Can anyone share what the actual moving averages being used are (i’m assuming they are exponential?) for those of us who don’t use MT4.
Thanks in advance!
Hey daedalus 
How’s it going?
Sure…the ema’s are 37,39,41,44,47,50
You can find this strategy over on FF and as I remember the ema parameters are given there. I have just read about this strat. and not demo’d it as I don’t always see the bars as he does. d
Thanks Sweet Pip! Glad to see your still here and active. Hope your trading is going well!
I get it. However, what I don’t get overall is the defining moment of what we consider to be a trend, and then a retraced trend.
I’ll stay tossing up screenshots as I see them to help better clarify for myself, as well as others.
I can see this set up good for 1 or 2 solid trades every day.
I would say the trend is defined by the degree of the “slope” of the EMAs and as with any trendline, best entries would come from a 2nd and/or 3rd bounce off them. Taking retraces back to the trendline is more risky I think.
Yes to screenshots later this evening…I’m still at work…it’s only 4:45pm here…arrgh!
Ok, here’s a little indicator I made up to help spot the 123 highs & lows. It gives the entry price and the stop loss price, and gives an audible alert when price reaches the entry price.
It’s funny how the numbers look like bubbles…lol
Hope it’s found useful 
T-Bar-3.zip (1.43 KB)
Here’s a live trade I just took on the 5min chart of eurjpy…took +20 on it.
There were 3 higher lows marked with the red number below the candles (a retrace). Entry was on the break of candle no. 3 low. The trend was down as indicated by the linear regression channel and the EMAs. The indicator I use by now had changed to reflect the lower highs, but as this point we ignore them as they just confirm the downward trend.
Howdy Sweet Pip
I am Spongebob from urbanforex. How you doing?
I was wondering if you or anyone on here would like to trade this strategy live on skype?
Trading the same strategy live has big advantages, in most trading rooms everyone is trading different strategies, lets start one just for urban towers combined with the 123 we spoke about.
Here are some examples
Cheers Cooldude
Hi Spongebob
Sorry I just kinda disappeared for the past few days from urbanforex…so much to do, so little time…lol
I’m still working on refining that indicator to go with the rainbow ma’s. And someone else requested an addition to it too. Almost got it done, but then a “butterfly” flew past me and I had to follow it …lol…meaning a new thread started on trading fibonacci patterns which caught my interest 
I’m not a skyper at this time. I trade during the later part of the Asian session which doesn’t seem as popular a time to hook up, but ya never know. There is always the chat room here… wonder if we can create a room in it labeled urban towers?..I saw a couple like the boom boom room, but don’t recall if that’s a standard feature or just an admin feature…maybe we can request it.
TTYS…
Talk to you soon
Hello everybody,
I have been messing around with this on the daily charts for a few days now…i like it, gained about 300 pips checking the charts 10 min a day…cant complain there…but I have been using the suggested stop for the system, then my T/P is double the suggested stop giving me a 2:1 RR. Does anyone do anything different with their risk/reward ratio for this system ?
Hi mtandk0614
Can you tell me what pairs you got a trade using this strategy on the daily charts?
I had a look at do not see many trades. This is originally for the 15min charts, although the price action does work on bigger time frames.
As for your targets, i personally like to look at fib extensions, one could close out half at FE100 and the rest at FE161,8%
Hope that help, Lino
Hi,
I have a revision to the indicator I made to now work with the MAs. It doesn’t actually use the rainbow indicator so it doesn’t matter if it’s on your chart or not.
I also included 4 new features which can be switched on and off depending on how you want it to work.
First, you can choose to show all the consecutive 123 highs/lows, or only the ones that touch the rainbow (default is on).
Second, the stoploss suggestion didn’t account for the spread which meant that for shorts, the ask price takes out your stoploss earlier than the displayed bid price…so you can turn that on and it will add the spread to the stoploss price (default is on)
Third, I had a request to calculate and display the lot size based on 3% of the account balance…again you can turn this on or off (default is off). I’m not sure if it’s calculating right either…still waiting for the requester to verify it.
Fourth, if the text gets in the way of your candles, you can change the corner it displays in. Use the following numbers (default is 3):
0 = top left corner
1 = top right corner
2 = bottom left corner
3 = bottom right corner
Let me know if you find any glitches
T-Bar-3.zip (9.85 KB)
Hey all
Another example with a 20EMA added.
In strong uptrend the pair usually continues after retracing just to 20EMAs.
Same rules apply!
Cheers
Hello again
Just wanted to point out bucking the trend. When you trade just off the 15min you seem to think that if rainbow is under the price that its in an uptrend, always look at the bigger picture before you commit to a trade!
Cheers Cooldude!
Has anyone tried tuning this strategy? if so, what have been your results?
Hello Cooldude,
I would be interested in knowing the latest updates you may have. I may be of some help in testing as well.
And yes I agree, sometimes just trading off of the 15, makes you wait so long until you get a proper setup.
- Navin
Hi Navin
Your urban tower strategy is really very powerful IF one uses it properly. Price action in my opinion is the best indicator one can use.
The problem i first had with your strategy was that once price hit rainbow on 15min, that in many cases it was the end of the run, or it would just break rainbow and carry on down, I have a new approach to it now.
I start off with the daily chart, if price is above i know im looking for long trades. I then look to shorter time frames, i look for a break of your rainbow, and then wait for a 123 reversal. I use the approach all the way down to the 15min time frame.
You could say i am waiting for it to buck the trend, then use the 123 reversal strategy to get in.
Here is an example, starting off with the daily, trend is clearly down, testing your rainbow indicator, have a look at how many times the pair broke the rainbow on the 4hour chart, made a 123 reversal.
If daily is below rainbow and 4hour chart, then go to hourly, wait for pair to break rainbow and make a 123 reversal.
Cheers Lino
