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The MA Breakout Based On ICI and Momentum in FX-2

Vnj

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Bogdan Nastase
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227 views

The MA Breakout Based On ICI and Momentum in FX-2

Vnj

Uploaded by

Bogdan Nastase
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The MA Breakout Based on ICI and

momentum in FX
understanding movement and setups
The setups will first focus on the Stocks side, then dive deeper into the FX side, as
the Stock market setups are cleaner and visually appealing.

The context is built on the higher Time Frame. We usually see a huge impulse, followed
by sideways continuation. Basically what Mentfx means in ICI impulse correction
impulse.
Many times price undergoes an accumulation schematic, and typically after stocks
accumulate, price doesn't usually go back into the SND zones that were left behind. If
stocks do go for these zones, it is not considered a momentum stock and could be
considered a weak stock.
Price usually shows strength when it surfs the moving averages, especially when it taps
the MA and bounces off it. Once price stalls, consolidates, and volume shows an average
drop, we should start to take notice and follow price.
The high probability setup usually looks as follows:
1. MA being respected along the push
2. Tightening of price and the MAs 10 and 20, or even the 50 for longer tightening
3. A drop in volume
4. A breakout of the range with high volume
The setup is usually present but doesn't always have to be perfect
Forex
Building context is still based on the MentFX Methodology, nothing is changed
while building the context on the FX Side. Good markets usually
Accumulates/Distributes on the HTF context and we usually follow the inside
movements.
The system i use for myself I would need to validate multiple things.
HTF context is being build up nicely with clean movement from the SNDs a Trending
market is the key
I would like to the medium timeframe to align with the HTF before hopping on and
jumping on LTF
I Usually trade the 15s to 5min breakouts. and I do have specific rules for jumping into
sub 5min.
first rule Avoid Catalysts or news, hopping on LTF on catalysts is key for disaster
I would prefer if these setups occur on a liquid pair session ex: EU GU london session or
NY session. but this rule is not set in stone.
I would like market to show strength and trends. once it shows these conditions I would
wait for 10MA 20MA and 50MA to start pointing to the up.
Breakout Rules are constantly changing but the concept is 100% similar to Ment's ICI
trading
I would wait for price to go side way exactly like stocks idea. goes sideway and wait for
20MA to catch up and tighten with the 10ma.
if price is strong this condition would appear in the 30s if it is okay it would appear on
the 1m with a clean breakout
After a huge push price usually goes side way for longer. here I use the 10MA of the 5m
on all my charts the white line

SSC (Confirm Based on ICI MA Breakout)


Structure
context viewing
when to avoid certain zones
Supply and demand zones
Daily>Hourly
2.0 ranges
MA confirm
after confirming Structure and SND zones, wait for to create a Double-MB on your
confirm timeframe, which helps to increase win rate probability,
wait for price to Surf the 10MA and 20MA, usually a good indication of a strong
participation, is the tap of the 5m 10MA and the reaction of price, it rarely occurs
but once strong trend shows it will do that, a great indication.
A high volume session for the pair you following example GBPUSD is nice on
London and New York, Asian session can be traded but on the 1m and 5m It would
be stale.

Entry placement and Stop-loss


After aligning all the three main stuff which is SSC (but our confirm is the MA and the
DMB) you can look at it as a form of a triple M, where price doesn't have to go back to
mb1 or mb2 to continue trending.
1m - 5m entry placement
I would wait for the 10MA and the 20MA to compress, sometimes I like to have the
5m 10MA the white line to be static to the chart, 5min and below. helps with
confidence a tap and go is a great indication of a strong trend, there the 1-4m MAs
are tighter. as the examples follow
Management for me personally as follows 3RR 50%, sometimes I trail, with the 5min 20
MA if the trend is strong or we are early in a session, or take tp2 at 6RR 50% and trail
with the same management, usually based on my testing price stalls and takes few
sessions to develops and continue the trend, managing risk and trades are different to
everyone.
some stats about the system, usually if these exact rules are followed win rate would
vary from 50% to 65%

This is a conversation with DavidFX on the MA-Ideas


Channel
Setups from Live Trading and Backtests
PS "Thank You Anton"

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