Explanation of the system

Good day everyone!

Since I have started this blog, I have been asked for several times what system I use? If someone ask me via E-mail I always give them full answer and links on the books.

I didn’t want to mention this system before, just because I was testing it on the account to find out if it is useful and helpful in intraday trading.

I use www.masterforex-v.su system and I am studying there already for 1 month. Now I can share my opinion with you about it. But really, you can see if it is good or not just reading through my blog.

Now I can define support and resistance levels that work better then DJ levels, I can define flat levels before the session as well and I can use a lot of other components of the system.
I have posted basic points of the system before here http://www.forex-tsd.com/suggestions-trading-systems/10584-path-newbie-do-you-want-cooperate.html
Now you can read it – the basis of the Masterforex-V system.

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The first thing I want you to know is that I didn't develop this system. I just have made it a little more convenient for myself.

Here is the explanation of the system I use.

1) Main pairs
I trade GBPUSD and EURUSD only, but I use also AUDUSD, USDCHF, USDJPY and USDCAD (these pairs are called "Allies") to watch the main movement of the USD.

2) Main TF (Time Frames)
I use intraday system, so my main TFs are M1, M5, M15. I watch H1 - D1 to understand the whole movement.

3) Working periods
The best time to trade is from 6 to 10 (GMT) and from 13 to 17 (GMT). There are session crossings at these time periods: 6-10 Asian and European sessions, 13-17 European and American sessions.

4) Indicators
ZigZag, MACD (5-34-5), Fractal, 4 MAs with the following periods 5, 21, 55, 233, Fibo grids.

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Before the every session I analyze current situation: I count Elliot waves, define support and resistances levels, watch the movement of the allies.

At the beginning of the every session usually we can see a flat. I begin to plan my trades after the breaking of its levels.

How to recognize the real break

Quote:

Take a look at the picture

http://1.bp.blogspot.com/_Sv1U9q9koZU/...26+-+gbp02.gif

I know that a lot of newbies have problems with the recognition of the real break. At this picture we could see how powerful resistance level was broken.
My comments.
At 3:30 (M5 GMT) the price tried to break this level for the first time, but it didn't manage to do so though. After a little time we could see the first break up to 2.0536. Remember, we mustn't open the trade at once, when level was broken for the first time! As you can see, the price had rolled back and only after it returned, the price has managed to fix under this resistance level, AND then resistance has become a support! Please, remember this thing, because it is the main point here. Price had bounced from this new support level, and we could open a trade.

Fractals and ZigZag help me to understand the direction of the movement.

The main instrument to define support/resistance levels for the next session is Fibo grid. I try to define Elliot waves on the chart, and then I place Fibo on one of these (usually on the 1st impulse wave, on the correction and so on - it all depends on the current situation). On each morning I place Dow Jones levels on my charts. The fact is that usually my levels are very close to DJ's, but I define them 12 hours earlier.
Sometimes I have some kind of a gap between my and DJ's levels. Then I will place my trades on the basis of both.

Then I watch those levels, that I marked out.

I use fractals to define stop loss levels.
For example yesterday movement:

Quote:

Take a look at the rectangle. As you can see there were 4 false breakouts of the max level. After that this level was broken with the one powerful movement, and only at this point we could open a trade. Also I marked out stop level: according to the system, I use, it must be placed a little bellow the previous fractal.
http://3.bp.blogspot.com/_Sv1U9q9koZU/...09+-+gbp01.gif

I use so many MA to define current trend vector.
Also 233 MA is a very good support/resistance level.
Here is an example, also yesterday movement:

Quote:

Here you can see the reason why I use this heavy black MA (233).

I have marked out four regions, where MA has become a good support for the price. Also you can see that this heavy MA had ascending movement curing the whole period.
http://3.bp.blogspot.com/_Sv1U9q9koZU/...09+-+gbp02.gif

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Of course it is incomplete explanation. I can answer any question that you will have for this system. Also I’m going to write little articles on the main components of the system to help you understand it.

Right now I suggest you to read through the 1^st and the 2^nd Masterforex-V books – they are free. In the 3^rd book you can find further explanation on every single component of the system. It is a of the paid course.

It is all for now, but I am looking forward to post here more explanations and answers on your questions.

Best Regards,
Anthony Schneider.