Senin, 06 Agustus 2007

Using MA on GBP / USD

It is true (al least for me) that most pair has its own characteristic on how the market move, except on most JPY.
Let us analyze this GU chart 4H periodic. Seeing the chart shown above, we might learn something interesting on how the market move. the case is like this: that chart is using MA indicator Simple MA 2 & 8 (blue), Exponential MA 19 & 27 (red), Simple MA 50 (yellow). I learn this while trying WSS (winning solution system) signal.
Whenever a trend is onthe move. we can notice a spread in red line. and the yellow kept its distance to the red and blue line. (usualy it indicate a long trend).
(1) Now let us see the blue line. it has a characteristic to bounce a while before it goes up again. at the chart shown above we can see the MA Simple 2 has 8 peak slowly reaching up way position.
(2) So, what we learn and use is, whenever we want to enter, in this case long position, we might want to consider where are the position right now. it may best when the Simple 2 & 8 are closing (and crossing finger Simple 2 while move away and not crossing it), since if we are entering the market while it (Simpel 2) already reach a peak and it will go down to Simple 8. (means you will have a pounding (dag...dig...dug) at your heart for 30 minutes - 4hours before Simple 2 make a new peak).
and another useful history in the chart above is, never enter when blue, red, and yellow line are going to meet each other for they are going to make a new plan where they are heading. coz, if you fail to predict ... you lose a lot ... eventhough if you gain you will gain big and fat ... ( hey, i thought that was what forex all about?!?) hope in this backtest we can learn something.

Happy trading! (as Mr.Ashar always said whenever he had 20 pips goal reach)




Here another sample in short position

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