Scalping system #11 (The Center of Gravity)

COG repaints, yet the beauty of it is that you're trading not the past, but the present price momentum. When present COG hits the red line - the present momentum shifts strongly towards a reversal. The price in many cases will reverse, but there will be times when your stops will play their usual role.
Who cares what COG will show after it repaints? It's the past, but COG needs that past data to adjust itself for future projection of the reversal points.

Hello everybody!
Great post here, ive been looking long for a site like this one, ive in the forex market for over 3 years now, but only one ive traded live. i developed a long term strategy based on 3 sma and adx for ove 20 pairs on the daily timeframe, but recently (in the last 2 months i ended up losing over 50% so i started looking for new strategies. This is so far the best ive seen. wanted to ask anybody what if i trade OFF THE RED LINE on the 15 min chart, closing once the price reached the middle line? it doesnt happen often but i can use up to 30 pairs, i established a reasonable stop loss of 30 pips, and im not risking more than 1% per trade since they are very often. Now my main question is : can the price trespass the red line, so i open my position and later probably close in negative, and then for example 10 bars later the cog repaints and i see that there was no signal, ie the price never hit the red line? and if this could happen (probably it could:)) what are the odds?
im looking forward to test this strategy till the end of month since i wanna start trading again by the end of march.

Gabriele

May be. For now it's just a set of indicators, while to call it a system you need precise entry/exit rules and lot management.
One thing for sure, COG does well on 5 min and so is Stochastic and MACD with larger custom settings as yours.

Good luck!

Thomas

macd 38 120 20 , stochastic 14,3,3 , sweet spot , cog with all this , do u think you have a good system?
I hope somebody answer me. I been trying to find something for 5 min chart.

Hi
I know it's a bit old thread but for those who still read this. Response to kata on page 8: the trade was taken correctly and price fallen back (I have checked the chart). Profit could be achieved on booth trades if big enough stop loss in place. I find this system quite profitable. What happens from time to time is that after a valid signal, within the time, the COG points in another direction than taken trade thus invalidating the trade. But 'somehow' the price is coming back in your favor. I haven't seen yet that price went against me more than 2 sweet spots, which means 50 pip stop loss would be efficient. It's a bit strange(or maybe not): the COG contradicts to already taken trade but after some time the price reach profit target. Hope its clear enough. Great site, by the way.

Hi, anybody have any coments? I'll try to find a good system, revolutionaryfx + cog = ?

Hi Ashur, using your system I always check the higher timeframe. Do you think the direction of the COG lines should be the same or don't you bother?

Hi Everyone,

First, I would like to thank you all for this wonderful web site!
It is a great place to learn and share profitable strategies for trading forex!

About the last two methods users have shared: trading Center Of Gravity with Bollinger Bands or Stochastics and MACD. Can you please post some screen shots to explain how you use these indicators with COG? What is your stop-loss and take profit? Which pairs do you think it is best to trade and on what hours?

Sorry for asking so many questions. But I really think that this can help the rest of us learn your ideas in depth and better understand how you guys are trading.

Have a great day
and Profitable Trading! :-)

As i understood the psychological levels are related to the round price numbers, e.g. 1.2000, 1.2500, 1.2550 etc. For COG - the center line is the Center to which the price tends to gravitate. It's not a psychological level though.

Please, as I understand the psychological level this strategy:

1 - when the price crosses the level?

2 - when the price is' to reach the next level?

Thanks

Not sure if you guys have noticed but this strategy is amazing with Stochastics 14,3,3 and MACD 38, 120, 20. Honestly you don't even need the center of gravity, although I still use it just for extra confirmation. First Establish Trend with MACD and COG, honestly although the COG will have established a trend, the MACD is 10xs more reliable. After establishing the trend Enter position according to the trend (pullbacks) when Stochs are overbought or oversold (80/20).

So in an up trend, we buy when Stochs are over sold, surprisingly it's usually around the Sweetspots :D and vice versa for down trend.

Hi it's impossible for me to use all strategies.
I took this one for a regular test, as I always do, to provide a feedback.

Since I have my own set of systems, I don't need to switch back and forth in between the new strategies.

Kind regards,
Edward

How effective is this strategy Edward? I noticed in a posting that you said that you don't use this anymore. Why?

Also, when combining this strategy with system 14, make sure that the RSI and Stochs are oversold/bought along with prices being around the red COG and Red Bollinger Band. I learned the hard way, I finally suffered a loss but I did see why though, I didn't check the RSI and Stochs, had I checked I would have waited to enter the trade. The prices became oversold on EUR/JPY as soon as it hit the sweet spot.

This system is A Mazing!!

In regards to my previous comment about combining Scalping system 14 with this. I don't use RSI or Stochs, just simply COG and Bollinger Bands with the parameters set according to System 14. I have been trading system 14 for some time now and it's good but with the combination of this system with 14 the entries are pretty much 100% depending on the pips you go for and the currency pair. UJ-15-20 pips, GJ 30-40 pips and GU and the other majors 20-30 pips. This is really really promising!