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[SwingTrader]

Multiple Timeframe Trading System (MTT)

CHART CONFIGURATION :

Use JCharts (Plus-Premium) to display two charts side-by-side. One with higher timeframe (15 mins) and the other with lower timeframe (5 mins).

Higher Timeframe Indicators : WMA(3), SMA(8 ), STS(8,3,3). View preferably OHLC chart so WMA/SMA are clearly visible (with candles the EMA/SMA may not be too clear).

Lower Timeframe Indicators : WMA(5), SMA(13), CCI(3). View preferably OHLC chart so WMA/SMA are clearly visible (with candles the WMA/SMA may not be too clear).

SETUPS (HIGHER TIMEFRAME) :

The following buy/sell setups are pre-conditions that need to be satisfied on the higher timeframe (15 mins) before you start looking for buy/sell signals on lower timeframe (5 mins). These are not the final buy/sell signals, buy/sell signals will be taken from lower timeframe :

LONG SETUP :

REGULAR TRADES : WMA is above SMA

REVERSAL TRADES : STS is at or below 30

SHORT SETUP :

REGULAR TRADES : WMA is below SMA

REVERSAL TRADES : STS is at or above 70

SIGNALS / TRADE TRIGGERS (LOWER TIMEFRAME) :

The following signals can be taken ONLY after one of the long/short setup conditions has been satisfied first.

LONG SIGNAL (any one of the following signal is enough to initiate long):

FOR REGULAR LONG TRADES:

1. Let the CCI drop down to -100. After this once CCI closes above 0 (after the bar is complete only) go long. (this trigger can be used for re-entries also if entry is missed)

2. A CLOSE above a recent swing high that is ABOVE both WMA & SMA. The high of the swing high must be above both WMA & SMA.

FOR REVERSAL LONG TRADES (one of the below, whichever is earlier) :

1. Let the WMA close above SMA.

2. A close above the most recent swing high that is above both moving averages OR if the swing high is not above both moving averages then the close of the bar that breaks the swing high must be above both moving averages.

SHORT SIGNAL (any one of the following signal is enough to initiate short):

FOR REGULAR SHORT TRADES:

1. Let the CCI rise to +100. After this once CCI closes below 0 (after the bar is complete only) go short. (this trigger can be used for re-entries also if entry is missed)

2. A CLOSE below a recent swing low that is BELOW both WMA & SMA. The low of the swing low must be below both WMA & SMA.

FOR REVERSAL SHORT TRADES (one of the below, whichever is earlier):

1. Let WMA close below SMA.

2. A close below the most recent swing low that is below both moving averages OR if the swing low is not below both moving averages then the close of the bar that breaks the swing low must be below both moving averages.

INITIAL STOP :

For LONGs : Just below the most recent swing low.

Fort SHORTs : Just above the most recent swing high.

TRAILING STOP :

For Longs : Move stop above just below swing lows as new higher swing lows form above one's trade entry point.

For Shorts : Move stop below just above swing highs as new lower swing highs form below one's trade entry point.

NEGATION OF A REVERSAL TRADE :

A long reversal trade gets negated if there is a close below a swing low that is below both the moving averages on lower timeframe. This is automatically a short trigger.

A short reversal trade gets negated if there is a close above a swing high that is above both the moving averages on lower timeframe. This is automatically a long trigger.

Swing high/low being above/below moving averages means that its high/low must be above/below both moving averages.

NOTE: PLEASE POST COMMENTS/SUGGESTIONS/QUESTIONS IN THE MTT DISCUSSION TOPIC ONLY. DO NOT POST ANYTHING HERE.