Mouteki Trading

Quoting raytracy

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Another question is:
I have hear someone said: ["Trend line CANNOT cross any other candles between 1st/2nd point"]. I know it is right when I draw traditional trendline, but is it still true with Mouteki method? Although I have not found any example in document with cross candles, but I have also not hear any one confirm this concept. Anyone please confirm it: yes or no?

Thanks for you help!!

- Ray Tracy -

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Quoting PeterFM

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Hi Ray
Me again. If you follow the rules you should only worry about qualified Lows (Support) and qualified Highs (Resistance). Bearing this in mind, as long as any subsequent bar doesn't create a new qualified Point # ignore it.

There will always be circumstances where price tries to test the trend-lines, and sometimes there may be a temporary breach, but this wouldn't invalidate a correctly drawn trend line according to this method.

This is one of the reasons I no longer use candles, they can give false signals due to their width. It's a personal preference, now, but I find I can read price action better with the cleaner screen that bars give me.

(It may be that Mouteki will give an alternative response to this answer, but until he corrects my comments absolutely then ignore the trend line crossing a subsequent bar).

Peter

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Quoting milan47

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I always try to draw the lines manually and when in doubt I compare it with De MarkTD points. Here is the .pdf article about "Drawing objective trendlines" based on the above indicator. It appeared in the last issue of the Currency Trader Mag.

www.currencytradermag.com/tripoe5.htm

The article is on pp.24-28

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Quoting raytracy

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It's great have your help!! That's truly my fault to miss them.

And, about F or G choice, Does anyone have more comment to discuss?

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Quoting Uphios

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Just my 2 cents worth but I have to say I am with Jumper on this one. My back testing reveals a success to fail ratio of 120/284 whilst following precisely Mouteki method. Many of the success’s required running significant stops before reaching target. Many of the failures were profitable but did not get close enough to target before failing. Whilst the method may at times be successful I can see no logic at all behind the theory that the target of a trend will extend to balance the extreme on the other side of the line. Indeed, holding out until this "target" was hit has added to the fails whilst other times it appeared way too early, in retrospect.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

Jumper's suggestion of filters appears to me a good way to go. On reviewing some of the failed trades it looked to me like they should have and could have been avoided. <o></o>

Stops are currently my major concern. Over the years I have come to the conclusion that they are probably more important than finding the initial trade. Unfortunately I have never found a stop system that I am truly happy with. They all seem to be based upon a target that itself is flawed or upon maximum pain, often the worst place to stop out. How many times have we closed out a short when it made a new high only to this turn into a double top with a substantial drop following. We actually closed our short at the perfect entry for a short! This of course comes back to entering at the less than ideal time, and no, I don’t have the answer yet.<o></o>

Lastly, I would like to thank Mouteki for renewing my interest in charting. I have to say there is little here that is new, and I suspect we have seen all there is. If I am wrong I apologise now, but that’s the way I see it, a work in progress perhaps. Having said that I do feel there is something here that gives me a clue for a renewed approach at charting. For that I am grateful.<o></o>

And now back to lurking for good ideas.

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Quoting Uphios

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Just my 2 cents worth but I have to say I am with Jumper on this one. My back testing reveals a success to fail ratio of 120/284 whilst following precisely Mouteki method. Many of the success’s required running significant stops before reaching target. Many of the failures were profitable but did not get close enough to target before failing. Whilst the method may at times be successful I can see no logic at all behind the theory that the target of a trend will extend to balance the extreme on the other side of the line. Indeed, holding out until this "target" was hit has added to the fails whilst other times it appeared way too early, in retrospect.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

Jumper's suggestion of filters appears to me a good way to go. On reviewing some of the failed trades it looked to me like they should have and could have been avoided.

<o></o>

Stops are currently my major concern. Over the years I have come to the conclusion that they are probably more important than finding the initial trade. Unfortunately I have never found a stop system that I am truly happy with. They all seem to be based upon a target that itself is flawed or upon maximum pain, often the worst place to stop out. How many times have we closed out a short when it made a new high only to this turn into a double top with a substantial drop following. We actually closed our short at the perfect entry for a short! This of course comes back to entering at the less than ideal time, and no, I don’t have the answer yet.<o></o>

Lastly, I would like to thank Mouteki for renewing my interest in charting. I have to say there is little here that is new, and I suspect we have seen all there is. If I am wrong I apologise now, but that’s the way I see it, a work in progress perhaps. Having said that I do feel there is something here that gives me a clue for a renewed approach at charting. For that I am grateful.<o></o>

And now back to lurking for good ideas.

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Quoting mesinuang

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I think we could use this method in the choppy/sideways market.
We combine two great method to get the precise price action. well, of course, with less profit.

First, I draw the most recent demand or supply line and when price is penetrating the trendlines, Then I wait to see if the 5 EMA is crossing 9 SMA, If they cross, then I enter the trade with Mouteki's Stop Loss and Price Projection method.

I think we can get better trade using this combining method.

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Quoting NipThePips

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I personally use a 5ema/9sma cross...but that is not stated in Mouteki's system, just my personal preference

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Quoting forexpips

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To your prior post about longing the USD/JPY, you're correct, a long signal has been generated.

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Quoting vsilver

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SINCE MOUTEKI JUST POSTED 9-8-06 HOW CAN THEIR BE 3 YR'S OF PROFITS. THAT CAN ONLY COME FROM MOUTEKI HIM SELF.

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Quoting tomstaufer

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Mono,
Thanks for the indicator.
I would like to have time to bar close displayed in the comments.
How can I add this function to the code ?

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