[dpaterso]

OK - well - another 'new' 'system' - I'm no longer happy with the EMA's - too many false signals - and Parabolic SAR - what's that???

I'M ONLY KIDDING - THIS IS NOT A 'NEW SYSTEM' - IT'S NOT 'ANOTHER SYSTEM' - THE EMA'S ARE WORKING WELL - DON'T CHANGE ANYTHING!!!

This is just a 'neat little trick' that I just found out about.

Let's say that you want to 'simulate' a daily EMA on a 30 minute chart.

You do this:

Forex trades 24 hours per day (right???).
There are therefore 48 30 minute periods in a day (in 24 hours) (24 hours multiplied by 60 minutes divided by 30 minutes equals 48).
Now multiply the EMA value by 48 and put it on your 30 minute chart.
What you now have is a 'simulation' of the daily EMA on your 30 minute chart.

For example:

Let's say that I want to 'simulate' the daily 8 EMA and the daily 21 EMA on my 30 minute chart. As per the above calculation I would multiply the 8 EMA by 48 (equals 384) and I would multiply the 21 EMA by 48 (equals 1008). So now on my 30 minute chart I call up a 384 EMA and a 1008 EMA and I can then see on my 30 minute chart a 'simulation' of the 8 EMA and the 21 EMA!!!

How about that!!!

Why would I want to do this???

Well - think about it. If I was going to trade using the 30 minute timeframe BUT ONLY in the direction of the EMA's on the daily timeframe I don't have to alternate between 2 charts i.e. all the information is right there in front of me.

I'm sure you could do this for ANY timeframe e.g. if you wanted to trade the 1 hour timeframe BUT ONLY in the direction of the EMA's on the 4 hour chart then - do the math!!!

(Once again I have John F. Carter to thank for this. I don't think he would mind me posting this here i.e. it's not copyright material it's just pure math).

Dale.

PS - By the way - sorry jlmac27 - I did not reply to you. I agree with you - the 1 hour timeframe seems to be the 'money shot' for people who don't have much patience (like me). It seems that on the 30 minute timeframe there are quite a few 'false EMA signals' or 'whipsaws'. Don't get me wrong here though - I AM trading the 30 minute timeframes at the moment on the indices and it's working very well BUT it's only because of the excessive 'shock' moves yesterday that it's working so well. I opened 2 forex positions this morning based on the 8 EMA and the 21 EMA on the 30 minute chart and both of them would have been closed by me (at a small loss) had the power not gone out this morning when it did i.e. the price hit the 21 EMA on both of them (actually on one of them the EMA's even crossed back up). Had I been watching this I would have closed at least one of them but fortuanately for me by the time the power came back on again the prices had moved back down again (the EMA's that had crossed earlier on the one position had crossed down again) and both positions are now in a (small) profit.

Look - this is a fact that NONE of us can get away from: the shorter the timeframe - the more 'false signals' and 'whipsaws' you're going to get - no question about that. On the other hand - I'm interested to see the results of my (the) EMA 'simulation' that I posted in this post i.e. trade the 30 minute charts but only in the direction of the 4 hour charts. This should really 'boost' the 'accuracy' of our 'system' don't you think???