Double Moving Average Bounce Variation
I have developed a variation to the original moving average bounce trading system, that uses two exponential moving averages instead of one, and uses the interaction of the two moving averages as a filter to remove trades that are against the longer term direction of the market. Trading signals using the new variation of the moving average bounce trading system are much clearer, and the profitability of the system is increased over the original version.
I have written a new step by step tutorial for the double moving average bounce variation, with detailed instructions for each step, and example charts showing a recent trade using the double moving average bounce trading system. The new tutorial is a complete tutorial, but if you are not familiar with the original moving average bounce trading system, you may want to review the original version first, so that you understand the differences between the original and new versions.
If you have any questions about the double moving average bounce trading system, leave a comment in the blog, and I will be glad to provide further information or example trades.
Comments
Adam — would you please show an example of a long trade using the double moving average system??? Thank you.
I have added a new blog entry showing a long trade as requested.
Thank you for your comment.
Dear Mr. Milton -
Could you please explain how do you adjust the timeframe, and the exponential moving average lengths to suit different markets?
How far back do you look to establish the state the market in question is currently in?
Thank you.
I have added a blog entry and a new article that gives some suggestions for adjusting chart time frames and indicator lengths to suit different markets.
I hope that this helps, and thank you for your comment.