Академический Документы
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Wesley Govender
Copyright 2013 by Old Tree Publishing CC, KZN, ZA
Reproduction or translation of any part of this work by any means, electronic or mechanical, including photocopying, beyond that
permitted by the copyright law, without permission of the publisher, is unlawful.
TABLE OF CONTENTS
I. Introduction
II. Indicators
1. FxCOGMaster
Lets take a look at our first indicator: the FxCOGMaster and this will become a bit
clearer. On the chart below, we can see the H4 chart of the EURUSD with the
FxCOGMaster. You can see that there is an upper green line that rotates over the top of
price and a lower green line that rotates underneath price. Theres also a blue line that
runs dead center in between. This is the center of gravity line.
As you can see, price rotates up and down inside of the upper and lower borders and
occasionally stalls in the middle, making the center of gravity line a great place to take
profits, while the upper and lower borders are great places to look for buy and sell
trades.
When prices reach the upper border of the FxCOGMaster it can be said that the market
is overbought. On the other hand if price is at the lower border of the FxCOGMaster it
can be said that the market is oversold. In both cases, there is a very high likelihood
that price will return to its middle line or Center of Gravity.
2. FxCOGMaster H
The next indicator that well look at is the FxCOGMaster H. This is an oscillated
representation of price in relation to the FxCOGMaster on the price chart. It looks a lot
like the MACD actually but has completely different calculations. Ive also added a 9
period SMA as a signal line to it. This indicator is pretty cool! It adds an oversold and
overbought line automatically depending on the value of each currency pair you add it to
so it automatically calculates at what levels the indicator and price is overbought and
oversold.
When price is above the upper line, the market is overbought and will soon come down.
When the market is below the lower line, the market is oversold and will soon rise. The
histogram also has a zero line that represents the Center of Gravity line on the
FxCOGMaster price indicator. Whenever price is above the zero line, price is above the
COG line (middle line) on the FxCOGMaster on the price chart. The yellow line here is
the 9 period Simple Moving Average. This is a lot quicker to pick out the reversals and
doesnt lag behind price giving you a much better entry!
So lets take a look at both indicators on the charts together. The similarities are pretty
clear but there are some subtle differences that we need to take note of. There will be
times when price doesnt quite get all the way to the outer lines of the FxCOGMaster on
the price chart but the histogram will show overbought or oversold conditions. This is
fine as long as the signal line on the histogram is in the overbought or oversold area we
can look for trades. Weve also added a 9 period Simple Moving Average set to typical
on the price chart which we will use to identify our entries.
So thats it, have fun just kidding! I think now is a great time to get our ground rules
down so we know exactly what our plan of action is and know how and when to attack
the market. Once weve laid out the ground rules well take a look at a bunch of different
buy and sell examples.
V. Example Trades
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Here weve got a great scenario where price is punching through the upper channel line,
the histogram is way overbought and so is the signal line. As you can see, two bars
later we get our drop below the 9 SMA trigger line.
Its interesting to note here that as price moved down and hit the bottom FxCOGMaster
channel line this happened to be the middle Blue FxCOGMaster line on the 4 hour
chart.
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Next, well drop to the H1 chart and wait for price to close above the 9 SMA. By the time
we get our entry, the H4 chart is already in line and we get an extremely powerful move
upwards.
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On the H1 chart, we can see that price was drifting sideways. Once the FxCOGMaster
H histogram had touched the overbought line and fell below the signal line, the market
was picking up some steam and closed below the 9 SMA and eventually went all the
way to the opposite side of the H4 FxCOGMaster channel line.
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Here on the H1 chart, we can see that price was in a range bound market and drifted a
bit. The cool thing about this trade was that the FxCOGMaster H histogram peaked at
the top of the market where it was waking up for the day. Once price had its coffee and
dropped below the 9 SMA on the price chart, the FxCOGMaster H histogram soon
followed and fell below the signal line firing off a very nice move downwards.
This one took a while but it certainly reached the FxCOGMaster center line on the H4
chart and even went beyond to hit the bottom of the FxCOGMaster channel line on the
H1 chart before it turned around.
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Now we drop to the H1 chart and we can see a much cleaner chart. Price dipped twice
below the lower FxCOGMaster channel line and the FxCOGMaster H histogram and
signal line have been below the oversold line for quite a while. At the close of the
candle, where the Yellow vertical line marker is, price closed above the 9 SMA and the
next candle caused the FxCOGMaster H histogram to move above the signal line. This
gave us our entry and POW! What a move!
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www.ForexProfitMatrix.com
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