[brownsfan019]

I'm curious to see if you have clearly defined entries and exits Walter, b/c as you just illustrated, the 'real world' is not always as pretty as our visions. Exactly how and where to enter will be a pivotal part of this trading development. How many times have we all been correct in our trade setup, yet get stopped out only to watch it do what we thought it would?

[walterw]

So in this "erratic pullback" scenario the trend trader is aiming to "Time" his trades.... you know what ? he normally fails... he normally gets stoped out and he gets very angry confused and frustrated....

He starts blaiming the market, his broker, his costs, the fed... bla bla bla...

But the true fact is that the market will always be that way, and it will be independently to your emotions...

Now... let me tell you GOOD NEWS... thru optimization we can solve this dilema ¡¡

Here is where VMA rainbow will show us its second power ¡¡

Now, how can VMA rainbow help us out here...?

Well let me remind you the "horizontal effect" of VMA and how this can really help us here...

Do you remember this graph ?



well it tell us about the property of becoming horizontal during a "chop"... wow... that means that the "erratic" data could be normalized to one simple horizontal line during chop... and guess what... when the chop finishes, the VMA continues on the direction of the trend...

So let me show here on a graph the comparisson of an "erratic pullback" with a "horizontal effect" of vma...



This information will literally resolve our dilema just about a 100%...

Now let me shift here a little bit the topic and talk to you about "trend timeframe" and smaller "very specific timing time frames"...

So far I had presented "trend definition" on a 5 min time frame, and you know what, that IS our time frame, we are taking trades out of a 5 min chart...

NOW timing requires more dataseries so for that purpose we will be using a 1 min chart... I need more bars to get calculated, I need ironically more noise to normalize with VMA so I can read more clearly the "horizontal pullbacks" and its aftermath continuations that will happen to be my "Timing Entry"...

So for the sake of not confusing anyone let me make this clear, we will have at this point two charts, a 5 min chart and a 1 min chart :

_5 min chart with VMA rainbow...... for "Trend Definition" (described on above posts )

_1 min chart with VMA rainbow...... for "Pullback" and "Timing" definitions

Both charts will use VMA rainbow... BUT the uses will be diferent... on both charts the Vma rainbow parameters are the same... so actually we are looking into diferent VMA rainbows giving diferent informations... one for trend (5 min) the other for pullback/timing (1 min)...

on the next post I start showing the deployment of this arsenal to our service... cheers Walter.

[walterw]

We are Trend Traders here... so first things first.... First "Trend Definition"... that task is done on the 5 min chart as explained on previous posts...

Having a trend definition on line we are ready to find "pullbacks" and "timing"... this task will be done on the 1 min chart...

This would be a Typical presentation of our "Trend Trades" :



and typical real one...



Now without our powerfull tool let me show you lots of spots where you probably would had wondered where to enter your trade :



You can clearly see there where lots of smokes on the timing without VMA assistance ...

This timing tool on 1 minute chart gets as powerfull as it can get...

Let me get into the specifics of pullback and timing readings of the 1 min chart on the next post... cheers Walter.

[walterw]

Now lets get into the specifics of reading "Pullback" and "Timing" on the 1 minute chart...

You can notice that we dont have the VMA (Black line ) alone... all the contrary she is accompanied by the entire rainbow... now the rainbow literally is a series of "signals" of the VMA.... actually all emas all the way from 2 (first yellow ) too 100 (magenta line)...

Now you can notice on the way of this emas "signals" we come thru a thick darkgreen one, I asume she is a 22 ema of our VMA taking Bemac`s construction description... This green Line will have some important role on our specific reading of "Pullback" and "Timing"...

_Pullback Definition :

We will consider ourselfs in a "Pullback" condition only when we have a Down trend present (from the 5 min chart) and the black line crosses above the darkgreen line on the 1 min VMA Rainbow... thats pretty straight forward... thats our "Pullback Definition"




_Timing Entry Definition :

We will consider a Timing Entry on this example when we cross back down our darkgreen line... simple...



Where is the power, where is the edge in all this pullback and timing definitions ?... well as we started this thread showing the fact that horizontal lines just cannot make multiple crosses between them and in consecuence we cant have multiple whipsaws going on...

So here the POWER gets unleashed ¡¡ you are in the midst of the mambo with a tool that is performing in a CLEAN fashion giving a clear "Pullback Definition" as it also is giving a clear "Timing Entry Definition"...

So we have simplicity and optimization on "Pullback" and "Timing" thanks to this modern and simple tool...

We had been able to encapsulate the "erratic chop pullback noise" into one simple horizontal line... make her a series of simple signal lines that will not whipsaw and create a straight forward superb timing definition of unparalel performance...

This has been my Epiphany ¡¡¡ I am born again ¡¡

on next post I explain on videos... cheers Walter.

[walterw]

And now a video on Pullback and Timing...

The next step will be showing you a lot of diferent examples on this and after that we will aboard the closing positions issues on stops and exits...

Also further in I will present the most "shurefoots" trades as the Iconic vma rainbow setup and the super strenght trend vma rainbow setup... I asume we have a long way yet to get there....

Should I add this is all research at this point, so feel free to interact...

Hope so far things can be understanded, (sorry for my english) please feel free to make questions.. thanks Walter.

[Don4]

Very nice walter, I can see why you are so exicited. Beautiful

[PYenner]

Gee you have done a lot of work.
Looks very promising, good to see the 1min chart being used for verification.
Thanks Walter

[Armand]

Thank you Walter...this thread is very interesting. Are your screenshots from VTsystems? And are you using the default settings for this indicator? Thanks again for sharing this information! ...Armand