10.2 Definitions - Foundation for the Future

[Bunker]

Hello Fellow Traders,

This thread started with the idea of looking at the interaction between the TMA Slope Value and the DWM pivots. But as I was continuously looking at my monitor, I developed a fascination for the movement of values between the slope timeframes. I discovered that the TMA slope by itself, with its different Timeframes and values, gives us a pretty good story of what is happening and what may come next. So it can be used by itself or in combination with many other indicators.

I revised the purposed of this thread based on the multiple PMs I received (thank you btw) and on my growing interest of the TMA Slope value. So, this thread is about figuring out the story told and sometime even shouted by the TMA Slope Value behavior through your various experiences.

You are certainly welcome to post your strategy here if it uses the slope and help us defining or confirming the set of definitions below.

These definitions may (and will) change as this thread evolves.

On to the Definitions..

Ranging: D1 is between -0.4 AND 0.4 and Pivots in no specific order

Bullish Trend: D1 Slope Value >= 0.4. (and DP > WP > MP for NB strategy)

Bullish Strong Trend: D1 Slope Value >= 0.8 (and DP > WP > MP for NB strategy)

Bearish trend: D1 Slope Value <=- 0.4 (and DP < WP < MP for NB strategy)

Bearish strong trend: D1 Slope Value <=- 0.8 (and DP < WP < MP for NB strategy)

Trend Reversal heads-up from Bullish to Bearish: will be initiated by DP crossing below WP

Trend Reversal heads-up from Bearish to Bullish: will be initiated by DP crossing over WP

Trend Reversal confirmation: Pivots flipping order. ie dwm to mwd.
TMA going from above .4 to below -.4 on daily and vice versa

Retracement in a Bullish market: Not defined yet. Testing M15 slope value (reverse Stretchy).

Retracement in a Bearish market: Not defined yet. Testing M15 slope value (reverse Stretchy).

Trend Resumption: This is what I call the Elastic effect. These generally occur when the trend is strong and the gap between H1 value and D1 value is greater than 1.3 (this number need to be confirmed). Once the gap => 1.3, a trade can be triggered in the D1 slope direction. The following EA (thank you Sir. SH) is based on this concept: http://www.stevehopwoodforex.com/phpBB3 ... f=44&t=716

Break Out: No definition yet

Challenge: What story is the H4 value telling us ?

Looking forward to hear what you have to say!!

Cheers !

Bunker

[Bunker]

This is a retracement in a Bullish scenario: D1 >= 0.4 AND H1 < 0.4. Also, DP > WP > MP (in this picture, the retracement is probably completed since price is below 5.1). With a D1 of 1.2, we are ready to jump back in the trend...soon.

[Bunker]

Heads-up! That could be a trend reversal. DP crossed over WP. Let’s be careful !

[Bunker]

This is a strong Bullish trend. Not going anywhere but straight ahead (or above)! H1 is above 0.4 so it doesn’t look like it is retracing either…

[DING]

nice 10.2 summary information, could you share your indicator and tpl, we could easy catch up.

[Jemook]

Hey Bunker, nice idea for a thread. I think you should edit out a lot of the introduction text as it might scare off people who aren't so good with English or are too lazy to read a big chunk of text. Try keep it as simple as possible with a short intro and the definitions behind 10.2. You should also get Bob's attention to this thread so he can confirm what you've written.

Also:

Ranging: D1 is between -0.4 AND 0.4

[Bunker]

Hey Bunker, nice idea for a thread. I think you should edit out a lot of the introduction text as it might scare off people who aren't so good with English or are too lazy to read a big chunk of text. Try keep it as simple as possible with a short intro and the definitions behind 10.2. You should also get Bob's attention to this thread so he can confirm what you've written.

Also:

Ranging: D1 is between -0.4 AND 0.4

Thanks for you post Jemook. I ceaned it up a little and made the modification.

I will also pm Master NB.

I'm looking forward to see other posts from you. Each time, I learn something!

Cheers!

Bunker

[Bunker]

nice 10.2 summary information, could you share your indicator and tpl, we could easy catch up.

Hello Ding,

Thank you for your post. You can find the template at this location:
http://www.stevehopwoodforex.com/phpBB3 ... f=43&t=640 (zip file).

This is the base. I always modify them a bit but ultimately come back to the original one

Cheers!

Bunker

[Bunker]

Hello Fellow traders,

OK…I’m just thinking loud here,

As you see, GA like many other pairs, has a Bearish trend (D1 = -0.6). However, it is currently the only downtrend pair having a DP > WP (therefore “Trend Reversal heads-up” as per the definition above).

But what is interesting is that it is also the only bearish tending pair with a H4 SLOPE IN THE POSITIVE AREA (0.2). All the other trending pairs have their H4 slope in the direction of the Trend.

Just trying to find patterns for now…no conclusion yet…

Cheers!

Bunker

[f451]

Nice work Bunker. Keep it coming!