CATFX50 SYSTEM

16 April 2011
Main tools:
EMA50 on chart.
EMA120 on chart.
Hist_Step_MA_Stoch_KV1_Ex_03 set at 2000 bars.
Set filters on Step: +0,04 and -0,04.

Plot aNina_v1, set it at 9000 cbars. Hist_StepMA_Stoch is the main indicator here. When Hist_StepMA_Stoch and aNina give signal simultaneously, the better. Do not trade if they give opposite signals.
TF: 30 minutes.
Trade time: 08:00cet to 18:00cet

Optional tools:
FiboPiv_v2
MAX Moving Average set at 50, 14, 2000, 2
SDX-TZBreakout
Camarilladt7 with L3, L4, L5 and H3, H4 and H5.
Standard or Level 1 signals:
Buy when price crosses EMA 50 and new bar opens above. Hist_StepMA_Stoch must be green.

Sell when price crosses EMA 50 and new bar opens below. Hist_StepMA_Stoch must be red.

If price and Hist_StepMA_Stoch crosses are simultaneous, the better.

Level 2 signals (riskier):

For instance, when price is above EMA 50 with Hist_StepMA_Stoch in green. Price then opens one bar at least below EMA 50 and Hist_StepMA_Stoch keeps in green mode. When price opens again above EMA 50 with Hist_StepMA_Stoch validating (green), we can buy. The opposite for a sell.

Level 3 signals (riskier):

For instance, we are in bullish mode: price above EMA 50 and Hist_StepMA_Stoch in green. Suddenly, price goes down crossing or without crossing EMA 50 and obviously without opening below it. Hist_StepMA_Stoch changes to red. We buy when price goes up again always validated by Hist_StepMA_Stoch that should change to green again.


Level 4 signals (Take care):
Level 4 is when price, after a consolidation of a few bars, breaks through the last high or low. The main thing we need is an indication of strength, and if we don't get it, it could be a trap!
Obviously, the breakout down should have Hist_StepMa_Stoch in red and green for the opposite.

Something to take into account:

Pairs to trade: EURUSD, USDCHF and GBPUSD.

When bar opens more than 20 pips above/below EMA 50, the signal is riskier.

Do not buy/sell, for instance, EURUSD because GBPUSD has a signal. Wait for the signal to come in each pair you want to trade. Look at EURGBP, USDCHF and US Dollar Index always.


FOCUS, PATIENCE AND DISCIPLINE.

Graphics:


The main difference between Level 2 and Level 3:
On Level 3 the price doesn't have to cross the EMA50 line
The other difference is that Hist_StepMA_Stoch briefly changes color

Notice the price breakout in the illustration? It would be hard to ignore, wouldn't it?
You don't have to wait for the price to close to do the trade, get on board and ride that
baby!

Final:

CatFX50 easy system is a winning one, but it is not a Holy Grail nor a money machine. Use
common sense and stop of 34 pips.

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