The Forex Trend

Thanks Spud, fixing the levels made all the difference,just a bit of work for each pair and what we see best as traders.

Thanks for the share,

Can you please post all the indicators Spudfyre?

Thanks, jt

Just load the template.

Guys, All the indicators are built in the mt4, except the smoothed Heikin Ashi which Spud post in post #10.
Good Luck guys,

If you add the Heiken Ashi Indicator first and then use the template, you should have no issues -- at least on MT4.

Hi Spud
I have been studying this system in the past week, and I have something to ask, if you allow me.
Since the red lines (in the SD and Momentum indicators windows) are not mentioned in the theory nor in the procedure, is it possible to delete them from the template for better visibility ?

Thanks

Spud, could you give a reading of the charts as the market is opening, for those who are still trying to decipher this method?

Thank you sir.......

Hello there
Spud, could you define settings which you have used in your indicators? I'm not using MT4, it would be much easier for me to just copy them to my platform (Amibroker) than decoding that template . I think that other users can benefit from it too.
Piotr

Hi again Spud,

In post #9, you mentioned four conditions for the stochastic oscillator.
You made clear the action for conditions 1 & 2, but for conditions 3 and 4, you didn't mention any action against these conditions. i.e. if the stochastic is above 76.4 or below 23.6, what is the recommended action, or what is the concept for these in this system ?

Thank you for your patient.

best regards

Sorry, ..... Found the answer,

If it is above 80(76.), or below 20(23.) then it is beyond limit. One should use lower time frame to catch.....

thanks

I think that this Trend method shall be used together with the Older MTF method, i.e. one uses the same template to Check direction of the Market on the H4 TF,
then he jumps to the H1 TF to confirm the same direction trend. Then one can use M15 or M5 TF to enter a trade only in the same direction of the H4.
If you try to use the lower time frame alone, it will mislead you, even if you try to use the rope concept of the multiple stochastics !!!!!

I also wish to add a note to the use of the SD indicator,

If the lower SD(blue lines) start to cross up the Basic SD(Yellow one) then we are in a trend, if they start to cross down, it is an indication that the trend is coming to an end. In this way as far as the blue lines are above the yellow line, you can enter the trade, even if you come late, you may catch few pips( better than nothing), you should not be afraid that it can suddenly turn against you( yes this can happen if there is heavy news, which offcourse, you as a smart trader should has avoided), it will not turn against you before the first blue line crosses the yellow line downwards. This give you an early alarm to exit, but not before get a confirmation from the stochastic indicator turning against you.

The Red lines can be ignored in this procedure temporarily.

thanks

Following the trend can really help the trade make some really good number of pips so that they can ride the trend and be happy with the profits made. But why four indicators, can't this system be much simpler with use of lesser indicators.

The Solidity of this method comes from the rope concept of the multiple stochastic indicator. This is a very effective tool and can be used by itself, it is a sure fire weapon. But the problem is that it gives a signal for every move, even for short ones making following a tedious job. and once you ignore one move you regret that this was the big one. Hence you need the Higher time frame to show you the direction of the possible good moves.

The SD and the Momentum indicators are only to give an earlier indication of that the previous moves have ended.

The Main indicator in this system is the stochastic indicator, but it is an oscillator, meaning that it has its limit in the trending markets and when the market is OB or OS, that's why you need a moving average based indicator. Here Spud used the smoothed Heikin Ashi indicator, an excellent choice from Spud. The method is built on these two indicators. The Smoothed Heikin Ashi will give the first Visual Signal( the setting is MA 1 Simple, MA 2 Smoothed), The Main Confirmation comes from the stochastic indicator having crossed up or down.

Now when you first start the Monitor, the Market is already in movement, How do you know that the Current Price Movement is coming to an end, so you prepare yourself to the next move, this what the momentum indicator will tell you in advance. Before the Movement is ending the blue lines will cross the yellow line. You Prepare to take action based on the Stoch. and the Heikin Ashi indicators.

Then How you know that this is a true Move or Only a Fake or false Alarm, The SD indicator will tell you, As far as the blue Lines are above the yellow line, Volatility is increasing and the trend is continuing.

That's Why You Need Four Indicators. If After this explanation you feel that you can skip any one of these four indicators, you may try. This now will become you own new version of the system.

Good Luck

I see that the SD is lagging, normal, one should use the momentum to foresee the end of the current trend.

Still one would wait for the SD to confirm the Momentum indication.

Another great trading strategy from Spud !

Entered short @ 1.2931, my entry is one candle earlier because of MTF Stochastic positions, other indicators seems quite good, momentum blue lines starting to cross down yellow line so previous long trend should be dead (I hope).

Edit : stochs turned up, closed with -3 pips :|