USD/JPY Metronome Method

thread: USD/JPY Metronome Method

  1. #1
    Junior Member Alpeher's Avatar
    20

    USD/JPY Metronome Method

    This is the system I use to trade USD/JPY, but really might be employed with almost any pair. I'm concentrating on USD/JPY right now though to refine this method and compile data on the correct signals.

    Basically the system is compiled from:

    1. A legitimate MACD
    2. Stock stochastics
    3. A Trend indior (EMA) Blue=Bull Trend, Red=Bear Trend
    4. Ichimoku Cloud
    5. cliqforex Calendar Indior

    It generates quite accurate longer duration signals (1hr seems optimal).

    Rule #1. Ride the Trend.

    I've this indior connected to email notifiion so I know instantly when the trend changes so I could get in early. This is particularly important when the trend does not last more than a few phases. Worst case scenario: break even or lose lt; 10 pips; however, only if you get in early. I wouldn't advoe trading against the trend using this system unless you are considering other time frames along with the 1hr . . .you WILL get burnt.

    Ordinarily I allow the new trend confirm itself by entering after the end of the initial trend change period. Following the tendency is confirmed, the longer term trend (1hr ) has offically changed, so far seems to last for at least a full trading day typically.

    Rule #2. Wait for MACD Stochastics Confluence.

    Should you take a look at the example chart, you will see that 95% of the time, a MACD cross happens at precisely the same time as a Trend change. We can anticipate this change by searching for stochastic confirmations. A stochastic hovering around 80, looking near crossing when an MACD downward cross is immenent is indiive of a possible trend change. If the stochastic don't match up, the move may be quite slight, including up to a moderate correction in precisely the same trend instead of a change in direction.

    The MACD included in this system is NOT the stock MACD indior included with MT4. Use this one instead of the stock indior.

    Rule #3. Look where PA is in relation to the Ichimoku.

    I utilize this indior more as a indior of where matters wil go after the trend has changed. A trend's PA entering the Ichimoku cloud might experience resistance, and be extra cautious when PA starts to hit the top side of base of the cloud, as it is normally a definitive indiion of support or resistance (great time to take profits, and also get back into trend if it continues). I won't go into the specifics of the indior, as it isn't a major player in identifying a trend change; there are several excellent articles explaining how to use this indior.

    Rule #4. Keep up with the latest News Releases.

    You will be amazed how news will trigger an already ripe installment. MACD and stochastics will probably be very near crossing, and then an economic release will be the tipping point, sending the PA skyrocketing in all directions the other indiors have been going towards. Don't get burnt by thinking that technicals alone will save daily. A big news release could be a knock out punch for what might have been a profitable commerce.

    A number of you might be familiar with this indior. It displays the relavant forthcoming news releases for a currency pair and is connected via RSS to the main cliqforex caldendar.



    Additionally this these indiorsI also include candle patterns and support and resistance lines. I will be including some of them in later trade posts.
    https://www.cliqforex.com/attachment...1487364405.zip

  2. #2
    Junior Member Kyny86's Avatar
    12
    How can it difffer out of Ichimoku? For me it seems almost the exact same.

  3. #3
    Junior Member oxrtin16perwzs's Avatar
    13
    Is there some history trading document on your system?

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    http://forexinterval.blogspot.com/20...rading_19.html

  4. #4
    Junior Member Alpeher's Avatar
    20
    The Trend indior is currently gloomy (bullish), nevertheless PA didn't make it from the cloud after it entered. It hit the surface of the cloud, and stochastics are displaying either a correction or a possible trend change. It may require a few hours for MACD to cross for an offical shift in tendency back to reddish (bearish). I guess this to be true, as we haven't seen a severe fracture in the continuing downtrend.

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