The Holy Grail of Trading
Sunday November 9, 2008
According to the legend (read as popular belief), there is a single trading system, that is composed of a small group of indicators, with a certain configuration of indicator settings, that can be traded on any market and always makes a profit. Many traders spend years visiting web sites, reading books, and attending seminars and courses, believing that if they can find the holy grail, they will instantly become profitable and be able to make a fantastic living as a trader. If you are one of the traders that is looking for the holy grail, today is your lucky day, because I have revealed exactly what the holy grail of trading is in my holy grail revealed article.
Comments
In your Double Bounce system, you point out that the ’subsequent’ 5 minute bar following the one touching the longer ema should act in a certain fashion – is this the 5 minutes immediately after the touching bar or could it be any subsequent bar as long as the emas have not crossed again – similarly the entry bar – is this only appropriate on the one immediately after the touching bar or could it be any subsequent bar after the one that failed to make a new high or low – does this make sense?
The entry bar (the bar that fails to make a new high or low) does not have to be the very next bar (i.e. does not have to be the bar immediately after the touching bar). The entry bar can be any subsequent bar that fails to make a new high (for a short trade) or a new low (for a long trade).
It does not matter how many bars there are between the touching bar and the entry bar (within reason). However, if the bars form so that the entry would be on the wrong side of the moving average (e.g. above the moving average would be the wrong side for a short trade), then the trade entry is cancelled.
I hope that this answers your question. If not, let me know, and I will post a chart to try and explain this.
Thank you for your comment.
Thank you – very clear