Robert,
I really like the way you’re using the LWMA 2 high/low to enter the existing trend. So many times the train leaves the station before we get a chance to jump on. This seems to be a great way to safely get onboard at the next stop. This technique alone is worth the price of admission!
[I]I’m starting to get the impression you really do know what you’re doing! [/I] 
But on a serious note, I appreciate how you generously pass along your knowledge, thank you.
Looks good Thanks for sharing this. I am not sure if you posted it or if its in your .doc files (I can’t open them right now stupid underpowered netbook with windows 7:mad:) What are you using for settings on the MAs the colored ones you mention for trend following?
One of the things I told my self I would not do is keep experimenting with “systems”. But this is close enough to Rui’s MMTT method that I have been using quite successfully. I added some of my own changes related to stops, MM and scalping repeated entries based on a 2 period MA tunnel on the 5 and 15 min. Sound familiar? Thats been going good while now I think its safe to give this a try.
One of the weaknesses of MMTT is you have to be very discretionary about when not to trade. Its a counter trend or retrace strat it definitely works best when the market is ranging. A strong trend on the daily or 4 hr chart can cause many losing trades. I want to put your trend MAs up on a daily chart to see if they can be used to help keep me out of bad mmtt trades.
Edit>>
One thing I would like to share is my thoughts and experience on stops and scalping this way. I have found it very hard to use a set number of pips and come up with a good R:R and good win rate. Its true whats said about the lower time frames there is a lot of spikes and noise small stops get hit often. What I have found is when you take a trade at an extreme of price like this you are picking a direction not a destination. I use an oh sh** stop and keep my trade size small. I have a $ amount of loss that I use as a daily quitting point.
When I have a trade open I watch it if it starts to look like I got the direction wrong I look for a good level to get out. I also keep the second axiom in mind “take profit early” I am not so concerned with R:R of each individual trade. These trades have a very high probability of moving in your direction. Its not to hard to have a bunch of 5 to 15 pip wins in a day if you can let a spike go 15 or 20 pips against you. With compounding on each trade you can keep your average daily win amount($) bigger than your daily cut out point and have a lot more winning days than losing days. That’s profit!
Of course a bad day can happen and this upside down R:R can reach the cut out pretty fast. I have found that does not happen very often. But when it does whatever limit you have set to stop trading must be held. Days of trading can get erased what ever caused the first few trades to go bad will probably not just go away be it a market condition or a mental one its best to take a break.
Well, you said we can ask questions so!
When scalping on the 15m do your only choose certain time periods? Say like the London session or New York? Or, does this not matter too much? Looking forward to trying this out, should also be interesting to see how this will coordinate with something else I’ve been using on the G/U. Danke wieder R Carter 
MarketScope is giving me problems, What exactly are the MVAs? Ill see if I can find them for MT4.
Ok, seems like things are moving fast around here, with all the recent posts, so no point in continuing with the pdf idea, at least for now. Please let me know if I can be of assistance with the shortlist of the key posts.
Whenever I try the wicking method, I always seem to catch the move that ends up walking the Bollinger. 
What do I need to recognise to avoid this scenario? 
I’ve tried looking at the higher TFs without much luck and get confused when the 1H/4H and daily shows conflicting trends. I suppose then is a time for patience? :o
Last week I tried the daily 2 LWMA high/low tunnel strat (very similar to MMTT). I noticed the support/resistance areas of the 2 LWMA high/low tunnel on the daily chart also seem to correspond to the support/resistance areas of the upper/lower bands on the 1H 20:2 bolls.
When the PA steps outside the 2 LWMA tunnel on the daily, it’s usually also spiking somewhere around the upper/lower band on the 1H 20:2 bolls.
So after trying the 2 period tunnel concept on the daily for a week my thoughts are, given the choice why not stick with the 1H 20:2 bolls instead of the daily 2 period tunnel.
Sounds good can’t wait to try it out.
I took this content and separated RC’s two charts into different images so they can be studied a bit easier and combined all the information and examples into one document (attached) for anyone who’d like to have it.
(I’d also made a PDF, but when images in PDFs are significantly enlarged they become very blurry and hard to read.)
Having said that and hopefully not to confuse people, I can also see how the daily 2 LWMA used with the weekly 2 period LWMA tunnels can make for some serious multi-day swing trades. But that’s a different game. LOL!
thanks
RC, have you recently calculated what your win percentage has been for scalping off the 15m and hourly charts using this method? I would be referring to just those trades targeting the 10-pip TP on the 15m and whatever your scalp TP is on the hourly.
I’ll await with interest your take on Win v Loss on purely scalping the 2 LWMA H/L if you feel thats the way forward.
I will share some results. This is from a few months ago when I was real slow at work I had a lot of time to spend at the screen. I freely admit these 15 days are cherry picked they represent my best stretch of trading;). And a lot I mean a [B]lot[/B] of screen time.
147 trades
Win rate…82%
R:R pips… 1.7:1
R:R $… 1.2:1
($ is much better than pips due to MM and compounding strat.)
Pips per day average…42 pips
What I was doing then is close enough to what is being discussed now I think it is relevant. This is what I was doing.
- If I do not currently have a trade running, say first thing in the morning. I will wait for PA to bottom out in the lower 2 LWMA then time a long entry.
I would look for this condition on the daily chart first then move down through the charts to the 5 and 15 min I would wait for the condition to be met on the 15 min and 5 min then enter always in the direction dictated by the price extreme on the daily chart.
- Having entered a long as above I will wait until PA hits the upper 2 LWMA and upper boll or even breaks then close the trade. Its doubtful its going much higher and therefore likely to fall back.
for me this was on a 15 min chart for the most part.
I was watching about 10 pairs on the daily chart it does not take long to glance at 10 charts to see where price is in relation to 2 MAs.
Many people here will recognize this as Rui’s MMTT strat. It is, I chose pairs and direction as Rui does but I never opened or managed my trades as Rui does. I was doing what RCarter is laying out now as it applies to scalping.
So I know what he is sharing works and works very well.
One of the most interesting things I found from the month or so of trading this way was the difference in the R:R ratios between pips and $. Following my MM and compounding system I had days pips negative and $ profit. At first looking at my results I thought the difference was caused by more losing trades at the start of the month when pips had a lower value (had not been compounded yet) but when I broke up the data I found the difference was consistent. This has nothing to do with Moving averages but it points out the importance of MM and compounding when you are scalping.
The 5 min chart is choppy. I only used it to fine tune the exact entry when everything else was lined up in hopes of quickly overcoming the spread. I love to see a trade jump to BE or profit in a few seconds:D.
What you can do on the 1h chart is flip it to a 4h TF chart and add a horizontal line at the 2 LWMA High/Low and again flip the chart to a day TF and mark the 2 LWMA high/low. Then flip the chart back to a 1h TF. Now the 1h TF chart has all the relevant S/R’s and the 4h & daily 2 LWMA High/Lows.
Basically the 15m TF chart is the entry/exit trade chart and the 1h is the bigger picture chart.
Its funny but I found I get a better feel for price by looking at each time frame chart separately and keeping a minimum of squiggles and lines on my screen at one time. Simple is definitely better for me. I get mesmerized and cant see the forest because of the trees. I discovered that when I had a bunch of muilti TF bols on one chart. That’s just me I know some people like having it all on one chart. If you put it all on one chart or flip through the time frames the information is the same. If anyone is having a hard time with every thing on one chart try looking at each TF one chart at a time.
I have used something similar with a 20/50 MA cross in the past, waiting for the retrace before entering. As always, avoiding the false signals is the key.
What would stop you from entering in the indicated areas?
Following this on the 1hr chart, I think moving to break even after 20 pips will have you stopped out too early some of the time.
[B]Click on chart twice to view larger picture.[/B]
Anyway, a demo trade over a week should throw up multiple questions
Presumably by tend trading, you mean entry on the 15m following the 1hr trend?
Hello Robert,
Great post and I couldn’t agree with you more. We actually trade very much alike with just different S&Rs. I don’t mind the M5 but it just takes some getting use to the ups and downs. The difference between the exits and entries on the M15 is not that great and most of the time no difference whatsoever. I use a multitude of methods as you can tell from my posts but trading with the trend is always a safer way to trade. This also needs less confirmation of the trade so I pull the trigger quickly as an entry made one bar too early ends up going the right direction anyway. I can see the reverse of the PA a few minutes quicker then you can on the M15 but the final trade point is the same or very close .
What you are creating here with your LWMAs are narrow price channels. The rage is to trade price channels these days which is one of the ways I trade. I always have the Bols and LRCs on my charts which gives me a better view into the future and alerts me to breakouts and reversals.
I agree on your scalping statement but must admit to doing it when watching the charts gets boring. I do it on the low TFs to keep me awake. The action is like playing a video game and pays better then any casino. It satisfies my desire to gamble and at the same time keeps my mind sharp.
Taking a trade against the trend totally depends on the angle of the trend. But let’s first define trend. If we are talking about the Daily for example the trend could be up but the Hourly could be down while at the same time the M15 could be sideways. I watch the Daily but look to the Hourly for trend. If the Hourly is trending up then I consider a countertrend to be down.
Scalping the M5 is a different ballgame. I look to the M15 or M30 for trend but it’s not as important as the M5 will move to Support and then to Resistance and back to Support much more freely then the upper timeframes. Your chances of getting burned on a countertrend is greatly diminished. On any countertrend trade a close watch on the PA as it approaches the center of the channel is always wise as this is where the turn will occur if it comes before hitting the opposite side of the channel.
I’ve noticed you mentioning lately you’re moving to the M15 for exits and entries which is the wise thing to do. I think a lot of newbies miss this key point of your explanation. I know your very first post stated the use of both the H1 and M15 charts. So many traders stay on the higher TFs for their enties and exits and lose too many pips. I prefer the M5 or M1 for entries and exits but I always watch the M15 chart as well.
Trade well and prosper,
Johnny
That was GBPUSD, just a theory question based around stop losses rather than anything else.
How’s non work life?
SanMiguel.
Completely off topic, when you were in Canada did you get a chance to do any skiing?
Yes, though mainly around Quebec.
Managed to get to Le Massif, which is a really cool place overlooking the river:
le massif - Google Search
Quebec didn’t have a great winter though this year…
I’m glad to hear that! I got lucky this winter and grabbed 5-6 days in southern Vermont and caught a lot of great snow! It’s a great sport, keeps my 52 year old fat ass body feeling young.
PS Wow, what a wonderful view!
[B]OUCH![/B] Hope you’re feeling better
Im still gonna steer clear of this lol, by the way. whats up with the huge price differences? the highest high so far for me is 1.5270. If it hits 1.53 ill enter my short again probably :p.