Hi friends
I know some of my friends who liked MA CROSSOVER so much they bet big money and lost it.
Why the MA CROSSOVER makes you loose the money?
It is nothing wrong with the method it is wrong with your timing and real understanding of how the market works.
Every or any method needs filters to screen wrong signals from right signals. Once you are in emotion you dont look for filters you just jump into the trade.
Now here are a series of images look at them.
first 3 pictures show the loosing trader in emotion of hurry-impulsive in nature.
Listen to what market is telling you.
you see lots of bearish candles -it means price is on downmove. it is shouting to you- "i wanna go down-buy only if you are deaf or dumb"-unless you see a visible clear signal that market is on bullish upmove, you cant buy. just learn to wait. initially i fels hard. once you see profits coming your way,your mind starts getting tuned right.
THE IMPULSIVE DUMB TRADER ENTERS LONG TRADE EVEN WHILE CANDLES ARE BEARISH.HE MUST LEARN TO WAIT TILL A BULLISH CANDLE FORMATION APPEARS. Not his fault- lack of having good mentor -lack of funds- lots of emotions .
Hints
read hints at the end of this post. one can enter long trade only if trend bias,price pattern and entry confirmation permit.
then you see how a filter of candlesticks is applied and trader goes for genuine buy signal.
It is all in the filter-it makes trader patient-cool- be able to wait for the right winning signal.
Looking for right buy signal and using a filter to screen false signals
===================================
Moving average zone hints
Dont trade when Moving average(50 MA) is flat.You dont get a winning edge.
==========================================
you see a good buy signal with clearance from candlestick filter-it takes hours of waiting-and trader is mentally conditioned to wait peacefully.
All you need to know is about 6 leading candlestick signals to be used as filters.
for bullishsignals use just 3 formations
Bullish engulfing,Morning star,piercing cloud cover
for bearish filtering, use
Bearish engulfing formation,Evening star,dark cloud cover
Note
I WAS DUMB.I didnot know what to do. where to find help-was unknown to me.
A forum like worldwide invest came my way.And I started thinking on my own.
here is something more
try it if you like (it is not about ma CROSSOVER but it is about right trend timing)
steveprimo teaches simple things like
1 BUYSELL line : the simple Moving average 50 where is price in relation to 50 period Moving average lin is very first thing.
look for buy if price close 3 or 4 times above 50 ma, or look for sell sinals if price closes 3 or 4 times below 50 ma
2.price pattern if a price bar close in top 25% of the bar range(high - low),then price is giving long signal.
if a rice bar is closing inside bottom 25% of the price bar range,market is telling-the direction bias towards short selling
3.Traders loose though they get market direction correct but they enter at wrong timing
3 entry confirmation So always get price pattern right and trend on yourside and enter only if price bar closes 1 tick above previous baR HIGH.
always enter ONLY AFTER ENTRY CONFIRMATION
SHORT TRADE SETUP RULES
1.PRICE MAKES 3 OR 4 CLOSES BELOW 50 Moving AVERAGE
2.Price bar closes in bottom 25% of bar range (high - low)
3.Always enter short trade only after price bar closes 1 tick below previous bar low.
I know some of my friends who liked MA CROSSOVER so much they bet big money and lost it.
Why the MA CROSSOVER makes you loose the money?
It is nothing wrong with the method it is wrong with your timing and real understanding of how the market works.
Every or any method needs filters to screen wrong signals from right signals. Once you are in emotion you dont look for filters you just jump into the trade.
Now here are a series of images look at them.
first 3 pictures show the loosing trader in emotion of hurry-impulsive in nature.
Listen to what market is telling you.
you see lots of bearish candles -it means price is on downmove. it is shouting to you- "i wanna go down-buy only if you are deaf or dumb"-unless you see a visible clear signal that market is on bullish upmove, you cant buy. just learn to wait. initially i fels hard. once you see profits coming your way,your mind starts getting tuned right.
THE IMPULSIVE DUMB TRADER ENTERS LONG TRADE EVEN WHILE CANDLES ARE BEARISH.HE MUST LEARN TO WAIT TILL A BULLISH CANDLE FORMATION APPEARS. Not his fault- lack of having good mentor -lack of funds- lots of emotions .
Hints
read hints at the end of this post. one can enter long trade only if trend bias,price pattern and entry confirmation permit.
then you see how a filter of candlesticks is applied and trader goes for genuine buy signal.
It is all in the filter-it makes trader patient-cool- be able to wait for the right winning signal.
Looking for right buy signal and using a filter to screen false signals
===================================
Moving average zone hints
Dont trade when Moving average(50 MA) is flat.You dont get a winning edge.
==========================================
you see a good buy signal with clearance from candlestick filter-it takes hours of waiting-and trader is mentally conditioned to wait peacefully.
All you need to know is about 6 leading candlestick signals to be used as filters.
for bullishsignals use just 3 formations
Bullish engulfing,Morning star,piercing cloud cover
for bearish filtering, use
Bearish engulfing formation,Evening star,dark cloud cover
Note
I WAS DUMB.I didnot know what to do. where to find help-was unknown to me.
A forum like worldwide invest came my way.And I started thinking on my own.
here is something more
try it if you like (it is not about ma CROSSOVER but it is about right trend timing)
steveprimo teaches simple things like
1 BUYSELL line : the simple Moving average 50 where is price in relation to 50 period Moving average lin is very first thing.
look for buy if price close 3 or 4 times above 50 ma, or look for sell sinals if price closes 3 or 4 times below 50 ma
2.price pattern if a price bar close in top 25% of the bar range(high - low),then price is giving long signal.
if a rice bar is closing inside bottom 25% of the price bar range,market is telling-the direction bias towards short selling
3.Traders loose though they get market direction correct but they enter at wrong timing
3 entry confirmation So always get price pattern right and trend on yourside and enter only if price bar closes 1 tick above previous baR HIGH.
always enter ONLY AFTER ENTRY CONFIRMATION
SHORT TRADE SETUP RULES
1.PRICE MAKES 3 OR 4 CLOSES BELOW 50 Moving AVERAGE
2.Price bar closes in bottom 25% of bar range (high - low)
3.Always enter short trade only after price bar closes 1 tick below previous bar low.