Trading systems based on fast moving averages are quite easy to follow.
Currency pairs: Any
Time frame chart: 1 hour or 15 minute chart.
Use with all currencies and on daily basis we can get 10 pips daily according to this chart.
Indicators: 10 EMA, 25 EMA, 50 EMA.
Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).
Exit rules:
Option1: Exit when 10 EMA crosses 25 EMA again.
Option2: Exit when 10 EMA returns and touches 50 EMA
(again it is suggested to wait until the current price bar after so called ātouchā has been closed on the opposite side of 50 EMA).
What is obvious? The indicator has an audible alert so color blind people can use it. The computer alerts the trader when the condition happens. Can be handy if you are tracking more than one pair on more than one time frame.
I have seen this before. I tried it in demo it works some of the time. A long period of slow PA will bring the MAs in close together causing frequent crosses that donāt go any where. Look at the far left and right side of the chart in the first post.
If you learn not to trade in that situation you can make some pips. MA crosses can work if you learn when [B]NOT [/B]to follow a signal blindly.
It works when youāre lucky catching part of a ride outside the ā10 pips knuckle headsā price area.
A long period of slow PA will bring the MAs in close together causing frequent crosses that donāt go any where. Look at the far left and right side of the chart in the first post.
Thatās because MAās are too slow. The reason for frequent crosses is the ā10 pips knuckle headsā price area.
If you learn not to trade in that situation you can make some pips. MA crosses can work if you learn when [B]NOT [/B]to follow a signal blindly.
You are [B]always[/B] behind. You are jumping on when the smart guys are jumping off.
You would be better off using Hiās+Loās for jumping on & off.
dobro, 2 patterns of market behaviour happen on a regular basis
Price [B]breaks[/B] to new highās (or lowās).
Price [B]reverses[/B] from new highās (or lowās).
Flip the above on itās head.
Price is NOT making a new high then it must be reversing from the high.
Price is NOT making a new low then it must be reversing from the low.
The key driver for this 2 patterns of market behaviour are
Price [B]moves up[/B] because [U][I]demand overwhelms supply[/I][/U].
Price [B]moves down[/B] because [U][I]supply overwhelms demand[/I][/U].
So, you have two choices from what side you are going to trade.
First choice: Long side
Second choice: Short side.
Eliminate one choice by deciding from what side you are ALWAYS going to trade from and use the applicable pattern of market behaviour [Hiās+Loās] for jumping on & off.
Calling traders ā10 pips knuckle headsā is uncalled for and just plain rude. You should stop jumping in on others peopleās threads and pissing your [B]āgolden wisdomā [/B]on every trading method that doesnāt meet your [B]āholy standardā[/B]! A while back I enjoyed reading your posts & appreciated your knowledge but it seems youāve become nothing but a pompous know it all. :mad:
You would be better off using Hiās+Loās for jumping on & off
Lots of things work, but Iām beginning to like this idea more and more. Gotta agree with D-Pip though. Give advise if you have it, but no need to be rude about it. Reminds me of finger nails on a chalk board. Heās got me on ignore anyway.