Center Gravity Master trading system was developed by Wesley Govender. The trading system is based on a theory that the market prices have a mean average which is taken as the center of gravity where the prices always rotates around. This means that as the prices oscillates up and down, they always get back to this average. The main issue is the time that the prices might take for this to occur.
The Center Gravity Master Strategy employs a combination of various forex indicators which include:
Fig.1. The template of the Center Gravity Master Strategy.
- FxCOGMaster
This is a form of a channel indicator with three band lines. The upper band line represents the highest price levels while the lower band line represents the lowest price levels. The middle band line shows the Center of gravity (mean average). The outer and lower band lines are for placing orders while the middle band is for closing the orders.
- FxCOGMaster H
This is an oscillatory indicator and resembles the MACD. The indicator has a SMA line that is yellow in color and also has two level lines that show when the market gets overbought or oversold. The overbought signal is when the prices get above the upper line while the opposite is true. Then there is also a zero line that represents the center of gravity.
Mainly the Center Gravity (COG) Master Strategy is based on this two indicators.
How to trade using the Center Gravity Master Strategy
Placing a Buy order: for you to place a buy order, the following must be the case. The first two are done on a higher timeframe like the H4. Then the rest are done on a lower timeframe like H1.
- The FxCOGMaster H Histogram and Yellow SMA line have to close below the oversold (lower) line.
- Approve that the market prices are at or near the lower Green FxCOGMaster band line.
- When the above circumstances are met, shift to the lower timeframe of H1.
- Then wait for the FxCOGMaster H Histogram to close on top of the Yellow SMA Signal line.
- Then, wait for price to close on top of the SMA that is on the trading chart.
- After all the above is met, open a buy order at the opening of the next candle. Then set your stop loss just below the most recent low swing. Then go ahead and set your take profit at the most recent high swing.
Center Gravity Master Strategy Placing a sell order: for you to place a sell order, the following must be the case. The first two are done on a higher timeframe like the H4. Then the rest are done on a lower timeframe like H1.
- The FxCOGMaster H Histogram and Yellow SMA line have to close above the overbought (higher) line.
- Approve that the market prices are at or near the upper Green FxCOGMaster band line.
Fig.2. Center Gravity Master Strategy showing how to check whether the first two conditions are met.
- When the above circumstances are met, shift to the lower timeframe of H1.
- Then wait for the FxCOGMaster H Histogram to close below the Yellow SMA Signal line.
- Then, wait for price to close below the SMA that is on the trading chart.
- 6. After all the above is met, open a sell order at the opening of the next candle. Then set your stop loss just below the most recent low swing. Then go ahead and set your take profit at the most recent high swing.
Open demo account to test this system.
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