Ema Step System.

[pederl]

Thanks for explaining your approach, Benjimang. I believe looking at multiple time frames does significantly increase your odds with this system. I'm very aware that I just need to keep practicing, as I've only been trading for several months.
For now I think I'm going to try doing a little experiment with the EURJPY. I'll only enter trades on the 15 minute time frame, and only when Stochs confirm by being in oversold/overbought areas. I'll set all t/p at +5 pips and all s/l at -15 pips.
I know that this method is far from the ideal way of trading this EMA cross system, however it would be extremely simple. If it could net 5-10 pips consistently every day, I would be more then happy.

[willsucceed]

Originally Posted by Benjimang

Well done Maurizio mate.... I actually made axactly the same first trade as you. I was on a hot date (puffs chest), so I missed the big move too. I actually got 55 pips out of that first move by doubling up somewhat. I noticed that EUR / JPY was moving with some decent strength yesterday so I baught in with that too. I realise this isn't too far removed from just opening twice as many contracts on the GBP pair, but from the price action so far I just thought I might be able to squeeze just a few more pips out of the EUR pair.

Nice to see you confirm my reluctance to trade the higher timeframes too. See you all soon.

P.S. If anyone is interested, my msn email is wassabiwassabi@hotmail.com. Feel free to add me if you're at all interested in keeping an eye on the markets together.

-Benjiamng

Why your reluctance to trade the higher time frames? This thread started out with only look at the daily when starting out and the smaller time frames were considered (as usual) more dangerous trades?

[maurizio77]

Hi Mate,

I'm not reluctant to use higher timeframes.

It is simply that the correct criteria for an entry on the Daily hasn't been met for a while..the stochs are bottomed out all over the place, that simply can't last forever, so when the time is right i will be in.

At the moment the stochs look unsteady, CCI is camping in the -100 region, MACD, RSI and just about every other indicator are all a bit contradictory.

The price hasn't been this jumbled up since March when price on GBP/JPY dropped 2000 pips from Januarys high. Right now we have already dropped 1500 pips from the high on about July 20th, i can see the price of this pair to continue to drop until the 234.30 area, should it break that, i can see it plummeting all the way to 230.00

As for trades today, pretty much the same as yesterday. On the 30Min, 15M and even the 5M today.

Gonna see if i can pick a few 5-pippers this evening.

At home tomorrow, Friday and Monday so will see what i can do when i don't have to worry about my work...am looking forward to dedicating three complete days to Forex.

Will of course let ya know how i get on

[Drunken Monk]

Maurizio, thx for posting the system and keeping this thread going, it's very inspiring.....

I've had quite a bit of success trading off the daily and 4 hour candles using this system. I was wondering -- based on your observations -- when is the best time to trade off the 15 and 30 min charts when the longer time frames aren't offering many good trades?

I live in California so I'm GMT-7 (DST) or 8 hours behind London. I've been trading only GBP/JPY with the system so far, but on the shorter time frames it's hard to get past my brokers spread of 8 pips. Any and all feedback is welcome....

[Benjimang]

Why your reluctance to trade the higher time frames? This thread started out with only look at the daily when starting out and the smaller time frames were considered (as usual) more dangerous trades? - willsucceed

I'm not reluctant to use higher timeframes. - Maurizio

Sorry guys, I didn't get my point across properly. Of course I trade higher timeframes. I was talking about the higher timeframes only with regard to that particular day, and Maurizio has covered why.

Actually, I tried to make what I think is an important point a couple of posts ago. I feel it is unwise to think of different timeframes as being separate entities, or arenas in which to trade. There is one market. This market is continuous and fluid. Any one price movement, for example, will be reflected across ALL timeframes. I personally feel that it is important to watch different dimeframes for every trade, and my approach to doing this is outlined below.

-Benjimang

[shaun365]

Hey all,

I wonder if someone can help me here since I can't seem to get into the same trades you guys are getting into and actually win! As of right now (0700GMT), all my charts for the GJ pair are down and there's no sign of an EMA cross on any timeframe but the 15 minutes (incidentally, I'm using the daily, 4H, 2H, 1H, 30M and 15M time frames). At 615GMT there was an EMA downside cross so I got in on the following candle and now this darn thing has turned around on me...! Did I not evaluate this pair correctly?

On the attached image I have my chart followed by the fast stochs, slow stochs and the CCI. Would appreciate any insight!

-Shaun

[Benjimang]

Hi Shaun, I know we discussed this a little last night, but I'll put my 2 cents in here for everyone else that's interested too.

At 6:15GMT there certainly was a downward EMA cross. That said, your fast stochs were certainly under 20 (oversold) and slow stochs were approaching 20. I also use RSI a lot, not really for picking a direction, but to avoid trading at market extremes. In this case, the RSI had dropped down to 20. This usually indicates an extreme oversold condition. Some might use that to place a buy order in anticipation of a retracement, but I would only use it as a warning against placing a sell order.

As it turns out, you did place your trade at an EMA cross, and in line with the current trend. But the RSI indicator showed that a bullish correction was either imminent, or not far off.

-Benjimang

[Benjimang]

I'm looking at the daily charts, and I see RSI has dropped down past 30 and is nearing 20 for GBP / JPY. I would be keeping an eye out for a bullish EMA cross, maybe at the start of next week.

In fact, RSI is down near 20 in the 15m, 30m, 1h, AND 4h.... maybe there's going to be a small retracement soon?

-Benjimang

[Benjimang]

Well, there was the small retracement! Not enopugh to generate a signal with this system, but enough to show that RSI extremes are a good indicator of impending corrections... watch your entry!

[shaun365]

Originally Posted by Benjimang

Well, there was the small retracement! Not enopugh to generate a signal with this system, but enough to show that RSI extremes are a good indicator of impending corrections... watch your entry!

This is actually a terrific indicator for timing your entries and I find it a little easier to understand than the CCI (although I do still keep in on my charts). Good one 'mang!

-S