TradeStation Trend Trading Indicator and Tutorial

Indicator: Changie Moving Average
Coding Language: TS Easy Language
TradeStation Version: 8.x
TradeStation Application: Indicator
Trading Style: Trend Following
Time Frame: End of Day/During regular trading session (9:30 - 4:00 pm EST)
Source File: Hidden

This is a trend following trading setup used on 5min futures charts. (@YM, @ES etc)
This is a type of moving average we developed that reacts faster to price change and also smoother taking out the chop when comparing to all the other moving averages available in Tradestation.

***We do not cherry pick our trades, goto http://waacharts.blogspot.com/ to see our daily trades***

For tutorial purpose, we will use the @YM (mini DOW)
Red: 21 period Simple Moving Average(SMA)
Cyan: 21 period Exponential Moving Average(EMA)
Red/Blue: 21 period Changie Moving Average(CMA)
Notice both the 21 SMA & 21 EMA lack the smoothness and the lag in price change when compared to the CMA

How to use this indicator:
Since we are trading with the trend, we would now add another CMA to our 5 min chart but adjusting the input to 420 period
So now we have 2 CMA on one chart with settings of 21 for the first and 420 for the second CMA indicator.(420 CMA is the dotted red line, you can adjust the setting yourself under the format indicator tab)

We use a 24 hour chart in order to catch the post and pre market price movements. But we only trade during regular trading hours where the best trend occurs. ( regular trading hours are marked between the two vertical yellow lines)

On Friday Oct 23rd, the short signal came 5mins before market opened, therefore we missed that entire 120 point move since we had to stick to our rules. Our first trade (short) did not trigger until around 1:20 pm and had a max run-up of about 60 points before the trend signaled a cover.(marked by the green arrow) Our second trade (short) occurred around 3 pm and had a run-up of about 20 points before the CMA changed color signaling a cover. We do not enter any new trades after 3pm. But you do not have to follow our trading style. However, we do suggest you close out your trades at the end of day since trends are choppy and thin during post and pre market hours.

On Thursday Oct 22nd, the 420 CMA changed from a down trend to up trend at 8 am and remains so during the rest of the trading day. The first long triggered shortly after the market opened and had a nice pop of 30 points before reversing. The 2nd trade shortly after 10 am had another run of 30 pts before turning red. The 3rd long triggered just before 1 pm had a run up of another 30 points before signaling a sell. The long that triggered just after 2 pm had a run-up of almost 60 points before turning in to a sell near the close of the day.

This is how we use this indicator to trade the futures market. You may do your own homework and come up with your own style. Remember, no trading system is perfect, there will be losing days. But loses will be small as long as you stick to the trend. Get out when the 21 CMA turns, and most importantly, be disciplined. If you aren't sure of a trade, scale out and lock in profits every 10 points.

Additional Information:
- Indicator will be sent via email once payment and Customer ID number has  been received from the buyer
- We would need your TradeStation Customer ID number for activation of this indicator
  (Open Tradestation platform, click on the 'help' tab and click 'About TradeStation 8.6' for customer ID)
-You will also get free email from us regarding stock picks and daily market commentary for 1 month with this purchase.
-You may also contact us on Skype: mchang0429 for any support questions regarding trading or installing this indicator. 

NOTE: email us at michael.chang@washingtonaa.com if you would like to buy this indicator now.

Disclaimer

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Licence:
You are purchasing a single user licence which may not be transferred or resold. The product and/or information shall not be copied, distributed, disclosed, disseminated or communicated in any way or form to a third party.