Originally Posted by mpower

I have been trying to develop a strategy using 4 pma for the past 2-3 months. I will share my strategy here. Feel free to try it on a demo acct. I think you might get good results. Comments, suggestions, ideas, improvements are welcome. I will try to post screenshots of actual trades from this week.
Let me explain how the indicator is constructed first. It uses 7 simple moving averages and 7 fibo sr levels. I have changed the default settings since I think my settings work better. The modified indicator is attached. The 4 grids that you see represent different timeframes--1, 5, 15, 60 min from left to right. the 7 sma's are represented by little numbers in each grid column/timeframe. The lines are the "mysterious" "Fibonacci" levels. Here is how they are calculated. You might want to insert the 7 sma's on the chart so that you can understand my explanation. Insert sma's of 21, 34, 55, 89, 113, 144, 233 periods(these are all fibo #'s except 113). Now find the lowest sma on the 60min chart(see eur/usd chart attached). It is 55 period sma=1.2675, add 13 pips and you get the lcf level, which is probably not displayed. The lcf level is like a pivot line, if price is above lcf, we have an upward momentum. Now if you add another 21 pips to 1.2675+13, you will get lo1.p4 level, which is at 1.2709. To get lo2, you add another 34 pips, and so on. So, the seven "lo" fib sr levels are "shadows" of the lowest sma that are calculated by adding 13, 21, 34, 55, 89, 144, 233 pips to the lowest sma.
We calculate the 7 "hi" levels in the same way. Just take the highest sma, and subtract 13, 21, 34, 55, 89, 144, 233.
Ok in the next post I will explain how I use it to trade.