Painting the Picture

Next we add a medium term moving average so we are beginning to look at the bigger picture.

This is the 80 and is in blue. Again it's an exponential moving average but it's our medium term indicator.
It's actually our 60 minute 20 moving average but on our 15 minute chart.

Notice here how the crossovers are less often than those of the 7/20.

In this shot the 7 crosses the 20 a total of 9 times. The 20 crosses over the 320 just 3.
These crossovers symbolise trends within trends.

Now we can see that the lag of the crossover is starting to kick in a little.

the green immediate 5 minute trend reacts much quicker and crosses the red 20 ema more often and is useful as a guide to where the next move will be.

We only use the green / red cross as a guide to where the market 'could' go.

The first rule of this system is to look at the bigger picture. Only trading with the direction of the short-term / med-term trend. What I mean by this is if red is above blue we are looking for buys and if red is below blue then we are looking for sells. 

If the green immediate trend is wedged between the red and the blue then we're on the sidelines waiting because it represents a possible reversal.

Ideally the set up should be a green above red, red above blue formation for buying and the opposite for selling.

Looking at the latest price on the chart, knowing what you now know, without any other indicators, which is the 'most likely' direction of the market in the short to medium term? Up or Down?