354# TFX Reversal Trading System
Submit by Janus Trader 20/06/2012 Written by Martens-enterprice
When I began using this system, I noticed there were a lot of false signals when using just 1 chart. I tried many different many different indicators to try to alleviate this and came up with a few good ideas that help keep me out of bad trades. So here’s what I’ve done to modify the system…
Use at least 2 time frames such as 15M & 1H . The must agree or at least be close in order to enter a trade.
Use a 55EMA (green) as a trend indicator.
Use the TFX Reversal Indicator at the default settings.
I also pay attention to the trend very closely. If the price is above the 55EMA and a short is signaled, if I decide to enter, I will only use ½ as much money as I would if the trend agrees. A lot of times the 55EMA will act as a level or support or resistance as well.
rules to this system…
Long Trade Entry Criteria
Both short and long time frames must be in agreement with trend and channel break
Candle closes above 5SMMA
RSI above signal line crosses above 50 level in TDI Indicator
TFX Reversal signal close to entry time on higher time frame
If the above is met but price is below 55EMA, if entry is taken, use only ½ as much money
Short Trade Entry Criteria
Both short and long time frames must be in agreement with trend and channel break
Candle closes below 5SMMA
RSI above signal line crosses below 50 level in TDI Indicator
TFX Reversal signal close to entry time on higher time frame
If the above is met but price is above 55EMA, if entry is taken, use only ½ as much money
The reason these channels work so well is because institutional and bank traders will utilize similar channels to make trading decisions. And when the price moves out of the channel, these traders get into the market and move it heavily. It works best on the GBP/USD so take advantage of it.
In the picture TFX Reversal forex system in action.
Share your opinion, can help everyone to understand the forex strategy.
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Gordon (Wednesday, 05 February 2020 12:03)
I have been using this Indicator across many FX pairs and it seems to be working quite well. Would need a bit more time with it as markets are not trending to much at the moment but it is helping with my trades.
I would like to know where this originated and is it possible to get at the source code to understand it a little better. It would seem too have a great potential for linking in with a Expert Adviser strategy for automation. If anyone can help here with a little more info send me an email ( pipmahony@yahoo.co.uk )