Synergy Trading System

SYNERGY Method
Why the SYNERGY Method?

The “ trading edge ” of Synergy:

1. A high degree of probability.
2. Enter and exit trades with less emotions.
3. Trade decisions dictated by price action, not
by preconceived beliefs and opinions.

There are 4 primary market conditions in a potential trade:

• Price Action (PA)
• Trend
• Momentum
• Strength

SYNERGY Chart Setup:

• Average Price Bars
• Price Action Channel
• Traders Dynamic Index

Average Price Bars

• Provide a better depiction of current market.
• Reveal market strength & consolidation.
• Eliminate fluctuations of nominal price action.
• Remove the noise of price distortion of the
  underlying trend.

Use the Heiken Ashi method.
Heiken = “Average”
Ashi = “Bar”
Heiken Ashi averaging technique:
– HA_Close = (Open + High + Low + Close) / 4
– HA_Open = (haOpen(previous bar) +
haClose(previous bar))/2
– HA_High = Maximum(High, haOpen)
– HA_Low = Minimum(Low,haOpen)

The HA_Close is most important for the SYNERGY Method.

Typical Candlesticks

Average Price Bars

Price Action Channel

Traditional Price Channel

Traditional Price Channel has two formats:
1. A pair of trend lines above and below price
like the Linear Regression Channel.

2. An envelope of bands around price with set
deviation limits such as Keltner Channel.

Used to determine upper and lower boundaries and signal potential reversals or breakouts.
Traditional price channels can cause “reactive” trading.

Sets inside of price movement…instead of
outside of price waiting for the market.

Used by institutional traders and sophisticated trading programs.
Promotes “responsive” trading!

Use Smoothed Moving Average
Top of Channel = 5 period, High
Bottom of Channel = 5 period, Low

• Provides overall trend direction.
• Reveals periods of consolidation.
• Used primarily as an Entry target.
• BUY Trend – Average Price Bars tend to run
  on top of channel.
• SELL Trend – Average Price Bars tend to run
  on bottom of channel.

Good BUY (Long) Trend



Good SELL (Short) Trend

Range - Bound, No Trend


Traders Dynamic Index

A hybrid indicator developed to
indicate market conditions related to
trend direction , momentum , and
market volatility .

An “all-in-one” indicator!

Step 1: RSI Price (Green) Line
Rules: Trade Long when Green line > 50.
Trade Short when Green line < 50.
Consider exit when Green line is > 68 or < 32.

RSI Price Line compared to Price Action


Step 2: Trade Signal (Red) Line

Rules: Trade Long when Green > Red
Trade Short when Green < Red
Exit trade when Green & Red crossover


Step 3: Market Base (Yellow) Line

Rules: Market Base Line (MBL) is the Overall Trend
Trade Long when Green is > Yellow line
Trade Short when Green is < style="font-size:130%;">Market Base Line compared to Price Action


Market Base Line forecasts Market Reversals


Step 4: Volatility Band (Blue) Lines


Rules: Possible to add to a Long when Green is > VB
Possible to add to a Short when Green is < VB
Consider exit when Green crosses back over VB

Volatility Bands compared to Daily Price Action

Volatility Bands compared to Intraday Price Action

SYNERGY Method
Entry Rules

Average Price Bars (APB)

• Look for Positive or Negative bars trending.
• Monitor the current haClose
• Long entry = haClose > PAC High Moving Average
• Short entry = haClose <>

Price Action Channel (PAC)

• Monitor the direction of the Channel
• Monitor the High & Low Channel values in relation
  to the current haClose
• Long entry = haClose > PAC High & PAC uptrend
• Short entry = haClose <>

Traders Dynamic Index (TDI)

• Long entry = RSI PL > 50, TSL, and MBL.

(Long entry = Green line > 50, Red line, & Yellow line) Yellow

• Consider adding to Long if RSI PL > the

upper Volatility Band and > 50, but <>

Avoid entering a Long when RSI PL > the
upper Volatility Band, > 50, and > 68.

Short entry = RSI PL <>(Short entry = Green line <>

Consider adding to Short if RSI PL <> 32.

Avoid entering a Short when RSI PL <>

Entry Setups

Long Entry : (All conditions are satisfied.)
1. APB haClose > PAC High Moving Average.
2. PAC trending up.
3. TDI = RSI PL > 50, TSL , and MBL .

Short Entry : (All conditions are satisfied.)
1. APB haClose <>
2. PAC trending down.
3. TDI = RSI PL <>

Exit Rules

• APB Long exit

Positive bar is much shorter than the previous bar or
changes to a negative bar at close.

• PAC Long exit

APB closes inside the channel.

• TDI Long exit

1. Green crosses back below Red to the downside.
2. Green > 68
3. Green crosses back below the upper Volatility Band to the upside.

• APB Short exit

Negative bar is much shorter than the previous bar or
changes to a positive bar at close.

• PAC Short exit

APB closes inside the channel.

• TDI Short exit

1. Green crosses back over the Red to the upside.
2. Green <32>
3.Green crosses back up over the lower Volatility Band

Chaikin's Volatility_Kalenzo.mq4
HeikenAshi_DM.mq4
mtf_synergy_indicators.zip
synergy.tpl
SynergyInd.mq4
Traders_Dynamic_Index.mq4

Posted in: