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walterw

Walter`s Forex "Vma Trend Scalps"

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The type of trades we can aim to do are as follow :

 

Momentum Conditions : Trend Trades

 

Non- Momentum Conditions : Cycle Trades

 

here is a graph explaining this type of trades on the right environment :

 

attachment.php?attachmentid=3172&stc=1&d=1190940619

 

so you have from a scalper view... "Trend Scalps" and "Cycle Scalps"...

 

 

ahahahaha.... easy to say but not easy to trade if you do not have a correct evaluation and discernment of momentum conditions...

 

On the posts ahead I will share a series of videos on momentum discernment from a vma perspective ... it will be my joy if at least 1 here gets to master this and makes a succesfull career in trading ¡¡¡ cheers Walter.

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And here I start to post a series of videos on "Momentum Discernment"... actually a key skill for any trader... in this case I will do it from the perspective of vma... and oriented to a scalper perspective as well... hope you enjoy them... sorry for my english sometimes, but hope it really capitalizes on the true core skill of a succesfull trader/ scalper....

 

I am gratefull to all the people that had made posible my formation, starting from God, my parents and all my technical mentors who made possible all this, hope with this I can give back some little of all the SO MANY BLESSINGS I received... cheers Walter.

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Hello Walterw, very great videos on momentum that you are doing. I really need to thank you for that because it really help how to graphically discern when to use the right tools for the right setup.

 

This is a clear fact of life that non trending markets are the most feared markets by traders but can be profitable if the right method and the proper discernment is used.

 

You do really have a gift for teaching.

 

I think your wish of seeing people succeeding following and applying your method or a mix of it will be granted beyound your imagination.

 

So, Dear Walterw, a very big thank and gratitude for all the help that you give to all of us on this great forum.

 

It is much appreciated.

 

Sincerely

 

Shreem:)

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Thanks Shreem for your kind words... I love to share, and also love to reinforce my knowledge thru sharing, its amazing the retrofeed I get on this process... thanks for you encouragment and hope to see you on the "Tokyo Gang" ¡¡

 

here I add 4th one... cheers Walter.

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My previous series of videos on momentum discernment I believe can be of great help to give the trader a framework of market reading... from there on we can start to build some things here to be aplied to scalping...

 

What I am actually triyng to do here is to take all the above concepts presented on the videos to a 1 min chart and be able to read this concepts on the 1 min chart alone...

 

Remember I am researching on this... so let me show how I would try to have my momentum readings on 1 min

 

First the chart on the price pane :

 

attachment.php?attachmentid=3214&stc=1&d=1191291170

 

here I try to have the same indicators we where using on the 5 min chart, so I replace the step ma for a vma1 inputs 1-16-32-0-1 (White) and a sma 5 of that vma1 (cyan)... this will let me do the proper momentum readings on the 1 min chart also with this beautifull two lines...

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So what type of scalps can we look for ?

 

well basicly :

 

_Trend Scalps

 

_Cycle Scalps

 

 

who are the easiest ? normally Trend Scalps.... then with more experience you can profit a LOT from cycle trades... but for now, and for the sake of simplicity, lets focus on the _Trend Scalps....

 

On the videos I showed what environment would we need for x type of trade

 

attachment.php?attachmentid=3215&stc=1&d=1191291586

 

you can see on the graph above that Trend trades would be taken only on the :

 

>> Non-Momentum to Momentum transition condition

 

and

 

>> Momentum absolute condition

 

So we would focus on those two conditions to take TREND SCALPS....

 

you need to be able to "discern" this two momentum conditions in order to take this trend scalps, and as we explained on the videos VMAR`s can help us do this with a great extent of accuracy...

 

coffee and continue... cheers Walter.

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Now, let me refer to two types of patterns we can merge in all this aproach... the first one you already are quiet familiar and it is the ICON... the second one is a Continuation Icon...

 

So This two patterns :

 

_ICON

 

_Continuation ICON

 

they would be used on diferent types of conditions... for example, if we get a non-momentum to momentum transition condition, we would be using the ICON pattern to trade there.... but if we are on a Momentum absolute condition, then we will trade the Continuation Icon Pattern there...

 

So to get this clear let me add this graph that explains the Type of Trend Trade Pattern on the type of Momentum Condition :

 

 

attachment.php?attachmentid=3216&stc=1&d=1191292905

 

That graph basicly is telling you that :

 

If you are having a transition from non-momentum to momentum condition then you will be trading a trend trade, and that trend trade pattern will be the ICON...

 

If you already are inside an absolute momentum condition, then you will be trading trend trades, and that trend trade pattern will be a Continuation Icon...

 

 

ahahaha.... cheers Walter.

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So with that said, we will have two types of Trend Scalps :

 

_"ICON Scalp"

 

_"Continuation Icon Scalp"

 

 

:thumbs up::thumbs up::thumbs up:

 

 

Let me start here with the "ICON Scalp"

 

 

It does not differ much to our "VMAR Icons" trades as we are looking for on the 5 min... the diference here really resides on the fact that this icon is setuped on a 1 min chart actually... so if you where anxious waiting for setups on the 5 min... here you will have more speed on this formations, obviuosly the scope of the trade its much smaller and the RRR eventually will not be as good as on the 5 min one....

 

Another interesting thing here is that the setuping its not so related to a crossing of the vmar as it is more related to a "take off" from a non-mometum condition situation as our 1rst intention move...

 

So lets see one example here on a chart :

 

attachment.php?attachmentid=3218&stc=1&d=1191293953

 

What you can notice first is the non-momentum condition there.... then a Hint that this absolute condition would be over and you would start a transition that will take you eventually (maybe) to momentum...

 

on that transition an ICON gets formed with a "1rst intention" folllowed by a "pullback" and then a "continuation" timing entry....

 

thats basicly how I would be looking for an "ICON scalp".... cheers Walter.

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Hello Walterw, Wow! thank again for your great videos. They are absolutely fantastic and help tremendoulsy. You videos series are extremely well done and give a lot of informations about to choose the right momentum condition with the right kind of trades. They are very professional. I can assure you 100% that they will certainely help people a lot in their trading, beginning by myself.

 

I post a chart of AUD/USD few minutes ago as I was looking for a high probability setup for the following reasons:

 

- Price bars crossed below the rainbow on the 5 min chart

 

- Black line cross under the magenta line and the rainbow on the 5 min chart (down trend definition and beginning of momentum)

 

- Rainbow was beginning to spread it out and was in an expansion phase (momentum increase)

 

- The black line was in a HE but the white and cyan line were in a clear downtrend.

 

- There was an Icon in the 5 minutes chart and after the pullback, as soon as the black line cross outside the rainbow on the 1 min i get in. See the 2 ellipses on both charts.

 

I was short at 0.8901 and was making 7 pips a one time and I have put a stop loss at 3 pips profits as I hate to turn a winning trade into a loosing one. Finally, was stopped out for 3 pips on a later pullback.

 

As of now (11:07pm est), the price continue it southward direction and it is at 0.0879:doh::doh::angry::frustrated:

 

Yes, I am angry with myself to not have given enough room for the trade to develop.

 

On the other hand, this little trade just show the power of this absolute great method of Walterw and just show he is a truly master trader.

 

With this method, if one is disciplined, focus and patient enough to wait for the right setup, one can certainely make a living from it.

 

So, Dear Walterw, a very big thank from the bottom of my heart to have shown us this method and I will definitely dedicate myself to it as it really goes very well with my sytle of trading.

 

Sincerely

 

Shreem:)

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Great Shreem ¡¡¡ so you will form part of the "Tokyo Gang" ¡¡

 

thanks for the compliments and I am very glad to see you are getting really fast into the method... I can see your eyes are getting used to it and each time is easier to find the trades...

 

About your premature exit, you would like to place stops on real stop zones ( a place where the original argument gets invalidated ) and from there on relax and enjoy, not all trades are profitable, but if the overall RRR is correct you are in bussiness... I see you Shreem making 6 digits per week soon ¡¡

 

keep that up... feel free to post trades ¡¡ good and bad ones, its very helpfull the interaction process as well... I attach how I would had managed stops and exits of your first icon trade...

 

here I add a video on the Icon scalps.., please dont get me wrong, I still insist that "vmar icons" from 5 min are much more robust trades and DO HAVE a better RRR than this scalps... this ones are to keep you awake jjejej cheers Walter.

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Hello Walterw, thank for your reply. Place where you put your exit do really make sense. I will definitely try to keep them in mind next time. You are right, a good stop loss point should be somewhere where the trade get invalidated.

 

In my case, there was no real reason to put a stop at 3 pips gain with only 7 pips positive. There is no logic to it. In fact, the reason has more to do with my lack of experience and with my impatience.

 

I really need to learn to let my trade runs. As you are showing so eloquently, putting a stop where it is no longer valide with a good RRR is the way to go.

That, we can keep the trade going and relax ourselves.

 

So, that will be my next challenge on my next trade. To apply the above principles.

 

For me, learning this method is very interesting and enlightening, that is why everyday without fail I am looking for your new posts.

 

Thank for the nice add video on scalping. Will start by mastering the trend trade on the 5 min chart diligently and will certainely get involved in those scalps on the 1 min when I get more experienced.

 

Sincerely

 

Shreem:)

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Here goes a video about some nice Momentum scalps... very easy to trade... key here is the correct momentum readings...

 

What is interesting here is how combining vma3 base line with a vmar1 you get a nice momentum readings when the vma3 its outside the rainbow...

 

some nice scalping ideas here... cheers Walter.

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On this chart you can notice vma3 outside the vmar1... calling for a potential momentum and indicating a posible succesfull scalp...

 

 

attachment.php?attachmentid=3289&stc=1&d=1191896688

 

this crates a context for a nice scalp.... cheers Walter.

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...what could I say... the third Walter's thread I'am studying ... and once again it's a true happiness... great teaching, great creativity, great clarity, great value ... just fascinating, exciting... MANY THANKS Walter for your generosity and everything you do !

 

I don't trade Forex but ES... I will come back here in few days with some charts and personal attemps on the ES...

 

Now a question please : (por favor hombre ;-)

In your previous (excellent again) thread "My Entry vs My Stop vs My Exit" / "Happy M Trade", you used 110Ticks and 22T charts for entries, timing... whereas here you use (so far...) a 1 min chart which is imho usually more difficult to read for the trader and for the indicators....

What is the reason please of this difference ? The VMA vs previous indicators ? Forex trading vs Futures trading ? ... something else ???

Many thanks in advance, Serge

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...what could I say... the third Walter's thread I'am studying ... and once again it's a true happiness... great teaching, great creativity, great clarity, great value ... just fascinating, exciting... MANY THANKS Walter for your generosity and everything you do !

 

I don't trade Forex but ES... I will come back here in few days with some charts and personal attemps on the ES...

 

Now a question please : (por favor hombre ;-)

In your previous (excellent again) thread "My Entry vs My Stop vs My Exit" / "Happy M Trade", you used 110Ticks and 22T charts for entries, timing... whereas here you use (so far...) a 1 min chart which is imho usually more difficult to read for the trader and for the indicators....

What is the reason please of this difference ? The VMA vs previous indicators ? Forex trading vs Futures trading ? ... something else ???

Many thanks in advance, Serge

 

 

Ok Serge... I am glad this can be of help, we really grow all together here ¡¡

 

I will try to answer some of your questions :

 

<<<a 1 min chart which is imho usually more difficult to read for the trader and for the indicators....

What is the reason please of this difference >>>

 

we had been able thanks to Pyenner`s coding work to get vma`s coded into MT4...(Metatrader) wich is a very nice friendly and free of cost forex charting platform... unfortunately the smallest timeframe is 1 min, no tick charts on this platform... now forex is more longer time moves (not like futures), so 1 min does ok...

 

<<<<The VMA vs previous indicators ?>>> vmas are unique, they absorb noise thru an horizontal effect (HE) wich makes trend definitions and timing much more cleaner...

 

 

<<<<<Forex trading vs Futures trading ?>>>> in forex you can grow on volume in 7, 8 or more digits... futures, hardly 7 digits... normally 5 digits on futures...

 

<<<<something else ???>>>> this thread http://www.traderslaboratory.com/forums/f24/the-chimp-s-forex-trades-2698.html is the latest and probably the most evolved off all my postings wich I recomend most...

 

hope this helps Serge... cheers Walter.

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in forex you can grow on volume in 7, 8 or more digits... futures, hardly 7 digits... normally 5 digits on futures...

 

hope this helps Serge... cheers Walter.

 

Hi Walter;

Q1: what do you mean "you can grow on volume"?

Q2: what do the 5 digits refer to?

 

regards.

Unicorn.

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Unicorn :

 

 

>>>Q1: what do you mean "you can grow on volume"?>>>

 

Millons of dollars on your individual acct..

 

 

 

 

>>>Q2: what do the 5 digits refer to? >>>>

 

U$ xx.xxx

 

 

so on forex 8 digits is : U$ xx.xxx.xxx

 

 

:) :) cheers Walter.

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On this chart you can notice vma3 outside the vmar1... calling for a potential momentum and indicating a possible successful scalp...

 

:thumbs up: Looking Good :thumbs up:

 

I like this vmar3 plus T3cci on the 1 min chart, even for the regular (i.e. non scalp) trades. What do you think?

 

cheers.

Unicorn.

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:thumbs up: Looking Good :thumbs up:

 

I like this vmar3 plus T3cci on the 1 min chart, even for the regular (i.e. non scalp) trades. What do you think?

 

cheers.

Unicorn.

 

Yes, it is posible... would it be those indicators on 5 min chart ?

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