Example of the Naningbob 10.1 trading system.
You need to set up charts with candles, 2 and 8 smoothed MAs and Squalou's daily SR indicator all available from the Post one on the FF link at bottom of post.
Trading rules.
1. Only trade in the direction of the trend indicated by the MAs. If the 2 ma is above the 8 ma then we only trade LONG.
2. If the 2ma is BELOW the 8ma then we only trade short.
3. Once we have identified the trend we then use Squalou's indicator to identify the nearest level of daily support. The default shows the nearest 2 levels. We then place orders to buy/sell under/over the nearest D1 level (aboou 10-15 pips away). At the same time set a limit order to close the position at the next D1 level. Then place another order above/below that D1 level; then if price hits the level you close out and if it bounces you keep your profits. If price carries on thru the level (trending) then you forgo around 40-60 pips and pick up the move the other side of the SR level.
4. If price is trending and the wick of the candle for the day has penetrated the 8ma then the move is coming to an end. Look to close out the trade.
5. When the MAs are flat look for trending pairs elsewhere as price is just going sideways and direction is not clear. Combine this system with standard PASR reversal candles too for a formidable system.
6. To fine tune entries you can use the MAs as dynamic SR levels too. For example if the trend is down but price has retraced back up above the 2ma (Blue) you can place a stop sell order 10 pips below the blue MA expecting price to reverse and continue with the trend. It gets you in a little earlier than waiting to pick the trade up on the other side of the D1 line.
7. I manually draw my own weekly SR levels as I want to ensure I'm not trading into those levels. Plus when the D1 lines are on top of my weekly levels the break becomes more meaningful and we can set limit orders at the next WEEKLY level rather than the next D1 level - see the weekly levels as set and forget!
See the example given on a crude short (daily TF) from 2 Feb 20102 above:
For greater clarity visit Bob's thread over on Forex Factory:
Happy Trading!
