From the very beginning of my work in Forex, I have encountered many mathematical meanings that are incomprehensible to my natural scientific mind. Many times I tried to understand how the formula of an MA or an oscillator is calculated. Why and how to optimize when switching to another timeframe. Or he was trying to logically understand why the MA with a 200 period is used by most traders, and therefore it works both on the daily chart and on the 5-minute chart, although there seem to be different patterns. In general, oscillators are still a dark forest for me, but for the weighted average price, I found my best option. Without further ado, I gave it the name Weekly MA.
And this is a very simple formula. We simply take the number of hours in a trading week and set the MA period depending on the timeframe. For four hours it will be 30, for an hour - 120. Exponential or simply, is it something that caresses your eye more. I am using exponent.
Let's see how this MA works.
The euro-yen pair on September 28. Look at how the price licked the moving one without breaking it. Here I was a spectator.
The next example is more descriptive. The price breaks the MA, then forms a MA bounce pattern, a pattern known to some as the French Kiss. 50 level fibo + hairpin highlighted in scarlet. On this move, I took 85 points.
And further. I really love a couple of Euroaudis. For her technicality. Look how, during the breakout, it fought off the weekly moving average and gave a profit. In this thread, I will monitor the execution of signals with a simple Weekly Ma indicator and show my entry points. Comment, ask, criticize. In my opinion, this is the best simple indicator.
Unfortunately I have to admit that the bootloader is a problem for me. Therefore, the thread starts with an error. Which, however, is annoying, but will not stop us, yes, my darling? We continue.
"The euro-yen pair on September 28th. Look how the price licked the moving one without breaking it. Here I was a spectator." "The following example, it is more evident. Price breaks MA, and then generates a figure rebound from ma, pattern, known to some as the" French kiss ". 50 levels Fibo + hairpin isolated scarlet color. In this movement, I took 85 points." In a couple pound dollar. Next, let's see how the price rebounds from the moving average using the GBPJPY pair as an example.
At first, I tried to use the advantages of the weekly MA to enter along the trend, that is, when breaking through, enter and hold by moving the stop by the MA. However, like all other indicators, my indicator is lagging. This vehicle proved to be unprofitable, for a while I refused it, but put it off in my memory and began to simply observe the patterns. Over time, we developed a habit of simply fixing the price movement relative to this MA. I began to notice how the price bounces off the indicator, as it happens, flies around it. And my vision of the market was formed around this indicator.
Another example of MA work, the price bounced back and went down. Took 23 points. I would like more, but the Evra didn’t give any more before that and knocked out to buy at breakeven) In this example, in addition to the moving away, I drew attention to the downward figure with the lowering highs, which, in my opinion, indicates the continuation of the southern movement. There was also a level on H4, though not strong, worked out. But the totality of all the patterns gave a signal to enter.
And one more example of working with MA. I use it in my two-sided grid strategy to determine when to enter the market under no circumstances. In this image, I have highlighted the period when the price clearly went above the MA, here it did not open down, only up, according to the principle of a pyramid. That saved my deposit from being drained and made it possible to earn some money. Although, to be honest, I have not yet won back the drawdown after that July rally.
Thank you for the irony . This MA is not a ready-made trading strategy, but a tool that can be used, you can add another MA, or an oscillator, you can track the price movement, as I do. I use Fibo, levels and also a few patterns. Initially I conceived it for a breakout strategy, I didn’t get any results, or they didn’t satisfy me, or I just got bored of waiting)) Although, if you catch movements on it, especially on crosses, the profit is colossal, however, like any other MA . Naturally, as you rightly noted, there is both a lag and a flat, but in a flat it, how to say, does not give "signals")
I suggested an indicator for discussion, maybe someone will add something, criticism is also welcomed.