Orakul trading system
The Oracle trading system refers to indicator-free. The advantage of them is that there are no delays from indicator signals, which means that you can go in at the very beginning of the movement and get the maximum profit.
One of the main rules of the Oracle strategy requires that the trader remain somewhat indifferent and does not succumb to perhaps the most disastrous feeling in the market - greed. You need to take what the market gives here and now and not regret that you could take more. Let us turn to practical methods of trading under the Oracle system.
Oracle Trading Plan
It consists of five points, on each of which we will go further in more detail.
Creation of the software levels.
Creation of levels of SU.
Defines the global trend line on the Н1.
Search of an entry point.
Escort and exit from the deal.
The main time frame for trading and making decisions on entry and exit from the position on the Oracle system will be М5.
Creation of the software levels
The correct definition of PP zones (buyers and sellers) is the most important point in the Oracle trading system. Even the definition of the trend, which in plan stands the third point goes to the background. PP zones are places where we were able to determine the presence of a large buyer or seller. Such zones are defined according to the following rules.
We are looking for places where the price has turned and preferably on a large volume, because the reversal on a small volume indicates not a large player, but rather his absence. The zone itself in this trading strategy is not built as a line, but as a rectangle. Horizontally it is drawn to the right, it does not cause difficulties, but the correct definition of its boundaries in the vertical plane is not immediately obtained in many. Therefore, very different ways of constructing PCB zones can often be found.
The right one for the Oracle system will be this construction. In the case of a seller zone, the upper bound will be the highest reversal point. The lower boundary of the zone will coincide with the price reversal point when entering the retest. At the same time, the main condition under which we can consider this place as a seller 's zone is a down break of the last pulse level of the previous bull movement and fixation under it. This can be seen clearly in the figure below.
When we talk about the break in the Oracle strategy, regardless of its place on the price chart, we mean a level pass by a large Japanese candle of 10-15 points on the М5 time frame.
The buyer 's zone is determined symmetrically. The lower limit will coincide with the turning point, and the upper limit - with the turning point for the retest of the punched last pulse level of the bear trend.
PP zones are the basis of the strategy, as it is in them that we will look for entry points into the deal.
Creation of levels of SU
BC levels are candle levels or lines drawn through extremes of turning candles. In these places according to the Oracle strategy we do not expect a reversal of the trend, but we will be ready for stops, rebound and fight between buyers and sellers.
Construction of pulse levels, PCB zones is easier to carry out on linear graphs. Over time, they are also clearly visible on the pork.
Definition of a trend
The trend direction in this strategy is determined at TF М30-Н1. The easiest way is to use muwing with a long period, such as 200. However, the definition of "in the eye" is no worse. The main thing that determines the trend is a stable increase (for the bull market) or a decline (for bear) of extremes. That is, if we see two rising lows and two rising highs, we say the trend is upward. Conversely, two down minima and two down maxima allow the downtrend to be fixed.
Oracle Entry Points
Actions are reduced to a few simple rules.
We open the М5 schedule and note the highs and minimum in the last 2-3 days.
At the senior time frame we determine the direction of the trend.
We wait for the price to approach the PP area.
We enter the deal at the exit of the price from the zone in the direction of the trend.
An example of an Oracle transaction entry is shown in the figure below.
Entering the deal from the flash. The Oracle trading system allows entry not only from PP zones. Instead of seller and buyer areas, we can use a 2-3 hour drive to log in. The rules of entry are the same as in the case of PP zones - we wait for exit from the flash, retest and at repeated exit from the trade zone we enter the deal strictly according to the trend. Stop loss put 10 points from the other edge of the flash. Usually, such a flash is formed at night (Asian session) or between European and American sessions in the middle of the day.
Attention! The proposed strategy does not allow trading before news. If there are deals already open and you don 't want to close them, we put locks.
Options for entering the deal from the Oracle strategy PP area:
If the price drops sharply into the PP area, wait for 1-2 candles to make sure the price has slowed down and at the first signs of reversal (Price Action pork patterns) open the deal in the opposite direction.
If the price rolled into the zone slowly, more confirmation will be required, one or two candles will not be enough.
Strategy Login Confirmations:
Punching at the cost of the last pulse level of the opposite trend and fixing it.
Appearance of 3-4 candles towards the turn or 1-2 candles, but clearly pulsed. You can still double-check on the М1 and if there is a three-wave drawing, in which the third wave is larger than the first wave, the movement is true and you can enter the deal.
Appearance in the zone of a good pin bar. We do not forget that the price can draw more than one Buratino candle, so stop loss put 10 points further beyond the other border of the zone.
We pay special attention to triangles. These formations can interrupt the value of PCB zones. As a rule, the exit takes place to the side of the triangle, which is closer to the horizontal (has a smaller angle with it). If triangles are drawn simultaneously on two TFs, such as М5 and М15, the second will be the priority.
If the price on large candles and large volume "swipes" the PP zone, most likely it is a true sample and the price will go on. In such a case, we wait for a return to the retest to enter the trend in the direction of the trend.
Exit from the transaction
When working on М5, the first reason to think about leaving will be to pass a distance of 20-50 points at a cost. Since the Oracle system allows for the operation of senior TFs, the number of points will increase accordingly. For М15 it will be 60-150 points, but it is necessary to remember that it is also necessary to enter by М15.
We pay attention to the number of passes or waves. If a three-wave has already drawn and the price does not want to move in the right direction on the fifth wave, it is better to close the position. The last goal is to enter the opposite zone. Here we close all deals and look for signals to the Oracle strategy input in the opposite direction.