The "Thinking is Optional" System

[Duelf 50]

This is a thread about moving averages that focuses on trading with "the trend." My own MA system may evolve as the thread progresses, but I'll always specify which MAs I'm using and how I'm using them. Please post some charts with examples and explanations if your system is primarily based on MAs.

Because I am aware of the limitations of moving averages, moving average crosses, and the like, those of you who are itching to make the standard critical remarks can do so elsewhere.

"Thinking is Optional" because the MAs usually indicate when to buy and sell, reducing the need for decision-making.

Although it isn't necessarily new, I present here a moving average usage paradigm that may be useful to those who want to avoid interpreting "price action" in favor of something that can often tell you when to sell or buy. It will undoubtedly contain false signals, but if you stick with it, I believe you'll find it to be worthwhile.

For the usual scoffers and such, here are a few thread rules:
1. Instead of a discussion, post a chart.
2. Save the standard moving average criticisms for another thread.
3. Your MA system is welcome, but please include explanations and examples in your post.
3. There will be no profanity - zero.

[IronQuail 44]

This is the most exciting part: optional thinking can be put to use!

Stop Loss: It's not my problem, it's yours.

Profit Objective: Refer to the Stop-Loss Chart.

[Wolfire 29]

This system is very similar to something I currently use, but I've added the 3 and 6 ema to my system because I believe it improves it, so thank you.

[UltraHater 67]

I'm not sure, but it has some advantages in my opinion.

Where has OP gone? I expected to see some more trades or charts by Winston Reed.

This method falls into the category of breakout, pullback, and continuation in my opinion.

I'll post an example of my ideas; there aren't many thread rules, so we'll see what happens.

Best wishes

[Duelf 50]

I altered my layout slightly. I couldn't care less about the colors or time period you choose. I'd appreciate it if everyone adhered to the same MAs and did not add anything additional for the time being.

Someone suggested entries of the MTF type. While I am not a fan of MTFA, if it works for you, go for it. Personally, I trade a single time frame without regard for higher or lower time frames or for top-down analysis.

For the time being, I'm trading H1 and higher. I'm not particularly interested in using this as a scalping or short-term trading strategy.

Stopped out at -21 on a NZDUSD sell and TPd 55 on a GBPCAD sell. TP was applied prematurely.

[UltraHater 67]

2 minutes ago, Duelf said:

I altered my layout slightly. I couldn't care less about the colors or time period you choose. I'd appreciate it if everyone adhered to the same MAs and did not add anything additional for the time being.

Someone suggested entries of the MTF type. While I am not a fan of MTFA, if it works for you, go for it. Personally, I trade a single time frame without regard for higher or lower time frames or for top-down analysis.

For the time being, I'm trading H1 and higher. I'm not particularly interested in using this as a scalping or short-term trading strategy.

Stopped out at -21 on a NZDUSD sell and TPd 55 on a GBPCAD sell. TP was applied prematurely.

It's a good thing I didn't post then because the 200 is too long for me, while the 3 and 6 are too fast.

However, I completely agree with the 1-Hour; it is the best, and there were so many setups yesterday.

I'm a trend trader, but with the way the markets are now, what used to happen on a weekly basis is now happening on a daily basis.

You can also toss out the Risk to Reward ratio of 2 to 1 nonsense.

I also think it's important to keep an eye on the breakout levels of last week's high and low, as well as yesterday's high and low.

Best wishes

[Duelf 50]

1 minute ago, UltraHater said:

It's a good thing I didn't post then because the 200 is too long for me, while the 3 and 6 are too fast.

However, I completely agree with the 1-Hour; it is the best, and there were so many setups yesterday.

I'm a trend trader, but with the way the markets are now, what used to happen on a weekly basis is now happening on a daily basis.

You can also toss out the Risk to Reward ratio of 2 to 1 nonsense.

I also think it's important to keep an eye on the breakout levels of last week's high and low, as well as yesterday's high and low.

Best wishes

I'm going to provide some examples. Indeed, cherry-picked. Put it behind you.

A word about the best times to trade: While this is not always true, it is worth considering, markets tend to move around major session openings. Of course, the New York and London openings are significant movers. Asians can occasionally move, but less frequently than the others. Conduct a quick review and take note of market movements. Trading according to established rules during active sessions increases the likelihood of success.

[UltraHater 67]

We've arrived. Price is either below or above the 200 MAs, continuing the overall downward trend. The size and duration of the pullbacks or retracements towards the 200 MA are variable. HHs, HLs, LHs, and LLs are commonly used to describe trends. We expect LLs and LHs in a downtrend. While this is true, as prices fall, there will not necessarily be a consistent stair step pattern. Pullbacks frequently fit the definition of a trend, luring traders to trade "against" the larger trend.

With two long term MAs, one shifted and the other not, this method attempts to capture larger trends. As if there were two different MAs with different time periods, the shift causes a crossing behavior. The non-shifted MA serves as a warning sign of a larger trend direction shift.

The MAs are ever-changing. They resemble a constantly changing "trend line." Price is trending down in the chart below as long as the non-shifted MA is below the shifted MA, even if price moves above the MAs.

The trader looks for pullback reversals as price swings. These pullback reversals are sought after by the 3MA and 6MA.

[PartyBerry 60]

Possible setup soon on EU.  

[WorkoutWanderer 12]

What do you do in situations like this?
There was a sell signal, and the price immediately reversed.
Cheers