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MADdash (Moving Average Distance)

  • #2,761
  • Jun 20, 2019 1:24pm Jun 20, 2019 1:24pm
Quoting 919gilead
{quote} 1. I generally trade in the direction of the M30/H1 trend but enter on the M5 time frame. 2. I use 35 LWMA Channel as my bellwether to buy above and sell below 3. I want the M30 candle imposed on the M5 TF to close above the MA Channel before buying on the next M5 candle that close above the M30 candle 4. If the trend is strong, I will not wait for M30 candle close before entry and will rather use the M5 candle close {quote} Same answer as I gave above: * I want majority of the pairs in the currency groups I am trading to be moving strongly...

Thanks a lot George for your help. and for such a quick reply.

Just one more question for the direction of M30/H1 you use the same channel 35LWMA on H1/M30 because I use 20EMA on both the TF.

The only problem if face is when trend is not strong enough to then it leads to multiple losses. while referring to MADdash it do happens sometime that trend has ended.

and when you say stronger or weaker currency, you mean stronger currency on the M30/H1 means higher TF I am asking so much question because I am trying to bring the strength of the currency on the same chart because it becomes difficult to monitor multiple pairs when strength is also changing I am trying to write down rules to find the strength of currency on the same M5 chart so that its easier to trade. Sometime when I refer to the strength on M30 and trade the pullback then if turns out that it had weakend and it was just a weak push and turns out to be just breakeven or loss and you miss out on some other good trade because you were monitoring that trade

Many Thanks
  • #2,762
  • Jun 20, 2019 2:13pm Jun 20, 2019 2:13pm
Quote
... Just one more question for the direction of M30/H1 you use the same channel 35LWMA on H1/M30 because I use 20EMA on both the TF.....
I don't use any MA on the M30/H1 chart but the candles on the M5 TF

Quote
...The only problem if face is when trend is not strong enough to then it leads to multiple losses. while referring to MADdash it do happens sometime that trend has ended......
This is why I suggested trading just one or two pairs or the number you can easily monitor. The problem is that most traders use the MADdash to determine the trend and I don't. The setup on my chart is what tells me the trend and I only use the MADdash for confirmation and entry. You can see that in the GJ example in post 2398 where I was ready for a trade as price was moving above the channel - the very start of the change over and potential start of a new uptrend. If you are chasing trades, you will be accumulating losses

Quote
... and when you say stronger or weaker currency, you mean stronger currency on the M30/H1 means higher TF .....
Again I mentioned that the trend starts from the LTF, so I am looking at it from M1 through to M30/H1

Quote
... when strength is also changing I am trying to write down rules to find the strength of currency on the same M5 chart so that its easier to trade....
You have a near perfect example in post 2398 where trend was changing from a downtrend to an uptrend

Quote
... Sometime when I refer to the strength on M30 and trade the pullback then if turns out that it had weakend and it was just a weak push and turns out to be just breakeven or loss .....
Then you are on the right track and should not allow the trades you miss to distract you because concentrating on few pairs will help to catch the trend when the pairs move. I look at only the M5 chart and can see the M30/H1 trend right on it because every change of trend starts from the LTF, and you can detect the potential change in trend early.
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  • #2,763
  • Jun 20, 2019 4:38pm Jun 20, 2019 4:38pm
Quoting 919gilead
{quote} I don't use any MA on the M30/H1 chart but the candles on the M5 TF {quote} This is why I suggested trading just one or two pairs or the number you can easily monitor. The problem is that most traders use the MADdash to determine the trend and I don't. The setup on my chart is what tells me the trend and I only use the MADdash for confirmation and entry. You can see that in the GJ example in post 2398 where I was ready for a trade as price was moving above the channel - the very start of the change over and potential start of a new uptrend....

Thank you very much George for your patience and explanations

From what you have explained following is what I have understood------->

a set up of buy or sell on M5 then you should see the status of the currency strength of the currency pair on M1 and M5....and it should be as per the rules you have mentioned or the trades you have shown...Is my understanding correct?
  • #2,764
  • Jun 20, 2019 11:21pm Jun 20, 2019 11:21pm
Quoting 919gilead
{quote} I don't use any MA on the M30/H1 chart but the candles on the M5 TF {quote} This is why I suggested trading just one or two pairs or the number you can easily monitor. The problem is that most traders use the MADdash to determine the trend and I don't. The setup on my chart is what tells me the trend and I only use the MADdash for confirmation and entry. You can see that in the GJ example in post 2398 where I was ready for a trade as price was moving above the channel - the very start of the change over and potential start of a new uptrend....


One more thing George, I hope you don't mind..sorry to bug you with so many questions...

When should we consider the currency pair to have enough strength or momentum to keep it moving and strength to reach higher TF that is from M5 to M30 for a good trade because sometimes suppose the currency is stronger on M30 TF against all other currencies but there is opposite on M5 TF for the particular pair or currency then it becomes difficult to judge and this happens quite a lot because trend has to start form M5 and reach M30 but to overcome the already established trend on M30 needs some trade off or you just pit the strongest against the weakest in LTF no matter what
  • #2,765
  • Jun 20, 2019 11:31pm Jun 20, 2019 11:31pm
Quoting 919gilead
Just a reminder for you Kenny {image} {image}
Thank you very much George
Practice make perfect

Shalom
Kenny
  • #2,766
  • Jun 21, 2019 8:52am Jun 21, 2019 8:52am
Quoting him.bhardwaj
{quote} Thank you very much George for your patience and explanations From what you have explained following is what I have understood-------> a set up of buy or sell on M5 then you should see the status of the currency strength of the currency pair on M1 and M5....and it should be as per the rules you have mentioned or the trades you have shown...Is my understanding correct?
Yes it is
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  • #2,767
  • Jun 21, 2019 9:10am Jun 21, 2019 9:10am
Quoting him.bhardwaj
{quote} One more thing George, I hope you don't mind..sorry to bug you with so many questions... When should we consider the currency pair to have enough strength or momentum to keep it moving and strength to reach higher TF that is from M5 to M30 for a good trade because sometimes suppose the currency is stronger on M30 TF against all other currencies but there is opposite on M5 TF for the particular pair or currency then it becomes difficult to judge and this happens quite a lot because trend has to start form M5 and reach M30 but to overcome...

If strength or weakness is noticed on the LTF and diverges from the HTF it is a sign of potential exhaustion or pullback, and I will not enter a trade at this stage. Only exception is when it is a fresh cross above or below the MA Channel as in the GJ example in post 2398. If it is a pullback, I will wait for trend resumption which will be evidenced by the LTF turning in the direction of the original trend and the HTF.

See the EN trade below
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First attempt to go long failed for a 10 pip loss and could have been avoided if I waited for close of the M30 candle before entry but when you consider that the previous candle attempted to go higher then turned lower which failed and now engulfs the candle going higher again, the temptation to enter is strong.
At the 4th attempt, the M5 candles closing above the MA Channel clearly made HH above the last two M30 candles attempting to close above the MA Channel and we're rewarded with 113 pips. Patience is the key.
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  • #2,768
  • Jun 21, 2019 9:12am Jun 21, 2019 9:12am
Quoting kennyxox
{quote} Thank you very much George Practice make perfect Shalom Kenny
Very true Kenny and you're welcome
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  • #2,769
  • Jun 21, 2019 10:19pm Jun 21, 2019 10:19pm
Quoting 919gilead
{quote} If strength or weakness is noticed on the LTF and diverges from the HTF it is a sign of potential exhaustion or pullback, and I will not enter a trade at this stage. Only exception is when it is a fresh cross above or below the MA Channel as in the GJ example in post 2398. If it is a pullback, I will wait for trend resumption which will be evidenced by the LTF turning in the direction of the original trend and the HTF. See the EN trade below {image} First attempt to go long failed for a 10 pip loss and could have been avoided if I waited...

George,

Many many thanks for all your explanations and I am really grateful to all your explanations. I would like to add one thing here please don't mind and if you don't like the suggestion just discard it as rubbish.

I feel rather I checked it up that you had those losses because you took the trade based on the strength or weakness of just one of the currency both were not opposite like one was totally weak and other totally strong, it was just that one was strong or weak enough to move it out of the channel but push from the other side was missing and I felt if we can wait for the weakness and strength of both currencies we may enter some pips later in the move but it will help avoid unnecessary losses. Later even if one of the currency will fade a little there will be enough push from the other to get us out at the break-even. I checked the trades of you EA also and same was missing and some of the time I found that you get a better price if you waited for strength and weakness of both to change.

I hope u did not mind my suggestion. Once again many thanks for your help. and please feel free if I am not clear in my explanations at any point and please suggest whether I am wrong or right.

Thanks
  • #2,770
  • Jun 22, 2019 2:07am Jun 22, 2019 2:07am
I added this tool on my trading system, been having pretty nice results.
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  • #2,771
  • Jun 22, 2019 4:30am Jun 22, 2019 4:30am
please which time frame in your indicator determines the trend?
  • #2,772
  • Jun 22, 2019 12:40pm Jun 22, 2019 12:40pm
Quoting him.bhardwaj
{quote} George, Many many thanks for all your explanations and I am really grateful to all your explanations. I would like to add one thing here please don't mind and if you don't like the suggestion just discard it as rubbish. I feel rather I checked it up that you had those losses because you took the trade based on the strength or weakness of just one of the currency both were not opposite like one was totally weak and other totally strong, it was just that one was strong or weak enough to move it out of the channel but push from the other side...
Thank you for your suggestion and you are right but remember we don't get momentum to move price just because a currency is strong and therefore paired with a weak currency or vice versa; but also because a currency is very, very strong or very, very weak. A very, very strong currency will move against all currency whether weak or strong. This is why we also have to always think outside the box.

Shalom
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  • #2,773
  • Jun 23, 2019 7:08pm Jun 23, 2019 7:08pm
If you don't mind George letting us know your current settings for Maddy. I would love to use it for most accurate and seeing exhaustion and not sure if you changed your settings.
  • #2,774
  • Jun 25, 2019 2:44am Jun 25, 2019 2:44am
Quoting Pylorx
If you don't mind George letting us know your current settings for Maddy. I would love to use it for most accurate and seeing exhaustion and not sure if you changed your settings.
No change in the settings
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  • #2,775
  • Jun 25, 2019 2:45am Jun 25, 2019 2:45am
Good morning and good night from here
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  • #2,776
  • Jun 26, 2019 2:24am Jun 26, 2019 2:24am
Quoting 919gilead
{quote} Thank you for your suggestion and you are right but remember we don't get momentum to move price just because a currency is strong and therefore paired with a weak currency or vice versa; but also because a currency is very, very strong or very, very weak. A very, very strong currency will move against all currency whether weak or strong. This is why we also have to always think outside the box. Shalom

Thanks George I understood your point, the currency which is getting weaker or stronger then all other just pit it against the currency of opposite trend, so that even if trend dies/ market moves opposite then also you will come out at break even or slight loss
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  • #2,777
  • Jun 28, 2019 5:54am Jun 28, 2019 5:54am
Quoting VeeGlance
I added this tool on my trading system, been having pretty nice results. {image}

Hi VeeGlance,

Which tool you are talking about?
  • #2,778
  • Jun 28, 2019 6:54am Jun 28, 2019 6:54am
Quoting 919gilead
Good morning and good night from here {image}


Hi George,

How do you measure the volatality in the trade or MADdash is enough for that....Can you please enlighten me on volatality...because if volatality is high then the move is strong and vice versa...Can you please help?

Thanks
  • #2,779
  • Jun 28, 2019 9:11am Jun 28, 2019 9:11am
Quoting him.bhardwaj
{quote} Hi George, How do you measure the volatality in the trade or MADdash is enough for that....Can you please enlighten me on volatality...because if volatality is high then the move is strong and vice versa...Can you please help? Thanks
I don't know how to measure volatility and neither do I try as volatility and momentum seem like the same thing to me. The more a currency group is stronger than most currency groups or the more a currency group is weaker than most currency groups, the more power (volatility or momentum) you will get.

Shalom
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  • #2,780
  • Jun 28, 2019 9:13am Jun 28, 2019 9:13am
What a way to end the week and month as we close half of the year. Thank God
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Have a great and refreshing week end all
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