Trading is as simple as ABCD

Welcome Xiena, You will find most of the indicators in posts 8898 and 8899, link to Top 28 trenders in post 9001. Two very special posts by Clive if you have not already read them 8353 and 9732. Good Luck.

Unreal ..Post.. must be read again and again.. THKS Clive..

Greetings . . . I was wondering if Clive or anyone could clarify some nuances of the basic approach.

I understand that the basic method was a 35 LWMA and an 8 period CCI. You buy when 35LWMA is green and 8 CCI pulls back to below -100. Reverse for sell.

What I don't understand is the role of the 10 LWMA, 100 LWMA, 175 and 150.

Is the 10 LWMA now being used with the 35 as some form of trigger? (Like you wait until you get a CCI below -100 then BUY a Close above the 10 LWMA?)

I've seen posts with the 10 LWMA and 100 LWMA. Is that an alternate method that was discarded?

I also saw that the 175 LWMA was used as a substitute for the 5 min 35 LWMA . . . but then on a chart I saw the use of a 150 LWMA. Which is correct?

Thank you

Read Post 11166 then go to Post one and read carefully

Thank you for the philosophy lesson. I assume you're trying to help. But I've been around the block a few times with trading and personally, I don't think much of Mark Douglas.

I'm really just interested in the answers to some very simple question . . . specifically the role of the 10 LWMA and to some extent the 100 LWMA.

Thanks again

Basically the 10 looks to the 1 minute time frame and the 100 relates to the 5 minute time frame. But, of late the 100 was replaced by the 50 LWMA.
Hope this helps a little.

So is the 10 used in addition to the 35 LWMA as an entry tool? (Buy after Price crosses LWMA when 8 CCI is -100 or less . . . sell when CCI is +100 or more.)

If so, then it's pretty much duplicating the Awesome Oscillator (5-34 SMA using HL/2) which was itself a dupe of 5-35 SMA (using C) developed by folks at Advanced GET in mid 90s.

Applying that AO or 5-35 Oscillator might help. Once the AO makes the big "iceberg" high then that pullback back to zero is usually it for that trend. Don't try going to the well any more!

Here is what I mean that you can use the AO with this:

Hi

Yes I can see where the confusion has come in as we did try a few different LWMAs out in our search for the perfect LWMA to use as our trend,,,

But I can shed some light on where all the different numbers came from and how we used them.

Basically you find a MA that you think fits the trend best to your eye then we use that as our base MA and trading a one minute chart we put that MA from the higher timeframes on our 1 minute chart... so lets say you think the 10lwma fits the trend the best then you use that as your "base" MA and work out the 5 min. 15 min and hrly numbers for the 10lwma on your 1 min chart so if you want to see what the 5 minute trend looks like put a 5x10=50lwma on your 1 min chart. If you want to see the 15 min trend looks like put the 15x10=150lwma on your 1 min chart and the 60min trend is the 60x10=600lwma.

Please see chart below with the above LWMAs on the chart..



Now by just looking at the 1 minute chart you can see exactly what the 5 min, 15 min and hrly boys are looking at trendwise... You will also notice that when the price is above all 4 lwmas , so the 5 min , 15min and hrly boys are all trading in the same direction, then the 1 minute flys up as everyone is trading together in the same direction, so a good time to look for our CCI to go oversold (below the -100level) as its a nice pullback against the trend of everyone...Yellow arrow marks the CCI entry..

So hopefully that explains the theory behind the system , so where did the 35 and the 175 lwmas come from I hear you cry????

Well thats using the 35lwma as our base trend MA so if we do the maths to work out the other time frames we get 35, 175, 525 and 2100 so the same chart would look like this..



Not a lot different and we use the CCI to identify the pullbacks to trade...

So pick yourself a trend moving average that you think fits the trend the best and Bobs your uncle you can use the 1 min chart to time your entries to perfection watching the higher timeframes on the 1 minute chart...

I personally find it a bit too busy for me nowadays and tend to trade with just two lwmas on my chart usually the 35/7 combination on its own ,and when the 7lwma crosses over the 35 and pullsback to it thats your entry...

But each to their own and heres a chart with the 7lwma and the 50lwma combination so again the 7 crosses the 50 and pulls back to it then as price crosses the 7lwma, theres your entry.....What you are doing is trading the 1 minute trend in the direction of the 5 min trend(50lwma) and using the 7lwma to identify your pullbacks plus the CCI can be used for confirmation selling overbought CCIs or buying over sold ones..




So as you can see its all a matter of personal choice.....

Hope that helps.....

Hmm quite impressed with this 50/7 combo and my old faithful CCI for confirmation ....

Have a look at this chart from todays Dax, wait for a fresh cross of the 7lwma over/under the 50lwma then wait for it to pullback close to it and as price crosses back down through the 7lwma thats your entry or use the CCI and when price is under the 50lwma sell overbought CCI signals and when its above the 50LWMA buy the oversold CCI signals...



Basically watch the two lwmas interacting together watch them converging.pulling back, then as they diverge start looking to enter and whenever they recross look for the first couple of pullbacks only...Then wait for another recross to freshen it all up again...

hey clive just a variation of my sc1050 your is a sc750 lol

Hi Harold

Yes sorry to pinch your idea but as you know my whole strategy is based around your original thread flag trading the trend, so thought you'd of been use to me using your ideas by now????

Just to rub salt into the wounds heres the perfect setup from todays Dax...



Hope alls well with you Harold.....

I have been market profiling the heck out of the NQ coupled of course with pullbacks 123s and 2bs

Yes thanks!

Well did you get the first of the day????



This is a 7/35 combo but much the same as the 7/50 combo....

GREAT posts Clive.. GREAT to hear from you.. so much in them

Hi Clive, great to see you back, hope you are keeping well. Thanks for the wonderful refresher course.

Hi Danc and Thomond

Thanks for the kind words very much appreciated and it helps me too when I post as clarifies my mind as to what I'm looking for when trading live in the thick of the action.

We need to have a clear picture in our minds as to the chart I'm looking to trade. The LWMAs converging then diverging away from each other is about as good as it gets in my book. Then its just all about when to enter and those small flat top and bottoms are great little signal candles...

Let me know how you get on with it and feel free to post a chart or two..

All the best guys...

Good looking buy setup here just need my litlle green candle across the 7lwma, could be my last trade of the session...

not this time....but if it cuts underneath the 35 could be ideal time to sell from these dizzy heights...