Best trading system ever.

[jjames]

Oke to make it all easy for you put a 14 sma on your 4h chart NOTHING ELSE Now tell me can you trade that if you trade with the direction of the 14 sma.

[⭐ deadsoul]

pictures can talk also....will you..

[Diesel 10]

Oke to make it all easy for you put a 14 sma on your 4h chart NOTHING ELSE Now tell me can you trade that if you trade with the direction of the 14 sma.

 

It's fine in trending markets, but gets chopped up badly in consolidations. Tell me how to tell trending period from consolidation in advance and I'll agree best ever...

[jjames]

angle of the ma look at the larger picture combine it with technical tools like trendlines don't make things over complicated. Money management make a plan and execute it set targets and use hard stops ride the trend. What more you want?

[chrisbenjy]

Do you use the SMA just as direction of trend, or do you use it as dynamic S&R too?

[hitescape]

Another trader once told me that he knew the perfect entry but had no idea how to perfect the exit. His method was to put the 50 SMA on an H1 or higher chart. When a candle forms completely below (High is below the SMA) the SMA then sell the open of the next candle. When a candle forms completely above the SMA buy the open of the next candle. Ride the trade until the end of the trend.

 

Like Diesel says, if you can tell me in advance when the trend ends, I will be a very happy trader.

 

Yes pictures can talk but you learn more by doing. :)

Edited November 28, 2010 by hitescape

[pipburglar]

Interesting thread - thanks for starting it jjames!

 

This is the first I've heard of using the 14sma on a 4h chart. The Simple Effective System that went around here a while back used the 21sma on a 4h chart, and I've seen a couple of systems that use the 50 or 60 sma on a 1h chart. I'm definitely checking this out!!

 

hitescape - have you heard of the 3 ducks system? The author uses a 60sma instead of the 50, but he provides lots of other guidelines (such as using multiple time frames) and there is a large thread on it on trade2win.

 

Here's a link to a PDF explaining the 3 ducks system:

 

http://mediaserver.fxstreet.com/Reports/b8120567-d09e-49f5-95ec-d6e1db641115/eeda5b1a-bd0d-4411-ad82-3d4c768cfa2e.pdf

 

Here's the link to the trade2win thread:

 

http://www.trade2win.com/boards/forex-strategies-systems/26464-3-ducks-trading-system.html

[soundfx]

Hi jjames,

 

Take a look at the chart below:

 

This is EURUSD H4 and SMA 14 from around June last year. This year has been a "trendy" year, so a system like this would work well, however be aware that market conditions change and it would be hard not to get chopped to bits in the conditions in that chart, unless you were monitoring your trades all the time and taking small targets (and if you were doing that then you could use almost any system to enter).

 

In 2008, I thought that trading was as simple as looking at the 4H chart, identifying obvious reversal signals and trading the next move of the "wave" and this proved to be very profitable for several months. However, all it took was for price to move into an extended trending period to cause loads of these trades to fail spectacularly and being on the wrong side of a trend is not the place to be. I'm mentioning this because I suspect that you're going through the same learning point as me...when you think trading is easy, then there's something you've not considered lurking around the corner ready to slap you down soon.

 

Ok - so can you tell me how you'd trade the signals below ? You can't say that it's "obvious" that the market is ranging and that you'd stay out as it's only obvious in hindsight. In real-time each turn of the SMA could be the next big move starting, so according to your trading plan you'd need to be in those trades if you want to take advantage of trends. If in the trade, what stops and targets are you using? Small targets and stops will see the stops being blown by spikes all the time and Large targets and stops will see targets missed and some chunky losses.

 

http://img138.imageshack.us/img138/1849/2009h414sma.jpg

[⭐ stingrayzz]

If he was to take every trade that came long over the last 4 years with what he posted in the first post he would be broke.

 

Cheers

 

Hi jjames,

 

Take a look at the chart below:

 

This is EURUSD H4 and SMA 14 from around June last year. This year has been a "trendy" year, so a system like this would work well, however be aware that market conditions change and it would be hard not to get chopped to bits in the conditions in that chart, unless you were monitoring your trades all the time and taking small targets (and if you were doing that then you could use almost any system to enter).

 

In 2008, I thought that trading was as simple as looking at the 4H chart, identifying obvious reversal signals and trading the next move of the "wave" and this proved to be very profitable for several months. However, all it took was for price to move into an extended trending period to cause loads of these trades to fail spectacularly and being on the wrong side of a trend is not the place to be. I'm mentioning this because I suspect that you're going through the same learning point as me...when you think trading is easy, then there's something you've not considered lurking around the corner ready to slap you down soon.

 

Ok - so can you tell me how you'd trade the signals below ? You can't say that it's "obvious" that the market is ranging and that you'd stay out as it's only obvious in hindsight. In real-time each turn of the SMA could be the next big move starting, so according to your trading plan you'd need to be in those trades if you want to take advantage of trends. If in the trade, what stops and targets are you using? Small targets and stops will see the stops being blown by spikes all the time and Large targets and stops will see targets missed and some chunky losses.

 

http://img138.imageshack.us/img138/1849/2009h414sma.jpg

Edited November 28, 2010 by stingrayzz

[learnnew05]

It's fine in trending markets, but gets chopped up badly in consolidations. Tell me how to tell trending period from consolidation in advance and I'll agree best ever...

 

One way to check this would be a flat 50 SMA on higher time-frames. A flat 50 SMA is a very effective, albeit lagging, indicator of choppy markets. Just a thought.

[jjames]

Oke i am gonna give you guys some homework, exits, ever counter entries lets say you look at the picture above the 1 soundfx posted. now also place on that chart you trendlines support ressistance lines or picture them they obvious. and even fibs if you want. Then tell me again you still think you cant make money out of it? Always be aware of you levels in the market. If you guys will look at it that way in the chart you will have a fifferent view. First 1 who see it owns me a beer. Edited November 29, 2010 by jjames

[buster1221]

Well, you implied that the 14SMA was all you needed. You did not say anything about fibs, SR lines and trend lines, all of which require quite a bit of experience to to draw accurately. So it is not that simple after all.

 

Your initial assertion was not accurate.

Edited January 6, 2011 by buster1221

[coffee99]

Oke to make it all easy for you put a 14 sma on your 4h chart NOTHING ELSE Now tell me can you trade that if you trade with the direction of the 14 sma.

 

 

 

Yes ... I have had some fun this week with USD/JPY, USD/CAD, AUD/USD and EUR/USD ...

quite lucrative actually ... thanks jjames ... :)

[shunshi88]

Another trader once told me that he knew the perfect entry but had no idea how to perfect the exit. His method was to put the 50 SMA on an H1 or higher chart. When a candle forms completely below (High is below the SMA) the SMA then sell the open of the next candle. When a candle forms completely above the SMA buy the open of the next candle. Ride the trade until the end of the trend.

 

Like Diesel says, if you can tell me in advance when the trend ends, I will be a very happy trader.

 

Yes pictures can talk but you learn more by doing. :)

 

Yes, Agree. Exit carry the same weight as the entry.

[WmWm]

Yes, Agree. Exit carry the same weight as the entry.

 

all this talks flurry me so much, guys :)

I think SMA is very convenient. I tried to put 14 sma on 4h that was good

[apple1937]

Hi jjames,

 

Take a look at the chart below:

 

This is EURUSD H4 and SMA 14 from around June last year. This year has been a "trendy" year, so a system like this would work well, however be aware that market conditions change and it would be hard not to get chopped to bits in the conditions in that chart, unless you were monitoring your trades all the time and taking small targets (and if you were doing that then you could use almost any system to enter).

 

In 2008, I thought that trading was as simple as looking at the 4H chart, identifying obvious reversal signals and trading the next move of the "wave" and this proved to be very profitable for several months. However, all it took was for price to move into an extended trending period to cause loads of these trades to fail spectacularly and being on the wrong side of a trend is not the place to be. I'm mentioning this because I suspect that you're going through the same learning point as me...when you think trading is easy, then there's something you've not considered lurking around the corner ready to slap you down soon.

 

Ok - so can you tell me how you'd trade the signals below ? You can't say that it's "obvious" that the market is ranging and that you'd stay out as it's only obvious in hindsight. In real-time each turn of the SMA could be the next big move starting, so according to your trading plan you'd need to be in those trades if you want to take advantage of trends. If in the trade, what stops and targets are you using? Small targets and stops will see the stops being blown by spikes all the time and Large targets and stops will see targets missed and some chunky losses.

 

http://img138.imageshack.us/img138/1849/2009h414sma.jpg

 

 

This is the toughest market condition (Ranging Volatile) to trade.... Better stay away and for other setup..:)

[fxhst329]

any results/statement for this?

[⭐ megashop]

This is the toughest market condition (Ranging Volatile) to trade.... Better stay away and for other setup..:)

 

this type of market is goldmine if u combine MA and Fibonacci ;)