Very simple method using Mouteki

Hi there,
I like the method by which Support and
Resistance points are defined by the 5 bar Mouteki/DeMark
rules.
So, why not use the last High and Low points, as
defined by the rules, as the Top and Bottom line for a
breakout channel - which is THE basic price action system.

KISS.
(Keep it simple stupid).

Sounds good. There are many modifications out there to certain systems. As I become more aware of the markets, as do all I am sure, you begin to mix methods and systems together. Some trade simply off of trend lines, others off of daily R1 R2 levels, why not mix the two? Some trade strictly off of MAs, others use bank options and stops as their levels of resistance. Whatever works best.

So what you do is take the last bar to the short side with two bars on each side that are above it and place a horizontal line? Then if it crosses that you take your short position? Same thing to the upside? If I am not mistaken that is what you are doing : ).

I find it hard to trust channel trading ... never try demo-ing it but will look into it.

This idea goes against drawing correct trendline for mouteki method but will check it out...

Greetings, some of my post here is a repeat from other personal posts on Tom DeMark's concepts. TD will put more emphasis on recent "closes" rather than wick H/Ls and calls this the Magnetic Price, when discussing retracements in particular. It has been mentioned by others here at FF, that what we often find is that significant recent H/Ls, while drawing the price to them as a test, have just as much chance to reject, if not greater, than to penetrate. . .

That said, what i build into my daily style has been TDs MP Lines (horizontal S/R just set on close rather than H/L). Specificaly observing if this area becomes the point of retracement in a FIBO sequence such as a .38, .50, or .68 etc. If there is a break of this line with momentum and there is a natural price target beyond, this to me may indicate a trade entry.

I strongly suggest reading Tom's book on TA. Great stuff.

: ) Thom

Hi all,
Accrete - yes, i keep an eye on the Fib levels
between the High and Low, and interestingly the latest
Mouteki High is @1.9029 and the latest Low came @1.8976 a gap of 53 pips.
The previous High was @1.9116, so there was a drop
of 140 pips to the 1.8976 Low, and the 53 pip bounce
is 37.85% of this 140 pip drop.
PS - i'm using a 4 hour chart set @ GMT
PPS - a narrow, compressed gap of 53 pips between
H/L might suggest a strong move !!

GB/USA. 800GMT - 1200GMT closed well below the last
Mouteki low @ 1.8976.
Short @ 1.8963 (Demo)
Cheers.

1200GMT - 1600GMT stick was a Doji = indecision
Closed trade @ 1.8968
Loss of 5 pips.

Hello, Could someone upload a chart and possibly the indicators they use? That would make it much more easy to understand the method. Thanks for your time and effort. Ludo

I think your SOL mate. This thread is almost 4 years old!

Lux

But apparently I am not the only one reading it......

zzzzzZZZzzz *casts spell* Come alive my child! Muahahahah. The thread necromancy is complete!