Saturday, November 28, 2009

How To Profit From RPBT Signals

We now learn how to place trades during a RPB Time Signal. We can either use candlestick patterns or common indicators for buy/sell decisions but prefer candlesticks since most indicators lag (while we are on the subject, RPBTS is a leading indicator naturally). Powerful moves are created when price is reacting to support/resistance/pivot in addition to time signals.

Note: Change In Trend (CIT) does not necessarily refer to Change In Direction. An acceleration in the direction of the prevailing trend can also be regarded as CIT.

3 Simple Steps To Gaining Pips With RPBT Signals:

1) Find signal timings in membership report (Limited signals available for free on this blog)

2) Watch for candlestick pattern development during (+/-) 1 or 2 bars from given timing.

3) Place trades according to the entry rules and candlestick patterns described below.

Entry/Positioning Rules

Although you have a choice of your own positioning method, I personally recommend the following simple entry style:

1) Enter initial lot size that strictly follows money/risk mangement.

2) Set profit target of first 50% of position at profit level equal to stop loss range.

3) Set the second 50% position to go with the trend with a trailing stop or set profit target with a pre-determined pips range.

Method I - Candlestick Patterns (Preferred Method)

When trading with candlesticks, we place trades when any of the patterns mentioned below have formed. At times the patterns may not follow 100% textbook version. In such cases we have an option to either

(i) stay away from the market or

(ii) check on your favourite indicators for buy/sell confirmation.


A) Reversal Patterns

i) Doji/Pin Bar/Spinning Top

- Example 1 : Click HERE

ii) Engulfing/Outside Bar Pattern

- Example 1 : Click HERE

B) Breakout Patterns

i) Inside Bar Breakout

- Example 1 : Click HERE

Method II - Indicators

Intraday time signals are generated for 15min, 30min, 1hr and sometimes 4hr timeframes. In order to use indicators, it is much effective to apply them on a timeframe one or two levels lower than the time signal timeframe. For example, if in the report an RPB time signal is indicated at 8:00 gmt (+/- 1hr) then a buy/sell signal from 15min or 30min would give a reasonably good entry price than the 1hr chart itself.

A) Stochastics

- Example 1 : Click HERE

B) Moving Averages

- Example 1 : Click HERE

Method III - Candlestick + Indicator Combo

This method is simply a combination of both candlestick patterns and indicators. For example if a doji has formed at a price support area during the specified RPB time signal and stochastic has turned bullish then a buy order can be placed confidently with a tight stop loss below the doji candlestick low price.

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