An interesting thing happened with a recent trade I took. The chart above was a chart of the EURAUD last week. If you've been keeping up with my post then you'll remember me saying that when identifying this trade opportunity I wasn't too excited about the setup. Regardless my rules said I had to enter so I went ahead and did it.  Long story short this double top high with divergence (above) morphed into a head and shoulders top, before rolling over for target 1, then gapping over the weekend putting me close to target 2. I don't know what to call it, and honestly I don't care. I had a valid entry reason at the start and after that the rest is out of my hands. I don't mind calling it luck or anything else as long as it keeps filling the account up.  But I just found it interesting to see once pattern morph into another in front of my eyes. 
Royston Simmons
11/28/2011 14:37:13

Hi Akil,

Have you ever noticed that when price action moves away from a Moving Average (MA), price action has then to move sideways back towards the MA. If the sideways Price Action remains parallel to the MA then the trend will continue, or, if Price Action crosses the MA then the tendency is for price action to retrace. The second characteristic is demonstrated clearly in you chart of EURAUD pair

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Akil
11/28/2011 18:31:18

Hey Royston, thanks for checking out the site and leaving a comment. Before I took my course I used to do some trades based on moving averages and some other indicators. They're pretty cool. Unfortunately I'm not the biggest math wiz in the world so I was never able to find the "Best" moving average system, but I have a good friend that trades and I believe he uses a system that involves a bunch of MA's and his rules are based off of different crosses. I don't understand it but it's been working for him so I support it 100%. I always tell him I don't care how it works as long as it makes money

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Royston
11/29/2011 02:48:04

Hi Akil,

I also have a strategy that I developed and back tested during the Pro Trader Bootcamp 2.0 Course, that started at the end of march 2011. The strategy uses 2 EMAs' and a couple of indicators. The strategy has the ability to get me into a trend with a low risk entry, if I have missed a reversal/pivot, but it can also signal a reversal and uses the CTS method . I also use the Ratio System. I agree, any strategy that makes money is good enough and it usually has to fit in with that persons personality. Depending on whether a person has an analytical mind or prefers to follow a mechanical system or a mixture of both.

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