The Chimp`s "Forex Trades"

[walterw 10]

Here I start a new thread where I aim to present a very simplified version of what I am doing on forex at this point...

 

It is a very simplified version of all what I had researched so far on vmar icons and also forex scalps with vma`s...

 

This thread will show how we can "simplify" things to a point where trading can become a very fun silly game...

 

I know that behind this simplicity there is a great extent of complexity, wich I believe we had been quite involved on the past weeks BUT lets use the ilustration of a car... This will be a BMW series 6 coupe you can check it here http://www.bmw.com/com/en/newvehicles/6series/coupe/2007/introduction.html think about all the engineers that worked designing the engine, each complex part of the engine plus the great features of confort and design that make it an unique experience to drive this machine...

 

hours and hours of design, discussion, collaboration, interaction, chief orders, employes suggestions, more work, headaches, conflicts of interest on sectors of designs, comes and goes... work work work... and finally you got a BMW series 6 ready for you.. ready to take out of the cars dealers room, impecable, you had been trading quite, you deserve it, you are anxious to drive this horse... what you do when you purchase this car ? sit down, turn the key on , move shift to D, press accelerator and break... thats it... simple experience, joyfull one, pure pleasure... you ARE NOT thinking on the complex engineering behind what you are doing, you are not complicated about anything... you are relaxed, hear you favorite cd and enjoy the ride...

 

Now, is the car doing complex things ? YES, he is... are you doing complex things ? NO you arent...

 

thats how this trading aproach is being treated, there is a complex engineering behind it, there is a great VMA engine behind it, lots of testings and designs into how we can define pure trend, pure price action, pure timing...

 

We wanted clear and easy setups, no brainers... we wanted a clean chart, no clotted charts... clear entries, clear exits... CLEAR everything...

 

Well, after fulling a lot with vma`s thanks to the great programing job from Bruce (Pyenner) and combining some of the chimp`s ideas, plus our first vmar`s experiences now we come to a HIPER SIMPLIFIED version of how we can use this intrinsic complex tools in a very simple way...

 

I will get a little bit off from the Rainbow concepts here... as I will only use three lines on a chart, but not any common line... the best of the best in vma`s... plus a very nice clean oscillator named after the happy chimp...

 

Keep tuned as the chimp will take some cofee and continue with this new and exiting thread... cheers Walter.

[casaleamelia 10]

I couldn't wait for this to happen..

Good work and thank you for wonderful research.

Many thanks walterw and Pyenner!

[Reaver 10]

Walter,

 

Hey buddy, sounds good. Can't wait to check it out!

[walterw 10]

I couldn't wait for this to happen..

Good work and thank you for wonderful research.

Many thanks walterw and Pyenner!

 

Walter,

 

Hey buddy, sounds good. Can't wait to check it out!

 

Glad to hear that ¡¡ this will be an easy one... so easy you should be driving a series 6 anytime soon... cheers The Chimp.

[Reaver 10]

heh heh series 6 sounds good to me Walter. lol

[michaltrade 10]

My son wants to drive a BMW. I told him you need to drive a Toyota first. But wait a minute, the Chimp will have the BMW ready for you soon!!! By the way, he is only 12 years old.

[brownsfan019 17]

Hey Walter,

Glad to see things are coming together. I take a look at your other threads and the interest is there, that's for sure!

 

Continued good luck, but I doubt you are going to need it.

 

Keep up the great work and I'll be watching from a distance.

[walterw 10]

I will get started with trend...

 

We need to have a clear trend definition in order to be confident to take any trade, be it trend or countertrend trade...

 

I will be using a 5 min chart and a 1 min chart for this aproach...

 

The 5 min chart help us to see the big picture, the 1 min takes us to the "specifics" of our trade...

 

So I will start with the 5 min chart showing how we determine trend there...

 

My 5 min chart its very simple, on the price pane we only have 3 lines...

 

 

This three lines are :

 

adxvma6_16 bar (40) (blue)

adxvma6_12 bar (4) (green)

tlomi non lag ma (9) (yellow)

 

Now, we have a trend definition acording to how this lines are alligned between them...

 

 

The allignment will tell us the quality of our trend...

 

We will have NET and REFRESH quality of trend..

 

NET = all lines large, medium and small alligned on the trend direction..

 

REFRESH = small (yellow) line between medium and large lines, wich means that trend may be refreshing to the axis line (large line) or eventually it will resume net trend...

 

This organization its key to keep us simplified... continue on nest post... cheers Walter.

[walterw 10]

My son wants to drive a BMW. I told him you need to drive a Toyota first. But wait a minute, the Chimp will have the BMW ready for you soon!!! By the way, he is only 12 years old.

 

 

OK Michal ¡¡ when he have my age (37) he will be millonaire with a private island in front of Dubai ¡¡ keep that up man ¡¡

 

Hey Walter,

Glad to see things are coming together. I take a look at your other threads and the interest is there, that's for sure!

 

Continued good luck, but I doubt you are going to need it.

 

Keep up the great work and I'll be watching from a distance.

 

Thanks Brown for support ¡¡ I think I am getting to a simplified stage with very cool tools behind my back, this will be a nice evolution on this process... I am also watching at distance your candle stuff as the fantastic options spreads you asked more info to Tin the other day, as usual TL rocks... we even have a casino ¡¡ jejeje cheers The Chimp.

[walterw 10]

Here is the first video about the 5 min trend definition... cheers The Chimp.

5 min Trend.swf

[Reaver 10]

Good video Walter, thanks for sharing man.

[Blu-Ray 10]

Walter

 

Great thread, you truly are the "Market Wizard".

 

Cheers

 

Blu-Ray

[Reaver 10]

I second that!

[walterw 10]

Thanks Blu-Ray and Reaver for support... ¡¡

 

You guys encourage me a lot during this process, I hope to keep things as simple as posible, thats my target on this one... cheers Walter.

[walterw 10]

Now I will add another ingredient to our aproach...

 

Market moves in cycles, its like breathing... you load your lungs with air, and at certain point its inevitable, you will be releasing air from your lungs... same with market he makes small cycles inside biger cycles and so on...

 

You can choose wich cyles you want to trade, will they be little, medium, large ones... any of them... for that I am a believer that Oscillators help us to see the detrended presentation of cycles... cycles get plotted very easy on an oscillator... and even better if its a Chimp Oscillator ¡¡

 

Some people developed alergy to oscillators, thats because they wanted to use them on the wrong aplication... for example, an oscillator will not show you so good a trend definition as we have with vma`s on our price pane... but YES they will clearly show you the market breathing (cycles)... as the market comes and goes... being able to detect where the next move will be is very important.. and oscillators can help us a lot on this...

 

 

 

here we have the complete 5 min chart for this aproach, it has the three lines above and a chimp2-1 oscillator with inputs 2.5-2-1-2 and he has a gentle signal line wich is a sma 4 of the chimp oscillator...

 

This indicators had been developed by Bruce (Pyenner) on this thread http://www.traderslaboratory.com/forums/24/playing-with-the-vmar-s-open-2440-40.html for wich I am so greatfull ¡¡

 

What the oscillator is clearly showing, with very small noise and at the same time on a quite leading way, is the points of inflection from a certain measure of cycles on the market...

 

I can put a smaller setting and you will probably see the smaller cycles inside this first ones... true is if I create a 1 hour chart and I put this same oscillator, he will show me the bigger cycles that would contain this ones...

 

But madness its not necesary for trading... we need to keep things simple and we need the exact correct information to get us trading, no more, no less...

 

So this chimp oscillator will show us the cycles we want to trade...

 

on the next post let me explain where do cycles fit with market inflections and how inflections happen to be in a centrifugal or centripetal context.. ahahaah... cheers The Chimp.

[Reaver 10]

The chimp oscillator..I like it man.

[walterw 10]

The chimp oscillator..I like it man.

 

This oscillator works like this :

 

[walterw 10]

Now the market works on this fashion :

 

move-inflection-move-inflection-move-inflection etc etc...

 

sounds silly uhu ?..

 

 

he is permanently doing that... you look a chart and its that...

 

now basicly trades should be taken during the inflections, not the moves...

so a trader has this task, spot the clean inflection itself, wich normally thats no big deal of a task... we normally call that : Timing.

 

NOW an even more excellent task he has to do is to understand to what context this inflections respond too... where is this Inflection situated on the market stage... here is where the trader will excell to understand what he is doing and why he is doing such a trade...

 

Here The Chimp will facilitate a cheat graph where he basicly is able to see all the types of trades that come to happen in a given Stage of the market...

 

 

you will notice here that he organizes the market arround an axis with centrifugal and centripetal action in relation to that axis...

 

We saw previously on our trend definition how our tools on the price pane (three lines) help us to determine how we are in relation to the axis...

 

Now... coffee please...

[cattus 10]

Hi Walter and hi all there.

 

I am lucky, you started this thread today:). I will be following with a great interest this thread.

 

Great jobs all you are doing here.

 

Thanks.

 

Cattus

[walterw 10]

Hi Walter and hi all there.

 

I am lucky, you started this thread today:). I will be following with a great interest this thread.

 

Great jobs all you are doing here.

 

Thanks.

 

Cattus

 

Thats great Cattus ¡¡ Bienvenido ¡¡

[cattus 10]

I will get started with trend...

 

We need to have a clear trend definition in order to be confident to take any trade, be it trend or countertrend trade...

 

I will be using a 5 min chart and a 1 min chart for this aproach...

 

The 5 min chart help us to see the big picture, the 1 min takes us to the "specifics" of our trade...

 

So I will start with the 5 min chart showing how we determine trend there...

 

My 5 min chart its very simple, on the price pane we only have 3 lines...

 

 

This three lines are :

 

adxvma6_16 bar (40) (blue)

adxvma6_12 bar (4) (green)

tlomi non lag ma (9) (yellow)

 

Hi Walter.

 

Sorry, but I need some help.

 

I have the VarMA_v1.1. I don't know if you mention the same indicator like "adxvma6_16 bar (40)" and "adxvma6_12 bar(4)". If it is your indicator, could you please tell me the setup in the follow variables:

MA:Length

VarMA:Length

ADX:Length

ADX_Type

MA_Mode

 

And, where can I find the "tlomi non lag ma" indicator for MT4?

 

Thanks.

 

cattus

[walterw 10]

Cattus : as the thread evolves, I will soon post indis and templates... cheers Walter.

[walterw 10]

Ok... I continue here...

 

We have cycles that happen to start and end on inflections points... this cycles/inflections are clearly shown by a clean oscillator...

 

NOW... this inflections happen on a clear context where we can determine if we are about to take centrifugal or centripetal action in relation to the axis...

 

On the other hand we have a series of setups clearly designed for each given context...

 

Lets start with the Centrifugal context setups .. here we expect to see the price action traveling to the outside extreme from the axis... I normally call this trend trades because the movement is on the same direction of the side we are of the axis... Example: below axis, going down or above axis going up...

 

On this Centrifugal context the chimp is used to take two types of setups :

 

_Icon

 

_Continuation

 

very simple, this is the traditional trend trade where you buy the dips on an uptrend, sell the rallies on a downtrend... the icon actually is the "first" continuation after a cross of the axis... but basicly we take inflections of cycles on the direction of the trend on a Centrifugal action...

 

I asume you guys are somehow already familiar with the icon concept, in case of needing more info on it I would suggest the following readings http://www.traderslaboratory.com/forums/f24/the-mini-icon-trade-2147.html http://www.traderslaboratory.com/forums/24/walter-s-forex-trend-trades-2364-9.html

 

So lets see an example today of some centrifugal setups (Icon and Continuation ) that gave us this plays from the axis to the outside... at the clearness of our vma`s trend context lines.. and with the clear view of the cycles thru our chimp oscillator...

 

 

here we see the price action croses the axis and after that the following continuations start to make their clear inflections in order to fuel a very nice centrifugal action... cheers The Chimp.

[walterw 10]

Here comes a video... maybe its not so clear yet the info as I needed to mix a little all the factors here on the presentation... dont worry, as the thread evolves it wil get more clear...

 

If you guys interact, it will be quite easy to understand, questions, answers, etc... feel free to interact ¡¡¡ cheers The Chimp.

Cycles, inflections, centrifugal and centripetal context.swf

[cattus 10]

Cattus : as the thread evolves, I will soon post indis and templates... cheers Walter.

 

 

Thanks, Walter.

 

cattus