System for Trending and Ranging Markets | Forex Factory

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System for Trending and Ranging Markets

  • #1
  • First Post: Edited Nov 5, 2009 11:27am Aug 30, 2009 5:04am | Edited Nov 5, 2009 11:27am
Hey, I've been a member here for going on 4 years. I visit now and then and post rarely but today I thought I'd share something. I've been working on my own personal system daily for the past 4 years and something I created along the way is a very flexible, interesting, useful indicator. The attached picture shows the indicator.
Attached Image (click to enlarge)
Click to Enlarge Name: indicator.jpg Size: 160 KB
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File Type: mq4 ATREMA.mq4   3 KB | 2,628 downloads
  • #2
  • Aug 30, 2009 5:24am Aug 30, 2009 5:24am
red line point up + break 2 blue line for upbreak?

it look similar to COG non-repaint version too
  • #3
  • Aug 30, 2009 5:28am Aug 30, 2009 5:28am
lol

HECK NO!

I get in waaay before that.

Open your mind, think outside the box.

Q: What's the difference between a range and a trend?
A: The trend keeps going....
  • #4
  • Aug 30, 2009 5:35am Aug 30, 2009 5:35am
Trending retrace less and then impluse move again
e.g. Price from the top blue line would not touch the Mid Red line and continue reaching to the top blue line again
  • #5
  • Aug 30, 2009 5:43am Aug 30, 2009 5:43am
In fact it's nothing more then MA with ATR bands. Nothing new, the main your idear is how to use it in trading.
  • #6
  • Aug 30, 2009 5:51am Aug 30, 2009 5:51am
Quoting Dezil
In fact it's nothing more then MA with ATR bands. Nothing new, the main your idear is how to use it in trading.

Yeah. Maybe it's not completely revolutionary. But it's all you need to successfully trade trending and ranging markets. If you stare at it long enough you'll figure it out.
  • #7
  • Aug 30, 2009 5:51am Aug 30, 2009 5:51am
Strong trend outside the bands...
  • #8
  • Edited 11:41am Aug 30, 2009 10:46am | Edited 11:41am
Fine.

If the outside blue bands are the "B" Bands and the inner blue bands are the "A" bands, this is what you do:

BUY when a 3-EMA crosses above the lower B and A bands into the inner channel.

CLOSE the order when either:
- the 3-EMA falls back below the lower B band or
- rises above the upper B band, and then descends back below the upper A band.

Once it falls below the upper A band, then initiate a SELL and start the process over(close the order if it crosses back above the upper B band, or falls below the lower B band and then crosses back above the lower A band.)

Map this out and you'll see the ingenuity.

If a ranging market turns into a trending market, it's cool because you're already 50-60 pips positive into the trade.
And if it stays ranging, you'll either make pips too and get out at the top of the channel when it crosses back down, or you'll get out relatively close to your open price with a small loss.
  • #9
  • Aug 30, 2009 10:52am Aug 30, 2009 10:52am
hi
thanks for sharing
would you mind to post a chart on how u enter and exit .
thank you
  • #10
  • Aug 30, 2009 10:53am Aug 30, 2009 10:53am
hello aicccia, could you put a chart with some example of long/short trade please?
Do you trade with this method on a hour chart only?
thanks
  • #11
  • Aug 30, 2009 10:55am Aug 30, 2009 10:55am
k, I'll put up a chart. I actually trade it on the 5-min timeframe.
  • #12
  • Aug 30, 2009 11:04am Aug 30, 2009 11:04am
Well give me 12 hours. I'm busy working on update on the EA right now.

The system I described is a watered down version of of the whole system. I have of bits of logic to handle multiple false crossing of the bands during trends.
  • #13
  • Aug 30, 2009 11:33am Aug 30, 2009 11:33am
Quoting aicccia
Fine.

If the outside blue bands are the "B" Bands and the inner blue bands are the "A" bands, this is what you do.

BUY when a 3-EMA crosses above the lower B and A bands into the inner channel.

CLOSE the order when either:
- the 3-EMA falls back below the lower B band or
- rises above the upper B band, and then descends back below the upper A band.

Once it falls below the upper A band, then initiate a SELL and start the process over(close the order if it crosses back above the upper B band, or falls below the lower B band and then...
I have seen this approach for a double BB setup. This is a great idea and should produce very good results overall. How did you decide on your parameters for this indicator?
  • #14
  • Edited 12:03pm Aug 30, 2009 11:50am | Edited 12:03pm
Quoting smjones
I have seen this approach for a double BB setup. This is a great idea and should produce very good results overall. How did you decide on your parameters for this indicator?
Thank you.

I arrived at the ATR, Space, and Band Deviation default parameters from just trying out some combinations over a few days. ATR could possibly be tightened to 36 or 24 to make the channel more responsive to market whiplashing. (The lower the ATR period, the quicker the channel widens so that the whiplashes don't cross the bands.)

I use 216 as the EMA period because with "216" on the 5-minute chart, I'm getting the trend of a 72 EMA on the 15 minute chart with the resolution of a 5-minute chart, and 72 is a good period to determine the medium-term trend.
  • #15
  • Aug 30, 2009 11:57am Aug 30, 2009 11:57am
Quoting walb99
LOL, what you found here is called a Keltner Channel or Keltner-Bands.
Well not quite, but similar idea.

First is Keltner with the same vrables as Aiccccia's
Second is Aicccia's
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: ScreenHunter_062.jpg Size: 78 KB
  • #16
  • Aug 30, 2009 12:01pm Aug 30, 2009 12:01pm
Quoting walb99
LOL, what you found here is called a Keltner Channel or Keltner-Bands.
Well it's not the first time I've invented something thats already been invented. Kind of like the British "discovering" North America right?

Anyway I am very confident that the system is profitable, regardless of who invented the indicator.
  • #17
  • Aug 30, 2009 12:07pm Aug 30, 2009 12:07pm
Quoting smjones
Well not quite, but similar idea.

First is Keltner with the same vrables as Aiccccia's
Second is Aicccia's
well dang...they'll nearly identical.

I did put in those double bands though to prevent whiplashing when crossing into or out of the channel. So that's one thing I have on Keltner.
  • #18
  • Aug 30, 2009 12:08pm Aug 30, 2009 12:08pm
i m still waiting for u to show some charts with the entry/exit parameters
  • #19
  • Aug 30, 2009 12:33pm Aug 30, 2009 12:33pm
Quoting availdollars
i m still waiting for u to show some charts with the entry/exit parameters
In 12 hours, I live in Japan and it's 2:30 am here. Goodnight.
  • #20
  • Aug 30, 2009 12:42pm Aug 30, 2009 12:42pm
Hi aiccia,

Have you been trading this same method for 4 years and doing it live?

Looks interesting and looking forward to some additional chart examples.

thx,
todd
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