps.