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Everything should be made as simple as possible, but not simpler.

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Everything should be made as simple as possible, but not simpler.

Over the recent years, I have utilized so many various trading styles. My computer screen resembled the cockpit of an airline jumbo jet with all of its complexities. I became a fan of just about every indicator and time frame available along with most of the combinations. Needless to say, my results (and emotions) have been as mixed as my setups. Recently, a popular quote from Albert Einstein was stated on the radio. He was credited with the statement, "Everything should be made as simple as possible, but not simpler." As I reflected upon this, my thoughts were directly aimed at my inconsistent and "busy" charts. So I basically, scrapped my setups and came up with something that is simple but effective for me. This is what I have come up with and, perhaps, this may be a help to anyone else who has struggled similar to myself...

I use 2 HMA indicators:

The first HMA indicatior is set at 200 which I use to tell me if the momentum and direction is bullish or bearish depending if the price action is above (in the default "blue" zone) or below (in the default "red" zone).

The second HMA indicator is set at 9 which I used for my entries and exits. I buy when this indicator turns blue and I sell when this indicator turns red. Be aware of the location of this indicator in respect of the 200 HMA. The strength of the move will be determined whether it is in the 200 HMS Buy (blue) zone or the Sell (red) zone.

The third indicator I utilize is the Stochastic. I change the default K-Period to 7 and leave the other settings (D-Period, Slowing) at 3. This smooths the indicator a bit and helps me know when to begin to look to buy or sell.

I usually progress from the Daily chart to the Hourly chart to the 5 Minute chart for Scalping (or Monthly, Daily, Hourly for Swing Trading).

Stops are placed 10 pips of the prior high or low peak depending upon Buying or Selling action.

Wed, 05/17/2017 - 9:16am

Hi rmyers,
This sound like a great strategy.
The 200 HMS is widely used as a very important support and resistance.
Stay disciplined


Looks very promising. I have spent many years looking for simple - I'll be testing it out.