2 EMAs can bring you profit on 15m chart

[kbp]

This system is the simplest one - I guess. It looks pretty ridiculious but I have tested on demo acc aud/usd and it works 80%.

Eventhough people say MA is a lagging indicator but to me, it tells me an up-to-date history. In the mean time, this kind of history still has some effects on the future, so that's why it works.

***Requirement:***
only apply for 15m chart (any less = dealing with noise, any longer = history is useless).

***Setup:***
2 EMAs (notice: EMA not SMA because SMA is not sharp)
first ema: period 5, apply to close (blue)
snd ema: period 10, apply to close (red)

***Enter:***
Look at the chart and wait until they cross.
Wait another 15mins to make sure it clearly shows which one is above which one. (reduce the chance they cross over again).
If you cannot see these 2 clearly separate, or your eyes n sense tell you that they will cross again within next 3 blocks (i.e. within next 45mins): DO NOT enter, be patient.
If the 5 EMA (blue) now is above 10 EMA (red) then enter long (buy)
otherwise: enter short (sell)

***Exit::***
Best practice is keep your take profit = stop loss
i.e. if your stop loss = 50pips, then exit when you gain 50pips
However if they cross again, we must exit instantly whether it reaches tp/sl or not (it's too late).
***Stop loss:***
Jump to 30m chart and find the resistance and support during the last 4hr. Depend on the position we enter, use either each of them.

That's it.
This system is even more ridiculous than the "Ridiclous system" on the tut on babypips school, but it works!!!

***Like other ppl say: stick to the rule and test at least 1 month***
exit when you're losing and accept the lost (dont hope it goes back).
and exit when you're winning (even the rate still continues to growth).

any feedback will be very appreciated

[tymen1]

Originally Posted by kbp

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any feedback will be very appreciated

Here is your feedback.

Forget it!!

If it was that elementary, everyone would be doing it.

Your first step is to graduate to the MACD.

Then you can read Gerald Appel's book "Technical Analysis" in which he derives the MACD which he invented and gives the full rules for its usage.

After that you can add confirming indicators.

If you do not believe anything I say here, try you method on demo and, when you are sick of the whipsaws, you may consider that your approach is not the way to go.