Having looked at a lot of trading methods, what Ibuk has done here is produced a trend trading method. Price goes below the MA when you are in a down trend and above the MA in an uptrend.
So basically you are entering a trade into an established trend or thats what you should be doing. So let look at how we might improve the system, using what we know as traders.
This is the first ideal set up to look for when a 24 MA crosses a 50 MA on the hourly, the trend is now down. So as this is the hour chart I am looking for hourly swings. My TP would be double my risk so I am risking 84 pips and targeting 168.
I also want to see movement ie in swing depth see here price moved away from the 50 MA then returned to it all in all a 90 pip move, this is very important for the system otherwise you get caught in congestions where the market is ranging through the MA. I was wondering would a trend channel be a useful filter in terms of giving direction say placed on the last three swings?
So basically you are entering a trade into an established trend or thats what you should be doing. So let look at how we might improve the system, using what we know as traders.
This is the first ideal set up to look for when a 24 MA crosses a 50 MA on the hourly, the trend is now down. So as this is the hour chart I am looking for hourly swings. My TP would be double my risk so I am risking 84 pips and targeting 168.
I also want to see movement ie in swing depth see here price moved away from the 50 MA then returned to it all in all a 90 pip move, this is very important for the system otherwise you get caught in congestions where the market is ranging through the MA. I was wondering would a trend channel be a useful filter in terms of giving direction say placed on the last three swings?