etheldreda wrote:Hi Bob,
I am trying to learn how to read the CSS. Please correct me if I do it wrong...
1. AUD as you said it's highest but slowing down
2. JPY separating from the rest of the bunch, going weaker
3. EUR & CHF forming an up slope, indicating they are likely to go stronger
The rest of the bunch are flat. So if I want to pick some pairs that hopefully have movements, I will choose the combination of those currencies.
Also I have a question about AUD, when it is still the highest but slowing down... is it better to avoid the currency or is it still good enough to be trade as strong currency or should I take it as counter trend with sell position?
Please advice..
thank you,
-ethe-
The slope indi TMA orginally called. measured the angle of the slope. If price was going up it would register above 0, if going down it would register below 0. So even if it says .01 that meants teh slope is .01 angle above being flat. So all lines above 0 are in an UT and those below are in a DT. The farther from 0 it is the steeper the price action is from being flat. The theory being inertia in price shows its future. So AUD has moved up and has the most inertia but with the TMA norm it shows that inertia is slowing down. You can interpret that to mean the angle or speed it is going up is slowing down thereby predicting a future turnaround. This is in contrast to the typical histogram which shows up with increasing bars but when price reverses then the bars revers. The TMA true, along with MACD and AO do this. Price has already turned so they turn. It is a late read. If you dont believe me put the histograms of AO, MACD and TMA true on the same chart and you will see the correlation.
The origianl TMA slope is different from those three in that when the increase of slope decreases it still means price is going up but at a slower pace. This signals that price action inertia is slowing making this a future prediction of price direction change. This makes sense because for price to turn around it has to slow down first. To show this is happening the indi must update its lines to show this slowdown, in other words previous price action had more inertia than at present. So the indi now indicates this. For many people they will label this REPAINT and throw the indi out or try to change it to something that freezes in time. As far as I know I am the only person who teaches that this is really a good thing because this updating (repaint accusation) is what is letting you know that inertia is slowing down.
So how do you use this in your trading? AUD is slowing down which predicts that you will or should see price action go into a double top, head and shoulder or 1,2,3 swing trade action. So the very thing that is thrown out in the repaint issue and TMA true indi is the very thing you want to know. Is the angle of inertia slowing down. The TMA norm is the only indi I know that does this, shows the slowing down of inertia rather than change of direction like MACD and AO show. That is the debate and what I have never been able to get some traders to see or understand. As you can see by some posts some guys are sick and tired of the debate, I know I am, but others have not been taught the difference and dont understand why I so strongly choose TMA Norm over TMA True. TMA Norm is the stronger and more powerful indi. It is predictive not lagging. I see AUD losing inertia and I see GBP stalling and I see JPY weakening inertia growing. So I fight and teach the purpose of the indi. I have been told by the original author of the indi that I was wrong. That person does not see what I teach the indi is good for. I am thankful that Baluda did and wrote up the CSS. It is a brilliant piece of work.
So to answer your question. The AUD is still going up and still is the strongest trending currency but its inertia or strength is slowing down so I will still set up buys knowing that the higher highs are not going to be so high or not even go higher anymore. That helps me to decide on staying in or closing my trade. So I will do more AUD buys but expect the profits to be smaller now and will be on the look out for reversal candle patterns. Without the updating of the CSS you would not get this read. |
) ... As my first re-attempt to trade after 1.5y without placing a single trade... (gurp 
sometime things had to be cleaned up in our life), I have decided to start back with Bob 10.4 method. With my some kind of "personal" jurrasic Control Panel, I have coded some parts of Bob 10.4 ideas in it. After one month and 15% gain on my account, I have to admit it: Bob you did it again! 
What a great job you did with 10.4! I gracefully thank you for your generous effort in sharing your knowledge and your time. 
) and it doesn't matter, but I just want to thank you for that 