Saturday, May 09, 2009

LWMA 55

One of my favorite indi is LWMA 55. I dont know why but the price seems to react a lot of this line. People say that MA is a lagging indicator and I agree with them 100% but do not use MA as a signal generator, instead use them as a dynamic support and resistance.

For those of you who love to experiment, try putting LWMA 55 on a chart and see how price actually interact with the line. Its not magic but its a mathematical calculation.

Dont get me wrong, you may not be able to trade using MA 55 alone. Try putting LWMA 13 in there as well and remember they are not signal generators. Treat them as dynamic support and resistance.

Put it into a simple formula. If price > LWMA 13 & LWMA 55 = long. If price < LWMA 13 & LWMA 55 = short.

Try it, you may like what you find. Just needed to add in a filter to improve accuracy.

Thursday, May 07, 2009

Theory: Trading With Little To No Margin

As I often do, especially when the markets are excruciatingly slow in
determining when to make the next significant move, I've been thinking
about Forex.Take a mental walk with me...The DOW falls from 10,000 to
5,0000 and loses 50% of it's value. It returns from 5,000 to 10,000 and
gains 100% of it's value.Wait, think about that for a minute. In the
normal world having the ability to gain

Wednesday, May 06, 2009

MT4 EA: Average Position Based Trading

While I don't have any pictures to show, yet, I am working on an EA
that trades AUDJPY based on the market price relative to the average
price of positions held.The first few passes at this type of system
were pitiful. My testing starts from September of last year to now
while only opening long positions. As you can imagine this is a
difficult period of time for a long only system!However, late


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