THE ENTRY SIGNAL
The entry indicator is a 3 day moving average of the highs and the lows
The 3 day hilo bands work excellent to pinpoint short term entry signals
I think the 3 day hilo bands are what will set The Ultimate Trading System apart from other systems, because it is a low risk try to hop aboard a trending market
What more could we ask for from a short term indicator=========================================================
USING THE 9-18 EXPONENTIALS WITH THE 3 DAY HILO BANDS
If the 9 day is above the 18 day exponential
Then we look for closes above the 3 day hilo bands as our buy signal dayIf the 9 day is below the 18 day exponential
Then we look for closes below the 3 day hilo bands for a sell signal day
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MARKET ACTION
The reason the above 2 indicators will work for us
Is that they follow the way the market works
When a market is trending, no matter how strong the trend
There will be pull backs or corrections against the main trend
When the correction is over the market will move back with the main trend
That combination of the 9-18 exponential averages
And the 3 day hilo bands works to hop abaord a trending market===================================================
THE ENTRY SIGNAL HIGH OR LOW HAS TO BE TAKEN OUT FOR A SIGNAL
The way we are going to enter the market is to take the entry signal day
And make the high get taken out for a buy signal
Or the low taken out for a sell signal===========================================================
A BUY TRADE SETUP
#1 - The 9 day exponential is above the 18 - we are only looking to buy
#2 - The market closes above the 3 day bands - that is our entry signal
#3 - If the market takes out the previous days high - we go long=============================================================
So we are following the market on all time frames (That we are following)
#1 - The 9-18 exponentials show the longer term trend
#2 - The 3 day hilo bands show the short term trend
#3 - Making the high get taken out assures we are following the trend on the entry day=========================================================
THE STOP IF WRONG
The stop if wrong is the last pivot price low just made
Usually it will be the low 2 to 3 days back from the enrty point
That is a very small risk to take to catch a trending marketDisclaimer - I am not a commodity trading advisor. The information on this site is for trading education only. There are no trading recommendations for any one individual made on this site and this information is paper trades for trading education. All trades are extemely risky and only risk capital should be used when trading.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.