Thx again for taking the time to share, as Dennis does on daily basis great & valuable trading information.
By using, the 4H TF with SMA50/H4 (200SMA/H1) & SMA200/4H made it much easier to follow you.
Also now I can understand your point back on 8/21 post & how 200SMA/H1 would help you to determine whether the pair is trending or in range.
When the Forex currencies are not trending, do you trade any Metal /Energy such as XAU,XAG,XPT,XPD,XTI,XND crosses with USD & EUR and comply with your rule?
It does seems that both XAU & XAG trending & complying!.
I would like to share with you a strategy I have been using last few days (I think of it as Pullback to SMA200+2%) & it seems it is working with 50-100pips gain. When I look at the pairs which comply with Dennis Rule of SWA of >2%, I look at currency performance on Finviz about 4-6h from the start of the day, I try to trade the pairs going against Dennis (Pullback).
Last if you do not mind please let me know if I want to reverse your last example of going long?
To go short the:
• Prices should be below of 2% of 200SMA/H4.
• Price should be below 1.25% of SMA50./H4.
• Price have been trending downward for a while
• SL=Higher Band of SMA50, or lower band of SMA200.
The current prices on the attached CADJPY chart confirm with Dennis’s but does not with your rule!
Thx so much.