If the close of the doji = the [U]close [/U]of the first retracement candle…then exit.
We can always re-enter again.
If the close of the doji = the [U]open [/U]of the first retracement candle…then we do nothing.
OK, iCarumba here comes iron man!! 
We shall continue…
Lets scroll back a little on the daily chart and see what we have >>>
We have selected a region where the Super Guppy is going down but the general trend is going up.
I am going to zoom in on 2 of those areas - one short trade and one long trade.
The first zoom in shows the following >>>
The Super Guppy is showing a downtrend - trade only short.
We will analyse a short trade - this area shaded in yellow.
Interesting!!
The trend lines are going up!!
We will zoom right in and see how this trade progresses.
Here is the magnification of that area where we trade short >>>
In order to reduce clutter on the chart, I have removed the BB. (they are not needed here).
So we see an entry and an exit giving a loss of 149 pips!! (-149).
That is not good - we are supposed to be trading short according to the Super Guppy!! :eek: :eek:
I will now look at a trade in this region that is going long >>>
Again, we will zoom right in to see what is going on.
EXERCISE
Which of the two trend lines is the more efficient and why?
The zoom in >>>
This is a very full chart with the BB, MMACD, Super Guppy and trend lines all on it.
The entry and exits are marked also.
Take some time to identify all the indicators so that you will not be confused by the chart.
This is a long trade and the entry is marked as the first close after the MMACD crossover.
The price action walks the upper BB and we discover 2 retracement candles (red candles) - they are shown in the blue box.
The exit is shown as the close of the 2nd red candle.
Now we should be trading short according to the Super Guppy!!
That means long trades will be loss trades!!
But here we have a profit of 358 pips!! (+358).
So I think the next statement will become a rule…
NEXT POST.
[B]Never use a longer term average to determine the trend of a series of price actions.[/B]
(I already knew this but this is a teaching thread) 
We now go to the next option - using a higher time frame.
The price actionwe just looked at was a daily chart going from March 2008 to September 2008.
Let us look at that same price action on a weekly chart for the same period >>>
You will see that the price action is clearly in an uptrend.
It is not in a downtrend as the Super Guppy showed.
The higher timeframe is the correct way to determine which way to trade on your home chart.
Let us just confirm this by going back to our original trading set >>>
This period was from April 2009 to the present day.
Note that the profits were made by going short except for one period (green) from December 2009 to end January when this green period was traded long.
Compare with the weekly of the same period >>>
The price action was in a clear downtrend telling you to go short.
That is why the shorts on our original chart made all the profits and the longs brought losses.
The exception is the green area which is also shown on the weekly chart from NOV 2009 to mid JANUARY.
Here the trend was up, directing long trades during this time.
That is why the green, long trade made a profit.
So we establish a new rule…
NEXT POST.
[B]Always consult a higher time frame to determine the direction of your trade on the home chart.[/B]
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upper trend line is more efficient, because the price action hugs the upper trend line often then lower trend line
As this method rely very much on mmacd … i want to be sure if mmacd is valid on all time frames or just on the longer timeframes like 1 day or weekly chart.
what if the price action of the higher time frame is in the side way channel?
Now to our last option, the one suggested by Clint.
In Clint’s option we do not trade any MMACD crossovers where the price action has already clearly passed thro the outer BB.
To verify this option we scroll again in the daily chart to a very lucrative short trade
First the zoom out >>>
It does not take a great deal of skill to see that this is a lovely short trade generating much profit!! 
But at the entry you can see a red candle that goes well past the lower BB.
Lets zoom in on this >>>
The short entry is the one straight after the MMACD crossover.
You can clearly see that this entry is placed well outside the lower BB, just like the ones in the yellow zones in the earlier trades.
If we acted on this signal and decided not to enter according to the rule proposed by Clint, we would miss out on a beautiful trade.
I humbly submit, therefore, that this idea does not work in all cases and it is better to go with the higher time frame option.
should we consider the highest time frame to determine the direction of trade on the home chart?
That then, completes our topic of looking to improve the efficiency of our trading.
I now go on to a new topic which will put our present trading method in some sort of order.
There is, however, still more to come
…on BB exits.
…on introducing the MMACD signal line.
Correct!!
Valid on all timeframes!!
Then the price action of the home timeframe will be in the side way channel. 
Wait for the answers in the next topic.