Forex Signals

TRADING SYSTEMS
CMA System




CMA System


Years of Development 2015-2018
Last Modified/Improved 2019
Full Name COMPLEX MARKET ANALYSIS
System's Algorithm Identification of the day/intraday and the general forex market trends
Markets / Applicability All: Forex, Stocks, Commodities, Indices






Overview




The CMA trading system is a proprietary technique that allows to predict the day / short-term trend direction as well as to obtain a big picture of the overall price action of a currency in the forex market.






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Principle of Action of Trading System





To correctly predict the direction of price movement, it is necessary to be able to determine turning points - after all, the price moves between opposite turning points. However, in some cases, when analyzing a specific time frame, it is impossible to recognize the opposite turning point, and therefore to either close a trading position in time, or to explain the logic of the price movement.

The complex approach to market analysis implies a simultaneous analysis of multiple time frames (in addition to analysis of a specific one) to spot a trend signal (turning point) that is opposite to the signal identified at the specific time frame.

The effectiveness of the trading system is enhanced when the analysis is conducted at a significant time: end of the day or the beginning of the trading session.











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Identifying Day Trend





To identify the daily price direction, the system scans all time frames for the presence of a trend signal on any of them at the beginning of the European forex session. The identified turning point may signal the beginning of either a downward day trend, or an uptrend, depending on whether it belongs to the tops or bottoms. The time frames on which the trend signal is recognized vary from day to day.


















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Identifying General Trend





By the general (primary, overall, dominant) trend we mean the price moves that can be projected with the use of the higher time frames. Already during the determination of the day trend, the system automatically determines the general trend, since along with the analysis of the short-term (15-60 - minute) and intermediate-term (120-360 - minute) charts, the system is also analyzing the Daily, Weekly and Monthly time frames, which, in fact, form the general trend.

Determining the overall trend is perhaps the most important and challenging task. If the trader is able to determine the general trend, then the probability of losing the deposit is reduced by an order of magnitude. The difficulty of determining the general trend is the difficulty of identifying the turning point, which can be formed on the longer-term time frames for several weeks or months.

To identify the general trend, the trading system analyze the monthly chart; and to specify the general trend, the system scans the narrower time frames (Weekly, Daily) for the presence of an opposite trend signal on one of them. The price moves within the general trend may last from a pair of weeks to a pair of months.




















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