Newbies.... Stop being befuddled by charts

Trading Systems
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Hi @ItsJoeyTheTrader, Garnished 90 pips across multiple short positions overnight on the EURUSD on the 1 hour TF. Normally don’t touch the EURUSD, so this was just to demonstrate how clear the signals can be…

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Settings were as I PM’d you yesterday, WMA9 on the XLVA4 Indicator. As I have stated in many earlier posts, you need to adjust the settings to the timeframe and volatility of the pair you are trading…

I use a hybrid cBot to enter positions when I’m not at screen, hence the entry time stamp on Chart.

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Continuation of the EURUSD (1Hour) where trend change is clearly signalled…

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The EUR is strengthening against the USD… You would have moved your stop to the WMA (+2 pips) and have the position safe from any loss… Still looks like it may continue south at this point…

Same settings… WMA9 on the XLVA4 Indicator…

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Following .

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Trends,

Is the WMA the same the LMA - Linear Weighted MA?

KC

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Hi @frandlost, Yes, MT4/5 it’s called an LWMA on Ctrader it is referenced as a WMA.

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Thanks for that @Trendswithbenefits , it was difficult to read the charts you posted until I double clicked on them and I found the instructions. I will now go away and trial the strategy as it looks fairly simple and I am extremely time poor.

Thanks again.

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If I stick one of these bad boys onto the hourly chart with 9 period settings, am I good to go?

cTrader 3.0 is lovely isn’t it.

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Hi @trendswithbenefits,

How you doing man? Just want to ask if are you still trading using this strategy? Also you still onto SW Analysis before jumping on a pair?

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@Jahruhay, Yes, not my latest strategy… this just works… Generates small losses, big gains…

Nice easy couple of days trading the AUDNZD on the 1 hour TF… Not one of my favorite pairs…

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WMA 6… (AUDNZD Slow), 80+ pips across 5 trades using 1 position at a time to keep margin low…

Check your charts…Today’s condition change was @ 2.00pm (UTC11), short opened… up 17.3 pips…

Update: The broken white line crossing the WMA Slope is just a normal WMA 4. You can add another MA of the same type and 2 periods shorter than the Coloured MA.

I added it for trend strength confirmation… the closer the two MA’s are the weaker the trend… the further apart the stronger the trend… it’s that simple…

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WMA 6… (AUDNZD Slow), 105+ pips across 6 trades using 1 position at a time to keep margin low…

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Check your charts…Last condition change was @ 10.00pm (UTC11), short closed… 25.8 pips…

Long opened @10.30pm… up 10.3 pips… Expect TP to close position @ ~1.055

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Ok so above you are taking the trades here when the WMA6 changes color.
@Trendswithbenefits

Previously it looked like you were taking the trades when price CROSSED the 20SMA (buy when price crosses to above green line and sell when prices crosses below red line).

It looks like to me like the WMA 6 (or 8, ext) seem to provide more opportunities for entry.

How do you determine what WMA to put on a pair?

I’ve been following the previous entry method of waiting for price to cross over the line of red or green instead of just waiting for the line to change color. I’ve had decent success but my problem is I’m not always available to make the entry (away from computer). I know you use CTtrader but do you know of a MT4 notification provider to let me know when the line changes color?

Thanks for this by the way. I’ve been liking trying out this new strategy.

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Hi @PipPwner, The SMA20 is a starting point as most new traders know this Indicator.

You can use either method… it’s what gives you the best result over time… price offen bounces off the Coloured MA and continues on trend without triggering a change in colour closing the position early

Or (like AUDNZD) you can close on change of colour or conservatively when price crosses the lower period white MA. It’s what the trader feels works for them…

The pairs volitility will determine which MA Type and the period used… the AUDNZD is a particularly slow moving pair (the AUD & NZD frequently move together), So a WMA 6-9 can be used.

It’s all about getting a nice smooth flow from the MA Coloured Indicator.

The method I use is to scroll through the low spread pairs until I find one that has a clean “wave motion”, then I overlay the MA, trialing various MA Types until it shows clear up and down trend changes.

Once you have this in place lower the periods until the MA starts to break into small segments, this is what will whipsaw you, so once you see this toggle the periods back up until the MA is clear again… you have set the MA Slope to the pairs volatility.

I am sure your already aware that the tighter the MA (WMA, Vidya) or the lower the periods the more pips you can gain with the downside being more false signals… it’s finding the balance.

Great to hear it is working for you… You’ll notice I have an Email and a Sound Alert coded into my Ctrader version (I code) If I am out, the Email Alert sends a contact with Symbol, Timeframe and which Indicator triggered the Alert or If I am in my office the Sound Alert will read out the same information…

I don’t use MT4 so I don’t know anyone that codes the Indicators. One of the main updates I have made to my software recently is the comprehensive alert systems, which is allowing a hell of a lot less screen time be required to trade the 1 hour + timeframes with ease…

I hope this has been of help with your trading this strategy.

Edit: Have a look through this Website, they have an IOS/Android App that you can setup alerts (For FREE) across a number of Indicators. They have paid content… but a lot of very, very useful content available to your mobile device for FREE.

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Handing out the goods. Thanks Trends! Will also check out the freebies.

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It’s not my site… I don’t even know which continent it is on… Just free information to someone asking for a notification system to their mobile device so they can get away from the screen… nothing more.

Any actual suggestions, feel free to add some real content to this thread…

Your still to learn not to bite the hand that feeds you… sick’em hey Rex…

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Always love me some free stuff!

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@Trendswithbenefits

Hey thanks a lot for the lengthy reply. I really appreciate it.

That makes sense. I will try changing the WMA to fit the pair as well. As you said it seems this method would yield more times of entry and hopefully more pips.

One more question regarding entering on just the change of color; how do you approach your SL? Mostly for the beginning of the trade/entry.

What I like about the green/red crossover strategy is you have a good line to make sure price doesn’t come back at you. I usually put 1 ATR as my SL or sometimes smaller depending on how much price has crossed over the MA line already.

For now I’m gonna keep testing out the 20SMA on the 1 hour and 4 hour to see if I can get good results to go live with.

Once again I appreciate the simplicity you have showed here. Thanks again.

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Hey… No Problem. You can use the ATR to give some idea of what is about to unfold… It’s what works best for you… I have it displayed on my charts, but generally use it as a last resort.

If you go back up through BP to all my posted charts, you’ll notice that I enter a position usually on the second hour (see gap), just ensures that price direction has less chance of whipsawing you…especially when using tight MA’s and Periods.

I then set a stop (or a hedge) a few pips the opposite side of the MA Coloured Slope.

This is why it’s critical to source the less volatile pairs,

  1. You can use a lower period and tighter MA Type…

  2. Less chance of a whipsaw taking you out early then continue to trend in the direction you planned.

Some pairs react violently on trend change… firing a spike back to the level it came from to grab some more liquidy before heading off in the opposite direction…

Hope this answers your questions. Cheers

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This looks like an absolutely fantastic system. I am going to test this out for sure @Trendswithbenefits thanks again.

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Trends with benefits.
Would you please be so kind to send me link for the indicator on ctrader

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Strategy works perfectly trading XTIUSD on the 1 Hour Chart using the WMA 9

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Check your charts…Last condition change was @ 12.00pm (UTC11), Long closed… 37.3 pips…

Up 70+ pips across 3 days…

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