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Gg53 initial post from FF Evaluator SAFT system

-----------------------------------------------------------------#237 Volume, Direction and FUTURE Price.


Ok, in order to clarify "Standard" vs. "Gadi's Method" let's assume a very simplified
trading system - based on RSI only (or any other indi - again, this is just a simplified for
example purposes).
The "Standard" trading method suggest that you BUY when RSI goes above 30 and
SELL when it goes below 70.
"Gadi's Method" does something else...
Using the same RSI indicator - analyze how RSI is calculated - and "predict" what are
the conditions that will cause RSI to go above 30 or below 70.
If the conditions are going your way - put a BUY/SELL limit order.
This is "Looking into the future" - and avoinding the MA that are built into almost any
indicator.
"Gadi's Method" is simply "Reverse Engineering" of the indicator(s).
G.
#239 What are those YELLOW lines in "Guided Missile" ??
Did I mentioned DIRECTION in my previous posts?
Well, it's a modified version of the standatd ADX indi.
it is showing -DI in the posted example.
The modification involves 3 things:
1. Automatic Scaling to compensate the different scaling values.
2. Automatic selection of -DI or +DI.
3. Automatic parameter selection of the ADX parameter.
The ADX paramaeter selection is based on MINIMAL crossings in the current TF and
currency pair.
Sorry, can't post the MOD_ADX, it contains proprietry info.
I'll gladly assist and guide if someone want to develope his own or share.
#243
The "Killing Zone" or "How to rob the Swiss Bank"...
The CHF is under alot of pressure to increase it's value in face of declining EUR and the
european economic situation.
The Central Swiss Bank is fighting this by heavilly intervention in the market - keeping

the EUR/CHF around 1.2000.


So, to better understand the MOD_OBV concept - let's "rob" the swiss bank. yeah!
Draw two paralel lines on the EUR/CHF chart to mark the high and low of the bank
intervention.
Draw similiar lines on the Gadi_OBV indicator (same points).
The "pressure" of the volume was so high - that the bank didn't succeed in buying it all and the price jumped.
In addition - the volume was "recognized" by Gadi_OBV much earlier than the price
move.
This is an extreme example - but you can use the same technique on any chart or pair.
Just identify recent "ranging" area - draw the same - and fill your pockets.
No need to hide from the police...
#244 "Rob the Swiss Bank"...
G.

#246 The "Killing Zone":


This is an area where the market reveals a lot.
The market is "Ranging" because the "Buyers" and "Sellers" are almost equal - so the

VOLUME is easilly "consumed".


At that area we can learn what is a "normal volume" that doesn't move the price much.
Any variation from that volume will trigger a price movement.
Furthermore: trading within that area will literally kill your account (even if your
"Trendlines" say so...)
It is called a "Killing Zone" because 85% of novice traders loose 90% of their account
within those areas.
Trade only the breakout from this area. "Breakout" is an OBV (mod) breakout.
See sample chart.
G.

#253 Today's EU - M15 - The simple method.


Identify and mark the Ranging area ("killing Zone").
Draw the relevant parralel lines on Mod_OBV.
Trade the BREAKOUT of Mod_OBV.
No need for Trendlines or MA's.
That's NOT Evaluator method!

G.

#256 Gadi_OBV, Gadi_ADX and the "Killing Zone" concepts based on them - are our
creation and development. Many of the features I can share - some of them I can't.
I already suggested that one of you will open a new thread for this subject, invite others
and me - and I'll gladly contribute to that subject (as long as it doesn't involve
"Trendlines" and MA's).
G.
#257 The "Killing Zone" identification:
Many of you PM'ed me about identifying the "Killing Zone".
Attached is a live example of current situation - waiting for mod_OBV breakout.
The "Killing Zone" is identified after a big move - followed by a sequence of at least 67 bars Up/Down/Up/Down bars.
It doesn't matter what the size of the bars.
A sequence of more than 3 up or 3 down bars mark the end of the "Ranging" or "Killing
Zone".
Once you identify that sequence - mark the top and bottom on the chart.
Mark the same points on mod_OBV.
Trade breakout of mod_obv - even if it is inside the area on the chart.
Although the marked area on the chart is more than 50 pips - the actual price movement

is only about 16 pips.


BTW: Those who tried "Trendline breakout" technique in that example - loose money...
yet another proof that this is a "Killing Zone"...
G.

#258 Does anyone here is willing to write an indicator that will automatically draw the
"Killing Zone"?
The parameters are simple:
1. Search within at least 200 bars.
2. Search for a sequence of at least 6 bars (external parameter)
3. End of sequence ("Killing Zone") is at least 3 consecutive bars in the same direction.
(external parameter).
4. mark that area in light red.
Anyone for the challenge?
G.
#259 The "Killing Zone" setup:
I hope you all used the live example in my post
http://www.forexfactory.com/showthre...61#post5970861
I took my +27 pips in 53 minutes.

G.