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Old 11-04-2004, 11:56   #1
Catalonia
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How to beat Flat Market on TF 5 min?

Hi to all!!!!

We all face a problem, particularly those who like to trade TF 5 min.
This problem has an ID: Flat Market.
When we are in a flat market all our signals turn useless.
There are other threads that point out some solutions, but I'd like to compile in one thread all the ways to beat FM on TF 5 min.
Do you join us?

Here you have one, it's not mine, but Neil's, I think.

Its name is 21 band.

SMA 21 Low
SMA 21 High

When price is between both, we do not trade. We go long when price goes above SMA 21 High and we go short when price goes below SMA 21 Low.
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Old 15-04-2004, 14:52   #2
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Is this system profitable?
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Old 15-04-2004, 14:59   #3
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Re: Toccata

Toccata:

Well, it helps. Try it. You need other EMAs, shorter ones, to place a trade.
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Old 15-04-2004, 16:16   #4
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If u use shorter emas then I find that they normally fall in the middle or no mans land so I cannot see the relevance of using the 2 sma on the high and low. It just seems to make a lagging indicator even more lagging
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Old 15-04-2004, 16:39   #5
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Re: Toccata

Ok.

Plot 5 EMA close and 10 EMA open and 21 band.

You trade their crosses but, if they are between 21 band, you do not trade.

I only want to say that 21 band is good when you want to take a possie. I want to stress that 21 band is only a "filter".
I'm not saying: "go ahead, trade 21 band". Ok?

That's why I use other EMAs and indicators when I want to buy or sell.
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Old 17-04-2004, 06:28   #6
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Re. Toccata

Toccata:

Have you tested it?

By the way, as you can verify, all the members of Moneytec.com know how to surpass flat markets and whipsaws. That's why they do not participate in this thread.
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Old 17-04-2004, 13:04   #7
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Catalonia - I am very interested in what you have written but can only assume I have missed something. For instance, how do you define a flat market? What does TF and possie mean (apologies, not familiar terms!) The 5 and 10 crosses will always occur before the price crosses the top/bottom bands so it seems that you are merely delaying an entry.

As an example, the EUR late Friday (17:55 GMT) flicked above the 21 band at 1.2011 price. The cross was ten minutes earlier. Unfortunately the market has now gone down 1.1991 so this would have been a poor trade.

Tell me more on surpassing flat markets and whipsaws! I am keen to learn.
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Old 17-04-2004, 13:05   #8
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I am using 5 minute chart in my example above.
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