I just looked at an article on it by Adam Lemon... The way it works is this: the graphical interface takes a price feed from a currency pair, indicating the price and the position of the following moving averages on four different time frames (H1, H30, H15, M1): 21 sma 34 sma 55 sma 75 sma 100 sma 144 sma 233 sma The price remains in the middle of each of the four indicators, and horizontal lines show where each of the moving averages listed above sits relating to the current price in each time frame. The indicators look a little like speed dials, and they also show the distance in pips from the current price to each of the moving averages. There are all kinds of trades you can try to take using this strategy, but the basic idea is to look for trends that have room to run on all four of the time frames before they hit one of the moving averages. But this does not quite jibe with my method of measuring price movement.
The system is currently seeking to realize small gains from EURJPY and GBPUSD. UPDATE: EURPY hit its target, but GBPUSD is stuck going nowhere. Still, that's what I like. Rack up small gains of 4 to 7 pips at a time in less than 60 minutes, and do it over and over again so that at the end of a given 24-hour cycle, you have a significant cumulative amount of profit. However I had a strategy I wanted to try based on price range that's not going to work due to the payoff being even smaller, like four pips or less. But in looking for an alternative, I might have seen something that make the above technique look like chump change (which it kind of is anyway, but it works for me). I think I'm going to try using the "outside 64 setup" as a pseudo-swing price range strategy with the green moving average as the trigger line and the central channel as the take profit target. If it works, it should lead to much more significant gains per trade without a lot less effort.
I neglected to finish the above thought in the previous post. The system indicated I should reenter a long position when EURJPY pulled back to 128.28 and set my next take-profit target for 128.37. It also had me exit the GBPUSD position at 1.2578. UPDATE: So this time it took EURJPY less than 30 minutes to pick up another hand full of pips before pulling back to 128.34 (so far).
My forecast model suggests that at 0.6796, NZDUSD has switched from a bearish to bullish sentiment. However, the central channel take-profit target is not going to work in this instance. When that's the case, a conservative goal of ten pips is what presently seems to be in order, or fifteen pips if one wishes to be more ambitious. Given the location of my stop loss, I'm making fifteen pips my goal.
The forecast model suggests that EURJPY is finished with its intraday ascent, at least for the time being. These NADEX binary option contracts I purchased 6.5 hours ago have a good chance of expiring at full value. But given that the yen pairs appear to be making an attempt to turn south and that anything can happen at the open of the London session, I'm going to go ahead an pocket the available profit right now.
Given that I am going to retire for the night, during which I cannot manage my positions, and that my system is not yet automatized, I am going to have to close my NZDUSD trade at 0.6805 for only about an approximate 8-pip gain...
Who is your broker? I have had a few strategies work well in FX, but I could not get around the spread unless I was with a prime broker, so I ended up not making any money.
Aaahhh, ok it all makes sense now as to what he is trying to do. NO wonder he mentioned that FX is extremely predictable.
This is preparation for the future. I might be partnering with someone with access to a programmer. Whether or not this ever happens will be contingent on everything being agreed upon all around, but this is a good exercise for me to define my system down to the minutest detail, either way. The broker we use, if we finalize a deal, will depend on the system developed by the programmer. That's one of the details I've already expressed the desire to hear more about.