Mouteki Trading

Could be soon.

I think the leftmost point of the trend line should be three bars to the right.

hi..


Santarulz......based on the chart posted above it does look like there is a closer point as you mentioned above...making it a much smaller angle.

Mind you...on my MT4 that trendline would be about right..

Still a long way to short...as far as my chart is concern...GMT+2...Any thoughts?

Nahh it isn't time yet. It may not even happen, just getting closer. Probably for a good retracement really anyway.

http://picnac.com/images/2236usdjpy.gif

Your point B is off. It's a tricky time for Mouteki this week. I don't see any real good convincing signal yet because the current bullish dollar in one direction.

hi..

llambert3...you need to take a look at the few posts above...your lower point for that trendline seems wrong..based on what I see on the posted chart.

For some who still don't know Mouteki has based his system off of Thomas DeMark. Nothing wrong w/ that and I think he as opened a lot of people eyes.

But In the DeMark book he claims the TD Price Projector 3 is likely the most acccurate in projectting prices because it usually yields the smallest returns.

You can find more on this in DeMark book "The New Science of Technical Analysis"

"TD Price Projectors
---------------------------------------------------------------
Price Projector 1:

Buy Signal-Calculate the difference between the lowest price low below the descending TD Line and the TD Line value immediately above it, and add that value to the breakout price.

Sell Signal-Calculate the difference between the highest price high above the ascending TD Line and the TD Line value immediately below it, and subtract that value from the breakout price.

Price Projector 2:

Buy Signal-Calculate the difference between the intradeay price low on the day in which the lowest close below the descending TD Line is recorded and the TD Line value immediately above it, and add that value to the breakout price.

Sell Signal- Calculate the difference between the intraday price high on the day in which the highest close above the ascending TD Line is recorded and the TD Line Value immediately below it, and subtract that value from the breakout price.

Price Projector 3:

Buy Signal -Calculat the difference between the close of the lowest intraday low and below the descending TD Line and the TD Line value immediately above it, and add that value to the breakout price.

Sell Signal-Calculate the difference between the close of the highest intraday high above the ascending TD Line and the TD Line value immediately below it, and subrtact that value from the breakout price."

"Also for the purposes of discussion and illustration, Demark generally refer to daily charts and data when in fact any other time period can be easily substituted"

hi...

any risk takers out there....a trade just arrived on Geppy ..the question is would you take it as both the down and rising trendlines met around the price level..

I am prepared to take it...reason is it crossed going in the right direction.. it crossed the down trendline just because the price bars were going sideways.
fingers crossed.

I should add...its a short trade...lol

short @ 221.96, T/P @ 220.36, wish me luck...i'm new. Will be moving stop along the way.

My last candle closed at 9PM CST and showed no entry, I'm going to stay up till 1AM CST and see if I get an entry then.

What are you guys talking about? 2 candles to the left and 2 candles to the right are higher lows than the points I am using on both of them.

It is a 4h chart. Please tell me exactly why you think I have it wrong..

Thanks...

EDIT::: Wow, nevermind. I can see how your eyes can play tricks on you...Funny thing is Metatrader won't let me use the "real" point b as the point. It bypasses it. I think that is why I didn't use it probably.

Hi all - I cannot seem to find the link to the document explaining the system, and the one in the .zip file a few pages back is corrupted. Can anyone send or post the latest version? Thanks in advance!!

Timereaver

I'll be curious how it plays out anyway. Just for fun, using the above lines will produce a 119.01 price target.. , which at that point would possibly produce the sell signal on the real tl.... We'll just watch and not trade on this one.

Timereaver

Here is a link to the Mouteki material - two word docs and some powerpoint files.

http://www.forexfactory.com/forexfor...ead.php?t=8464

Happy reading!

Thanks for your reply, this does put things into perspective. I have two more questions
I) How far back can we go to find two points for the trend line, I've attached an image, would this be a valid trend like for the Mouteki method?

II) Can we use this method on Daily charts?

Thanks

One more question, and this one is going to be a little tough to ask (Explain).
Lets say we have a trend line in place connecting two most recent highs/lows (based of the Mouteki principle) now lets say few candles later another new high/low is creates, do we readjust the trend line or do we stick with the original trend line?
Hope my question is clear.
Thanks for the help

If my understanding is correct, you have to re-adjust the trendline accordingly as per Mouteki's rule of always using the recent high/low points -- reading from right to left.

Horace thanks for your reply

Ok, I have already drawn up a demand and supply line.
Now lets say for example 16 hrs past and there has been no signal to trade outside these lines.
In the meantime there has formed another 2 bars to the left lower and 2 bars to the right are lower than the middle bar, do I now disregard the old supply or demand line and start a fresh with this bar?
Hope I have explained enough

G

Hi G,

Your explanation was crystal clear, and your posit that you would 'start fresh' was also spot on! Correct, your supply/demand lines are constantly redrawn. Thus if you are in a trade, and your redrawn lines indicate you should be trading in the opposite direction, you can either close your trade, or close and reverse your trade.

Hope this helps.

regards
HK