Walter`s Forex "Trend Trades"

[walterw]

	Quote:	Armand
	Walter great thread (and videos) very helpful. Thanks for sharing. Is this indicator common or is it unique to the vtsystems site? Thanks, Armand

Armand : so far this indicator is coded in VT... it could be eventually coded on other platforms as well...

	Quote:	Don4
	Hey walter, wow,great job!!! I tell you this is a very nice system Here was a trade that i took last week just to show you 1 way that im using it. (sorry its a zip file) http://www.traderslaboratory.com/for...1&d=1188679856

Hey Don, you got me on the rainbow ¡¡ nice trades there... cheers Walter.

[Don4]

brownsfan019, thanks I tried everything, I thought

[brownsfan019]

	Quote:	Don4
	brownsfan019, thanks I tried everything, I thought

No prob!

I went ahead and created 2 png's of your zip file so those that are too lazy to unzip it can see your charts!

Screenshots from Don4's Zip file for your convenience:

[brownsfan019]

Don - my question for you is can you explain your trade here? I'm still going through walter's thread, but I am assuming you went short there with the MA's pointing up.

[Don4]

Hey,thanks for that brown. I entered short because of the 1min trend was down,the 5 sec is to time it.

[brownsfan019]

	Quote:	Don4
	Hey,thanks for that brown. I entered short because of the 1min trend was down,the 5 sec is to time it.

I didn't even notice that was a 5 SECOND chart.

[PYenner]

With any luck there will be a copy of Bemacs Fantail VMA attached.
Had to rename it with a .txt extension.
DL fantail_vma_vtscr.txt, rename to fantail_vma.vtscr
Once it has been imported into VT, look for Fantail Var MA's in the indicator list.
Use the same time period chart as Walter or you will get different results.

[SOF]

	Quote:	walterw
	Ok... so lets start with the first definition here : Trend Definition Now this new Rainbow indicator is based from a Variable Moving Average, as you should know VMA`s do adapt their input depending on the amount of volatilty... here is some definition http://www.fmlabs.com/reference/defa...VariableMA.htm in that definition you may notice that the Chande Momentum Oscillator (CMO) is normally used for volatilty calculation on this average, well Bemac aparently uses some form of ADX for his VMA and then creates the rainbow with emas from this VMA... First should we talk about the normal problems trend indicators suffer.... next post... cheers Walter.

Walter, did u ever get to the bottom of how BMc uses the ADX in the calcualtions?

[walterw]

Ok... so far I had been talking about Trend Definition with the momentum definition included there... in this post I have to make one clear logic warning about a scenario wich will resemble as a very strong trend as all the above definitions BUT is inminent a change on the course of that trend...

Should we call that "inminent strong trend exhaustion"...

You will have the rainbow all spread out... you will have all the averages on the same beautifull side of the magenta, you will have an "old ladder" and watch out here ¡¡ when we did such a great big move... we MUST have caution on what may happen there, as probably market may be about to exhaust...

You can tell me we have all the trend and momentum definitions present YES... but we already did too much travelling and market may want to take a break at least...




Look on the image above how the trend and momentum definitions are present on the yellow arrow BUT we already did too much of a super move... some basic logic tells us that at this point our trend and momentum definitions would be suspicios at this time...

Here is where the chimp is tempted to start thinking in counter-trend setups, but at this point he will still dont bother with them... he will stick to the trend trades...

So this is some kind of prevention as to all the above definitions of trend and momentum, where they should be questioned after great big moves...

On the next posts I will start talking about pullbacks (dips and rallys) and Timing... cheers Walter.

[brownsfan019]

Walter,
What timeframe(s) are you using here and what market(s)?

I'm curious if you've applied this setup to stocks, futures, etc. as well? I usually hang back on many of your threads with a watchful eye, but a moving average system intrigues me as I like them!