As I only trade index, I will try to answer your question or questions anyway.
First of all (I assume), this system is not a holy grail. Losers are also part of the business. It should just be that the winners are higher or more than the losers. That is the most important start. And now to your setup:
After the square is formed on the 18th, is on the 19th the small points emerged with higher high and higher low. That means I look for LONG ENTRY. After the crossing of the MA's I then go long. On the same day, the large red dot with the arrow (1) is also formed. After the point 1 I would have entered at A; LONG. After that, the point B is formed. And so now I have my 2nd point (B). So I wait after SHORT ENTRY. After the crossing of the lines I then go short (This trade is riskier because the price is above open). After that the big blue point 2 is formed. And so I have again my 2nd point after the square. Now I look for LONG ENTRY. After the crossing of the lines, I then go long. And so on....
The important thing is not to look at what you could have gained. But at every opportunity as described above a little of the many pips to book.
It is my SETUP and now it is your turn to create your personal SETUP until it suits you and also pleases you.
I hope I could bring a little light into the darkness.
PS: It is my personal point of view. Of course there will be others.
Skyold
