OrangeRoshan’s SRDC method

This is the simplest way to make profits in forex trading known to me. Even my
grandmother, when she is still alive (bless her soul), can also trade effectively. It is also
very profitable. I think many professional traders use this method.

It can be applied to all trading platform and need very minimal training or experience in
forex. The reason is because this method doesn’t use any indicator at all. All you need to
know is how to draw 3 types of line:

1) Support

2) Resistance

3) Trendline

Before the Internet trading era, we trade currencies based on fundamentals and the use of
the three lines. Now, I don’t see why we still cannot use it.

The Daily Chart

Has anyone studied the daily chart lately? I have a friend who trade mostly on Daily chart
only. His name is Warren Buffet, you might know him! Heheheee….

Now, open your daily chart (candlestick preferably) on your favourite major pair and watch
closely. Take 1 minute and tell me what you notice (Don’t read the text below yet)?

THERE IS NOT A SINGLE BAR EQUAL TO THE BAR NEXT TO IT!

Based on this fact, we can safely assume that, the highs and lows of a daily candles are
unique EVERYDAY (daaaaa…).

Now do this:

1) Draw support and resistance on any of the previous bar. For newbies and JaJa Binks,
Support is the lowest price of the candle and Resistance is the highest price of the candle.
Draw horizontal lines.

2) Do you see the next candle penetrating the lines?

a. YES: That’s your trade

b. NO: No Trade

SHORT when it penetrates the support line and LONG when it passes the resistance.
Now do this:

1) Backtest on as many candles as you like, minimum 20 candlesticks

2) Study the number of pips for every available trades (minus spread)

3) How many candles give minimum 5pips?

4) How many candles give more than 10pips?

5) How many candles give less than 5pips?

Now you have the answer. ARE YOU EXCITED? You should be!

HOW TO TRADE THIS METHOD?

The Preparation

Upon the start of a new Daily candle;

1) Draw the Support

2) Draw the Resistance

….on yesterday’s candlestick please!

Draw the trend lines and determine the trend. This way, you can expect where the price will
go. It is either towards the Support (bearish) or towards the Resistance (bullish).
Taking the trade

It all depends on you, whether you want to babysit the trade or ready and leave the trade.

Either way, you can still profit from it.

Babysitting – Put a pending stop buy or/and stop sell orders. Wait until it penetrate either
lines, move your stoploss accordingly and deploy traillock when you have to.

Ready & Leave – Like the above, but with an assign takeprofit and stoploss. I would
recommend a 5pips or 10pips maximum. Why? Because, some bars only (very few) gives
maximum 5pips.This way, losing trade is almost non-existance!

Things to remember and my recommendation only:

1) Pick low spread pairs because of obvious reason.

2) When placing pending orders, please don’t forget to include the spread + 1 or 2 pips as
an extra precaution. Because sometimes the force is not with us (don’t want the order to be
executed on the line and the price reverse!).

3) Watch the monthly / weekly highs and lows. I would avoid a trade when it is near to the
H&L. Price might reverse against your favour before it hits your takeprofit.

4) Don’t trade to many pairs, maximum 3 pairs only, GBPUSD EURUSD AUDUSD. Why? Your
margin might not allow it.

5) I usually use stoploss of 20-30.

English is not my native language so please forgive my Yoda’s grammer and I hope you find
the SUPPORT & RESISTANCE DAILY CANDLE method helpful and simple to use.

Welcome to Hapi Pipland!

There is no documentation for this method, as this is just an extension.

Level 2

There are two parts inside this level, I will post part 1 first, the second part will be posted
later later later… after familiarisation of the part 1.

As you may know, entry is upon penetration of S&R. The reason behind it is simply to
understand one of the basics of Trader's Sentiment.

In Part 1 of Level 2 the entry is far early than this and S&R are actually T2 or Take Profit 2.

The biggest challenge in SRDC method is to know the trend short-term and long-term. This
will be verified using MA CCI and Channel Trading.

This method can harvest 50pips to 100pips easily, on a daily basis. But, unfortunatelly, this
time Grandmothers cant trade as it is gone beyond simple.

Indicators:

FX Sniper's Ergodic CCI & Trigger

settings:

2
10
1
2
______
SHI Channel
D1 (daily chart)

BASIC ENTRY RULE:

- Put entry following the trend shown by CCI

EXIT RULES:

- Take profit will be divided into 3. T1, T2 and T3

- T1 can be any desired pips
- T2 can be either S&R of the previous candle
- T3 Can be anything after that. Please be cautious as this carry minimal lots, say 10% of
the original lot size

How to spot the TREND

CCI - Blue on top of Red will mean BULLISH Trend and Red on top of Blue will mean Bearish
Trend.

SHI Channel
Enable the period saperator. This will draw vertical dotted line outlining a period of 1 month.
There will be 3 lines. The TOP, Median and Bottom. The candles behaviour are very
predictable. Spot the pattern.

The candles will move from MEDIAN, (TOP or BOTTOM), MEDIAN, (TOP or BOTTOM),
MEDIAN and so on.

Based on this behavious, a Jedi can assume where your mother in law will be tomorrow.
Opps sorry I mean the candle.

Say, the Candle is hitting the TOP trend line, theres a big possibility it will move down to the
MEDIAN. When the candle is at the MEDIAN, theres a possibility it will move either back to
the top or go all the way to the bottom and so on…… Practice and know your pair. This will
filter the CCI and it help with your decision on the trend.

STOP LOSS

A safe SL will be 50 - 60 pips on the GBPUSD. However, this can change depending on your
Trading experience.

Other pairs, Ask Darth Vader!!

The Morphing SHI Channel is not really a major problem when it is drawn on the Daily
Chart.

The Daily candle is current at the Median. Its Decision time for a trend to continue or not.
The best way for this is to look at the 1Hr chart. There you will see the the 1Hour candle
just below the Median.

Lets wait for it for the next candle to form:

-When it form under the Median, its a sign that its bearish
-When it formed over the median, its a sign that it will bullish (some guts)
-When it formed and touch at the Median, wait, its still indecision. Best make coffee or go
do your backtesting.
-When the imperial Army is near the Asteriod belt, pinch yourself twice or slap you face 3
times. Chances are you are dreaming because, the Imperial army was never shown near
any Asteroid belt in any of the Episodes.

The BLUE CHANNEL is a new channel drawn after a few months on Daily chart. But, the old
position of the BLUE CHANNEL is the BALCK DOTTED LINE.

How the Black Channel is drawn

I will draw the Equidistanst based on the lows (left to right), then the parallel top line will
follow automatically. Then draw the Median.

Look at the Rectangle

The Black Bearish candle, 19th APR is on the edge of the Lower Channel line. Below The
Black Candle, the CCi shows a Bearish Trend.
So, I waited to see where the the 20th candle is moving. I check my 1HR and its going
towards Median after a dip.

-As the CCi cross and confirm a trend change (Blue top of Red)
-As the H1 Channel shows the same and confirming a bounce from the Low Channel.
-I Enter long and assign

T1 = Yesterday's Open (70%)

T2 = Yesterday's High (20%)
T3 = The Median of Daily Channel (10%)

Moving my SL to Breakeven on the 1st entry point, not Takeprofits as it might trigger early
exit.

This is a total of almost 200pips. It could have done the 230pips, but give away 30pips for
CCI confirmation.

Many Asked me How i can do 300-500pips a day, consistently? This is one of the methods
im using. Its not rocket science, but we learn to read what the big boys are thinking, and
we anticipate their move!

Learn it, and soon you will find out, its no big deal.

Im Serious….. not like spock but more like data.

WARNING: When you are not familiar with SRDC I & II, STOP READING. Go back
to the I & II threads first.

SRDC Episode III

Attack of the box

Box trading is a very profitable method of capturing breakouts and filtering whipsaws. Its
been used by many institutional traders all over the financial market. One of the most
famous breakout system is the Big Ben strategy. It took advantage of activities made by the
London Open. Another one worth mentioning is called “Trading the box”. Its a system
devised to capture the NY session made popular by Rob Booker. An outstanding Star Wars
fan, just like me!! LOL.

In this episode, I will try to make it as simple as possible, however I must warned JajaBinks
and Grandmas that this method is a little more complicated than the method deployed in
Episode One.

I will be covering the basic system, entry and exit, and of course how to filter bad trades
using Episode I and II. This system is not as powerful as The next Episodes but
neithertheless, it can easily harvest 20pips or more. Therefore, diapers (some pee in their
pants) and knee caps (will not cause you to fall off your chair) will not be necessary.

THE BASIC SYSTEM

Create a box from 00:00GMT until 08:00GMT. Basically, drawing a horizontal line from the
highest and lowest of the eight hours candles. In plain english, a good trade will happen
should it breakout from this box. The reason, as Frankfurt and London opens, activities will
move the candle outside the box and formed a new trend either upwards and downwards.

Here is an example on my 1hr chart GBPUSD:

However, entries are done using the 15mins candles. The reason is obvious. My neighbour
has a lion for his pet and I only have a cat. You don’t get it? Its ok, it has nothing to do with
this Episode.

The 15mins candles can detect a breakout early just in case we have a sudden move which
could be a very long candle in the case of a 1hour candle. Below is an example of the same
1hr chart but shown in 15mins time frame.
Entering a trade

There are many ways to cook a monster Crab. You could BBQ it, steam, simmer or even fry
it. I prefer steaming it. The flesh is soooo juicy and fresh. Just the thought of it, make me
fly to Alaska and order some.

Anyway, same with the box. We could have many entry styles. The one that I will
mentioned here is using price actions.

ONE:

Trade the direction of the breakout as soon as it penetrate the box.

TWO

Trade the direction of the breakout at the opening of a new candle after the box is
penetrated (provided its outside the box, Daaa…..). The BLUE arrow below.

THREE:

Wait until a full formation 15mins candle finish forming. The pinkish Red arrow below
For programmers, I will help you a bit here. A full formation candle is when the LOW of a
candle is > than the top box or when the HIGH of a candle is < the bottom box.

Then enter at the opening of the next candle, following the direction of the breakout. Just
like the SRDC I basic and advance entry rules. The Orange arrow. Anyway, here is an
example:

Exiting the trade

The Take Profit is up to you. However from experience 20pips is easy, 40pips is sweet and
at times, even 100pips. Knowing the GBPUSD range will be helpful. You takeprofit can be:

RANGE – BOXSIZE

And traillock can be 2/3 of the above value.

A good exit strategy would also be at 17:00GMT or 16:00GMT, which is London close
depending on daylight saving.

Trading Episode III using Episode I (Filter)

Many times, the box exceeded the Support and Resistence of yesterday’s High and Low.
This may be due to the strong move from the Frankfurt open, which is one hour before the
London session opens.

Well, in this case, you can use yesterday’s Support and Resistence as you part of your box.
Should the breakout occurs on the S&R, you can initiate 2 trades at once, and this is usually
a profitable move. In another words, S&R is more powerful than the EIII box.

Trading Episode III using Episode II (Filter)

The channel can also be used to trade the right breakout direction. Most of your have been
in SRDC II trade, using the LRC, this experience will be very valuable. You can use your
commonsense to see where is the most probable breakout direction based on the position of
the box inside the channel. Below is an example. There are many SRDC I, II and SRDC III
Trades here. I love SRDC.

As a side note and also a very important one. Take profit can also be determined by using
the channel. When you have been trading the channel, you will know what I mean. The
bottom and top channel is your final TP. Sweeeet like Orange!!
THE TRENDSETTER, CHANNEL DRAWING (FILTER)
15mins chart

This part is probably more significant for the the Episode II more than the Episode III. This
is the introduction of using moving averages in SRDC method. To us, Moving averages are
simply support and resistence. The right period of MA can be a good trendsetter. There are
many that we use, but to keep it simple, we use the 84SMA.

The 84SMA is actually what we use to draw channel. The start and the ending of a channel
is determined by the position of the opening candle (00:00GMT) to the 84SMA.

Trend is UP when Candle > 84SMA and Trend is Down when Candle is < 84SMA.

A trade can be initiated using this trendsetter. You might lose some good trade, but you will
find out, you will ultimatelly filter many BAD trades. Use your discreation and the channel to
decide the direction of your trade.

Channel is drawn from the last trend to the current trend. Always include the last trend
unless the trend continues more than 3 days.
Can you enter a trade on both directions?

Yes, sure you can. But the box better be at the median of the channel. A more bias to the
direction of the trendsetter will be use to take more profit.

Trading the news? From my experience, when im in a trade, I always move my SL to

breakeven 1min before the announcement. But, when you are not in a trade, just remember
this, “THE CHANNEL IS STRONGER THAN NEWS”.

STOPLOSS

Well, the 1 million dollar question. Where is the best stoploss?

There are 3 ways to set your SL.

The box size. This will cover any whipsaw but when box gets to big, it may even scare my
neighbour’s Lion.
This is GBPUSD right? So, 50pips should be safe.
The 84SMA in 15mins or 21SMA in 1hr chart.
That’s it!!

There are many other ways that we use to trade this Episode. But, I think the above
explaination will be enough for now. I hope this will enhanced your other SRDC trades.
//**Should any skeptics think unhighly of this Episode or the whole of SRDC methods
taught here, I suggest you save you opinion somewhere else. Take your Negativity and pour
it out to your spouse. Don’t do it in this thread because we are not interested in your stupid
opinion based on your demo and small live account with experience younger than my 14
year old eldest child!!

I say this early as I hate Negativity 100%. Im teaching and sharing here for FREE. Im not
on trial here, YOU ARE!! So, drop your ego and start learning while im still doing it F.O.C!!
**//

Liabilities? You click that trade yourself, so liabilities are up to you, not me, and its not even
your mother in Law’s fault.

Other than that. I look forward to your success and happiness in Forex trading using the
SRDC way.