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10.2 Definitions - Foundation for the Future
https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=701
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Author:  Bunker [ Tue Aug 28, 2012 11:36 pm ]
Post subject:  Re: 10.2 Definitions - Foundation for the Future

Hi Allonso,

Thank you for your post.

Unfortunately, my day job doesn’t allow me to test any strategies below H1 TF. I actually revert to H4. I have been using TMA True slope with LWMA 5.1 and realized that it was providing me with the same information as MACD (5,16,5). The MACD version I use changes color (red, yellow, green) depending on the angle. This is why I like using it. I also use a MACD alert when there is a crossover. These H4 MACD crossovers combined with the candle crossing the D1 pivot are my signal to open a trade.

In terms of direction, I was using D1 slope with LWMA 21 until I realize that it provides me with the same info as D1 MACD. So now, I use D1 MACD. When green = Trade only Long, when red = trade only Short.

See picture below, I plot the 2 H4 (MACD and Slope) and the 2 D1 (MACD and Slope). The information is pretty close!

Since this strategy doesn’t use the slope, I am planning to provide more details in a new thread. I am just gathering some results first.

Please let us know about your findings using the slope with lower TF.

Cheers!

Bunker
Author:  Bunker [ Sat Sep 01, 2012 12:56 pm ]
Post subject:  Re: 10.2 Definitions - Foundation for the Future

Hello Fellow Traders,

Most of the time, a strategy leads to another, and then comes a new indicator that leads to another strategy and so on… you know how it goes…

I will not describe my entire train of thought on how I came up with this strategy, but it all started with the TMA slope indicators although the strategy isn’t using any of those. I read on this AWSOME Forum about the concept of using the slope for identifying the direction which requires 2 points in time. That definitely caught my attention (many strategies use the TMA Slope value at a specific point in time).

Based on that “directional” concept, I was planning to ask the indis-geniuses to configure the TMA slope so we get different colors when D1 Slope changes direction in comparison to the previous day.

In the meantime, I realized that MACD was providing information that is pretty close to the D1 slope and EMA 21 crossover (when properly configured - see previous post). And I did have a MACD indi that changed color with direction. So I use that as my trend direction indicator.

But Direction is only one piece of the puzzle. To this, we have to add 2 elements: The entry/exit point and the market momentum.

I was able to generate the attached results with a strategy that combine these 3 elements
- Entry/extit
- Direction
- Momentum.

Since I don’t use the TMA slope for that strategy, I explain it in greater details in this thread.

http://www.stevehopwoodforex.com/phpBB3 ... 439#p22439

Cheers !

Bunker
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