Hello guys,
i started this thread because i want to share some of the strategy's signals/opportunities. Maybe it won't be a fast-thread but if i find some interesting i will post it with an entry level and sometimes stoploss to bring more transparency. I just want to show the technique, and then some opportunities about stocks and forex entries.
The strategy is about fully optimized for trend trading, and only look for the price's action. I believe only the price and not the indicators. So let's start:
- Exp. Moving Averages (for identifying how strong is the trend)
If there is no trend, thats really simple and important: NO TRADING!
Ranging = No trading. Trending = Trading.
- 2.: We are following the trend. If the trend is UP we are looking for only longs and vica versa.
- 3.: Trend got a fact: while its active, its forming swing high and swing lows. For example when the trend is UP, at least once it will stop for a while, and start to ranging, making a low. We are taking this as advantage. When we break-out from this range, we BUY. If we continute uptrending (and we will, because the trend is UP), and then we break the previous high, and we BUY again. And so on. That's it. You will understand it when you look at the pictures.
- We are averaging in. But only in winnings!
- We don't use indicators, we pay attention only for the price's action.
- Read the chart. Don't look at your floating P/L, look at only the chart. 0% psychology, 100% objectivity on our side)
- Wait for the trigger. We have to close belowabove the level and with a healthy bar.
- You can use fibonacci too when entering. Its just an option you can use.
- Trend got 3 types: Primary, Secondary, Minor. The best situation is when all of the types is in ONE direction. When the primary trend is UP, and the secondary trend is down, the price is making a CT (countertrend).
- We don't set take profit. We are moving only the SL, securing more and more profits. We can never know how long will be the trend.
(Big thanx all for the guys at Tőzsde Fórum, and basically this strategy is invented by ForexEgyetem forex educational team from Hungary, so all credits go to THEM!)
i started this thread because i want to share some of the strategy's signals/opportunities. Maybe it won't be a fast-thread but if i find some interesting i will post it with an entry level and sometimes stoploss to bring more transparency. I just want to show the technique, and then some opportunities about stocks and forex entries.
The strategy is about fully optimized for trend trading, and only look for the price's action. I believe only the price and not the indicators. So let's start:
You will need:
- Lines (for trendlines, channels, and supports/resistances)- Exp. Moving Averages (for identifying how strong is the trend)
Timeframe:
- Any timeframe is OK, the only one thing is to see the market's stance no matter what the timeframe is. But for entrying and managing positions the best timeframe are recommended M5|M15|M30|H1|H4.Trading:
- 1.: Firstly you have to check the trend in bigger TF's (H4-D1-W1-MN), and identify the trend. EMA's and higher highs/lower lows will help you to identify the trend.If there is no trend, thats really simple and important: NO TRADING!
Ranging = No trading. Trending = Trading.
- 2.: We are following the trend. If the trend is UP we are looking for only longs and vica versa.
- 3.: Trend got a fact: while its active, its forming swing high and swing lows. For example when the trend is UP, at least once it will stop for a while, and start to ranging, making a low. We are taking this as advantage. When we break-out from this range, we BUY. If we continute uptrending (and we will, because the trend is UP), and then we break the previous high, and we BUY again. And so on. That's it. You will understand it when you look at the pictures.
Exponential moving average:
- I use 55-100-150 EMA. You can use your own moving averages too, no matter what's the period, you will see the contact between the trend and the ma's.Others:
- The strategy basically is a trend-trading breakout system.- We are averaging in. But only in winnings!
- We don't use indicators, we pay attention only for the price's action.
- Read the chart. Don't look at your floating P/L, look at only the chart. 0% psychology, 100% objectivity on our side)
- Wait for the trigger. We have to close belowabove the level and with a healthy bar.
- You can use fibonacci too when entering. Its just an option you can use.
- Trend got 3 types: Primary, Secondary, Minor. The best situation is when all of the types is in ONE direction. When the primary trend is UP, and the secondary trend is down, the price is making a CT (countertrend).
Stoploss and takeprofits:
- Placing stoploss is simple. Stoploss is placed at the half of the range zone, or placed below/above the resistance/supports a few pips. (around ten pips)- We don't set take profit. We are moving only the SL, securing more and more profits. We can never know how long will be the trend.
(Big thanx all for the guys at Tőzsde Fórum, and basically this strategy is invented by ForexEgyetem forex educational team from Hungary, so all credits go to THEM!)
Attached File(s)
hidenseek.tpl
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Uploaded Oct 2, 2010 2:40pm
Magnified Market PriceV2.ex4
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Display Spread.ex4
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Uploaded Oct 2, 2010 2:41pm
Keeping it simple stupid.