To my Garsworld Peeps: updated 11-5-11 741pm
12ma "guppy" read all directions, any questions please ask.
I use SPY as a market indicator and FAZ for my 3x bear and FAS as my 3x bull.
I apply the 12 ma guppy system to all 3 charts.
I trade on a 1 min chart with 3x bulls and bears
I use the 5 minute chart for stronger trend direction.
patience is key to proper setup execution, allow winning formation and momentum, you will recognize these setups as
you get used to working with the system. Many setups will come just dont know exactly when. be patient.
Do not trade sideways market as there is little directional indication and could wipsaw or zigzag you out of
position. wasting commision fees.
--->> To trade the 12ma guppy system, I used it for reference and works, its an added
EDGE. basically you have 12 ma's, review the recipe below,
6 ma's are red and 6 ma's are blue. simple
chart setup with 12 moving averages,"slow ma's red" 60,50,45,40,35,30 i make these red, then the "fast ma's
blue" 15,12,10, 8,5,1 make these blue. use exponential
ma's, remove price indicator if you can, if you cant remove price indicator , use a line and make it
I remove any price indicator, ie bar,line,candle.
time and sales and level 2 in a seperate window for order processing
I process orders thru market order, very liquid stock, very fast entry
the ma's are in exponential mode, simple mode may also be used
trade must wait for ma1 to cross over of all the
reds "slow ma's",
the more blue ma's you have with you "crossed" the stronger the trend.
also trajectory "degree of drop or rise" is important for continuation
I am a speed trader, so i will enter the trade once i get the cossover and my other blue ma's are not far
behind. best to have them with you. I exit immediately upon a ma1 cross over the ma15
enter only at the best price, do not chase. sometimes best to let the price come to you. learn about
static. average out bar size movement, extented moves usually retrace, dont get caught buying at the far end
of an extended move.
enter the trade when comfortable with
trend "trend is a super friend".
flat is not best trajectory.
profits increase when fast group "blue" seperates and begins to GAP away from slow group "red". use
your ma15 as your stop.
reenter if ma1 corrects back in your favor to continue making
it happens, play it safe and exit and do not second guess trend.
which ever comes first.
here is the recipie::::: chart with 12 moving averages,"slow ma's red" 60,50,45,40,35,30 i make these red, then the "fast ma's
blue" 15,12,10, 8,5,1 make these blue.
more volitile markets or ticker , use the blue ma15 cross as
less volitile markets or ticker, uses the ma30 cross as your exit
DO NOT ENTER GAPPED MORNINGS - WAIT FOR THE PRICE TO COME BACK TO EARTH ", feel the
zoomed 12ma faz 3x bear - this puppy rocks 3 times market movement.
KEEP THE RED LINE MA'S TREND IN FAVOR OF YOUR DIRECTIONAL TRADE.
NEVER FIGHT THE TREND OR YOU WILL LOOSE.
INITIAL ENTRY IS YOUR INITIAL STOP.
*** if ma1 crosses your ma15 you exit, if red ma's trend are in favor and ma1 recrosses in your favor, you may
re-enter, entry price is always your stop price.
ALWAYS KEEP YOUR TRIGGER FINGER AT THE READY.
DONT EVER LET YOUR HARD EARNED CABBAGE OUT OF SIGHT.
TURN OFF ANY DISRUPTION AND FOCUS, EXECUTION IS VITAL TO SUCCESS.
MAKE SURE ALL IS IN FAVOR BEFORE YOU COMMIT TO ENTRY.
red trend is stronger than the blue, red is the direction of the trade. also a change in trend has a tendency to be
violent "2 to 3 times average price action".
never bet against the trend, ie; SPY red is trending down work FAZ or short FAS
watch and feel your components, practice makes a better trader.
stick to the rule book and do not divert and should do fine.
watch your currencies, declining issues and volume for market feel and keep all in sync in your favor.
paper trade a couple hundred setups and see how your progress is doing.
never loose faith, the best trade can go against you, exit with a smile.
the trick is to have ALL in your favor, not just some.
NEVER LEAVE CAPITAL IN OVERNIGHT - just a suggestion.
STAY IN CONTROL of your hard earned cabbage 24-7, if you allow the market to control it, you dont deserve to have
it. never trust the market...
Good Luck and happy trading!
the screenshot below is a downtrend of FAZ - short positions only or work with FAS which will be showing an
opposite trend to the upside.
never trade the consolidated flatlines, always have an up or down direction.
expanded 12ma faz