Trading quotThe Constrictorquot
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Thread: Trading quotThe Constrictorquot

  1. #1
    Hello men,

    In response to some pms and e-mails I thought I would start a journal here innigeriaforextradingto let you guys know how I'm progressing in the development of my trading system - The Constrictor that I've been busy working with since the past three to four months now. (back testing and forward testing) I have a journal running in the J16 private forum where I did a lot of the first experimenting and testing.


    What I use with this trading system would be a 21 EMA and a 50 EMA applied to the close. The area in between the 2 EMAs is what I refer to as the constriction zone (CZ).

    I've developed 5 different entry methods 3 of that are trend following methods and another two are the more competitive counter trend procedures.

    Before we proceed, I'd like to mention that this system is basically just an extension or some branch of the James16 procedures and some comprehension of the way we trade in the J16 thread would come in handy, though of course I will be explaining my entries in detail whenever I will be keeping in mind that the raw newbies around.

    A very special thanks to my dear friend Mike w for all of his efforts and ideas to get me moving, along with the multitude of folks at the j16 thread that were right with me this time.

    Pairs: Most of the common pairs - no exotics - nothing choppy. (Also some int. Stocks per week TFs)

    Time Frames: 4H and over

    Trigger bars: Outside bars (BUOBs BEOBs), interior bars, Pin bars, IPBs, Bullish/Bearish bars (long body, authoritative close)

    (When there's anybody out there that requires an explanation on these activate bars are exactly, let me know and I will take up it - like I stated some basic understanding about J16 methods will make this entire thing go down really quick)

    I figure I've covered pretty much all the very first things I needed to.

    Articles coming up with the real matter.

    ******------******

    EDIT: I have also done a few introductory videos explaining the constrictor system. Here they're

    ******------******

    g.

  2. #2
    ENTRY TYPE 2: (breakout pull back to the CZ)

    Here is actually the second of the 2 competitive counter trend entrance procedures.

    Demands:

    1) Price bounces off a significant loion

    two ) It enters into the CZ

    3) Price originally breaks from this CZ

    4) Price brings back into the CZ

    5) Eventually gives a nice trigger bar

    There is not any requirement of price to merge in the CZ because it's not as a competitive entrance compared to ET1 anyways. There are 2 reasons for it. The pull back to the CZ allows that price requires until it shoots off. Secondly we're not getting in on the very first bus (ET1 - more aggressive) we're waiting to see if price can hold in the CZ that is a good indiion the recent bounce has legs.

    By initial break I'm always referring to a close past the CZ. Our trigger bar won't be. (If it's, then it really is an ET1 bar and all of ET1 entrance reqs will have to be met)

    g.

  3. #3
    ENTRY TYPE 3: (Bring back into the 21 EMA)

    First of this trend following entries.

    Demands:

    1) Price needs to maintain a nice trend.

    2) The CZ is wide. (indiion of a powerful trend)

    3) Price pulls back to the 21 EMA and provides a trigger bar.


    Pretty simple and straight forward I guess.

    You can be a little lenient on factors like space (bar highs/lows coming in the way of this transaction ) when you're trading with the tendency depending on how strong the trend is and just how good the trigger bar appears, but a lot of significance still must be given to big round numbers no matter what.

    g.

  4. #4
    ENTRY TYPE 4: (Bring back into the 50 EMA and beyond together with the CZ tightened up)

    demands:

    1) Price has to be in a wonderful trend.

    Two ) Price brings back permitting the 21 EMA to come near the 50 EMA

    3) Price indies trend resumption by means of a trigger bar which closes below the 21 EMA.


    The coming together of the 2 EMAs is an wonderful phenomena. Put the constrictor template and scroll back to see how the CZ behaves like a spring to a fashion, it constricts as price pulls back and then when price looks to resume the trend it will so fairly hard credit to the constriction (the way I look at it)

    Also notice in some scenarios the 3rd condition can be relaxed a bit say for example in case of a great looking pin bar (long nose and brightly loed) that will shut at the CZ instead of the 21 EMA - the trade may nevertheless be taken upon the discretion and judgment of the trader.

    g.

  5. #5
    ENTRY TYPE 5: (Extended pull back beyond the 50 EMA with EMA positions reversed)

    demands:

    1) Price has to be in a nice trend

    two ) Price pulls back beyond the 50 EMA causing the 21 EMA to actually cross the 50 EMA

    3) Price instantly looks to restart the tendency by virtue of a trigger pub.


    When price moves the pull back to a tendency the 21 EMA often crosses the 50 EMA, which sort of reverses the ranks of the two MAs to get a very small while. Care has to be taken nonetheless. We don't want the prolonged pull back to look more it's new position. It should cross the 50 EMA again in quick time to recover the original fad and it is original position (below the 50 EMA to get a downward trend, above the 50 EMA for an upward trend)

    g.

  6. #6
    Trade Management:

    1) SL is obviously - and I mean always is initially loed at the other end of the pub several pips.

    2) It get's moved down as price creates new highs (down trend) and new lows (up trend)

    3) A manual exit is possible if items unfold differently than expected.


    There is a big trade off between restricting your risk and profiting. I tend to let my trades breathe and you will not find me moving my cease to BE at the first possible minute. Like I said I will not let a trade shoot me out for -1R when it has gone 2R from the green only because price has not given me a new high/low to move my stop, but then under ordinary conditions I will only let the markets do their thing.

    g.

  7. #7
    Just recently wanted to shade the CZ and Oromek was kind enough to code it to me.

    Here it's if someone needs it.

    g.
    https://www.nigeriaforextrading.com/...3117729246.mq4

  8. #8
    Discussing Shares...

    Look at Coca Cola Move!! (per week FXpro)

    ET4 BUB (bullish bar)

    g.

  9. #9
    I am short Gu 4H off a wonderful looking inside pub.

    Nearly all of my the biggest runners I have had on this system were Inside pub transactions. . .and it is obvious to see why - no trigger pub beats the Rpotential.

    g.

  10. #10
    Usd/Cad 4H ET2 trade missed.

    Still I wish to share why this was obviously a good setup.

    g.

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