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| Slope LEVEL -- or DIRECTION? https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=724 |
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| Author: | spotdespot [ Wed Oct 24, 2012 5:38 pm ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
Picture and a thousand words etc...... The only downside to this is that you have to be patient/have something different in play for shorter timeframes when it's quiet. |
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| Author: | nonlinear [ Thu Nov 01, 2012 3:26 pm ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
Hi Dave, You have been at this for some time now. Curious on your exits with this system. |
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| Author: | spotdespot [ Thu Nov 01, 2012 3:51 pm ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
Yes - so am I!! It is the weakness I am working on at the moment. I actually think the best way to use this is to use it simply as a signal for an upcoming trend change, look for price action/breaking of support resistance/trendlines to get in to a trade then managing the trade as you prefer. There is no signal given by the MA/TMA cross for an exit - not a consistent one anyway. I am trying with targeting next significant S/R and taking chunks out, setting the rest to BE and letting it run and add more on of price continues heading in the same direction past the S/R. There is a lot of discretion needed, which is probably why it has had no attention. This Gold trade highlights the positives and negatives - I am out at the moment but will reenter if price resumes South. Cheers, Dave. |
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| Author: | nonlinear [ Thu Nov 01, 2012 4:17 pm ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
Here is one approach: when the MA crosses above the TMA, only take longs on retraces and exit quickly based on S/R, trend lines, or % moves in the ATR bands. When the TMA slope eventually turns clearly positive, however, continue to look for a entry on a retrace, but hold these longs to catch the big moves. Exit when the MA crosses the TMA again, and then start all over looking for sells. Edit: of course, confirmation of the same action in correlated pairs, confirms the entry and exit. |
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| Author: | spotdespot [ Thu Nov 01, 2012 4:31 pm ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
I am sure that would work but not the part quoted above. In most instance if you wait for the cross back over then you have given a chunk (or more than a chunk) back to the market. The cross is good for looking for trades in the direction of the cross but the ANGLE of the TMA slope is key to the exit imo. So as soon as the TMA starts sloping downwards then protect long positions and do not add any more until it slopes back up. See attached - at 1 we are looking for longs, at 2 we protect, at 3 we start looking long again, at 4 we protect but if we wait for 5 to close we pretty much BE or lose. Ignore the shorts on there - they are for a counter trend thing I am looking at - Entropy on FXAW (Steve is promoting it here). Cheers, Dave. |
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| Author: | nonlinear [ Thu Nov 01, 2012 6:55 pm ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
I see what you are saying, Dave. I have not been looking at this nearly as long as you have, but staying in a few big moves could make up for the break evens and losses in the long term, and perhaps even trump modest short term gains. The only way to assess for certain is through real time testing I guess. I am fine giving back part of a big move so long as I stayed in it. One could also wait for the angle of the slope to increase/decrease as you suggest, but that appears to miss chunks too. |
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| Author: | spotdespot [ Fri Nov 02, 2012 11:17 am ] |
| Post subject: | Re: Slope LEVEL -- or DIRECTION? |
Yes - you could be right. I am also sure there are many ways to use this - for many people it is just too slow but that suits me! GL. Cheers, Dave. |
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| Author: | Jemook [ Mon Jul 18, 2016 6:46 am ] |
| Post subject: | Slope LEVEL -- or DIRECTION? |
4 years since this thread was started and I still can't get it out of my head  I've bounced around from strategies using TMA level to strategies using TMA direction. I'm definitely in the direction camp. Steve has helped me with a new entry/exit tool using MACD which I think will be pretty useful for any strategy where you have another indicator letting you know the direction of a move. Still testing it alongside a TMA direction strategy. More details TBA Cheers Jeremy |
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