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Lincoln10 Nov 28, 2007 5:50pm | Post# 101

Correct?
 
1 Attachment(s)
Let me see if I got this one down.

According to this system I would have taken each of these 20 entries (one at each color change).

Furthermore, if I had any open positions I would have exited them and initiated a new trade in the opposite direction as well (assuming that my 50 pip stop loss or my 150 pip trailing stop had not been hit) Correct?

I know a few pages back that TKimble said he is "simply selling the peaks and buying at the trough". But you won't know that you're buying at those levels until you're into the trade.

Unless he means he only enters once on each side of the zero line? But that doesn't seem right as it would eliminate a lot of profitable trades. Anyone got an idea about that statement. Do we simply trade each color change (if you're using the OSMA Color indicator) or is there more to this?

Sorry for the size of the chart, I didn't want to make it too big. It is based on the GBP/JPY Daily from about the middle of May 2007 until now.
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billbss Nov 28, 2007 5:56pm | Post# 102

Let me see if I got this one down.

According to this system I would have taken each of these 20 entries (one at each color change).

Furthermore, if I had any open positions I would have exited them and initiated a new trade in the opposite direction as well (assuming that my 50 pip stop loss or my 150 pip trailing stop had not been hit) Correct?

I know a few pages back that TKimble said he is "simply selling the peaks and buying at the trough". But you won't know that you're buying at those levels until you're into the trade.

Unless he means he only enters once on each side of the zero line? But that doesn't seem right as it would eliminate a lot of profitable trades. Anyone got an idea about that statement. Do we simply trade each color change (if you're using the OSMA Color indicator) or is there more to this?

Sorry for the size of the chart, I didn't want to make it too big. It is based on the GBP/JPY Daily from about the middle of May 2007 until now.
Yes. We simply trade the color changes.
Each color change creates a small peak or valley.

bjk2801 Nov 28, 2007 8:05pm | Post# 103

Chart
 
How do you get an OsMA ths shows the color changes? Mine is all 1 color. Thanks.

Rialto Nov 28, 2007 8:11pm | Post# 104

bjk2801,

Please go to post #29, page 2, for OSMA.color indicator. As he's done so many times before with other indicators, Banzai was kind enough to post it. Good luck.

bjk2801 Nov 28, 2007 8:30pm | Post# 105

bjk2801,

Please go to post #29, page 2, for OSMA.color indicator. As he's done so many times before with other indicators, Banzai was kind enough to post it. Good luck.
How do you add it to your chart? Thanks.

bjk2801 Nov 28, 2007 9:22pm | Post# 106

Other Pairs?
 
Does this system work well with other pairs (other than GBP/USD)? The GBP pair has a 9 pip spread on IBFX. Also, do you wait for the peaks and valleys to enter a trade, or can you jump in and ride the way up or down. Thanks.

bjk2801 Nov 28, 2007 9:33pm | Post# 107

Dumb Question
 
Can someone tell me how price can be increasing (thus loss increasing in a short trade) while the OsMA bar value is decreasing? When is it best to get out of a trade? Thanks.

edge540 Nov 28, 2007 10:36pm | Post# 108

Could anyone put up a chart using the MACD instead of the OSMA as my charting package doesn't have that indicator and I can't customize.Thanks in advance.

Rialto Nov 28, 2007 11:13pm | Post# 109

1 Attachment(s)
edge 540,

Hope this works:
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tkimble Nov 28, 2007 11:20pm | Post# 110

Nearing Short Signal...
 
Nearing short signal. There are times when the price bar MACD or OsMA values are identical but change as the following bar matures. That is the case as I am typing. I have taken the short GBP/JPY signal at 228.46.

This equates to a 390 PIP gain...

TK...

billbss Nov 28, 2007 11:27pm | Post# 111

Nearing short signal. There are times when the price bar MACD or OsMA values are identical but change as the following bar matures. That is the case as I am typing. I have taken the short GBP/JPY signal at 228.46.

This equates to a 390 PIP gain...

TK...
The bar hasn't completed for the short.
I thought you waited for the bar to close.

tkimble Nov 28, 2007 11:31pm | Post# 112

The bar hasn't completed for the short.
I thought you waited for the bar to close.
That is correct unless both bars are of equal value, then I will take the trade.

The two previous bars have a value of .3996 - I accept this as a signal becuase typically at the conclusion of the current bar, the previous bar's value will have dropped below .3996. This sometimes occurs due to a lagging OsMA or MACD calculation.

TK...

billbss Nov 28, 2007 11:33pm | Post# 113

That is correct unless both bars are of equal value, then I will take the trade.

TK...
What does that mean- "both bars of equal value"?

Lincoln10 Nov 28, 2007 11:34pm | Post# 114

Me Too.
 
I jumped in short at 228.47. I didn't know we were supposed to wait for the close of the bar!

I also noticed the double top and price closing below 10 SMA which I think is a nice confirmation of a downward move.

tkimble Nov 28, 2007 11:45pm | Post# 115

LOL...
 
I jumped in short at 228.47. I'm used to trading EUR/USD so the volotility of this pair will take some getting used to. The spread as well (7 pips on Alpari) . That's $60 a trade! Commission free my ass!
Yes. I concur, it will take some getting use to...

TK

billbss Nov 28, 2007 11:48pm | Post# 116

tkimble,

What did you mean by - both bars of equal value?

Which two bars are you talking about being of equal value that will cause you to enter before the price bar closes?

tkimble Nov 28, 2007 11:53pm | Post# 117

Equal Value...
 
What does that mean- "both bars of equal value"?
Both previous price bars had the same OsMA value of .3996...

TK

Lincoln10 Nov 28, 2007 11:57pm | Post# 118

I'm no expert but it sounds like he's saying that if the current bar is down (but hasn't closed) and the previous two bars are of equal value (in this case 0.396 I think) then he will exit because normally the second bar of the two will readjust lower due to the lagging calculations of the OSMA and MACD.

TK am I in the ballpark with this answer?

tkimble Nov 29, 2007 12:14am | Post# 119

Yes...
 
I'm no expert but it sounds like he's saying that if the current bar is down (but hasn't closed) and the previous two bars are of equal value (in this case 0.396 I think) then he will exit because normally the second bar of the two will readjust lower due to the lagging calculations of the OSMA and MACD.

TK am I in the ballpark with this answer?
Yes happens very frequently so I reverse my position if both bars are of equal value. Normally, the previous bar will adjust after the current bar has completed its timeframe...

TK

billbss Nov 29, 2007 12:19am | Post# 120

I learned a trick today that kept me out of that particular trade.

Read nanningbob's posts on this thread.

http://www.forexfactory.com/showthre...t=35860&page=9


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