Battle of the Bands

I posted that trade as well a few posts above.

oh yes,i see,but how about the SMA's 100 and 200,i mean are they for trend determination,in other words,what function they do have?,is it a countertrade or not?,many thanks in advance!

sam

In a way, yes. the 100 and 200 can be good indicators of market strength or weakness, so when price breaks the 100/200 sma we want to follow the price by going long or short whichever way price goes.

For example:

now this is a 4hr chart, just to show price/ trend. At 5968 we got our long entry when price broke the 32 high sma, price then came to some resistance as it struggled with the 100sma, then we had a strong push up, also breaking the 200sma at 1.6220.

For this trade you had three seperate chances to enter as price broke the 32, 100 and 200 (e1, e2, e3), however also keep in mind that the higher price goes, the more likely it is to run into a major s/r level, so perferably the sooner you can enter, the better to reduce the chances of buying a top.

Now yes, after price broke the 200sma, it ran another 182 pips, but we cant assume this is going to happen, however it is pretty sweet when it does.

notice where I marked "fail" .. price penetrated and broke the 200, but the market wasn't able to maintain the momentum, and price reversed.

Under the stop rules for this system, I said it was optional to move stops to the low of the entry bar IF price closes as a red bar, doji, or pin bar, which is what happened in this case, so stop was moved to lows where we were taken out.

[quote=big_pipin;3160539]In a way, yes. ....


oh yes,look at my chart,my first trade with your system,it looks good!!!

thank you again!

sam

Ya i missed that one , but good job, you're getting the hang of it. Oh and guys, take a look at that usd/jpy I posted...lookin pretty good now, already made my money on it, so now its "on the house"

yes,its about 40pips already,but i was afraid to take it because of the monthly and weekly pivot lines.

sam

... and same is going on by EJ!

Last nights trade

+ 10 pips on uj, but missed the other 13 pips on the long trade 3 hrs ago.

and just to emphasize, if I didn't take 1/2 my profit when I could, this would have been a losing trade. Ya 10 pips aint much for a nights trading, but over a week they add up, and the big one is always around the corner.

later.

GU sold,i dont know that is according to the rules http://cdn.forexfactory.com/images/icons/icon5.gif

yes that is a valid entry.

it was a countertrend because of the both sma100 and sma200,i think it were better to enter above band,what do you think?

sam

the 100 sma can be a good indicator of trend, but breaking the 32sma can also be an indicator that the current trend is ending.

Nice long trade on UJ off the daily from the 21st.

Nice 80 pip short on the EU last night.

First trade based on this system

hi

I am sending you two indicators;

MA Tunnel and the SAR Oscillator

good trades

(sorry, my English is bad, I'm French)



rechercher

your entry was on the 17:00 candle?

Got a long signal on eu yesterday, but if we close as a red bar or doji its possible its just a fake.

It's been a while sense my last post. I've been busy making changes to the system .

The core concepts are still the same however I'm adding a momentum based indicator ( you can use momentum or ROC...these are the ones I use and they move almost identical to eachother, however you can try others like rsi, mfi, cci etc....)

Because ma-based system dont work so well in sideways markets, we need a way to find the good trades from the junk.

Watch my video here

I forgot to mention that its important when we go against the trend, (and by trend, I mean the 100 and 200 sma's) that both your macd and momentum indicator confirm the possible change in trend.

Here is an example. Price closed below the 15 and 100 sma, however we must wait for both indicators to confirm before pulling the trigger, so sometimes this means that you have to wait a few extra bars before you get in.

I'll post some trades in the future.

example

eu short entry on 12/11