2008
9/26 – I added 2 more moving averages into my system. Why i added these 2 lines? Ok, after looking and using my system after so long, i am wondering maybe i should keep some “Quarantine Zone”. This quarantine zone will be like a notification that will show, “Okay, now you are entering into a war zone of bulls and bears so from this point on wards perhaps you should think to close your positions and wait”. Yes this pretty much sounded great for my system. I always stick to my principals of keeping my chart simple and clean as much as possible. With this 2 additional Quarantine Zone moving averages, it should trigger me the direction of the trends, whether its breaking a peak or valley or whether it cannot break the peak or valley.
My interpretation at the moment is, once the cs moves above my trend lines, its a long. Meaning i will place a buy position and i will keep that position until my trading lines moves into the quarantine zone, where i will close the position and wait. But, i have to watch what happens when the cs cannot break the peak(bullish) and begins to move down (bearish). This i mean, after the cs moves further down from the quarantine zone. Can i place a short position ? That is a tricky question. But my trend line is showing Long, but the cs could not break the peak. So lets see if the trading lines now moving below the trend line which signals it is a Short.
What it would be?
September 26, 2008 at 4:24 am
I noticed, once the cs moves below the quarantine mas, the trend mas are closing the gap between them. Even my trading mas are moving towards below the trend line. GBP/YEN is now 194.963(the cs is showing bearish).
September 26, 2008 at 9:20 am
Interesting. GBP/YEN is now 193.398, that is like 150 pips.
My trading mas just crossed downtrend with my quarantine mas. I can see cs’s are moving below my trend mas, but my trading mas has not crossed my trend mas yet. But it looks to me, i can actually place a short once it rebounded back from the quarantine zone. Sounds interesting. It looks good when something you do pays off.
October 13, 2008 at 1:32 am
This whole weekend i was thinking about how to relate my Quarantine Emas with Trend Emas. Is it possible for me to assume that the near end to any trend would be my Quarantine Emas. This should mean, as long the Running Emas does not cross my Quarantine Emas then its still a run of that particular trend. So in simple term, a short is a short until my Running Emas does not cross my Quarantine Emas. Therefore both my experiment on both the pairs (eu and gj) is currently a short until the Running Emas crosses Quarantine Emas which should trigger the meaning of near end of trend. This should be interesting.
October 21, 2008 at 2:39 am
I was hoping to see that my Running Emas will go above or cross my Trend Emas and trigger the long trade confirmation. But unfortunately it has not. But since my Quarantine Emas is now visible in my chart so at the moment i assume that the run for short is coming to an end. Therefore once my Running Emas crosses my Trend Emas will trigger my confirmation for Long and these Running Emas will then go thru or cross Quarantine Emas and go above them which actually should be showing the change in trend which is Long.