DAX30 GBPJPY GBPUSD 5 April 2017

Having a good success rate with filtering trades with the Awesome Oscillator in conjunction with the normal higher low/lower high with the 3 bar reversal signal buying above/selling below the moving averages.

DAX30 just after London open. The red line on 5 min shows where requirements are met (AO, 3 bar reversal sell, lower high. The red line on 1 minute shows where the 5 minute set up candle closes, the very next 1 min negative close confirms the lower high for entry just below 12275. Decent angle and separation on the moving averages.

There are two signals highlighted on GBPJPY 5 minute, 9.10 and 9.45 chart time. GBPUSD was agreeing.

The 1 minute red line at 9.14 shows the close of the 5 min candle, the lower high follows 6 minutes later, Entry just below 137.65, again note the angle and separation on the moving averages.

The next set up is from 9.49 on the 1 minute which I did not consider. There was no 3 bar reversal signal (that happens sometimes as the 5 min stochastic was below the 50 level) and the 1 minute moving averages did not have the angle and separation I look for.

GU GJ 17 Mar '17

It doesn't really get much better than this in terms of signals.

Both GU and GJ have lower highs just after the green line, 3 bar reversal sell signals.

Then around 11 and 11.20 chart time the 3 bar reversal signals buys at the 20lwma cross.

GU/GJ agreeing lower highs first then the higher lows, little/no wicks in the direction of the trades and the 3 bar reversal alerts getting both moves.

AO research continues

Is the 5 min setting up the move or can you trade 1 min as standalone?

As can be seen from the 5 min AO is already gold before the green line, price moves above the 20lwma, last 3 bar reversal signal a buy, 1 min ma's cross and the first higher low after the cross has the tick mark. Note the angle and separation on the ma's.

Similar story with Dax. 5 min AO solid blue, price below the ma and 3 bar reversal sell signal. 1 min cross and the lower high with the tick mark shows where the 5 min closed with the 3 bar reversal. Again note the angle and separation on the ma's.

Here GJ's 5 min AO has turned blue again but the 1 min ma angle and separation has no comparison to the above trades, see the x.

EUR pairs 13 Mar '17

This is a small variation on the 5 min 3 bar reversal signal next 1 min entry. This is the higher low/lower high following the moving average cross (10 and 100 lwma on 1 min).

DAX 8 Mar 17

Not every day is as good as this but the 3 bar reversal did an excellent job of catching the double tops/bottoms/higher lows lower highs around the turns/cross of the 15LWMA. See the London open green line and the red lines 12.40, 14.35 and 16.50. Again the white arrows refer to the close of the previous candle.\

After getting a signal the bias is to trade in that direction.

The unmarked red line is the US open.

AO filter examples

I don't trade the Asian session but applying system with AO filter. X = no trades tick = valid set ups.

Reading between the lines with either cross or ticks. From left to right would be:

- cross far left, higher low, 3 bar buy signal, above ma but AO blue so no buy. There was 1 gold candle and AO bar but no valid entry and then AO went blue again.
- tick far left, lower high, 3 bar sell signal, below ma, AO blue price trades below the set up candles (which have little/no lower wicks)
- tick middle, higher lows, 3 bar buy signal, above ma, AO gold price trades above set up candle (little upper wick)
- cross right, blue AO so no buys, price above ma so no sells with blue AO
- tick right, lower high, 3 bar sell signal, below ma, AO blue price trades below set up candle (little/no lower wick)

Hopefully this gives clear picture.

GBPUSD GBPJPY 23 Feb '17

I have shrunk the charts this morning just to give a clearer picture of support. I have also added the awesome oscillator and shown for first time (been researching a little while) more on that later.

GU this morning had some support in the Asian session at M2 1.2430 area and GJ also at M2. Clearly seen from the charts. GU has a 3 bar reversal buy at the Frankie half hour reversal time, with a 5 min higher low off the M2 Asian lows. Just after that GJ rejects its M2 but no 3 bar reversal candle (wasn't above Stoch 9 9 1 50 level).

I have been looking at AO as a filter and not buying when AO blue and not selling when AO gold. Does this cause some trades to be missed - yes of course. Does it avoid some losing trades - yes of course. This morning the GU higher low around 1.2472 and GJ around 141.18, AO turned blue for both so no continuation trades were considered.

The red line on GJ 1 min shows the first higher low entry after GU 5 min set up (higher low, 3 bar reversal buy signal), GJ agreeing with move up on 5 min, AO both gold.