Forex Trading - View Single Post

holyguy7 · #1 (**permalink**) 02-07-2006, 12:22 AM

I use a modified version of the ASC Trend system. I call it the "Super 7" because I use 7 indicators that help me improve this already profitable system.

The indicators I use are as follows:

ASCTrend1sig
ASCTrend1
ASCTrend2
TrendManager
SilverTrend
OsMA
TrendTriggerMod

Also, for better visual effects. I have re-color coded all indicators either green (long) or red (short).

I use OsMA and TrendTriggerMod to reduce down whiplash and they appear to do that very well.

I have basically tried about every trend indicator out there. I discarded the ones that either did the same thing these do or are difficult to understand. So I have settled with just the seven indicators inclosed. Here is how I filter the trades to reduce whiplash.

I have color coded all indicators to either Lime Green (Bullish) or Red (Bearish). In this way, it one can quickly look at the chart and see what the trend is looking like.

The only rule I follow is this after setting up all indicators: The 3 must AGREE.

What three indicators am I talking about:

ASCTrend1sig- This is the first indicator if the arrow points either Red (Bearish) or Green (Bullish)

OsMA- This is the second indicator. The Bars must AGREE with the above Signal. In other words, if the bars are up from 0 then it is Bullish or down from 0 then it is bearish.

TrendTriggerMod- The line must be moving in the correct direction that agree with the above two indicators. Moving up means that it is bullish, moving down means that it is bearish. If the line is moving the wrong direction or flat, wait a bar or two to see if the direction changes.

Remember, do this only on the 1 hour chart. The 1 hour chart does a good job filtering out the noise the others seem to have.

By following the above rules, you will catch EVERY major trend and reduce whiplash down during the none trending (flat) times.

My goal in posting this is to see if some brilliant coder could make an EA of these rules, combine the rules to make an easier to read signal or improve upon the existing system that I use.

I believe you can use this on most currency pairs. I have been demoing this this with the EURUSD, GBPUSD, USDJPY, NZDUSD, GBPJPY and a couple others. Unfortunately, since I can't be at my computer 24 hours a day 7 days a week, I can't alway keep an eye on what is happening and may miss trades and/or opportunities.

Enclosed is a few screen shots of the system currently. Notice in the screen shots how to use the filters I described to reduce whiplash.

Remember, the 3 MUST AGREE

Any other questions or any indicators that you all might think of adding would be great.