FAIL Trading Model Against the Moving Average

Fail Trading Model

A FAIL is when the market moves above or below the 15 moving average and FAILS back the other way -

A FAIL usually takes place within 1 to 3 bars. 

The reason for the FAIL model was to identify the pattern the market was in at the time and understand that market can go past the moving averages and FAIL back to the original trend. Meaning, just because the market may have dropped below the moving average, it may not mean the upper trend has stopped.  

Note: All Trading Cycle (TC) Lows do happen below the 15 length moving averages and a drop below the moving average is expected. When the TC Low is confirmed, one would expect a 4 to 9 bar cycle period up from the TC Low.  

https://cycletraderpro.com

Comments

Post a Comment

Popular posts from this blog

Walter Bressert's Best Trade Setup

Image
 Walter Bressert's Best Trade Setup -  When my father developed the Green Line (Double Stoch) and the Red Line (B-Line Bressert Line), he really had something. He did this in the early 90's. These 2 indicators tell a story you will never see with any other 2 sets of indicators.  What is the set up? The set up is simple. If the Red line is in the sell zone, and the Green Line is in the buy zone, that is a buy. Vice versa for a sell short entry model.  That's it.  The Red Line is momentum based and the Green Line comes down into zones to show the "When" to look to enter. We look for this all day to occur and they occur often enough to wait for them. We always say if there is just ONE model to follow, this could be the one.  https://cycletraderpro.com Video
Read more

Price "FILL" Advantage

Image
Cycle Trader Pro's trade models suggest to never go all in on your first entry level and at the same time reach for the first fill to start the trade. The first fill and how you find this price level is key to your exit price level(s) and the 2nd entry. If you have a contract limit of 20 contracts for example. The the models suggest to start with 10% of you set limits, and at the same time use the same number of contracts at each consecutive entry level. 
Read more

Consecutive Closes Trade Model

Image
Consecutive Closes - The Consecutive Closes model suggests that the market will go 3 to 4+ consecutive close in a row before there is an an opposite close, or reversal in the trend.   The model does not mean the current trend is over; it suggest a setback is anticipated.  Current Bar -  The current bar is counted into the Consecutive Closes model.  Meaning, if there were 3 green bars up with up closes. and the current bar is also above it's opener, this would count as bar 4.  But, if the current bar closes below it's opening, then the past view would have been 3 consecutive closes up, then the reversal bar.  How to trade Consecutive Closes?  This model is also known as Ops Up / Ops Down, but once you get to 3 to 4 plus bars, you can expect some type of set back. Keep in mind this does not mean the move is over, just a set back. https://cycletraderpro.com  
Read more