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Sunday, March 20, 2016 1:21:23 PM
GM pennies and all...for last week or so I have been working with a study in moving averages mostly tailored for M5 or M1 trading..M5 is my main bread&butter TF BTW..most consider it a scalpers TF but I beg to differ.Dont just take my word for it but try reading a book by Greg Michalowski called Attacking Currency Trends..Greg is a guy I became casual friends with on Twitter a long time back and he's chief currency analyst at FXDD brokerage.His main TF is M5 because every trend begins with the shortest TFs...his main thing is a bit dfferent than mine on MAs..he uses SMA100 and 200..whereas my study uses 5 MAs....all are EMAs...169...440...720...1440...and 2880.My pupose for posting this is I see a lot of posts talking about entries that are way too early or or entered not with breakout direction but against it and my efforts in this is to try again to stress again that early entries can be eliminate to a large degree by always allowing moving averages to catch up to price and to consolidate.To enter a trend thats in progress is fine if one enters in the direction of the trend but if you dont go in with the crowd then its imperative to only enter on break from consolidation.
Consolidation BTW does not guarantee a trend is exhausted so thats why one must allow consolidation then buy or sell the break.Anyway...I have been trying to use MAs tailored to M5 that distictly show consolidation and breaks from consolidation at the TF that shows when the race car was taken out of park and put on the track so to speak.Heres an M5 of A/U as it stands now and its trying to consolidate after a nice drop friday...tonight might see if its going to turn back up or if its going to base more..OR if the uptrend has really exhausted itself for now.The yellow MA is EMA169..blue is 440 and red is 720...continued rejection of the 169 could see a break below the 720 and more downside but we wont know anything til it breaks out of this tightening price condition we see in progress on the chart..will stop for now...M5 A/USD
Consolidation BTW does not guarantee a trend is exhausted so thats why one must allow consolidation then buy or sell the break.Anyway...I have been trying to use MAs tailored to M5 that distictly show consolidation and breaks from consolidation at the TF that shows when the race car was taken out of park and put on the track so to speak.Heres an M5 of A/U as it stands now and its trying to consolidate after a nice drop friday...tonight might see if its going to turn back up or if its going to base more..OR if the uptrend has really exhausted itself for now.The yellow MA is EMA169..blue is 440 and red is 720...continued rejection of the 169 could see a break below the 720 and more downside but we wont know anything til it breaks out of this tightening price condition we see in progress on the chart..will stop for now...M5 A/USD
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