TREND-O-LOVE - Forex Professional Visual System

- Any currency pair, commodities, CFDs, futures;

- Fast and volatile time frame;

- Time period: from European market opening to American market closure;

- Any trading experience;

- No hesitation - absolutely-defined signals;

- No amorphous future prediction, only real help to define the trend direction, strength, age;

- Does not depend on the past effectiveness, market data, will work with any market;

- Gives clear understanding of what, why when you do it.

APPROACH:

    The system has been developped for over 6 months with the meticulous market analysis. It doesn't need any changes or improvements. It is completely optimized for trading, there is no need to change any indicators or their parameter values. We recommend to trade with the help of the system on demo account unless and until you feel all the indicators and the system as a whole.

    This is not Grail for quick enrichment at all. In order to learn how to trade successfully with the help of this system you would need to make efforts since system's design is quite professional.

    Trend-O-Love - is the system that loves to follow the trend. If you have ever heard the proverb "Trend - is your friend" this system will show you the mechanics of these words. Its unique market approach will give you a good understanding of the market movements and let you see what doesn't take place due to occasion but because of the price movement structure. With the following accurate system rules you will get a clearer picture of the market and you will start reaping the financial fruits.

    Trend-O-Love - is unique because it doesn't try to predict the future and this is an instrument that helps you to recognize the trend and move in the right flow. The system will broaden your outlook by keeping you abreast of the economic events and by helping to clear up experts opinions and indicators values. In contrast to majority of the other trend-following systems Trend-O-Love doesn't depend on the past effectivenes, market data and will work with any market. The formulas of the system are not based on the pattern recognition and random choice of indicators but its algorithm is designed to formalize clear understanding and time selection of the market.

    The system was designed not only for profitable trading but also to give traders a clearer picture of what they do and why they do this. The majority of commercial and public systems consist only of indicators and does not give a clear understanding of the price movement by giving signals only without explanation why the trader get the signal and why should the trader open a position. With this approach a trader won't understand the system and consequently won't get the sustainable profit.

    Trend-O-Love defines the entries and exits well and explains the trader why he entered the market!

HOW DOES IT WORK:

The system consists of the following elements:

1. Signal arrows;
2. MACD Histogram (advanced);
3. Volatility Channel;
4. Laguerre;
5. Slope Direction Line;
6. Pivots;
7. Darryl Guppy Multiple Moving Averages (GMMA)

Signal Arrows
    Signal arrows are generated while 2 Exponential Moving Averages cross. Fast EMA and slow EMA.

MACD Histogram
    This advanced MACD Histogram ensures that signals won't be delayed.

Volatility Channel
    This is the technique that measures volatility. It consists of the EMA built on the maximums and EMA built on the minimums.

Laguerre
    This is advanced form of the RSI indicator. Laguerre modifies the signals so that low frequency components will be much more delayed than high frequency components. Thus the data of the lattest bar has larger weight than all the former data like exponential moving average.

Slope Direction Line
    The line that measure the slope of the trend and its direction. Direction is red for the descending trend and blue for the ascending trend.

Pivots
    Traders usually use pivots in order to find intraday levels of support/resistance. Pivots are figured out by the simple calculation that uses open, close,  high, low of the previous day. It is known that if the price is higher than the central pivot line the market is bullish, otherwise it's bearish. When the price is lower than the support/resistance line and then it crosses it bottom-up - this is a signal to buy (Vice versa - to sell). The most common way of using pivot levels is to use them as the control points of market entry if your favourite indicators predict the same direction. Market makers may use pivots in order to make the price move between the levels to tempt the buyers and the sellers to make transactions. It is easily noticed in the days of low volume when the price fluctuates between the pivots.

    There are many ways of pivot calculation and its support/resistance levels. But the traditional method is the following:

Central pivot = (H + L + C)/3
First support = (2 * Pivot) -  H
First resistance = (2 * Pivot) - L
Second support = Pivot - (H - L)
Second resistance = Pivot + (H - L)
 

In our system pivots are used for the exit only. You don't have to make any calculations, everything is automated.

Guppy Multiple Moving Averages GMMA.
    Guppy MMA - is a combination of the moving averages that is optimized to make the picture more smooth and accurate.

    The most common error of the simple systems based on the cross of the moving averages is that they can be very changeable when the market is not in the trend. At the same time using these systems the trader doesn't have any directions for the current trend. Will the trend continue or is it going to the end? Guppy MMA will answer all these questions and will let you feel the reason why you opened position so that you could improve your trading skills.

    The signals that are given by this system are worth to be heard!

    Originally this method was created by Darryl Guppy and it consists of 6 short EMAs for the short-term averages (traders) and 5 "long" EMAs for the long-term averages (investors).

    The time frame is not really important for these indicators, we use M5 for our Trend-O-Love system but Guppy can be used on any time frames. It works with the same accuracy. In this advanced technique we consider 5 different colors for different types of traders. When you trade it's crucial to know the general trend, so you need to know what the other traders do. Using color coding we are able to define what other market participants do and take better trading decisions.

1. Yellow - short-term traders (Mainly shoot for fast pips, they are not interested in maintaining position);
2. Orange - short-term traders (Maintain positions a bit longer than Yellow);
3. Blue - mid-term traders (Generally this are swing traders);
4. Green - long-term traders (They will maintain position longer than short- and mid-term traders);
5. Red - long-term traders or investors (Maintain positions longer than anybody).

    MMA shows the relationship between the short-term and long-term traders. Short-term traders (Yellow and Orange) try the main trend's strength. Since they are looking for the fast profit they move in/out of the market really quickly. On the other hand, investors do not fuss, but for the trend formation investors' support (Red, Green) is necessary.

    As a trader who follows the trend you will be finding the situations in which all the traders come to the common decision (Yellow, Orange, Blue, Green and Red). If all the traders look at the same side now, it will be further trade's direction. Any disagreement means that you are not trading at the moment. By interpreting MMA correctly, you will be able to identify the trend, its possible exhaustion and changes.

Bottom line - you will be able to make better decisions!

MARKET ENTRY/EXIT RULES

Long positions - BUY:


Entry:

1. GREEN signal arrow up;
2. GREEN lines should be above RED lines! 
3. GREEN, RED and YELLOW lines should be directed upwards together. All the lines should be moving in the same direction;
4. LAGUERRE indicator line should cross 0.15 level bottom-up;
5. MACD: This is important! MACD should be above 0.

Stop-Loss:

1. 5 pips (+ spread!) below the LOW level of the current bar;
2. Alternative stop-loss: 20 pips for the default pairs and 25 pips for more volatile pairs as GBP and crosses. Choose stop-loss method that you like more.

Exit:

1. Having open position you may close the first half of the lot on the 1st pivot and let the left half of the lot trade until the Slope Direction becomes RED.
2. Alternative exit: You may choose your own method and close position on the pivots or when the Slope Direction becomes red. Or when the price (new bar) opens on the other side of the Volatility Channel.

Short positions - SELL:

Entry:

1. RED signal arrow;
2. GREEN lines should be below RED lines! GREEN, RED and YELLOW lines should be directed downward together;
3. LAGUERRE indicator line should cross 0.75 level top-down;
4. MACD: This is important! MACD should be below 0;

Stop-Loss:

1. 5 pips (+ spread) above HIGH of the current bar;
2. Alternative stop-loss: 20 pips for the default pairs and 25 pips for the volatile pairs as GBP and crosses. Select yours.

Exit:

1. You may close a half of the position on the 1st Pivot and let another half reach the 2nd Pivot or till Slope Direction Line becomes BLUE.
2. Alternative Exit: You may also close position when the price (Bars) will open from the other side of the Volatility Channel.