Dual-average regime, trigger candle, and trail as one daily script

A part-time daily script

The write-up frames the script for part-time use on daily charts. It accepts fewer signals instead of continuous lower-timeframe scanning.

Editorial: TradersWeek reads that choice as a way for a daily desk to lock bias with a two-speed average stack first, then treat the next session as a binary go-or-skip so entry, abstention, stop, and trail can be tested as one closed script.

Set the dual-average-regime first

A dual-average-regime is a bullish or bearish market-state label taken from whether a shorter simple moving average sits above or below a longer one.

A bullish regime is defined as the 30-period simple moving average sitting above the 90-period average. A bearish regime is the reverse.

A long is considered only in a bullish regime. A short is considered only after the matching close in a bearish regime.

Read the trigger-candle through the wick-cross-filter

A trigger-candle is the daily bar whose open and close straddle the shorter average and authorize a next-session order.

A long is considered after a daily candle opens below the 30-period average and closes above it. A short waits for the opposite close in a bearish regime. In both cases the order is placed on the following session.

The wick-cross-filter is a selection rule that accepts a crossing bar with shadows and discards a shadowless crossing bar of the same direction.

Place the trigger-bar-stop and the breakeven-trail

A trigger-bar-stop is an initial loss bound parked at the signal candle’s opposite extreme and left unwidened. The initial stop is placed at the trigger candle’s low for a long and at its high for a short. The write-up instructs not to widen that stop after entry.

After entry, an initial objective is paired with breakeven and trailing-stop adjustments rather than a single static exit. A breakeven-trail is a post-entry adjustment that first removes residual risk and then follows price so an adverse turn forces the exit.

Use a zone-retest only as context

Supply and demand zones used as context are described as price areas that have been tested at least three times. A zone-retest is a prior reaction band treated as context only after price has visited it at least three times.

What the case charts walk through

Four 2011 daily foreign-exchange case charts walk through the same script, including one long that reversed into the initial stop.

Editorial: TradersWeek treats that reversed long as part of the closed script, not as a reason to widen the trigger-bar-stop.