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Combined Technical Score (CTS) System

#1
What I've got to share is probably nothing new to most of you seasoned veterans, but if there is a young trader here, then perhaps this might help them to better understand Technical Analysis (TA).

A little about me
I've been trading for over 10 years in Forex, have busted several accounts, made a multitude of mistakes, read a dozen books, bought scores of EA's which promised the world, and I've spent thousands of dollars on various courses. I work full time in a regular job and I dont trade professionally for a living - to be honest, I don't even trade much these days, but for awhile now, I haven't been breaking my account and it's been slowly growing. So why am I here?

I still believe there is a system out there which can bring consistent returns, where I trade as little as possible. Most ordinary folk have lives - they have kids, a family, a regular job, commitments etc, so that leaves little time to constantly monitor each candle. For the guys who can watch the 5M chart every day, I say "good luck to you"... but I would rather trade for 30 minutes in the morning and not look at the charts again till the next day - each to their own.

This thread will be a work in progress, I will lay out the rules of the system, I'll post a few examples, and that will be that. You are welcome to fine tune/ finesse/ tweak /code to your hearts content. If you have something of value to add, or if you find a better way to refine entry or exits, or automate it, then please feel free to post.

I don't use many indicators at all, which I guess makes this a weird system to have on a forum dedicated to indicators and coding, lol.

COMBINED TECHNICAL SCORE SYSTEM (CTS)

What is it?
A combination of technical signals and patterns which give you confidence to enter a trade.

What time frame?
Any time frame. Higher probability of success on 1HR,4HR and Daily.

What instrument?
Any. Forex, crypto, shares.

What patterns?
Cypher, Gartly, Bat, Double/Triple Top, SR bouce/break, Doji/ Pin Bar Candles

What Indicators?
RSI, Candle stick, EMA(50), S&R Lines

Theory
Each confirmation of a signal adds to the combined technical score. A CTS of 4 is a reasonable reason to enter a trade. A lower score is still ok depending on your risk appetite and more suited to aggressive traders, or traders who can reduce their initial position size.

Stop Losses
Usually above/below previous support or resistance. Can be above 113.3% fib extension, but not usually greater than 127.2% Fib extensions from the major swing.
No trade is entered without at least a 1:1 Risk/Reward ratio.

Profit Targets
T1 at 38.2% of the last swing
T2 at 61.8% or previous S/R of the last swing
SL moves to BE at 38.2%

CTS Values
Pattern Completion = 2 points
RSI over-bought or over-sold = 1 point
Previous support or resistance = 1 point
Fib cluster = 1 point
EMA Direction agreement = 1 point
Divergence = 1 point
Candle reversal pattern (doji, pin bar, shooting star etc)

Of strict importance is to follow your plan.
Honour your stops and profit targets.
Applaud each act of discipline and sticking to your rules, no matter the result.


If you would like me to explain the Harmonic patterns in detail, we can do that, or I can direct you to a good site - Im not here to reinvent the wheel. What's important is that you follow the rules for recognising the patterns. Measure your impulse legs and swings from obvious swing points (fractals can help). There are some indicators which can draw the patterns for you I think (like ZUP or Pattern Recognition Indicators, but I dont have experience with them and if you did use them, be sure to check the pattern and fib measurements are correct).

Here is an example on the USDJPY 4HR chart earlier this year.
Combined-technical-score-system.png
------------------------------------------

Cypher Pattern Completion - 2 points
RSI oversold - 1 point
Previous support (minor) line on 1 HR chart - 1 point
Total = 4 points ie a reasonable excuse to go long.

  • No chart clutter with a million signals.
  • You can see the pattern forming days in advance so you can set limit orders, stop losses and profit targets.
  • The harmonic patterns alone have win rates from 65% upwards... some say the Cypher is as high as 85%.

More to come.


Re: Combined Technical Score (CTS) System

#2
Simple TA Concepts

Support and Resistance

  • When previous Support is broken, it has a tendency to become Resistance
  • When previous Resistance is broken, it has a tendency to become Support.

Support and Resistence (SR) tend to respect "Big Numbers" - by that I mean whole numbers 1.600, 1.6500. These zones are important and should give you clues about possible entries, or contribute toward the CTS with 1 point.

  • SR zones on higher time frames tend be stronger than those on lower time frames.
  • Only trust support SR zones if they have been tested at least 2 to 3 times.

MvhoWmE.png

  • Pink arrows show resistance lines which have been tested and respected multiple times.
  • Blue arrows show supporte lines which have been tested and respected multiple times.
  • The dark grew lines represent the SR lines
  • The light grey line is another SR zone (watch how this line is respected later).

Re: Combined Technical Score (CTS) System

#3
Market Harmonics

The pulse of markets

Personally, I feel that market harmonics and patterns depict the beauty in trading. These patterns are consistently reproducible and give you an edge in any financial market. They have proven success rates and follow naturally occuring Fibonacci levels... so essentially, all you need is a trading plan, and then the discipline to follow that plan.

Early August 2019, EURUSD was in a 70 pip range for a whole week. The dark and light grey SR lines from the earlier example are still visible.

EURUSD 1HR

Image


Gartley 1 Short
  • Bounced off Resistance Zone straight to support zone (impulse leg)
  • CTS Score of 4 (Pattern complete, Resistance zone, RSI
  • Pattern Completes and rejects off the Resistance zone (both profit targets reached)

Gartley 2 Long
  • the CD leg of the previous Gartley has formed the XA leg of the new Gartley
  • Pattern comples at the light grey support line.
  • CTS Score of 4, both profit targets are hit

Cypher Short
  • Previous Gartley ABCD legs have now formed XABC of the Cypher
  • Cypher short completes but has a lower CTS of 2 (enter half position size)

Bat Pattern Short
  • CTS Score of 4, both profit targets hit
  • New internal resistance zones at 1.1220 is pretty obvious now

Notice how the light grey line was respected multiple times during the formation of those patterns?

220 pips, 4 days, 70 pip ranging market, 1 indicator, 1 pair.

Re: Combined Technical Score (CTS) System

#4
Chopper wrote:
Tue Sep 10, 2019 10:11 pm
  • No chart clutter with a million signals.
  • You can see the pattern forming days in advance so you can set limit orders, stop losses and profit targets.
  • The harmonic patterns alone have win rates from 65% upwards... some say the Cypher is as high as 85%.

More to come.
lovely & is interesting............ are u gonna post up you system & files or are u trying 2 sell something here?? cos they strict here & mods will not allow it...............

Re: Combined Technical Score (CTS) System

#5
moey_dw wrote:
Tue Sep 10, 2019 10:30 pm
Chopper wrote:
Tue Sep 10, 2019 10:11 pm
  • No chart clutter with a million signals.
  • You can see the pattern forming days in advance so you can set limit orders, stop losses and profit targets.
  • The harmonic patterns alone have win rates from 65% upwards... some say the Cypher is as high as 85%.

More to come.
lovely & is interesting............ are u gonna post up you system & files or are u trying 2 sell something here?? cos they strict here & mods will not allow it...............
Hi Moey, thanks for stopping by. There's nothing to buy or sell here, it's all free info that I'm sharing. All indicators are available for free on every trading platform, RSI(7), moving average, fib measurement tool etc. I learnt this Technical Analysis and scoring method of trading several years ago (that's where thousands of dollars I mentioned earlier went). So now I'm sharing the method with anyone here who wants to learn it - for free. :thumbup: Chances are most people are likely combining all the reasons/scores to enter a trade already (multi time frame analysis, multiple indicators etc)


Re: Combined Technical Score (CTS) System

#6
Chopper wrote:
Tue Sep 10, 2019 11:14 pm

Hi Moey, thanks for stopping by. There's nothing to buy or sell here, it's all free info that I'm sharing. All indicators are available for free on every trading platform, RSI(7), moving average, fib measurement tool etc. I learnt this Technical Analysis and scoring method of trading several years ago (that's where thousands of dollars I mentioned earlier went). So now I'm sharing the method with anyone here who wants to learn it - for free. :thumbup: Chances are most people are likely combining all the reasons/scores to enter a trade already (multi time frame analysis, multiple indicators etc)
very cool......... nice to see a easy to read thread........... hopes to see more of u post :clap:

Re: Combined Technical Score (CTS) System

#7
Real time study

USDCHF 4HR

Image


  • Gartley has completed on the 4HR, CTS 4, 100 pips for TP1 and remainder taken out at break even (BE).
  • AB and CD legs are identical in length (beautiful harmonics)
  • Price has now re-tested previous resistance and has formed a Double Top (CTS 1).
  • On a lower time frame, we have a smaller cypher potentially moving down toward completion at D.


Image
  • On an even lower time frame, we have a cypher trying to complete into the green zone. (CTS 2)
I'll keen an eye on this zone and if price reaches up here, ill enter short. If other CTS factors contribute, ill increase position size.

Let's see what happens.

Re: Combined Technical Score (CTS) System

#8
Chopper wrote:
Tue Sep 10, 2019 10:11 pm

COMBINED TECHNICAL SCORE SYSTEM (CTS)
Looks good. I had a similar approach when I was trading binaries on reversal. Although I gave up eventually because many times the patterns would generate false signals. But I still have a feeling this method can work out well for binaries too.
Know Thy Setup. Know Thyself.

Re: Combined Technical Score (CTS) System

#9
USDCHF Update

Image

Price went up into my sell zone (the green box), but there was no reversal, so I'm still on the sidelines. Price did break above previous highs and invalidated the patterns on that time frame. Now we're seeing a sideways consolidation on the 30m chart where previous resistance now appears to be support.

On the daily chart, you can see several respected S&R zones (green lines) and this is right where the current battle is. There is some divergence appearing on the higher TF RSI too.


Image



  • Looking higher, we have a very significant big number nearby at parity 1.000.
  • There is also a Daily TF Gartly Completion at the moment (and still valid)
  • If price goes higher, ill then look for sell opportunities at 0.9970, stops above 1.000. This is my preferred outcome and would give a much nicer risk:reward.
  • If price goes lower, ill enter a small short position and see if it holds at the .9940 resistance line.


No rush, wait and see. Stalk the trade. ;)


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