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First Simple Strategy (may be loosing one)

PINNAug 25, 2021, 9:21:29 PM
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NOTICE! this is NOT proffesional advice and is NOT real strategy.
This is intended for demo accounts ONLY! This is intended to be played as a game, and NOT with real money!!


So, i will assume we are familiar with both how to draw trends, and 3 SMA (3 simple moving averages) (from previous posts- although some clarification may be needed there).

We will use simple strategy, which involves 3 simple moving averages, some trend lines for extra safety- especially from bigger time frames, and pretty much nothing else. We will look for swings (either up or down) in a trend, and determine exact entry point based off 3 SMA.

This example will use uptrend as a demonstration, to make BUY order. For downtrend, or SELL orders, is opposite- aka colors reversed.
Just keep in mind, you buy at GREEN, red is to be CAUTIOUS, and blue is NO GO. Regardless you buy or sell.

1. Setup all charts, with monthly, weekly and daily trendlines. Especially tops and bottoms- we dont want to trade anywhere near those lines: ( https://www.minds.com/newsfeed/1276562808942628871
2. Add 3SMA ( https://www.minds.com/newsfeed/1276603280624979971 )
3. Find a trending chart on 15M, 30M or 1H charts. Ideally trend is visible on two consequitive timeframes- 15 and 30 , or 20 and 1h. Preferably all 3. The more, the better :

4. Draw a trendline.
Idea here is jump in as close to trendline s possible, but we will be using 3SMA for actual entry point.

5. Apply 3SMA rule, and only keep the charts where 3SMA rulle stands true:

A. red line in the middle, for upwards charts, green must be at  the top, blue at the bottom, for downwards charts- opposite. If 3SMA flat line (horizontal), then clearly there is no trend.
B. NO CROSSOVErS WHATSOEVER (bad-trade example in the picture)!

If all those conditions are met (and say, on 2 or 3 timeframes), now is the time to pick correct timeframe.
 

6. Timeframe. Check all timeframes to see which is best suited. The closer actual price bounces to green/red line the better (well maybe red not so much), ideally it should touch or breach green line.
(add chart/example here)


7. Trading zone. As soon as price is close to trading zone (hits green line), monitor/wait for entry.
Heres where you want the price to be at(yellow zone):



8. Entering trade. Z pattern. when the candle dips below green line, then dips back up, wait until candle closes ABOVE green line (wait until new candle starts), and make your buy order:

Like this (yellow candle must first close and new candle start for entry to be valid):

Once candle closes above green line, make BUY order.