Slope LEVEL -- or DIRECTION?

[Zypip]

What I have basically been doing is using the slope direction to enter the trade and using a positive cross of the 21 LWMA (applied to the close) by the D1 TMA (default period/atr/TMA True/Fixed D1 timeframe)) to trigger the trades. I have just used NEO's great NT TMA-CSS-SP indi and overlayed the 21 LWMA (you need to choose "previous indicator when you apply it then change it to "Close" otherwise it will be applied to the main window). This method is really just an adaptation of what NEO has shown here previously (all credit to NEO). In this case it is just using D1 rather than shorted timescales and doesn't require 2 crosses etc.

What I mean by a positive cross is one with momentum - in this case it is just a measure of slope direction - so a "shallow", low angle cross I would probably stay out of. There is some discretion here as I have avoided EU for example as it has been so temperamental (for obvious reasons). The method is also not perfect - there was an EU cross upwards on the 8th June after which price rose a couple of hundred pips then dropped over 600 without a cross in the other direction.

Hi Spot,

Very nice results you have here. Thanks for sharing.

I was just thinking whether an indi showing the steepness of the cross could be created. Ideally, an indi somehow combining the divergence between true TMA slope and 21 LWMA + the steepness of the cross + the "positiveness" of the cross could have some value.

Zyp

[spotdespot]

Hi Spot,

Very nice results you have here. Thanks for sharing.

I was just thinking whether an indi showing the steepness of the cross could be created. Ideally, an indi somehow combining the divergence between true TMA slope and 21 LWMA + the steepness of the cross + the "positiveness" of the cross could have some value.

Zyp

Glad I can post something useful!

As I have been dealing with D1 timeframe there is no great rush to get in to trades and the steepness of the slope is fairly easy to eyeball. Perhaps if something similar were developed for lower timeframes an indi would be more useful there. Just my opinion though.

[dentiok]

I just thought . . .

Well done Dave, may I ask you if the final line in your charts in the NT indi is only the "Diff" line? and change color at the others as the background? am I ok with my chart?
and in order to be sure, can you post your template?
thanks in advance

[spotdespot]

Hi dentiok - it is actually the TMA line but they are pretty close anyway. Give me a minute and I will post a template without some of the other cr@p I have on there

EDIT: Ok - template attached. For this you need Baluda's DWMPivots & NEO's NT TMA-CSS-SP indi (I am using version 1.0.3 but I don't think it matters)

I was going to delete the lower timeframe stuff I have but I have left it there as it may be useful to some. Basically I have been trying a combination of the tma and atr periods to get a trigger on lower timeframes. Loosely I wait for the magenta (fast) and blue (medium) to cross the grey (slowest) - in the direction of the D1 TMA to trigger entry from a retrace back in to the trend or to see when a retrace is starting is against the trend. Seems to work better on some pairs than others - not nailed it down yet.

Easy to remove if you like - just delete the 3 other NT TMA-CSS-SP indi's!!

[idempotent]

See, this is the problem about coming back to the forum. I see this, which just blows my mind, and now I'm amazed, and I simply have to squeeze in the time to examine this in more detali.

Translation: wow, thanks Dave!

[garyfritz]

Dave, have you looked at adding an H4 slope to your chart, and using that as an entry trigger? Might get you in at better positions than just following the D1. (EDIT: whoops, sounds like you included that in your template?)

Given that Dave is posting daily-chart trades that stay open for weeks or months, Steve's recent admonitions about negative swap are worth mentioning. Take e.g. Dave's AUDCAD chart. It signaled a sell in mid January, and switched to a buy in mid May. So that was about 4 months = about 120 days. The swap on a short AUDCAD position is about -$0.90 per day. So you would have paid about 120 * $0.90 = $108 per mini in swap for that position. It worked out OK, since the market moved about 600 pips during that time, but it is worth keeping in mind. If the market didn't cooperate as well, the swap would have been more painful.

Then from mid-May to mid-August it was long -- 3 months, 90 days -- and the swap is about +$0.66. So you would have earned about 90 * $0.66 = $60 in positive swap, which would have added onto the approximately 500 pips you made in that trade.

[spotdespot]

Dave, have you looked at adding an H4 slope to your chart, and using that as an entry trigger? Might get you in at better positions than just following the D1. (EDIT: whoops, sounds like you included that in your template?)

Yes - I drop down to look at lower timeframes when looking for a good entry.

Given that Dave is posting daily-chart trades that stay open for weeks or months, Steve's recent admonitions about negative swap are worth mentioning. Take e.g. Dave's AUDCAD chart. It signaled a sell in mid January, and switched to a buy in mid May. So that was about 4 months = about 120 days. The swap on a short AUDCAD position is about -$0.90 per day. So you would have paid about 120 * $0.90 = $108 per mini in swap for that position. It worked out OK, since the market moved about 600 pips during that time, but it is worth keeping in mind. If the market didn't cooperate as well, the swap would have been more painful.

Then from mid-May to mid-August it was long -- 3 months, 90 days -- and the swap is about +$0.66. So you would have earned about 90 * $0.66 = $60 in positive swap, which would have added onto the approximately 500 pips you made in that trade.

Very good advice - I have been completely ignoring it for demo purposes but it hurts for longer term trades - thanks.

Probably worth noting that for the more volatile pairs the moves are pretty big - for example last down trend on GBPAUD would have netted around 1400 pips (EDIT: actually more like 1200 depending on exit strategy) following this method - but over 2 1/2 months so lots of waiting (and grinning at the pips)

[NeoTrader]

Hi all,

I just released a new Rule/Ruleset Testing Indicator that also has a Rule for the TMA-Angle.
It is possible to test/analyze different parameters to find the best Angle/Direction of the TMA.

If you want further Informations go to my Post.


happy trading,

NeoTrader

P.S.: I would be glad to here from you what combination you prefer for the angle Rule.
The default values are the most useful I found till now.

[hilavoku]

Hiho,

i read about the cross of the TMA(true) slope and the 21 LWMA. But when i look at the source code:

Code: Select all

double calcTmaTrue( string symbol, int tf, int TMAperiod, int inx )
{
   return ( iMA( symbol, tf, TMAperiod, 0, MODE_LWMA, PRICE_CLOSE, inx ) );
}

There actually both the same. So it is the cross of a higher time frame TMAtrue slope and a lower time frame TMAtrue slope!?

thanks in advance for the explanation
Guido

[spotdespot]

Hi Guido,

I'm afraid I don't understand the inner workings of the TMA - I leave that to the brainiacs - Neo/Baluda et al. I thought the same as you - the TMA was analogous to the LWMA but it doesn't seem that way when plotted on a chart. The TMA I use has standard setting for period (20) & ATR (100 - although ATR doesn't make a huge difference) - fixed to D1 timeframe.

The LWMA uses 21 period zero shift but it is applied to the timeframe of the chart it is on - but as I use D1 for looking at the cross then if TMA (true) = LWMA then the lines should be almost the same but they are not.

So I can't really answer your question in terms of "why" but I can say they are not the same and I am currently > 2000 pips floating so I probably don't need to know the "why".

I would say to anyone looking at this method (TMA/MA Cross) - don't just dive in when you see a cross - look at what has happened recently with this pair, the momentum of the cross etc. It is pretty basic but, for example, I haven't entered a trade on NZDUSD yet as the cross doesn't look that positive yet, price is just above the weekly pivot and BRN 0.8100, the H4 TMA is basically in range mode, the D1 TMA at the cross is around zero (not a good thing) AND if it does make a positive cross there will be plenty of opportunities to enter on a retracement.

GL.

Cheers,
Dave.