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Cevon

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Cevntun Trading Method

Foreword
I must apologise to those who followed my first effort at this article which was attempted in October 2020 under the username Shevvy. However due to a second mini-stroke and a serious bout with the Covid I was really unable to continue on.

You will also have to excuse my English and the literature which I have used to write this article this is the aftereffect of the strokes which have diminished my ability somewhat.

Learning to trade could take many years in order to get you anywhere near to being a proficient trader and I don’t know if I have that much time left especially as most of you will have quit trading long before that time anyway.

Now I’m not trying to dissuade anyone from learning to trade far from it but knowing the timeframe it could take you is definitely worth knowing beforehand.

So after such a long lay-off, I have had time to think about the best way to proceed with teaching you an easier method that I know on how to trade the forex successfully.

Saying that I would like to change from my original idea of trying to teach you how to trade the forex market using the A-Z route and instead introduce you to a method of trading that can get you to a profitable state of trading in a lot less time. Then if you still wish to become an all-around professional trader you can learn as you earn.

The strategy
The strategy is not what you would normally expect as with this strategy there are no predefined sets of rules with this method we let the market discover our tradable positions for us.

The idea behind this concept is to let the natural flow of the market create either a U or a V-shaped class of pattern in the trend. While these patterns can appear anywhere on the chart this strategy is only concerned with those patterns that are created in the overbought or oversold areas of the CCI indicator.

To discover these patterns we must first allow our fellow traders to influence the market through their antagonistic actions against each other. This type of adversarial activity by both buyers and sellers generates many different U and V-shaped patterns across the screen as the price is pushed up and down the chart.

This type of combative trading results in many different and varied patterns appearing in the market which allows the quick-witted trader to exploit the situation by looking for good low-risk repeatable opportunities that are indigenous to that moment in time.

Whenever a possible open position is located then they need to be analysed to determine if there is a viable low-risk opening into the market.

Trading with confluences
As there is no predefined setup associated with this trading method to achieve this undertaking we must then apply our set of indicators tools and trading practice in a trading practice known as trading with confluences.

Trading with confluences simply means that the trader uses several different indicators tools and/or trading practices to check any entry point of a valid trade. If several of these entities all indicate a reversal may occur in the trend then we place a trade into the market when and if this happens.

There are many different versions of confluence trading methods with some very difficult to follow while others are much easier to learn. I must say that this variant lies somewhere between the two extremes.

The indicators tools and trading practices used:
  • The 21ema.
  • The 200ema.
  • The CCI indicator close position set to 21.
  • U or V: Turnover type. There are less possible tradable positions under the V class of patterns than the U class.
  • 21: creates 21ema trader pressure in the market.
  • 200: creates 200ema trader pressure in the market.
  • SQ: 21/200 squeeze.
  • RPL: long reversal is a confluence.
  • RPS: short reversal is a confluence.
  • D: divergence is a confluence.
  • Alt: alternate pattern is a confluence.
  • PP: price pattern is a confluence.
  • PCC: price block area is a confluence.
  • SC: a single candlestick pattern is a confluence.
  • 21TBA: shows divergence of 21ema/trend by level.
  • 21: shows amount of 21ema pressure at time of trade.
  • 200: shows amount of 200ema pressure at time of trade.
  • G: indicates a gap in trend. Gaps usually mean continuation of current trend.
  • RR: indicates that resistance was retested by price.
  • TBA: trend by angle reveals weakness in support. Used to indicate entry point.
Strategy rules
  • The trading pattern must appear in the oversold or overbought sections of the CCI indicator.
  • However if any part of the pattern is touching the 100 or -100 level lines then this can also be considered a tradable position.
  • A V pattern should contain at least one of the confluences contained in the list to be a tradable pattern.
  • While a U pattern should have at least two confluences contained in the list to be a tradable pattern.
Screen images
The images below show screen images of the chart as we wait for a tradable position to appear. Both the images are from the EUR/USD pair for the period June 01 2021 to Oct 11 20 21.

EURUSDDailyLegend.jpg
The image above shows the indicators and a list of the tools and trading practices that are used to trade this strategy.

EURUSDDailyConfluences.png

This image displays the last tradable position of the EUR/USD pair that was created by this strategy along with the confluences that were used to develop the trade. The class of trade was a V type but the position of the candles allowed us to employ U class confluences too.

These confluences were:
SQ: a 21/200ema squeeze was in place from the 30th of August.
D: divergence appeared at the very end of the trend between the last two candles and the CCI indicator.
PCA: an area indicating that price may be limited to one direction appears.
SC: next a single candlestick pattern formed a doji indicating a possible price reversal.
TBA: trader pressure was running at 20.5o at this time indicating weak to medium interest from traders.
21/TBA: divergence appears on the second candle of the trend. This is an invitation to enter a trade at this time or soon after.
 
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