Extreme TMA System

Hello Fxtr51,

Very interesting, but how to know when it is time to unlock the order (It is very subjective)? What would it be a good profit? Could you describe your method?

Thank you...

What led u to get out there instead of waiting for price to hit lower band considering it hit centre in 2/3bars?
I was in eu/jpy made the msitake of not closing when u did, when i was some +35, now its pulling back :/

Edit: Btw take a look at that Aud.Nzd

Possible entry coming up on N/U.

TMA Slope at -0.05 so valid for either long or short I think.

Price pierced bottom TMA line, extreme bull spike (white line).

Waiting for a blue bar on the MA crossover histogram.

R1 well above top TMA line.

Can someone please tell me what FPV is, I assume a type of pivot point?

I usually take profit on one trade early to get the day started in the positive direction. It´s psychological but it works for me. Plus, 55 pips is nothing to sneeze at.

Its Fibonacci pivot value. The pivot level for the period.

AudNzd

Waiting for Rule 4

Here is the observation you made before repeated.

Price climbing but TMA Slope begins to drop. Divergence? If this happens repeatedly like this in most cases, you may have discovered something really profitable.

Al, that's great!

Ok, nitrate73,

Let´s put your divergence theory to the test. Here is the S&P rising, while the TMA Slope has been declining. If divergence is correct, this Index should drop soon. Certainly before the TMA Slope begins to rise again.

Closed GbpUsd +25 pips

Ok, lets hope that divergence plays out fine.

Trades so far:

Closed Trades:

GbpUsd +25 pips

GbpJpy +55 pips

Open Trades:

EurUsd +6 pips

AudUsd +4 pips

Gold -6 pips

S&P +3 pips

Open from previous days:

Usd Cad -24 pips

AudUsd +6 pips

UsdChf -54 (In Recovery)

Opened Short AudNzd at 1.2837.

Al,

Your recovery rules have you place another trade when your drawdown is 100 pips. Do you ever place the trade earlier. USD/CAD has given another signal on the 15 minute chart even though it has not moved 100 pips against your original entry. Would you consider taking another trade at this point or do you always wait for the 100 pip move against your position.

Biganc

No. Recovery is a 4 stage process. If you place the trade too early, you will run out of ammunition (available margin) and lose your maneuverability to recover. Actually, some use 200 pip steps. I use 100 for intraday. If I was trading daily charts I would use 200.

Thanks. It does not bother me to use this method. Actually I'm looking forward to giving it a try. I am just making sure I have a good understanding. I trade live, however, I trade with only .001 lot while I am learning- so if I lose I live to trade another day.

The only drawback of the recovery method is that you are not allowed to trade that pair again until you close the positions at BE or with a loss. It´s a kind of punishment if you will.

What do you think about the R3 ?
I think I would'nt pull the trigger, here...
Can you explain why you did it ?
I probably missed something....

Yes, you are right ...... but ..... there is more to it.

Because the scenario you described can happen and will happen,
we need to think about it and make the best out of it.

There is more than one possible "solution" to this scenario,
but one thing is for sure: we will make profit out of it regardless
how we treat it.

How do I know that we will always make profit ?
Because I have watched charts for years and if you scoll through historical
charts you will never ever find a chart where price will not move far enough to give us profit from a range of 20 or 30 Pips.
Never ever.

That is why I definitely know that the market will take care and give us
profit from such a "lock".

The way out of a "lock" is subjective, yes.
Because you can wait for your most preferred condition to do the unlock.

What could that be ?

Imagine the GBPJPY would trigger the hedge and we have the lock because my first trade is a SHORT and now the LONG is active too.

Now let us imagine that market is falling again.
I would remove the TakeProfit from the Short order in this case ( the moment when the LONG is triggered ).

Then I would watch the market with patience.

Imagine the market would fall 200 Pips and only then the TMA would turn up again and everything would indicate that GBPJPY would go up again.

If I would take a definite "long" signal from the TMA-extreme system by all rules met , in this moment I would close the SHORT-position
with this fantastic 200 Pips profit.
Not bad.

Then I would place a LONG market entry, same lot-size as the initial LONG.

But this is a matter of taste.
Depending on technical analysis, if you are sure that the pair would rise now, some would decide to use double lot-size for the LONG.

I for myself am conservative. I would take same lot-size only.

And hope that price would go up.

Since my "lock range" was 20 Pips or maybe 30 Pips,
market only needs to rise those 20 or 30 Pips ..... and I could close
both LONG positions for a breakeven trade.

But I would not do that.
I would let the market go up and up and up until the next big Resistance level is near or a clear short signal comes up.
That would give me an overall profit from this whole cycle.

But wait a minute, what would I do if the market would move against my second "LONG" instead of moving up to breakeven or profit ?

I would place a pending SHORT order at the logical level where you would place your StopLoss.
Just in case the market would decide to drop further .
For that I need this new "lock".

The way out of this new lock is identical to what I described already.

From all of this you see that it is subjective.
As long as you don´t create fixed rules for it.
Some prefer fixed mechanical rules and we can do that for this
kind of locking and unlocking.

But before I am writing a book here, I rather stop and wait for questions
and input from others.

The four rules were valid and price was way above the upper band. R3 was there, but it´s not the Berlin wall. It can be breached. It is a consideration. It should always be, but not a determining factor.