A system to execute on-dips buying / pullback selling stress-free (trial model) An example display of USD/JPY as of 8:00 AM on 9/4 (monthly to 1-minute charts)
A trading system that allows anyone to easily perform buying on dips and selling into rallies without stress, a system (starting point) that targets pullbacks and rallies from point C to point D across moving averages in ABCD price movement as it crosses the MA bands was created.
What kind of chart to use is still under consideration, and temporarily I’ve used the chart of YouTuber FX Fighter Ozaki, with 5SMA (black eel) and 20SMA (green eel), colored by MA band, and the RCI3 oscillator with rising ▽ green and falling △ orange to match, to display rising ABCD and falling ABCD situations via text and navigation diagrams, and visually show the situation where the position at point C is closed at D back to point C, making it visually understandable.
It is still provisional and needs refinement, but as of the morning of 9/4 at 8:00 a.m. I experimented with how it appears on the dollar/yen chart from monthly to 1-minute charts, so please take a look.
<Monthly Chart>
●Monthly chart shows that the upper edge of the blue box corresponds to the C point of rising ABCD, near the turning up 20SMA (green eel) traders pull back (long) near the area, and after rising to D point, they wait for profit-taking.
● Currently,(From point A green 20SMA, the point farthest below) and from (B) where the green 20SMA is overshot,(C) point return could begin?, a question mark state.
The line where the green 20SMA and the lower edge of the right-side green triangle (the 23.6% retracement support line of rising CD) overlap is an important line, and this is where the C point of rising ABCD occurs, breaking above the B high to complete rising ABCD, or dropping from this line to the C point of rising ABCD (blue box upper edge)
<Weekly Chart>
●Weekly chart shows that after pullback long enters at the C point on the blue box upper edge, the price rises to the D point, and then the line where the 23.6% retracement of rising CD and the green 20SMA overlap breaks downward, overshoots, and forms a decline to the B point, then turning down near the green 20SMA at the C point (blue box upper edge) becomes the setup for a rally sell (short),.
indicating a situation aiming for the downward B point or upward C point (blue box upper edge)<Daily Chart>
●Daily chart shows that after the rise to point C (blue box upper edge) with rising ABCD, the 23.6% retracement support of CD is broken to the downside and profits are taken on the long, then, with the margin of funds returned (the amount that can move the blue box up and down), you go short and profit until you return to point C ([complete]), and then the higher-timeframe green 20SMA (approximately the chart’s 100SMA) turns downward; selling pressure appears near there.
● In daily charts, the down ABC crosses below green 20SMA with overshoot and is continuing downward (the flame mark at bottom right shows ongoing overshoot).
● After that, how far the overshoot will fall is unknown, but once overshoot ends, I am waiting for the price to return to near the green 20SMA, and that can be visualized with a navigation image and the top text in the RCI3 oscillator area; I’m also looking for a clearer method. (Any advice would be appreciated!)
<4-hour Chart>
●4-hour chart also mirrors the daily chart, the pullback long at point C (blue box upper edge) is followed by breaking below the 23.6% retracement support of rising CD, overshooting and forming the downward ABCD’s B point, then a reverse short forms and the price declines toward the B point of the downward ABCD.
● Currently, the downward B point is overshooting and moving lower, and while how far it will overshoot is unknown, waiting for overshoot to stop and for it to move back toward the green 20SMA to sell on a pullback and aim to drop below the D point by breaking the downward B point, meaning this is a waiting stage to target the drop.
<1-hour Chart>
1-hour chart shows that the D point of rising ABCD and the A point of falling ABCD align as a top (slamdunk shape).
●Generally, the basic trade is to enter at C and take profits at D, but in basketball terms, a common person taking a casual shot corresponds to entering at C, while the slam dunk corresponds to DA. (It corresponds to DA in slang, though in English it would be a DUNK shot, so it might be wrong to say; I believe Sakuragino Hanamichi would understand.)
●Entering at DA is still dangerous, so in normal cases, after the price breaks below green 20SMA and overshoots downward, it returns to around the green 20SMA near C point and then sells on a pullback (short) and profits at the D point after breaking below the downward B point, which is considered the correct approach.
●In this case, the price has fallen more than 8 times the retracement to BC,, AB:CD around 1:4.8, making it possible to enter at C and still obtain substantial profits.
●Where to take profits after breaking below B and forming D is extremely difficult, but the triple bottom of RCI break above 5SMA (black eel) break above 20SMA (green eel) break above the 23.6% retracement resistance of the CD (top edge of the rightmost triangle) the ratio FE (CD:AB) and CD:BC and the resistance line you drew yourself
<15-minute Chart>
●15-minute chart shows that after the downward ABCD completes, the price breaks above the 23.6% retracement of CD and returns to point C of the downward CD, then considers pulling back into the C point of rising ABCD to buy (long), indicating the stage to consider buying on pullback at the C point of rising ABCD.
.●When actually buying on pullback, to avoid gaps downward as much as possible, support the candle with 20SMA (green eel) first then check if it is supported by breaking above 5SMA (black eel) with the candle’s real body closing above, and then enter after confirming support by touching the 5SMA from above.
● Also, if after pullback you cannot break above point B and instead drop below point C, that becomes a reversed-selling (short) opportunity, so it is important to anticipate this case in advance.
<5-minute Chart>
●5-minute chart shows that after rising ABCD, the line where the 23.6% retracement support of CD and the green 20SMA overlap breaks downward, creating a downward AB overshoot and forming point B,
and currently overshooting downward continues; the plan is to wait for overshoot to stop and return to the green 20SMA, then sell on a pullback to attempt to break below the D point (the C point of rising ABCD is the target); however, the higher-timeframe green 20SMA (approximately the chart’s upward 100SMA) seems to be in the way.
<1-minute Chart>
●1-minute chart shows that the D point of rising ABCD and the A point of falling ABCD align at the slam dunk top?.
●When selling at the C point of falling ABCD, traders who bought at the C point of rising ABCD often profit as well, and the price can fall smoothly.
why traders who bought at rising C point take profits here is because they watch profit-taking timing at the green 20SMA, focusing on whether the candle’s close breaks below the green 20SMA some traders even add to positions on the lower wick. They take profits when the close breaks below the green 20SMA, many prefer waiting for a return toward the green 20SMA to maximize profits.
●Currently, we are at a stage where the downward ABCD is complete and managing short profits, noticing the triple bottom the candle body staying below the 5SMA black eel overshoot ongoing closes stay below the 23.6% retracement resistance of CD, and various other considerations
●The areas shaded in yellow represent the money currently in the market, allowing an instant understanding of who holds how much money, how much exists in the market, and how much has been absorbed.
<最後に>
●The dream is to create a system that lets everyone trade buy-on-dips and sell-on-rallies without stress. As I age, my eyesight worsens and there are many challenges, but I want to make a system that I can trade with enjoyment, including myself.