Hello Astronauts! I recently uploaded a video on the DeepSpaceFX Youtube channel to show you the anatomy of a perfect entry as per system rules. I also explain how to check the trend, and all other indicators using a top-down analysis for both entry and exit. Following these rules is extremely important as well as proper money management to ensure safe profits in the long run. It’s as simple as using only TWO timeframes. The 4hour timeframe and the Daily timeframe. As long as both timeframes are moving in the same direction (DSFX CMF Indicator), with the SAME Heiken Ashi color candle on both timeframes, this alone increases the success rate of our trades.
The Anatomy of a Perfect Entry
Looking at the photo above, I show you the exact trade that was explained in the video I mentioned earlier. Let’s now break-down the anatomy of the perfect entry:
The Yellow Arrow: After first establishing the overall trend and market sentiment using the 200EMA, the yellow arrow indicates our first signal for entry as the Heiken Ashi candle crosses and closes ABOVE the 5EMA.
The Lime Green Arrow: After establishing the trend, we now use the top down analysis starting with the first indicator in order which is the DSFX CMF indicator (Green/Yellow/Red) line. This gives us our second green light for entry, and we must first make sure that the indicator comes FROM the OVERBOUGHT region before crossing the 50 dotted line (mid zone). As soon as that line touches the 50 zone, that is the second green light and then we move on to the next indicator below for confirmation.
Looking below the lime green arrow you’ll see two thin, red and blue lines intersecting each other. This is the DSFX Trendlines indicator and as soon as they cross, this is our third green light.
The next indicator below is the CMF Volume indicator which is the single, thin red line. The line is ABOVE the “0” dotted line indicating strong volume in the market. (The ADR was already high to begin with). This is our fourth green light.
And lastly, the TDI (Traders Dynamic Index) at the very bottom which is the last indicator down. The entry point is when the green line crosses the red at a sharp angle. The angle was actually sharper than it appears in the photo above, but this is only because I zoomed in on the chart for demonstration purposes. This is our last single to entry and our final green light. We now enter the trade.
The Red Arrow: As you can see in the photo above, the red arrow indicates our first signal for exit. Without paying too much attention to the chart, we can clearly see that the DSFX CMF indicator gave us our exit signal as soon as it turned YELLOW. This is the first red light.
The Orange Arrow: The orange arrow indicates our second signal for exit. After the DSFX Trendlines indicator intersected for our entry, we simply wait for the BLUE line to show any signs of FLATTENING and CHANGING DIRECTION, which it did if you look closely at where the orange arrow is pointing.
NOTE: Sometimes, the DSFX CMF indicator will give us an earlier exit than the DSFX Trendlines indicator. Other times, the OPPOSITE will happen. ALWAYS just go with whatever indicator gives you the FIRST exit signal! It does not matter which one!
THE TDI: DON’T USE TDI FOR EXITS. Refer to my other post, “DEEPSPACEFX FORWARD TEST +686 PIPS & WHY THE TDI SUCKS FOR EXITS!” to find out why.
Thanks for reading! And don’t forget to join my newsletter!