越野系统 (Off Road System)

Off Road System.

This thread is intended, in principle, for intraday trader and aims humbly cover most market conditions, if possible.
The idea of opening this thread has its origin in those days when the market seems to wander, and we do not know how to treat it.
This means that the system was created to solve indefinite markets, but also serves to well-defined markets. Hence the name Off Road System.


To try to systematize the intraday market condition, we will use a set of tools.

M5-M1 timeframe where will work. Timeframes higher, to see the forest.
Exponential Moving Average (EMA 233), (SMMA 150, also works well)
Bollinger Bands 50 periods.
A momentum indicator, which you prefer. For example, AWESOME, RSI or Stochastic. The trader decides what is best at all times.
Volume (optional, since it depends on the broker)
Guidelines (or trendlines) accompanying waves during trading.

All this, together with the general knowledge of market, news, sessions, support and resistance, patterns, waves, price action, etc ...
In general, the moments of greater liquidity and volatility should be preferred for trading. Probably almost always be the London session, but sometimes we can find good moves in the Asian session. It is the job of deciding when liquidity trader and rank, for fishing pips. We shall see examples.

The basic template is the following.
The position and slope of moving averages, give us a first idea of the market condition.

Example clear trend. The EMA233 and SMA50 have a clear slope and the slow moving average is outside the bollinger bands.

Example flat trend. Moving averages are nearly flat, ande EMA233 is into Bollinger Bands.

Example indefinite trend. EMA233 loses tilt and penetrates Bollinger Bands. SMA 50 frequently changes its direction. The figure is a complex wave form.


More market conditions probably be variants of these three, that we will see as they arise.

The slow moving average and simple moving average of bollinger, use them to determine the market condition at a glance.
Bollinger bands, their bands, into indefinite markets, are the areas where we pay more attention.
Momentum indicators, or oscillators, we will prevent the end of a wave, at a given degree. And they give us another perspective of the price action.
The volume gives an idea of liquidity, and their changes warn us that something is happening (eg volume stop, confirmation ruptures, confirmation reverses).
The guidelines help us, along with the oscillators, the change in direction of a wave at a given grade. They are very important and we have to practice for use with the highest probability of success.

Do not forget the Big Picture, and analysis multitimeframe.

The completely flat situations, or totally trend will treat them as such, by the price action, and with the help of the same template. Trends, will learn to recognize candlestick patterns or chartists to recognize the end.

This is an example of undefined market, and how could treat it, using bands, guidelines, oscillator, and candlestick patterns.


General Rules.-

System rules are subject to market conditions at any given time. For now, give a generalized guidelines for each market condition. Along the thread, if necessary go into more specific formulas.

Seek inputs for the trend reversals within the Bollinger Bands or near the SMA 50, or in the Bollinger Band, opposite to the trend, if the correction is larger, using oscillators, trendlines, or candlestick patterns, or patterns of waves.

Sideways markets. Reversals seek outside Bollinger Bands, using any of the tools at our disposal (oscillators, trendlines, candlestick patterns or waves).

Undefined markets. We will treat as trading ranges (Sideways markets), but with special care.

The three market conditions described here are always subject to the Big Picture and the general prior plan.

The stops loss are discretionary depending on market volatility and the Big Picture, but it must always use.

We will see examples of this, as they arise.

For the ORS (Off Road System), the best trades are performed as follows, prior establishment of market condition:

Against the trend; reverse pattern of the same grade.

; retracement within bollinger bands (preferably). Clear break is valid.

Lateral trend and trend indefinitely; trading from bollinger bands.

All, at waves same degree.

PS: any help would be appreciated in language, if necessary change any word or phrase.