PriceCatch Trading System

How to use

Usage ideas & pointers
Disclaimer and Terms & Conditions

This website is designed to instruct you on using PriceCatch Trading System. It is not a recommendation to buy or sell exchange traded instruments, but rather guidelines to interpreting and using PriceCatch Trading System.

PriceCatch Trading System and the information contained on this website are solely for educational purposes and do not constitute investment advice. The information and PriceCatch Trading System presented in this site are not intended to be used as the sole basis of any trading activity, investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor.

The risk involved with trading stocks, options and other securities is not suitable for all investors. Investing involves substantial risk and past performance is not a guarantee of future results and a loss of original capital may occur. Prior to buying or selling any exchange traded instruments, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. It is advised to first consult your personal financial advisor and conduct your own research and due diligence before engaging in any trading activity.

Practical application of PriceCatch Trading System is at your own risk. Just as with any other trading system, PriceCatch Trading System is also falliable. By using it you clearly understand the risks involved and hold yourself solely responsible for any losses you might incur as a result of using PriceCatch Trading System. To the maximum extent permitted by law, neither PriceCatch.Trade, its owners, its partners, representatives, employees, any of our affiliates, nor any other person, assume no responsibility and shall have no liability whatsoever to any person for any trading activity, investment decisions, loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on PriceCatch Trading System or the information contained in this Website. By going ahead and using this Website and PriceCatch Trading System, you are agreeing to our Disclaimer and Terms and Conditions. If you do not agree to our Disclaimer and Terms and Conditions, please refrain from using this Website and PriceCatch Trading System.

PriceCatch
Trading System

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Overview

Before using PriceCatch Trading System, it is essential for you to know about Japanese candles, Heikin-Ashi candles, time-frames and also be fully conversant with Tradingview.com charting platform so that you can follow the information presented regarding the usage of PriceCatch Trading System easily.

Please visit the links to the left before going any further so that you can understand the examples presented and take full advantage of PriceCatch Trading System and put it to use effectively.

With the PriceCatch Trading System, you will begin to read charts with more clarity, easily understand what the System is telling you and develop the habit of waiting for the System to confirm when it is appropriate to get into a trade. When you follow rule-based trading activity, you will become very consistent and greatly improve your profitability.

While using PriceCatch Trading System, you might consider turning off other indicators to read price action with clarity and grasp what PriceCatch is communicating to you.

If you are a free user of Tradingview, please remember that Tradingview has a limit of only three indicators on your chart.

General

General usage principles and methodologies. While you might have established your own unique way of trading, the information given below might help you in your trading activity.

As you view the example charts, you will notice that certain patterns and signals occur in all time-frames and in all instruments. Therefore, learn to recognize the patterns so that when you scan your favourite stock or Forex-pair or your favourite instrument, noticing such similar patterns can help you either take a trade or avoid one. When you take trades at the right time by following all the rules and by carefully observing the signals, your winning trades will increase and trading can become profitable.

As PriceCatch Trading System is a long-only trading system, we focus our attention on Grey candles to identify possible reversal signals. As such, we prefer taking a long (buy) trade above the high of a Grey candle when PriceCatch gives us the signal. This is contrarian approach - our logic is that if PriceCatch Trading System shows a pattern that a long trade appears probable, but the price goes down, our buy order placed above a Grey candle will not get filled and the set up gets cancelled and you lose nothing for trying out a possible opportunity.

Consider this; if you place a buy order above a White (green) candle and after filling your order, price reverses, you are looking at a possible stop loss getting hit if the trade goes against you. On the other hand, if you place a buy order above a Grey (red) candle, the price has to reverse first in order for your buy order to get filled. That's why with PriceCatch Trading System, we prefer taking our buy trades above the Grey candle after noticing a pattern.

If the candles are above the Macro Wave, then we consider that price is in space. If we notice that the colour of Macro Wave is Blue and a buy trade seems possible, then in such circumstances, our trade will be placed above high of a Grey candle and stop loss below the low of the same candle so that we take very low risk for entering into that trade.

You might observe some highlighted candles, triangles and other markers on the Chart when the PriceCatch Trading System is active. For the present, they are for future use and can be ignored.

In case you just see the 0.382 level line but not other lines, zoom out the chart till the lines are displayed and then zoom back in.

Get your edge

Examples

  • All
  • Forex
  • Crypto
  • Equities
  • Commodities

U.S.Dollar / Swiss Franc

2H Chart 15 Sep '20 07:00

View Chart

Alphabet (Googl)

1D Chart 29 Apr '20

View Chart

Shopify (Shop)

15 Min Chart 17 Sep '20 14:15

View Chart

Bitcoin / U.S. Dollar

15 Min Chart 27 Sep '20 21:00

View Chart

Brent Crude Oil

8 Min Chart 29 Sep '20 18:00

View Chart
Follow rules to improve results

Rules for placing buy trades

Please take time to go through the examples shown above, familiarise yourselves with PriceCatch Chart, the Waves, Levels etc before engaging in actual trades. Take advantage of the Paper-trading feature of Tradingview.com to acquire expertise. Only when you are confident, begin to engage in real trades while following rules strictly.

Be patient while looking for an opportunity. Never rush and always remember that protecting your capital is key to success.

  • Trade with your own capital and never borrow money to trade.
  • You must deploy only the capital that you can afford to lose.
  • Consider your trading activity as a business and approach it with that mindset. It may be your money, but remember that you are acting on behalf of the business and are responsible to deliver results. So, carefully weigh risk and reward of every trade before initiating it.
  • Establish clear risk management rules for yourself based on your risk appetite and available capital.
  • Drawdowns are part and parcel of trading activity and some trades might go against you and you might get stopped out despite following rules. If your monthly limit for stop loss is USD1000, then you must stop trading in that month should your stop loss reach close to that figure and can resume trading only in the next month. Establish such rules and follow them strictly.
  • Take out the emotional quotient out of trading. When you are stopped out, don't get into revenge trading mode. For example, if you have lost USD100 in a trade, don't go searching for other trade opportunities to recover the lost amount. It will not work out and leave you with more losses. Take the loss in your stride and move on to the next trade as per plan.
  • Not every trade needs to be taken. Unless the set up, the signals and the Stop loss demanded by the trade are within your comfort zone, avoid the trade. Remember that protecting your capital is key to success.
  • Position sizing is the method of limiting the quantity of units in a trade as per a pre-determined Stop Loss amount.
  • For example, if you have decided that you are willing to risk only INR 1000 on a trade and the stop loss demanded is INR 2, then you are permitted to place a trade for only 500 quantity. (1000 / 2). That way, even before taking the trade, you know that your maximum loss on the trade will only be INR 1000.
  • So, once you decide on a stop loss amount per trade or per month, stick to it and adjust your position sizing accordingly.
Please refer the above image. The Trade set up consists of these rules.
1

The levels must have been drawn and the '0' Level line should have turned Green and Macro Wave blue in color.

2

Price must be as close to '0.382' Level as possible. It is preferrable to take trades when price is below '1' Level (marked on chart). If the '0.382' and '0' levels are close to each other, then risk is likely to be very affordable.

3
When you hover the mouse over a candle above which you intend to initiate the buy trade, the Macro Wave to the left of that candle must be sloping up. Notice the dotted vertical line and the Macro wave slope to the left of that vertical line.

4

Wait for the price to pull back to the Macro Wave. Once, the touch happens a trade can be considered.

5

Take the trade over the high of a candle when you notice that the corresponding Heikin-Ashi candle in the bottom pane is Red in color The Heikin-Ashi candle should preferrably have an upper wick. Place stop loss slightly below the '0' Level line.

6

Position sizing is determined by this formula. First, substract, the high value of candle over which you intend to take the trade by '0' level line value. Divide your maximum stop loss for the trade by the result obtained above to get the buy order quantity limit. For example, if high of candle is 357.65, then (357.65 - 331.91) = 25.74 rounded to 26. So, if your maximum stop loss for the trade is INR 1000, then your buy order quantity can be only (1000/26) = 38 units or less.

7

Break-even and Taking Profits: When price crosses '1' Level, move your stop loss to your buy price. That way, you can ensure that you break-even and do not incur any loss on the trade, except brokerage. Taking profits is your call. However, to ensure that you lock in some profits at every level, consider taking partial profits, say 30% or 40% quantity when price touches '1.1618' Level. Then when it touches '2.618' Level exit another 40% quanity and shift your stop loss to '1.1618' Level for the remaining quantity and stay in the trade. Some traders like to follow the 1:1, 1:2 or 1:3 risk-reward ratios for profit taking. Follow a method that suits you.

8

After closing the trade: Once you have exited the trade, do not come back to check whether price has gone up even higher and be disappointed if it has. Be happy with the profits you have made and plan for the next trade.

Keen observation of price movement is key

Other Patterns, Signals & Alert System

If the Green signal line forms very soon at '0' level after the Levels are drawn, it is usually a signal of strong probable upward move.

If price has crossed '1' Level and retraces back and a Heikin-Ashi candle (PriceCatch Sub) touches Macro Wave, a buy trade may be initiated above the high of that candle with stop loss placed at the Macro Wave Blue Line below that candle. Remember that for all trades taken after price crosses '1' Level, the Macro Wave blue line should be your stop loss level.

When price begins to move up fast and then a Grey candle forms whose low is above Fast Wave Red Line, then that candle signals momentum. A buy trade may be initiated above that Grey candle with stop loss placed below the same candle low or following candle's low whichever is lower. These type of trades are considered aggressive trades and are not suitable for everyone. This pattern is more suitable for intraday scalping trades.

If you are thinking of a buy trade before the Green signal line forms at '0' level or if the price hasn't crossed the 0.382 level, you should consider that as an aggressive trade and it is suggested to keep a tight stop loss in such circumtances.

When the Fast Wave is red in colour and Macro Wave is sloping down, avoid buy trade.

When Macro Wave is red in colour, avoid buy trade.

When Macro Wave is very wide, avoid buy trade.

When Macro Wave is below the '0' Level, avoid buy trade.

When 0.382 line becomes Grey, avoid buy trade and wait till price comes back to 0.382 level before looking for a buy opportunity.

When the low of a Heikin-Ashi Candle touches Macro Wave a 'Green Triangle' marker is placed below the corresponding candle on the upper pane. You can set an alert to notify you when this happens. Please select "Price Touched MacroWave" from the Alerts menu.

Alerts limitations

Tradingview.com permits free users to set only one alert at any time. Pro users and Premium users can set many alerts. For help, please refer Tradingview.com documentation.

When a Green line is drawn at 0.382 level, usually an upward move is very likely. You can set an alert to be notified when this happens. Please select "Bullish Move Likely" from the Alerts menu.

Alerts limitations

Tradingview.com permits free users to set only one alert at any time. Pro users and Premium users can set many alerts. For help, please refer Tradingview.com documentation.

Questions? Please contact