Extreme TMA System

Discussion in 'Phòng phân tích Crypto' started by codefather, Apr 28, 2020.

  1. codefather

    codefather Member Staff Member

    I recommend the use of the H4 TMA for opening trades and the D1 and W1 TMAs for trend direction.

    Having several TMAs on one chart is extremely helpful for determining longer time frame trends and combined, they have high predictive value of future market moves.

    Stop Loss Use: There are various options in this department and I won´t recommend any particular one. A natural level to place your SL would be above a previous high for a short and below a previous low for a long. I myself use only an emergency SL very far away from the PA (100 Pips).

    Entry Rules (For H4 Trading)

    1- Determine the H4, D1 and W1 TMA slopes by using the TMA Info Panel indicator values:

    Ranging TMA (Slope between -0.30 to 0.30): Trades can be placed in both directions.
    Buy Only TMA (Slope higher than 0.30): Place ONLY BUY trades.
    Sell Only TMA (Slope lower than -0.30): Place ONLY SELL trades.
    H4, D1, W1 slope values must be either Ranging or higher for Buys or Ranging or lower for Sells.

    2- Wait for price to climb above the top band of the H4 TMA, before placing a SELL trade or below the bottom band of the H4 TMA, before placing a Buy trade.

    3- The Trigger: After rules 1 and 2 are complied with, then Buy when price breaks the High of the previous H4 candle or Sell when price breaks the Low of the previous H4 candle.

    Even though not explicitly mentioned in the rules, it is always a good idea to sell from under tested resistance and buy from above tested support. This is always a good rule to follow. It will prevent getting into a trade too early and will increase your percentage of winners. Valid support and resistance areas are: 50 or 200 MAs, TMA centerlines, daily, weekly and monthly pivot lines, etc.

    Exit Rules:

    Safest Exit: Close the trade when price reaches the H4 TMA center line.

    Standard Exit: Close the trade when price reaches the opposite H4 TMA band or set a tight trailing stop (10 pips) until stopped out.

    SuperTrend: Slopes lower than -0.60 or higher than 0.60 are usually very persistent and can continue for a long time. You may want to hold your open trade when in a SuperTrend.

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