Fozzy-style trading techniques -
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thread: Fozzy-style trading techniques

  1. #21
    Initially it was my intention to just talk PBs and a Fozzy-style indior, but I have since decided to demone how I use the basic 8 Fozzy indior with other PA indiors.

    First: that works for me, maybe it will work for you too. Otherwise, I hope this info will help others to use PA, and notably PBs more. Do not trade this manner without a thorough understanding of what I am doing and just after backtesting and demonion trading!

    A few words about the standards I like to use and why:

    I am looking to get”A” trades; the very best, high quality installations. There are too many good opportunities to waste time with'marginal' trades. I look at Monthly and Weekly charts for a'feel' for what a pair is performing; I trade off the Daily mostly and occasionally use the 4 Hour to get a historical entry. (I will discuss that in a later article; for now it is all about the Daily chart).

    PBs are well defined and many have their own interpretation of this indior. I enjoy a small body (I use candles as to me they are more'visual') using a very long wick; I do not have any set rules regarding dimensions and percentages and so-forth, I just know what I like to view; and surely an extremely long'nose' using a small body is ideal; there's one on the attached chart. Some traders call this discretion.

    Fozzy-style trading is all about trend reversal, it may be for just a day or two or it may be much longer; again the attached chart shows both (it is among my favorites, GBP/USD. Just like , GBP/USD was great to me too!) . IMO Pin Bars are also about trend reversal, so every time a PB shows up using a Fozzy-style trade sign, I listen. But only once I have seen two days of price movement in the exact same direction (the PB may or may not be included in two days). I won't trade a change after a single day of motion in the contrary direction; overly risky. I may overlook a few good deals, but I will be kept from more losers. I need some momentum. I have two MAs on the chart for visual effect; aids me'view' the current trend. It's nice when these close and/or cross, but I do not NEED that. I DO NEED the RSI/MA (Fozzy indior) lines to be shutting, close and/or crossing; that's a large part of the transaction sign. That's one of the advantages of trading Daily charts (4 hour too), there's NO HURRY, we have plenty of time to create a trade decision after carefully analyzing ALL the factors that go into our choice. Yet another thing: there'll likely be Fozzy-style crosses as shown on the chart, but when I don't have some form of PA agreement, I will ignore the cross; again, also many excellent opportunities to take unnecessary risks.

    OK the chart:

    June 5: possible PB, but RSI/MA not close. Wait!
    June 6: spinning top, good!
    June 7: Trade signal in the close of the afternoon; Fozzy cross, MA's cross using a”Bridge”, large bearish candle=momentum (I would have looked at the 4 hour chart during the day for possible early entry, more on this later)
    June 8: 150 pip transaction with a small S/L needed

    June 8: PB reversal? Wait and watch
    June 15: Fozzy cross and MA cross
    June 18: Buy sign; 400 pips and small S/L

    July 4: PB? Not a trade setup! July 2 candle is UP, 3rd is Down, 4th is UP......No transaction!

    July 6: PB looks good, Fozzy cross possible, watching 4 hour to get confirmation.
    July 9: Watch the 4 hour chart and BUY, 350 pip commerce, supported on the 10th

    July 11: PB? No!
    July 16: PB? No!
    July 19: False Fozzy, PA doesn't agree with this RSI/MA cross.
    July 20: PB? No!

    July 24: PB? Yes, confirmed during the day on the 25th. 350 pip exchange

    July 30: PB?
    July 31: Fozzy cross not close enough for me; in hindsight I missed a commerce, but did NOT break my rules!
    Aug 1: Another PB?
    Aug 2: Buy sign confirmed with the 4 hour; small payout, about 90 pips

    Aug 3: PB?
    Aug 6: PB supported on the 4 hour; but in the end of the day we have a Double Top with a lower close, pleasant PA to keep in the Sell! 130 pips

    Aug 8: PB? No more the bosy of this candle is waaaaaay overly significant.

    Aug 8 9: The same scenario as Aug 3 6 together with the Double Best; Aug 9 includes a Fozzy cross down
    Aug 10: Sell...............but in the end of the afternoon, is that a PB that only formed? in your profit for current fad, then wait and see.
    Aug 11: Economy continues.............550 pips possible

    Aug 16: PB? Fozzy indior not close enough to decide, will wait one more day
    Aug 17: Glad I waited.............amazing PB; but it takes three days to get a Fozzy cross AND a MA cross AND a price break of the cap of the PB
    Aug 23: Buy at the price break, good momentum today, 200 pips

    Aug 27: PB?
    Aug 28: This is a tough one. No more Fozzy cross or even close on the Daily; the 4 hour will put you in the trade OR a break of the base of the PB during the day on the 28th.
    Aug 29: In case you waited, it was a loser.

    Aug 31: PB? I want two successive days of price movement in the exact same direction; no more here! 29th was UP, 30th was DOWN, 31st was UP; no transaction!

    Sept 12: PB? OK, time to”adjust the rules”. 7th was UP, 10th was DOWN, 11th was UP. But wait, the candle around the 10th was a 2 pip Doji; it does not count, I shall”ignore” it. And there was a Fozzy SELL on the 12th. When there is a Fozzy sign along with a great PB, I will exchange that. I am still in that commerce!

    Hopefully this explanation is helpful and I have not left out anything or made too many mistakes. There will be a few questions; I will do my best to answer them as time permits. And I will post something later about using the same indiors and standards on a 4 hour chart. In the meantime, if that interests you, then why not spend some time researching that in your own. Cheers!

    Almost forgotI do use S T levels as appropriate; that's why I have the red and blue dot indior to remind me of past levels of importance AND I will use Fib levels and retracements; but I do not see a need to explain that, everybody has their own way of employing these.

  2. #22
    Junior Member Laretacastexx's Avatar
    23
    Many thanx to both Jarhead and BeachBum to your wonderful insights, guys. Its really great to learn something new from Experts

    Jarhead, I like your info about zooming into small TFs for GY prior to taking a Fozzy trade. This is what Im working on at the moment, trying to utilize 5sma as an entry to the four H chart in the course of their daily Fozzy cross, something like BB is performing as well. I found the price will almost certainly move against me for a while, so I wait for it to retrace to the 4H 5 sma, seem if this degree is exactly the same with an important Fib, and then wait for a 4 H Fozzy cross in the direction of the Daily Fozzy cross. In my backtesting, I discovered that if all these rules are accomplished, the trade is almost always a winner, at least for my first TP, that would be 70*ATR(20). In any case, doing so instead of blindly entering day open reduces my risk and extends my profit.

    About accepting trades against the main trend, I take them, but I would usually enter with fewer lots, together with final TP in ema 28, which seems to be a really good S/R at least for yen pairs.

    I like very much my current technical set up for trading, I ceased trying to tweak it as I used to do before with each system I heard, because I understand the only thing left to shift in order to become very successful is my own trading character and style. Before Fozzy, I used to own scalp on possible intra-day setups, but the mixture of lack of experience and patience and eagerness to trade anything wiped me an account and half of another one.

    Im really grateful to Fozzy for offering me more than just a very simple trading set up, it helped me to develop a trading style.

  3. #23
    Junior Member Laretacastexx's Avatar
    23
    Beachbum, I like your successful mix of Fozzy and pinbars. I had in my mind for a quite sometime today to read James thread, it would probably be my last input into my trading egy. My ultimate goal regarding my technical setup is to exchange solely based on price action (this would mean candle setups, S/R, TL and Fibs) and utilizing Fozzy as the solely indior on the daily and even on smaller TFs, like I see you are doing already.

    Will post some charts also, if its ok with you, as the starter of the thread, it would be nice to take some time examples of setups, as they grow in the coming week.

  4. #24
    Junior Member Laretacastexx's Avatar
    23
    For the coming week, I think about carrying the GY short sign. My reason is that the up movement faded away at 28 EMA (last Thursday) and even when the pair is currently ranging, it has room before the service at 229. Only 2 lots, but I wont go into at day open; I shall instead wait, see if it retraces at 5 sma on 4H and enter at a greater price than the current 231.30.

    The funny thing is that EY didnt provide a sell signal, and besides, it broke over the ranging zone, so I'll be very cautious, and also looking at what UY is performing at that downward TL. If the TL rejects UY, then I think the downtrend will resume for the yen pairs.


  5. #25
    Junior Member Stumbleine's Avatar
    16
    Hi,

    I am analyzing Fozzy method and actually thank BeachBum for most of the work he created.
    I did not finished studying the primary thread and this might have been already seen.
    I really enjoy the Vegas Tunnel system and in particular its TP levels characterized with Fib numbers (89, 144, 233,...).

    I put in commerce based on the Fozzy rules and
    1) I set SL to breakeven in 40 pips profit
    2) I shut half position in 89 level and let the other half running
    3) When price continues passed 89 level by 40 pips, I transfer SL to 89 degree
    4) When price has passed 144 level by 40 pips, I proceed SL to 144 degree
    and so on... as long there's not any reverse entry signal or that I feel that price is going to reverse (PA or S/R).

    I combined indior I use. I use a MA12 for setting instead of 24 and 28.

    Thierry

    https://www.cliqforex.com/attachment...1534586335.mq4

  6. #26
    Junior Member tatpk050's Avatar
    18
    FxJ....thanks for Your info charts. I've set up a template that's a copy of your charts (I think) and attached it for those who'd like to test this egy....
    Hello BB, I´m new to the fozzy system, up to now I know this works great with the daily along with the 4 hr charts, right? This template you submitted is for scalping on 15 min charts? If this is so, how great works for you. Thanks in advance. Keep your great work!

  7. #27
    Hi BB, I´m new to the fozzy system, up to now I know this works great with the daily and the 4 hr charts, right?
    Right.... This template you posted is for scalping on 15 min charts? I really don't scalp with this system; FxJarhead does.... If so, how great works for you. Thanks for your response in advance. Keep your great work!
    . .

  8. #28
    Junior Member oxdnice's Avatar
    20
    I only started reading about Fozzy on the weekend officially looking for a daily method (first read about its existence in Sept when I found this website ). I didn't know where to post to your latest Fozzy attention so I did a thread search and watched this thread's been active.

    I have read up to around page 60 of this 173 or so pages in the original Fozzy-initiated thread and I have read several of BB's photographed threads on the topic so I believe I will outline where I'm at with it.

    I don't know if there has been other recent refinements because the articles in September about using PA for a discretion together with fozzy signals, but I thought I've my own proposal about the best way to help filter out the possibly bad trades on the afternoon after a Fozzy signal.

    I have not back tested a lot, only a few months of visual testing together with daily and 1 hour charts to affirm where the price went within the daily candle, such as if I watched a fozzy long signal and the next day did go a little long but then reversed and neglected, I looked at the 1 hour chart and saw the spike up probably occurred during the Asian session if it was a failure.

    So I'm continuing to try this but I needed to write it before I forget about it myself. My idea was instead of blindly taking a market order on the new daily candle, wait until London begins. Draw a kind of Asian split out station of the high and low that form before London on the potential Daily Fozzy entry day and if it will break from the horizontal station in the Fozzy management, then take that as a confirmation. If it breaks the wrong way from this Asian station when London begins, it is probably a fictitious Fozzy.

    I started analyzing in August 2007 using GBP/USD so that I'll continue to present and whether or not it appears hopeful I may test further back.

    I'm using the 8 RSI/8 EMA without a BB, and that indior that provides the green spikes to get Fozzy crosses with no BB's taken into account. I'm also using PA for a confidence - should I see a down move in advance and a two bar full of a lower near combined with a short fozzy, I believe that a go, etc. (I read all 500 pages of J16 public thread in the first month on the website ).

    Possibly my final intention is to use fozzy as a pair of training wheels to get pure PA so I can make enough pips to pay a J16 subscription... Too bad I can not direct my broker to move a specific number of pips out of winning trades over J16 for a royalty payment.

  9. #29
    Junior Member oxdnice's Avatar
    20
    I've looked at more fozzy signals in September 07 while using the 1 hour chart to monitor what happens on entrance day and I'm seeing that candles may break either direction of an Asian session channel back and forth, but if it does break the channel in the direction of fozzy, either second or first regardless of another channel facet being broken or not, the transaction appears to be possibly safe as long as there either has been a fib retrace of some current 1 hour chart move, or if no retrace has happened from a recent play, then allowance for a retrace before the trade proceeds should make it safe to carry.

    I think that the purpose is....at least on Cable, if fozzy says proceed 1 way another day but there is a fracture that way from a Asian high/low boundary on the 1 hour, then fozzy can fail. When there's a break from a oriental channel in the direction of fozzy, either before or following a break in another direction in the Asian station, fozzy has a good chance of exercising either immediately or following a fib retrace around 61.8% from some current 1 hour chart move (subjective artform to estimate )

    I see failed trades which start to take off only to fall back down, but sometimes they are simply doing a fib retrace of a current 1 hour move and take off again as intended (can take days and there can be a few more up/down fozzy signals in between) so the typical trading discretion can be still utilized to make it all successful based on tolerances.

    I believe maybe this could help only prevent some bad trades from ever taking off the ground by entering them if price goes way in the Asian semester (filtering false spikes during Asia that would have otherwise given a false confidence to spend the fozzy). After the transaction is entered, the same original risks apply.

  10. #30
    Thexder....

    There are numerous ways to change the basic Fozzy method; your post IMO discusses a few new ones.

    Many men and women desire a method that may be used with only the Daily charts. A few, such as myself, work from a 4 hour chart as well. And a few traders have become adept at utilizing smaller time frames such as the 15 minute.

    Any way you slice it, every trader will modify the basic procedure to match their own trading style and program. Whatever works best for every trader is exactly what will be embraced by this individual.

    Thank you for sharing any observations !

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