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Originally Posted by bukumirac
Hi, Summerset
Me again. I put Woody in MT4, and working.
Please if You can tell me how much can you trust the indic.?
Indicator values forming with price, AFTER price.
The story of indicator set up is nice, but will it work?
Please inform,
Bule
p.s.I am aware that is part of personality to accept some new way of trading. |
It depends on 2 principals:-
A- Backtesting.
B- The type of Trader U are. (Long term or Short term).
BACKTESTING:-
In order to master an indicator, U must back test it
very very thoroughly, in trending and consolidation markets.
This statement is
KEY to success, and can never - E V E R- be understated, however much time U spend on the backtesting. Else, believe me, U can not be taking yr trading seriously enough.
TIME FRAME:-
If you will be trading short term (Intraday trading), U need to Backtest the LSMA, together with the CCi identifier (CCi paterns), & divergences of CCi graph with price.
If U will be trading long term, U need to test
compounding the CCi signals on one time frame together with taking concurrent divergences on two different time frames.
EXAMPLES:-
If U will be intraday trading. U need to be calcuculating the intarday supports & resistances. As these will be yr entry points.
If U were live trading, U could easily sight these by eye balling the 1/2 or 1hr graph. Or by reading general subscribtion service reports on different pairs. (They don't have to be paid).
In back testing U can easily eyeball 2 specific support & 2 specific resistance zones on any intraday 1hr or 1/2 hr chart- during one single day time frame.
These values are actually the daily S1, S2, & R1, R2, that are theoretically calculated by the pivot point formula.
Now what U need to back test is the following.
If U will be buying S1&S2, & Selling R1&R2:-
1- locate such levels on past days.
2- Check the color reading the LSMA gives U there.
3- Check if the CCi identifier is compounding signals or accumilating signals at such levels.
4- check if there is a pro-trade divergence between CCi graph & price. This point is very important. To full understand it, pls go to
http://www.fx-portfolios.com/intraday_signals. then hit the icon on "position trading"
U then need to work out an Excel spread sheet, where U input all the trades that U would have taken at such levels in the past using the above criteria. How many pips they would have made or lost.
By fine tunning the back testing, (using the above 4 constraints in consolidatory & trending markets). I can almost gurrantee U that U will have reached a very profitable entry & exit intraday system.
U cut out the overtrading by trading only the NY session. Or usilng a station with price sound alarms / alerts when prices reach pivot levels.
U then
demo trade yr results / rules generated from them for one quarter (3 month) at least.
Then through consistancy U will have built the decipline required to trade live
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If U will be trading longterm:-
U need to backtest a verified longterm fork aganist CCi extremes on daily & 4hr frames. Take & back test the CCi signals that erupt when concurrent divergences are showing on both frames.
For longterm trading, we have a specific E-book manual, that explains in detailed examples, how to implement the above thesis.
http://www.fx-portfolios.com/trading_system_book. then hit "Trading the Fork e-book" icon
Like U say in yr post "I am aware that is part of personality to accept some new way of trading". This is very true. And I would like to add to it that it is really the
back testing that dictates the neccessary changes U need to make in how to read the Charts, - and ultimately on how to interpret them- how to view their development & yr trading personality.
That is why its of supreme overall importance to do the back testing, followed by demo testing by yourself. Books & mentors are only there to guide U throughout the process.