MA Crossover-based system - Squiggles

Hi at Geosanuy,
This is a really Marvellous system/method indeed, it's so simple it makes trading seem as though it only took a few click of the buttons to harvest some pips, no really, it makes trading seems as though it was some game or something.

Well first you might be wondering why i am ranting but i have always believed that a trader should never stop refining their trade entry and exit methodology, and so the more i learnt the more i practiced and the more i trained my eyes to different tools of trading mostly visual trading tools and a psychological view of price action.

All of this tools make the charts tell you more than just the price of a currency pair, the charts tells you a story about traders greed and fear, you but only listen intently(we all love gossip) and especially when you make money from the reactions to such gossip.

I use psychological support and resistance levels a .00, .20 .50, and .80 as decision levels, when price approaches these levels i don't just rush off to place trades even though i'll be looking intently to see what candlesticks form, and what trendline was breached when considering to open a trade.

Couple with your simplistic system, i get an even more accurate entry signal, i stay on the 30 minutes chart but when i see price approaching ALMA on the line chart i switch to the candlestick to see what is if there's a hammer, doji, hanging man and so on before switching to the 15 Minutes chart to sort of zoom on the move.

In a Nutshell

Always Consider where price is in relation to the .20, .50, .80 and .00.

When you get an ALMA/PA cross signalling a short trade for instance, say this were to happen below a .00 psychological price level of 1.3300 it would probably be a much lower risk and a higher probability trade because a reversal could be highly unlikely due to this major psychological ceiling.

This is especially so if a trader knows how to interpret price action on a broad and an in-depth perspective by understanding the psychology of market cycles. I wrote a blog post on this you can read here A Psychological Perspective on Market Cycles if you are interested in learning more about this.

Below is a screen shot of what my chart looks like and the ALMA Combo, if i may call it that , on the other.









hope to see how wild this thread flourishes... pips for everyone hehehe

Thanks for the kind words, Megaboy, and also for your methodology which makes perfect sense.

Am glad to hear that, would be expecting more from you though , thanks your time

CONS

Many scratch trades (though losses are minimal)


Hi Geo

I have a question, with regards to managing a trade. What do you consider a scratch trade, and when do you apply it to your trading.

If you have answered it already, please accept my apologies and I will re-read thread.

Many thanks.

Captain....the white lines show where price tends to "range" before making a decision for buy or sell...so it's mainly used as a "visual" for potential moves and setups once all the other factors line up....so in a sense, it gives an idea of support and resistance and potential direction of the market overall, but is not a stand alone for entry...the other indicators have to line up as well....

By scratch trade I mean one that is not profitable, as I generally have a nominal 20 pip stop which is a safety stop, in other words if the price turns back on me against the yellow ALMA crossing it, I would close the trade right away instead of waiting for it to hit the full stop.
This will happen to you a few times if you trade every PL x ALMA cross, it can be minimized by:

1. Considering the angle/slope of ALMA
2. Your S/R or Round Number levels
3. Observing previous bias / trend and identifying whether you are in a retraction or resumption of trend.
4. Looking at immediately previous crosses and their outcome.

Before the entries on this chart there are a series of whiplashes that would turn into scratch trades were you to enter every cross, just as we train to see the good entries we must also see that a FLAT ALMA and many crossings cannot give us profit.




The idea is to kill the losing trades quickly.

Thanks for your reply Geo, I guess a scratch trade would equal a small win, BE or small loss. Would that be right?

This is just my way, of using the MA's & EMA's. The point that they cross most of the time is a big move. This is also change
from Bullish to Bearish . Support & Resistance ,VSA & Candle stick patterns are some more signs of confluence that I use to determine to enter a trade or to pass . You are doing job keep up the good work . good trading $$$$$$$$$$$$

Yes Ezzy that's correct, the idea being killing the false crosses quickly, you can see that the good ones do produce a fair amount of profit.
By minimizing the loss amounts we get a favorable profit ratio.
Bear in mind that if you use this method enough you will discriminate these bad setups based on the parameters I have mentioned.

Hi Geo. You've done a nice job. Sorry for my English, it's not my mother language, I'm from Lomas de Solymar. Ja. Bo, espero tener más noticias tuyas, ta? Un abrazo.

Ok people, a very simple application / template....evolving from thread principles.
Line Price chart in black over the Average Price Bars + 55 EMA ( for general trend detection), and ALMA 9 ...
We're looking for color change and cross of price line over the ALMA, along with healthy looking bar development, always looking at your LEVELS ....simple H4 trading.



Up close...

Oh and the ATR 7 periods indy to determine possible volatility stops and profit points, always coherent with your LEVELS!!
Maybe a SL of 75% ATR and a TP of 1.4 ATR, play with these numbers and see how they fall comparing LEVELS.
Good trading to all.

CAVEAT - the Price Line only draws the next point at the end of the period, in this case H4, you might want to monitor the price against the ALMA in the H1 TF...or simply the development of the APBs.