Trend Breaks on OMA
Hi there Mladen. As the OMA is your indicator, I direct this post to you. Please just have a look at the pictures below and follow my explanation.
I use momentum (or constant range bars = 10 pips). And the settings of the OMA are Length =50, Applied price = 0, Speed =28.0 and Adaptive = true
I look at "trend breaks" of the OMA to filter out the false entries of the OMA macd and the Range-value charts.
The first trend A-B, breaks at point 1 and corresponds with point x OMA retracement and with value Charts overbought condition.
The second trend C-D, breaks at point 2 and corresponds with point y OMA retracement and value charts oversold condition.
The third trend E-F, breaks at point 3 and corresponds with the point between y and z (not labeled).
The fourth trend G-H, breaks at point 4 and corresponds with the value charts oversold condition. ( The OMA macd retraced a little a little earlier) and confirms with a zero line cross.
Secondly these OMA trend breaks kept me out of bad trades yesterday. OMA retracement M was not confirmed (trend i was still intact). The second trend (trend ii) was broken and confirmed the OMA 0-line break for a short.
Point N OMA retracement was not confirmed by a trend break and kept me from a bad entry. But Point O OMA break of the zero line was confirmed by a trend break. Again OMA retracement at point P was not confirmed by an OMA trend break and also not OMA retracement at Q! I stayed in the trade for a very profitable trade.
It seems an OMA trend is confirmed by two "peaks" (for a downtrend) or "valleys" (for an uptrend). It seems each valley or valley must be formed by 4 candles.
Do you think it is possible to program this phenomenon?
It has really stood the test for me the last 3 weeks.This technique has been around for a while, and it can be done with many indicators. If you dig up Woodie's CCI strategies, this is one (and probably the most reliable / effective).
The way that works is 14 period CCI confirms the trend, but really anything can be used, and then a 6 period CCI is used to detect breaks in price. The breaks on the CCI occur before the break on actual price.
You would need a "jerky" indicator in order to draw trendlines on the indicator (to detect pivots) via HLH or LHL values consecutively, so probably extremely little or no smoothing (you don't need it for this anyway).
Trade exits when the 14 period starts to hook, if I remember correctly, or drop sub 100, but don't quote me on that. I would use a 65-100% extension of the local range.
Would be a great system I agree.
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Hi there Mladen. As the OMA is your indicator, I direct this post to you. Please just have a look at the pictures below and follow my explanation.
I use momentum (or constant range bars = 10 pips). And the settings of the OMA are Length =50, Applied price = 0, Speed =28.0 and Adaptive = true
I look at "trend breaks" of the OMA to filter out the false entries of the OMA macd and the Range-value charts.
The first trend A-B, breaks at point 1 and corresponds with point x OMA retracement and with value Charts overbought condition.
The second trend C-D, breaks at point 2 and corresponds with point y OMA retracement and value charts oversold condition.
The third trend E-F, breaks at point 3 and corresponds with the point between y and z (not labeled).
The fourth trend G-H, breaks at point 4 and corresponds with the value charts oversold condition. ( The OMA macd retraced a little a little earlier) and confirms with a zero line cross.
Secondly these OMA trend breaks kept me out of bad trades yesterday. OMA retracement M was not confirmed (trend i was still intact). The second trend (trend ii) was broken and confirmed the OMA 0-line break for a short.
Point N OMA retracement was not confirmed by a trend break and kept me from a bad entry. But Point O OMA break of the zero line was confirmed by a trend break. Again OMA retracement at point P was not confirmed by an OMA trend break and also not OMA retracement at Q! I stayed in the trade for a very profitable trade.
It seems an OMA trend is confirmed by two "peaks" (for a downtrend) or "valleys" (for an uptrend). It seems each valley or valley must be formed by 4 candles.
Do you think it is possible to program this phenomenon?
It has really stood the test for me the last 3 weeks.