Trading System Semaphore
This system was created by an Australian trader. It is based on its own indicator “3 LevelZZSemaforIndicator”. The author of the system uses it only for trading on a daily timeframe. However, the “Semaphore” system can be used on any timeframe and any currency pair. Only the accuracy of the “3 LevelZZSemaforIndicator” indicator is reduced on lower timeframes. The number of losing trades on the daily timeframe is only 15%.
The indicator “3 LevelZZSemaforIndicator” is a numbered red, green, pink and brown dots of different sizes. Color and number determine the significance of the signals. The weakest is the brown one, the strongest is the red or green three. Pink two is an intermediate signal. All points are redrawn, but this is taken into account in the system
Example of a buy signal on a daily GBP/USD chart. When green dot #3 appears, we place the Buy Stop order 10 points higher than the maximum of the current candlestick. It’s a stopover for the lower green dot. If the order has not triggered, and the next day the price goes lower and the signal is redrawn, move the order. A buy order closes when a red or pink dot appears. In this case, the pink dot did not appear and it would be less risky to close the position if a brown dot appeared. You can also close part of the position when a pink or brown dot appears, and move the stop loss for the rest of the volume
Sell signals on the daily chart of GBP/USD. When red dot No.3 appears, we place the SellStop order 10 points below the minimum of the current candlestick. Stop loss is set above the red dot. The position is closed when a pink or green dot appears
Example of trading on an hourly chart of EUR/USD. Pink dots appear here more often and are used to open and close positions of Sell and Buy.
This system also uses trend indicators and Heiken Ashey’s candlesticks as additional filters. The choice of timeframe depends on the trading style, but still Semafor Trading system shows the best results in long-term trading.