Sunday, March 18, 2007
a few words about the system
perhaps its because I've been trading this system for more than 2 years, but I have a hard time explaining the system in simple terms. honestly though, its a system I threw together in a daydreamiy haze after a week of choppy really high volatility in the markets and I was tired of the more common cliche "the trend is your friend."
The system is comprised of a few readymade indicators modified to suit my "bottom-picking" style of trading:
JRSX (14)/SMA (20)--used for momentum
Murrey Math Lines (with historical view) used for stops and targets
EMA with Fibonacci Bands (34) used for extreme readings signalling entries
I have found that when all of these indicators are in sync, the markets tend to be at exhaustion points and more than 50% of the time, markets revert to some form median pricing.
I like to refer to it as a reversal. A MEAN REVERSAL.
Posted by Peglegtrading at 4:23 PM