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:

http://www.forexfactory.com/showthread.php?t=308304

Happy Trading!

Weekly Analysis - WE 27 Aug 10

Weekly Analysis - WE 20 Aug 2010

Monthly and Weekly Analysis WE 7 Aug 10

Weekly Analysis - WE 30 Jul 10

Weekly Analysis - WE 24 Jul 07

Looks Like the EQ double dip is on after all in the US!!

Weekly Analysis - WE 16 Jul 10

Monthly and Weekly Analysis WE 4 Jul 10

Few major trend changes this month/week

Weekly Analysis - WE 2 July 2010

Weekly Analysis WE 25 Jun 10

Looks like 'risk-on' again this week. Budget in UK may shape Stirling but rumours it will be bid on the austerity measures.

Short Dow Jones

Looks like a good set-up short - the dow sank on the closing session (that the pro's own!) and there is evidence on the xxxyen pairs that tomorrow will be negative for stocks. (Edit - this order never triggered and shows the strength in being patient and not trying for tighter entries into hammers etc on lower TFs. Always leave your entry a few pips above/below the candle!)

Long set-up on USDCAD

Possible long set up -123 with a hammer at a HL. Obama's comments on oil could hurt the CAD

Desire?

I'm also thinking of a position in Desire Petroleum. They have their second drill site quite near RockHoppers site and I feel they were unfairly punished when their first well came up dry. We now know that oil exists in the Northern Basin so this could be a good chance to pick up some shares in Desire while prices are depressed. I'm also locking away £1000 in BP as they have been smashed by the news and whilst they may still go down a little more I believe most of the news is now in the price. They are still a huge company and even if they do scrap the dividend thru political pressure - they will be back into super profits next year! Load up while they are cheap, (Edit: but only on supportive bullish price action on the weekly chart I forgot to say!!)

Falklands exposure via FOGL.LSE

Well, with a much bigger license area than Rockhopper (that has gone up 500% since striking oil in the north a few weeks back) Falkland Islands Oil and Gas (FOGL) has the chance of also becoming a 'ten-bagger' share. The company is due to report at the end of June on the first drilling at Toroa - I've had a love hate relationship with this share for many years but it could be make-or-break in early July.

Weekly Analysis WE 11 Jun 10

Quite a lot of neutral this week as some of the hammers on some pairs are still in play (ie lows not violated) I try and colour as per the swing in play and the controlling candle. For instance a hammer will mean a grey week until it's high is taken out positively meaning a new swing low has been put into place. Some weeks this can be confusing but I try and stick with the major trend in play. Forex trending looks so simple in hindsight - why am I still not short Euro after that great weekly shooting star and lower high?? Psychology - the stuff that separates winners and losers - ignore it at your trading peril!

Monthly and Weekly Analysis WE 6 Jun 10

Mixed bag this week. I'd expect some EQ retraces before the next leg down for new lows.

Weekly Analysis WE 21 May 10

Lots of xxxjpy IBs that could hold the key to how the EQ's develop? In the Flash Crash 2 week's ago the xxxjpy pairs started selling off some 50 mins before the Eq's crashed. Seems the carry trade is alive and well.

Silver Short??

Looks like a good set-up Short on Silver (spot)

FTSE Short now!

Two charts that show a good chance of a FTSE drop. New down trend? Let's see....

Flash Crash

http://www.worldtribune.com/worldtribune/WTARC/2010/ss_economy0389_05_07.asp

As I suspected......Could big money be behind that mystery Flash Crash last Thurs?? They think so too.