15 Min 200 MA Strategy

[BillTainter]

200 MA on 15min chart
CHARTS:
1 HOUR
10 MINUTE (15 MIN if 10 MIN is not available-rules are all the same)
INDICATORS:
200MA
SLOW STOCHASTICS (14,5,5)
================================
TREND DEFINED
-UP TREND
1HR chart: Price is ABOVE 200MA
10MIN chart: Price is ABOVE 200MA
*NOTE - NEVER ENTER SHORT TRADE IF THESE TWO CONDITIONS EXIST
LONG Criteria:
1-Price is ABOVE 200MA on 1HR chart AND 10/15MIN chart (*Note: Price must be ABOVE 200MA on BOTH charts)
2-Price on 10/15MIN chart retraces DOWN from above 200MA to within 20 pips of 200MA without touching it
3-Stochastics OVERSOLD (at or near 20)
4-Draw Trendline of pivot HIGHS FALLING to 200MA
5-Candle closes ABOVE trendline.
ENTRY:
BUY next candle
STOP :
Place stop 10pips BELOW the 200 MA at the Pivot Low candle
TARGETS:
Run Fibs Projections from swing LOW near 200MA up and left to the previous Pivot HIGH
Use Fib extensions of 127.2% for TP1, 161.8% for TP2

===============================
TREND DEFINED
-DOWN TREND
1HR chart: Price is BELOW 200MA
10MIN chart: Price is BELOW 200MA
*NOTE - NEVER ENTER LONG TRADE IF THESE TWO CONDITIONS EXIST
========================
SHORT Criteria:
1-Price is BELOW 200MA on 1HR chart AND 10/15MIN chart (*Note: Price must be BELOW 200MA on BOTH charts)
2-Price on 10/15MIN chart retraces UP from below 200M to within 20 pips of 200MA without touching it
3-Stochastics OVERBOUGHT (at or near 80)
4-Draw Trendline plotted off pivot LOWS RISING to 200MA
5-Candle closes BELOW trendline.
ENTRY:
SELL Short next candle
STOP :
Place stop 10pips ABOVE the 200 MA at the Pivot High candle
TARGETS:
Run Fibs Projections from the swing HIGH near 200MA down and left to previous swing LOW
Use Fib extensions of 127.2% for TP1, 161.8% for TP2
==========================================

[Sunil]

Hi BillTainter,
First of all, I should thank you, for describing the technique so precisely....step-by-step. It will make it easier for everyone to use it properly.
With reference to your questions -
a.) If price is not within 20 points of the 200MA, then we don't take the trade. The rules are made for a purpose and one should never compromise with the setup conditions.
The logic is that if price is not within 20 points, then at some time it is expected to reach there, since the 200MA acts like a magnet. Hence we wait for a better entry level.
If, in the process, price does not come within 20 points, and resumes the trend...well, we have missed a trade. But there will be more opportunities and I would rather take a trade with a higher probability of success, than guess the outcome of a trade.
Remember, the 2 entry conditions have to be fulfilled together - Price within 20 points of the 200MA and the stochastic overbought/oversold...at the same time.
b.) If price goes past the 200MA, then the trade is negated. The 200MA is a strong level of support/resistance and if price closes above/below it, then the level has been breached. So, we don't take the trade.
Price may pull back, but now we are not sure whether it will continue or not.
I hope this answers your questions.
Sunil.

[Goshen]

Thanks Bill for your notes/questions, and thanks too Sunil. I have updated my trading notes and trying to catch up on all these overwhelming information.

George Olu