The Chimp`s "Forex Trades"

http://www.traderslaboratory.com/forums/forex-trading-laboratory/2698-chimp-s-forex-
trades.html

Here I start a new thread where I aim to present a very simplified version of what I am
doing on forex at this point...

It is a very simplified version of all what I had researched so far on vmar icons and also
forex scalps with vma`s...

This thread will show how we can "simplify" things to a point where trading can become
a very fun silly game...

I know that behind this simplicity there is a great extent of complexity, wich I believe we
had been quite involved on the past weeks BUT lets use the ilustration of a car... This will
be a BMW series 6 coupe you can check it here
http://www.bmw.com/com/en/newvehicle...roduction.html think about all the engineers
that worked designing the engine, each complex part of the engine plus the great features
of confort and design that make it an unique experience to drive this machine...

hours and hours of design, discussion, collaboration, interaction, chief orders, employes
suggestions, more work, headaches, conflicts of interest on sectors of designs, comes and
goes... work work work... and finally you got a BMW series 6 ready for you.. ready to
take out of the cars dealers room, impecable, you had been trading quite, you deserve it,
you are anxious to drive this horse... what you do when you purchase this car ? sit down,
turn the key on , move shift to D, press accelerator and break... thats it... simple
experience, joyfull one, pure pleasure... you ARE NOT thinking on the complex
engineering behind what you are doing, you are not complicated about anything... you are
relaxed, hear you favorite cd and enjoy the ride...

Now, is the car doing complex things ? YES, he is... are you doing complex things ? NO
you arent...

thats how this trading aproach is being treated, there is a complex engineering behind it,
there is a great VMA engine behind it, lots of testings and designs into how we can define
pure trend, pure price action, pure timing...

We wanted clear and easy setups, no brainers... we wanted a clean chart, no clotted
charts... clear entries, clear exits... CLEAR everything...

Well, after fulling a lot with vma`s thanks to the great programing job from Bruce
(Pyenner) and combining some of the chimp`s ideas, plus our first vmar`s experiences
now we come to a HIPER SIMPLIFIED version of how we can use this intrinsic complex
tools in a very simple way...

I will get a little bit off from the Rainbow concepts here... as I will only use three lines on

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a chart, but not any common line... the best of the best in vma`s... plus a very nice clean
oscillator named after the happy chimp...

Keep tuned as the chimp will take some cofee and continue with this new and exiting
thread... cheers Walter.
Re: The Chimp`s "Forex Trades"

I will get started with trend...

We need to have a clear trend definition in order to be confident to take any trade, be it
trend or countertrend trade...

I will be using a 5 min chart and a 1 min chart for this aproach...

The 5 min chart help us to see the big picture, the 1 min takes us to the "specifics" of our
trade...

So I will start with the 5 min chart showing how we determine trend there...

My 5 min chart its very simple, on the price pane we only have 3 lines...

This three lines are :

adxvma6_16 bar (40) (blue)

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tlomi non lag ma (9) (yellow)

Now, we have a trend definition acording to how this lines are alligned between them...

The allignment will tell us the quality of our trend...

We will have NET and REFRESH quality of trend..

NET = all lines large, medium and small alligned on the trend direction..

REFRESH = small (yellow) line between medium and large lines, wich means that trend
may be refreshing to the axis line (large line) or eventually it will resume net trend...

This organization its key to keep us simplified... continue on nest post... cheers Walter.
Now I will add another ingredient to our aproach...

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Market moves in cycles, its like breathing... you load your lungs with air, and at certain
point its inevitable, you will be releasing air from your lungs... same with market he
makes small cycles inside biger cycles and so on...

You can choose wich cyles you want to trade, will they be little, medium, large ones...
any of them... for that I am a believer that Oscillators help us to see the detrended
presentation of cycles... cycles get plotted very easy on an oscillator... and even better if
its a Chimp Oscillator

Some people developed alergy to oscillators, thats because they wanted to use them on
the wrong aplication... for example, an oscillator will not show you so good a trend
definition as we have with vma`s on our price pane... but YES they will clearly show you
the market breathing (cycles)... as the market comes and goes... being able to detect
where the next move will be is very important.. and oscillators can help us a lot on this...

here we have the complete 5 min chart for this aproach, it has the three lines above and a
chimp2-1 oscillator with inputs 2.5-2-1-2 and he has a gentle signal line wich is a sma 4
of the chimp oscillator...

This indicators had been developed by Bruce (Pyenner) on this thread

What the oscillator is clearly showing, with very small noise and at the same time on a

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quite leading way, is the points of inflection from a certain measure of cycles on the
market...

I can put a smaller setting and you will probably see the smaller cycles inside this first
ones... true is if I create a 1 hour chart and I put this same oscillator, he will show me the
bigger cycles that would contain this ones...

But madness its not necesary for trading... we need to keep things simple and we need the
exact correct information to get us trading, no more, no less...

So this chimp oscillator will show us the cycles we want to trade...

on the next post let me explain where do cycles fit with market inflections and how
inflections happen to be in a centrifugal or centripetal context.. ahahaah... cheers The
Chimp.
Re: The Chimp`s "Forex Trades"

Now the market works on this fashion :

move-inflection-move-inflection-move-inflection etc etc...

sounds silly uhu ?..

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he is permanently doing that... you look a chart and its that...

now basicly trades should be taken during the inflections, not the moves...
so a trader has this task, spot the clean inflection itself, wich normally thats no big deal of
a task... we normally call that : Timing.

NOW an even more excellent task he has to do is to understand to what context this
inflections respond too... where is this Inflection situated on the market stage... here is
where the trader will excell to understand what he is doing and why he is doing such a
trade...

Here The Chimp will facilitate a cheat graph where he basicly is able to see all the types
of trades that come to happen in a given Stage of the market...

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you will notice here that he organizes the market arround an axis with centrifugal and
centripetal action in relation to that axis...

We saw previously on our trend definition how our tools on the price pane (three lines)
help us to determine how we are in relation to the axis...

Now... coffee please...

Ok... I continue here...

We have cycles that happen to start and end on inflections points... this cycles/inflections
are clearly shown by a clean oscillator...

NOW... this inflections happen on a clear context where we can determine if we are about
to take centrifugal or centripetal action in relation to the axis...

On the other hand we have a series of setups clearly designed for each given context...

Lets start with the Centrifugal context setups .. here we expect to see the price action
traveling to the outside extreme from the axis... I normally call this trend trades because
the movement is on the same direction of the side we are of the axis... Example: below
axis, going down or above axis going up...

On this Centrifugal context the chimp is used to take two types of setups :

_Icon

_Continuation

very simple, this is the traditional trend trade where you buy the dips on an uptrend, sell
the rallies on a downtrend... the icon actually is the "first" continuation after a cross of the
axis... but basicly we take inflections of cycles on the direction of the trend on a
Centrifugal action...

I asume you guys are somehow already familiar with the icon concept, in case of needing
more info on it I would suggest the following readings
http://www.traderslaboratory.com/for...rade-2147.html
http://www.traderslaboratory.com/for...es-2364-9.html

So lets see an example today of some centrifugal setups (Icon and Continuation ) that
gave us this plays from the axis to the outside... at the clearness of our vma`s trend
context lines.. and with the clear view of the cycles thru our chimp oscillator...

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here we see the price action croses the axis and after that the following continuations start
to make their clear inflections in order to fuel a very nice centrifugal action... cheers The
Chimp.
Re: The Chimp`s "Forex Trades"

Now I will focus today on the setups we may have on this aproach...

I tried to introduce some preliminar concepts, so you guys can understand where my
ideas are making pivot... I hope I dont confuse anyone, maybe re-reading its the way to
get there...

1rst we have an axis (blue line)... from that axis we expect Centrifugal Action and
Centripetal Action... so when we have certain action we get the following setups for that
action :

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Once again this chart illustrates the setups that fit on certain type of actions :

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So FIRST you need to understand if you are in Centrifugal or Centripetal Action...
interestingly there is certain "anticipation" of this actions from our part... BUT thanks to
our Three lines (blue, green,yellow) we can make that anticipation or discernment of
potential action more easy...

When a NET trend is alligned on the lines, we normally will say we have Centrifugal
action in course... when a REFRESH trend is alligned then we may start thinking that a
Centripetal action may come into place...

You see how this informations start to fit all together ?

So if you get to understand NET and REFRESH trends with our simple clean lines, you
will be able to start training you eye to anticipate Centrifugal and Centripetal action....
and once you got that you will start to look for the Setups that fit on each of this actions...

May sound complex, but once you grasp the idea behind it and take the bmw out of the
factory should you have a very simple trading aproach...

continue on next post.... cheers The Chimp

There is a saying that a chart talks more than a thousand words...

so I prepared some charts here to try to express somehow what we are talking about here
in terms of setuping the trades on 5 min chart...

its interesting too look at them, and at some point you start asking, isnt this the same
chart I already saw ?... cheers Walter.
Attached Thumbnails

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Re: The Chimp`s "Forex Trades"

So far at this point we can say that we have a presentation of how a trade would setup for
us...

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On the clean context of our 5 min chart with our three lines (2 of them are vma`s ) and
our clean oscillator, we have the tools to understand if the market condition is or will be
centrifugal or centripetal in relation to the axis... and from there on we are ready to
aproach the diferent setups we may have on each of this contexts...

This task I call it : SETUPING you are looking for setups...

It is the first task you will make on the entire process...

NOW... once you see a setup on your 5 min chart, here comes the great challenge
: TIMING when will you take the trade ?

We talked about inflections... thats where the cycles, end and start, thats the place to take

our entries... BUT there is a big problem called NOISE... and if you
observed the oscillator, most probably you already criticized how many false signal he
gives.... well yes, thats absolutely true, thats why I dont use the oscillator for timing
purposes... I prefer to just use him to tell me if a cycle may be ready for an inflection...

So how can we get good timing ? vma`s is the good answer...

continue on next post... cheers The Chimp.

Timing... the stumbling stone of many traders... here is where noise does his work to put
you out of bussiness... lets deal with that on this next posts... and see how Vma`s gives us
a great unprecedented edge...

Lets asume you already have somehow a clear understanding of your Setuping process...
you grasped the idea of NET and REFRESH trends with our three lines, now you are able
to anticipate Centrifugal and Centripetal action... and you are ready to play some Setups
on this contexts like Icon and Continuation on Centrifugal context, as M`s and Refresh on
Centripetal context...

You understanded that the market behaves on cycles waves... where we have inflections
and moves, and you understand that you will have to time your entries on the inflections
of this cycles...

NOW... how can I get a clean optimized signal ?...

well, we have to revisit the blessings of Vma...

Normally entry signals are plagued with whipsaws... the reason for that is very simple,
there is a great amount of undesired sub-cycles inside the cycle that really interests me...
sometimes this sub-cycles do have a level of volatility that exceeds "my" cycle`s
volatility and hence gives false signals...

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the graph I originally presented when I discovered the power of Vma`s on my epiphany
was this :

you can see that other indicators DO plot the noise of the undesired sub-cycles... but
Vma`s would absorb them and become horizontal... here the birth of the Horizontal
Effect (HE)... in consecuence we get less amount of "signals" using the vma`s...

Thats the way that vma`s have the abilty to supress all the undesired noise and bring the
information down to the basic and really necesary one to time our trades... the final result
is a clean line that gives very little false signals and interestingly it still leads (no lag)...
on other indicators you may be able to work out a clean plotting paying a very high price
of lag... not much with vma`s...

So with this edge on our side thanks to vma`s and thanks to the unresting programing

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work from Bruce (Pyenner)... we are able to aim "Superb Timing"...

continue after a good cup of cofee jejeje... cheers The Chimp.

Re: The Chimp`s "Forex Trades"

Multiple Time-framing is a science not really much understanded by most traders... the
croud gets confused with so many charts, many people tend to get waco with this
multiple charts...

The fact is that the information is only ONE... how much compressed it is or not in its
plotting process its another bussiness...

Drummond in his presentations talks about the 1/5th scale as a good way of compressing
or decompressing data...

Why decompressing data ? for example so far I presented 5 min charts, my 1/5th
decompression of data would be 1 min... why ?

Thru decompression of data we can have several advantages like : more data series to
calculate on, get smoother results thru more data series averaged on an x algorithm... we
can get more specific spots for our timing...

SO... looking at a 1/5th 1 min decompressed chart does not mean I am not looking at the
5 min chart data... its the same data only its decompressed, so I can take
advantage of that decompression...

Thats why I insist that the spirit of my trades are always on the 5 min chart... but my
"specifics" are plotted on a 1 min chart...
Re: The Chimp`s "Forex Trades"

Now, let me introduce to you my 1 min chart... it has only two lines, no oscillators here...
it cant get any simpler...

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Simplicity and Optimization at its MAX

you have here the power of clean simple vma`s... very little whipsaws between them...
they lead quite well thanks to the decompression of data... giving you very good specific
spots to time your trades... they also have the blessing of keeping you inside a trade if you
wish...

So many advantages... interesting... a good evolution process has to lead into real simple
final products... looks like a kindergarten chart... thought he belongs to the future
millonaire generation that grasps its power

cheers The Chimp.

So let me give an example of how we can do our "Setuping" on 5 min and our "Timing"
on 1 min...

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On this simple example that just happened, you can notice how a centrifugal action took
place as we had a NET Up Trend and we got an Icon setup to trade there... on the 1 min
chart our two vma lines gave us a clean entry...

Simple as that... I dont say this is perfect, but it really works very clean

Cheers The Chimp.

Here is a video trying to explain what to read on this oscillator...

Basicly he should be a visual aid to make more easy the understanding of wich wave we
are riding on the moment and what to expect next for an inflection.... he is NOT used for
timing, as the timing is done on the 1 min chart with our super vma`s... he only help us
like a compass to tell us on wich wave swing we are riding, be it up or down... hope this
brings more light on the issue.. cheers Walter.
e: The Chimp`s "Forex Trades"

About the blue line HE... I am actually using it as an axis... (only that).. not measuring
any "laddering effect" on the blue one, as it is too heavy of a line to measure any
direction actually...

Now the green line laddering, yes its very good for confirmations of directions...

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I start too look more seriously this pair Eur/Jpy... thanks Sun.. cheers Walter.
Re: The Chimp`s "Forex Trades"

If we had to over-simplify the "Setuping" vision on the 5 min chart we could reduce it to
this :

here you can see the relationship between the three lines...

the yellow line doesnt need to be perfectly contained by the green one, there can be some
error margin there... like this :

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Let me show some examples on next post...
Re: The Chimp`s "Forex Trades"

That simplification contains all the concetps of :

NET vs REFRESH Trend..

Centrifugal vs Centripetal Action...

All setups : Icon, Continuation, M`s (Lazy, Equal and False Break), Refresh... at the end
respond to that morfology...

So lets say you understood how all the concepts work together but you want a simple
graph on your mind that will resume all does concepts... well the graph on the previous
post would do it...

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Let me attach here some examples... they look very nice on Eur/Jpy...

The interpretation of my drawings is :

UP Arrow = Long
Down Arrow = Short

Green Arrow = Centrifugal Setup

All this chart show this simplified "setupings" on 5 min... cheers Walter.

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Re: The Chimp`s "Forex Trades"

I will try to answer Cattus :

>>>What does Refresh mean for you in spanish? Refrescar, Retomar, Reanudar,

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Restaurar?>>>

It means Refrescar, con la idea de "volver a"...

>>>Why do you use Refresh to talk about tendency and to talk about an action?
Sometimes I confuse with these terms. >>>

We basicly here have two trend definitions, a centrifugal wich travels to the outside of the
axis and a centripetal that travels back to the axis... So the Refresh Action ( " la accion de
volver hacia" ) its the centripetal trend back to the axis..

>>>Talking about timeframes. On this method (or system), do you see timeframes greater
than 5 min? 15 min? 1 hr? Or it is not important for scalping techniques?>>>

So far as to MY scalping method 5 min does ok... now, this method can perfectly be
traded on larger time frames as well...

>>>>I remember that I read that you don't use the 1 min chart, you use a ticks chart, it is
correct? why?>>>>

On my futures trading I do scalp with tick charts, for this forex research I am using 1 min
chart for my timing, I am using mT4 (metatrader) and the smallest timeframe we got is 1
min... wich in forex does pretty well...

>>>>The SMA of the chimp2_1 is of 4 bars. Is it important for the method, or can I
change for another of 2 bars, for example?>>>

that signal line its just for estetics jejeje... no use at all... even the oscillator has a very
periferic use on the entire method, once the trader really got very used to his cycle
measures of his trade, he perfectly can trade without the oscillator... I DO NOT time my
trades with the oscillator, I use the 1 minute chart with the two vma`s...

Hope this answered some... I like this interactions cheers Walter.

Quote:
Originally Posted by walterw
As Eur/Jpy is more volatile it should probably need to adjust some inputs on the 1 min
lines.... tell you later... cheers Walter.

I got very enthusiastic with this pair today, and after Sundowner shared his chart I did 3
consecutives winners

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So thanks Sundowner for this illustration

NOW I noticed that this pair its much more volatile than Aud/Usd... so we needed more
responsive crosses on the 1 minute vma duo.. without getting any aditional noise... so I
recurred to Bruce`s Genial all inputs adxvma6test3 version and so far the inputs : 4-2-3-
2-0-0-1-0-2-100 gave me a much better yellow line the 100 line with none
color and I got a clean leading timing for EUR/Jpy

Example trades :

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so for the EUR/Jpy traders... I probably will be one... I add Indis and template for the 1
min timing chart... cheers Walter.
Re: The Chimp`s "Forex Trades"

Cattus :

The axis blue line on the 5 min chart as I use actually is heavy enough to show you waves
corresponding maybe to a 1 hour chart... so there is no need to complicate yourself
looking bigger time frames...

Now, if you are aiming to play longer moves (cycles) then its a diferent story... you will
like to setup a 1/5th relation aprox. between "setuping" chart and "timing" chart,
whatever suits more for your strategy...

for example : 30min with 5 min or 4 hour with 1 hour etc...

cheers Walter.
Re: The Chimp`s "Forex Trades"

yeap, you can perfectly trade that combination 30 min with 5min... its another lifestyle
for shure... it requires another life time schedule to follow that,(diferent sleep, less longer
happyhours distentions, etc) thats why I dont go any higher than 5 min on the setuping...

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Would be interesting if you are interested on following those timeframes to keep us
posted on how it works... nice to interact with you cattus cheers Walter.

TO WATCH SWF VIDEOS JUST USE IEXPLORERRe: The Chimp`s "Forex Trades"

Quote:
Originally Posted by nycdweller
Hi Walter W,

I'm unable to watch any of the videos psoted. I click to open and my computer will ask
what program do I want to use. What program do I need to download to watch the
videos? Do you or another forum member have a template for Ensign software by any
chance? Any suggestion on how to apply the indicators to a different software from what
you are using. Thank you.

Hi Nyc... when he ask you program, go the the list and choose IExplorer... that should
work ok...

So far we are having Mt4 and TS being covered on programing, dont know if we have
another genius for ensign... but you may want to test mt4 as it is free for forex... cheers
Walter.

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