Detetrend Price forex Trading System
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Detetrend Price Trading System
Time frame 60 minutes
Pairs: all
Indicators:
MACD (12,26,9)
ADX 14 with DM
Detrend price oscillator DPO (12)
For a buy signal…
(1) The DPO most cross above the zero line.
(2) The MACD line must be above the signal line.
(3) The +DI should be above the –DI or just be crossing above the -DI. (As you learned, this is not 100% necessary, but preferable.)
(4) Finally, the 3 day MA must cross above the 15 day MA up to 3 candles either before or after the upward cross of the DPO.
For a sell signal…
(1) The DPO most cross below the zero line.
(2) The MACD line must be below the signal line.
(3) The +DI should be below the –DI or just be crossing below the -DI. (As you learned, this is not 100% necessary, but preferable.)
(4) Finally, the 3 day MA must cross below the 15 day MA up to 3 candles either before or after the upward cross of the DPO.
System, Detetrend Price
Note: You may want to increase the percentage size of this document to 150 to 200% so you can easily see the chart examples. You an adjust the document size to any magnification you like, so remember to change it so you can clearly see the chart
examples.
This was a very good buy signal on the EUR/USD. On the same candle, the DPO crossed above the zero line, the DMI crossed, the 3/15 crossed and the MACD had just moved above the signal line. I waited until the close of the candle, and the open of the next candle to make sure the 3/15 crossed. This is often a good thing to do, because you don’t want to enter prematurely. As you probably notice, there was another successful buy signal not
long after this trade was exited, but for the sake of simplicity I am only listing this trade on this example.
Bought – 1.2629
Stop Loss – 1.2601 (28 pips, 10 pips below 15 MA)
Sold – 1.2751 (when 3/15 crossed again)
Profit – 122 Pips
System, Detetrend Price: Sell Signal
This is what I consider to be a “perfect” sell signal with this system. The reason I say this is because every indicator showed a sell signal on the exact same candle, simultaneously.
You can see that the DPO crossed below zero, while at the same time the +DI crossed below the –DI and the 3/15 crossed downward to confirm the trade. The MACD was also
below the signal line. Trades such as these are the highest probability winning trades. One thing you will notice is that the prices temporarily retraced almost exactly to the 15 MA,
and then continued in the right direction. This is something that happens on a relatively frequent basis, which is why one of the rules to the system is to place the stop loss on the
other side of the 15 MA.
Sold – 1.2338
Stop Loss – 1.2368 (30 pips away, and conveniently, 14 pips above the 15 MA)
Bought – 1.2029
Profit – 309 pips (this is an unusually large amount to make on one trade, but it happens from time to time)
Trendlines can be one of the easiest indications of support and resitance levels, and are a great tool to help confirm trades. Used with this system it can increase the probability of a trade being a winner if the signal comes right after a trendline is broken, or right after prices bounce of a trendline and then go the other way. Trendlines indicate market momentum, and are sometimes referred to as momentum lines. Whe prices break a trendline it can often indicate a change in the direction of the market momentum, and is
therefore a good tool to add to your repertoire.
Please take a look at the examples on the following pages of trades confirmed by trendlines
System, Detetrend Price: Trendline confirm trade
This is a perfect example of a good trendline being crossed simultaneously as we get a signal on all the other indicators. All on the same candle, the DPO crossed above the zero line, the +DI crossed above the –DI, the 3/15 crossed, and a trendline was crossed. This indicates a very high probability winning trade, and it turned out the trade was a winner and good for about 60 pips.
System, Detetrend Price: Trenline confirm Sell Signal
This is a great example of a trendline confirming a sell signal. Again, on the same candle all indicators showed a sell signal, as well as the trendline being crossed. You can see there were two valida trendlines drawn from the previous movement upward. As the first was broken the sell signal came. Prices briefly broke the second trendline and then bounced upward, almost exactly to the 15 MA, as they are known to do pretty frequently, then proceeded to plummet. This turned out to be a 200+ pip winning trade.
sales Package:Template MT5 DPO.tpl
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Detetrend Price forex Trading System
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Serving Professional Traders Since 2008
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