My own developed benkyalate system

Ok...one more very important thing,

DO NOT BUY IN SELL ZONES
DO NOT SELL IN BUY ZONES.

if you are using the template that I have supplied, there are buy and sell zones (called auto fib trade zones in the indicator list)

1.If price action is in these areas, watch for accumulation.
2. if price was in these areas, and bounces out, there maybe a trade IF price action follows the rules. (Come out of TMA, hit extreme CoG area)
3. This indicator uses Fibonacci calculations and bases its information off the last 300 periods. You may adjust it to 500 if you feel that it may be more accurate to include the last trend information. I am more comfortable with 300. But test it out. If you are the type of trader who feels better with a steadfast indy, then a longer period would serve you better.....me? I'm just a tick. I go where the elephant takes me.
4. Since this indy uses fib calculations for the last high and low, it will adjust itself accordingly. If price makes a new high and low within the period specified, the grey area will extend to display new high or low. This has to happen in order for it to remain accurate.

Like I said before, each TF has its limitations as far as how PA cycles. The zones help identify those areas where price is most likely to reverse. It is best to think of those areas as overbought and oversold areas. And just like any RSI or QQE, just because it is implied that product is overbought and oversold it doesn't mean that it actually overbought or oversold.



Get familiar with these zones....they have saved me a lot of heart ache and pips! Hopefully, they will give you a better reading of what PA is doing.

So now begs the question: Can I stay in the trade from one zone to the other? The answer is ABSOLUTELY! I prefer to take the swings but to each his own.

How can ppl make so many pips on the one minute chart. I am a friend of FreddyFX and he racks up everyday! I try to keep up with him and it is a challenge!

So how do I trade a trend?

(These moves were worth over 100 pips!)

Turn on the center line of your TMA. This helps with direction if you are not sure. Watch price. If price...
1. Moves in the middle of the CoG and bounces off the edge. Take the entry based on the direction of the center line.
2. Moves in the middle of the TMA take the trade when price "kisses" the edges of the TMA band.
3. Goes to center of oscillator (50 or 0) "kisses" band then bounces back OR
4. Makes a complete cycle of the oscillator, take the trade on the "kiss" of the bands

Trading the chaos is bit of a challenge but still just as rewarding.
Again, turn on the center line of TMA. Center line should be white. In this case,
1. Only take the trade if the body of the candle and the SSL comes out of the TMA (for a scalp) or
2. Wait for price to come out of TMA and hit extreme CoG level for a better trade.


(These moves were worth over 60 pips!)

Hope these pictures display what I am trying to say in words!

Merry Trading!
Resistance is futile, you will be assimulated!

Just a quickie - What is SSL?

SSL was one of the indicators XYard was using for entries. It resembles a/behaves like a Gann.

Thanks - I appreciate the reply.
Tom

I have been getting PMs and Skyped with questions that has to do with the basics of this strategy. The strategy I have presented is somewhat of an advanced strategy. It is actually for those who have already been trading the CoG and/or the TMA.

The two tools together gives more insight into the decision making process of the trade, however, the two together are not necessary. One can simply choose to trade the CoG and the rules for that or one can choose to trade the TMA (several threads for that - Extreme TMA being the most popular one at the moment)

When dealing with advanced strategies, you are dealing with a lot of caveats ("if this happens then do this, if you see that then do this") and it is difficult to capture all the "if whens".

Knowing what I know now, I would have first started with the TMA, then add the CoG for further insight later. So those who are still trying to grasp the particulars of both the CoG and TMA (which is a heck of a lot to take on at once), simplify your screen. Take off any CoGs. Your screen should be similar to this:



And just follow the basic rules:
1.Break of the TMA (body of candle comes out and so does the SSL)
2.Failure at R/S or Supply or Demand is great but not necessary
3.Look for agreement with your favorite and trusted oscillator.
4.Enter in cross of SSL
5.Exit at center of TMA (for Scalp), other side of the TMA or until PA turns for another entry to go in the opposite direction.

I hope this helps. The market has no rules. It is so easy to get lost in this sea of possibilities. All we have is our method to make sense out of it all and the rules of the method. That is it. Without those two things, we are nothing to the market. It will swallow you whole into the black hole....so

just keep it simple until you are ready for phase two. Who knows, phase one may just may be enough....

Any particular reason why you have your bold MBFX lines on the inside rather than the outside.

I gotta hand it to you if you've found a way to make money with M1 charts. I remember when I first started trading >20 years ago I used M1 charts with loads of indis. After I'd lost thousands I wised up and used H1 naked charts. I'm watching your template with interest - you're never too old to learn in this game.

Sorry one more thing I forgot - I see you use 300 and 250 bars rather than the 180 used by MB. Obviously there is a reason for this if you care to explain. Thanks.

1. I bold the inside of the MBFX so that I can watch price travel through the inside of those two lines. If price is traveling inside and not breaking the lines, either one of two things are happening: a) price is trending or b) price is weakening so therefore there may be accumulation before the next move in either direction.

2. I choose 300 because I want more price action/time calculated into the high and low and the spread of the MBFX bands. There is not much difference between 250 and 300 except that the bands are reacting a little slower to PA and on a 1 min chart, it provides some balance.

Hope I understood and answered your questions correctly.

This morning E/U provided enough pips in just 4 swings that we should all go take the rest of the day off!

The TMA (KISS Trade) provided over 90 pips in 4 swings! (In less than 4 hours) Congratulations!



The third swing was a bit scary and a less experienced trader would have abandoned it. I didnt even bother to take the trade because, yes, I took the CoG/TMA route but still gained almost 80 pips since 11 gmt... (hear that? that sound is my adrenaline pumpin'!)




Hope your trading went well today! Duces!

I did the opposite of what you have done. I was a swing trader and stayed in my trades for 2 and 3 days. I specialized in top down analysis: daily, 4hour, 1hour and took entries on the 5 min. Placed my PF of the 5m and stayed in trade as long as PA obeyed the boundaries of the PF on the 5. I used only a fib and a pitchfork and a RSI. It worked. Got lots of pips but no sleep. I found that when I have trades open (even if I locked in profit and took a bankers trade) I couldn't sleep and when I did, my dreams were peppered with pips!

I use a number of indies because on a 1 min chart, pattern formations, candles stick shapes, .....all of that goes out the window. I had to adapt. And I have also learned that it doesn't happen on a hour chart unless it happens on a 1 min chart first.

That's right folks....step right up...ya' heard it here first! Anyway...here is a classic example of trend, accumulation, change of direction:


PA a was trending, traveled within the middle of the MBFX, then accumulation, then direction change.

Thanks for engaging me in conversation. Duces!

Oh and by the way, now I sleep like a baby!

Thanks for your insight - much appreciated.

Here is another example of price trending, accumulating. But this time, price continued in the direction of the trend. Accumulation is tricky....I think this is where Brokers make a lot of money. That is probably why they call it accumulation..."they accumulate your money" through stop losses and then take off in the direction that you were trading in without you! Been there! Done that!



But with the TMA you can beat the Broker at his own game. Scalp the the TMA during this time. But the caveat is, the CoG must be 15 to 20pips wide.

Took a couple of these trades on the AU because I was so close to 100 pips...so why not.

Duces!

Very appreciative of your sharing and teaching Xstorm.
Many thanks.

You are welcome Pardy.

Someone asked if I could show the screens when I am in the trade. I am not permitted to do that as I am in partnership....(I have mentioned that somewhere on FF a time or two).

How-some-ever, I can show how I prepare to get into a trade. Fair enough? I have 3 pairs that i look at now that I have added EJ to my short list. I look for the template that shows the least amount of confusion. If I look at a template and I cant decide who is in control (bulls or bears) or if the indicators and price are in conflict, or if the HAs have a lot of tails to both sides, I DO NOT PUT A DOG IN THAT FIGHT! Because that is exactly what it is. I've got the bruises to prove it!

So on Fridays, I go for 30 pips just like I do on Mondays. I chose the Aud/Usd this morning. Here is what it first looked like (look to the left of the red line):



To the left of 11gmt (red line) the market had a definite pattern within the CoG. It was ranging between 15 to 20 pips a turn. I figured 2 to three swings would get me to my goal.

When I scalp, the MBFX cog comes off the screen (I leave the ABHA) and then I blow the screen up. Scalping means that precise entries are extremely important. Most ppl think that scalping is easy because you are only getting a couple of pips out of the market. But that isnt so. When trading the larger TFs, you have room for market noise so you give yourself a 30 to 50 or more stop loss for breathing room. In scalping, that is a trade gone wrong.

Entries must be as precise as possible.


As you can see, the template almost looks like a different template once it is enlarged.

I was able to grab 21 pips on the swing up, 32 on the swing down and just pulled out of the last swing up (not shown here) with 17.

I hope this helps my buddy in Chicago!

Duces!

Hi Storm - When I look at your chart I see the SSL line but it is not on the template. Where can I get it? It almost behaves like a 5 ma with a 2 shift.

Tom

Sorry....thought it was in there.

Yes I noticed that - almost identical with 5 SMA shift 2 HLC/3

Yes, I see what you mean. I guess it is a matter of preference. Sometimes I am amazed at the number of indies that does the same thing under a different name!

I just got off the phone with a friend of mine who took trading classes with me back in the day (last year, ha, ha). He told me that his heart stills rushes when he places a trade. Oh...how I remember that feeling! Since a majority of you are on FF seeking the strategy that fits you, remember, in your search to find that one indy that is mostly reliable. NONE are completely reliable, not even PA!

To avoid the blood rushing into your head when you place a trade, make sure you have a contingency plan if the trade goes against you. Not just a stop loss. A contingency plan is in place for you to act quickly. precisely and without regret if the trade goes against you.

For me, a stop loss is the most I am willing to pay to see if my hypothesis of the trade is correct. A SL is also a back up plan to my contingency just in case I am not paying attention when a trade goes against me. I am a tick. I am not trying to give the elephant anything back!

Guess what? There is no rule to say that you have to wait for price to hit your stop loss. My friend has a 50 pip stop loss. What?! That is my pip goal per day (Tue - Thur). For me, that was not a stop loss, that was someone trading in the wrong direction!

Here is my contingency plan and perhaps you can develop one on your own.



Let us suppose I got in the trade where the green line is....I am just getting into profit when I see my HAs change, it hit the TMA but most of all, it crossed back over the 0 line (red line) of my indicator. THAT IS DEFINITELY A NO-NO! If price closes over the 0 line (against me) I am outta' there! I am not waiting for my SL to be hit. For what? My indie already told me I had a bad entry or an erroneous trade.

I wait for a better entry in the same direction or if I was wrong....I find an entry in the right direction.

I dont like to post bottom indicators for this reason....you must study and develop a relationship with your indy to trust it. No strategy can do that for you. There is no other reason for an indicator to be on your chart other than confirmation, so that you can make money, am I right or right? I dont trust a traditional RSI but some love it. I dont trust the traditional MacD but some love it. I love the second version of the solar wind indy...my partner wont touch it!

A lot of traders starting out, have a fear of loss. What I found to be the best combatant of fear is trust. It is impossible to fear what you trust. You dont have to trust the market, you dont even have to trust your strategy but you do have to trust something to at least get you out of a bad situation!

Here is what I do know about most bottom indies (and I have tested hundreds)....if you find a good one, it will be right MOST of the time but when it is wrong, and doubles back on you....dont wait for a telegram....get out. If and when you get good at it, you should not lose more than a few pips (as opposed to 50).

Duces!