Mickey Abi wrote: Wed Oct 05, 2022 4:14 pm
I am a fan of TMA's .... Do you mind sharing some ways you trade this system ? Your entry and exit rules ?
Regards
Here is the point of this setup:
We all know TMA bands have flexible ends, therefore they move a bit even after the candles close (which technically I would not call "repaint", since they rather only "recalculate" because of their flexible nature), but they are excellent in showing a smooth average direction of the price action and also the extreme deviations of the price from the center of the channel (when the price gets outside of the bands).
Since this recalculation is there, but it is not so significant, the idea is using it on 3 higher timeframes makes it more reliable, since it can give you a more reliable "signal". If it matches on all 3 timeframes it is less likely that it will recalculate than taking into consideration a signal given only on a single timeframe.
This TMA also has interpolation option available, but I am using it this way because I can see the steps it creates, which help me see the trend more clearly.
I am still only experimenting with what could be used as a non recalculating, non repainting indicator which would give rock solid confirmations of entries when those extreme conditions are visible with this template. Maybe even adding a simple MACD 0 line cross would do well, or a Gann High Low Activator Indicator for example.
Also you have to analize and take into consideration basic price action behavior like breaking out of range, bouncing out of support and resistance zones, creating HH, HL and LH LL, divergences etc.
