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  1. #1
    Administrator Martin Kay's Avatar

    Hot The Simple Raphael Strategy Review !!!

    Hi guys! Michael analyzes a very simple trading strategy called ‘The Raphael Simple Strategy’. The strategy uses only RSI for signals and Stochastic for confirmation. Michael discuss in his article the advantages and disadvantages to trade such a simple strategy. Read it out and check why this strategy sucks and why it doesn’t suck!

    Originally posted by Michael Hodges. Click here for the full review.

    This strategy is an ultra-short term trading system that comes close to scalping. It is a disciplined approach to short term trading and one that I think has real potential for significant gains. It is based on a 3 time frame view of the markets and attempts to capitalize on short term market reversals. Traders are instructed to use charts of 1 hour closing bars to determine trend and then narrow their focus down from there. The next step narrows down to charts of 15 minute bars. This step is called the confirmation but I think that is a misnomer. The first chart is for trend and the second chart is projecting the next support/resistance and potential areas for price reversal. The last charts are 5 minute bars and this is the chart where entries and exits are determined.

    My Last Word On The Raphael Simple Strategy

    Once decoded the Raphael Simple Strategy is one that works. The only negative is that you have to be well versed in trading to decipher the text. Once a trader knows enough about trading to understand what Raphael is saying it won’t matter, they will be able to devise this strategy on their own.




  2. #2
    Senior Member dorrian's Avatar
    Interesting article, I will check this strategy on my metatrader demo! I am only afraid that I will not be able to properly find the pivot points and the support and resistance zones.. Could anybody help me? Are there any indicators which could be used for this job?

  3. #3
    Specialist Member runneroption's Avatar
    For me this strategy is too simple in its statements, but too complicated in its conditions to be traded. How can I define a major turning point just in the beginning of the trend development?
    There really are some very simple strategies that work but they didn’t rely on subjective conditions!

  4. #4
    Solid Member
    Quote Originally Posted by dorrian View Post
    Interesting article, I will check this strategy on my metatrader demo! I am only afraid that I will not be able to properly find the pivot points and the support and resistance zones.. Could anybody help me? Are there any indicators which could be used for this job?
    Hi, dorrian. There are a lot of places over the net where you could find the Pivots Points. Here is one I use http://www.dukascopy.com/swiss/engli...etwatch/pivot/
    There is one pivot and 3 supports and 3 resistance level at different distance from the pivot level. They are very useful but not absolutely accurate in all cases.

  5. #5
    Senior Member dorrian's Avatar
    Thank you very much Rosen33! I will check this site and if there are some questions will ask you

  6. #6
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    I strongly agree on one point:- Strategy is explained in a way no one can understand.
    Theoretically, it looks to be good but practically cant say anything unless someone tests it.

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by M.J View Post
    I strongly agree on one point:- Strategy is explained in a way no one can understand.
    Theoretically, it looks to be good but practically cant say anything unless someone tests it.
    MJ, that was exactly my point. You can't understand it adn if you can decipher it it seems like a pretty standard support/resistance strategy with some technical indicator signals.

    Dorian,

    As for finding support and resistance and potential pivot points look to the longer term charts, identify previous sup/resistances and draw lines. The next step I would do is use a fibonacci retracement tool and see where the retracements and my sup/resistance lines coincide. After that its a question of underlying trend, market sentiment and fundamentals.

  8. #8
    Senior Member dorrian's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Dorian,

    As for finding support and resistance and potential pivot points look to the longer term charts, identify previous sup/resistances and draw lines. The next step I would do is use a fibonacci retracement tool and see where the retracements and my sup/resistance lines coincide. After that its a question of underlying trend, market sentiment and fundamentals.
    Thank you very much Michael! I will try to use both fibonacci retracements and S/R lines and search where they are at the same levels

  9. #9
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by dorrian View Post
    Thank you very much Michael! I will try to use both fibonacci retracements and S/R lines and search where they are at the same levels
    In addition to what i said previously, you can also use a momentum indicator such as MACD or stochasitcs to further pinpoint the best entries. The better you pick your entries the shorter the time frame you can use.

  10. #10
    Legendry Member willyw's Avatar
    Quote Originally Posted by Michael Hodges View Post
    In addition to what i said previously, you can also use a momentum indicator such as MACD or stochasitcs to further pinpoint the best entries. The better you pick your entries the shorter the time frame you can use.
    Yes, it could to have a secondary indication to double confirm the analysis and entry point before executing a trade. But for the newbies its best to use simple indicators and not to use too many indicators until they have gain experience in trading. For newbies its best that they can understand the strength and weakness of the indicators they are using. Before applying make sure to backtest all indicators as not all indicators are suitable for all time frames.

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