This whole system is based upon a unique concept of market rhythm created by the decisions of people. The MACD is only used for timing the entry and to filter out some bad trades using only certain MACD setup patterns that gives a high probability of success.
People react to news (information) and over the years people have proved to make the same decisions upon the same information and conditions. This creates a certain market rhythm when the majority is in agreement about their interpretation of the information they have. Therefore a graph should not be seen as price action but rather as ?people action?. The price action is merely a result of the action of people based upon their interpretation of the information they have.
Certain moving averages are used that represent the average movement over that time that shows the peoples action on an average as to how they interpret the news over the period of the moving average. The 89 simple moving average for example represents the average price based upon the peoples interpretation of the last 89 days of news. By using a short, medium and long term average we can get an inside view of how people see the market in terms of their interpretation of news and observe any sudden change.
When this is identified by studying the graphs it is easy to identify entry points based upon this unique rhythm. It is amazing to see that this rhythm is present in all timeframes from a one minute to a monthly chart. When 100 people or 200000 people have the same information and are bidding on the same object this rhythm is always present. That?s why it is also visible on a one minute graph.
This then gives any trader plenty of opportunities over varies currency pairs on the timeframe he likes to trade or even if he have limited time on a specific day he can use a smaller timeframe to identify possibilities.
This whole concept is presented free on http://www.forexfactory.com/showthread.php?t=14630 On page one of this thread are the most important links to each post. This is the important library of this whole system.