Ema Step System.

[maurizio77]

Hmmm.

I haven't used FXCM for aaaaaaaaages.
I have just gone onto it and all the charts have changed since last time.

They offer loads of different charts an stuff.

I looked on the netdania one.

The period you want is 50.

The EMA's can be found under "Studies", then "Moving Average Exponential"

Then create one for 5EMA, and then one for 1EMA.

These ARE the lines that you want to see crossing, if they cross downward expect to sell, if they cross upwards expect to buy.

If you are new at this i would suggest that you wait for crosses on the daily, now this might take some time and patience, but that's what trading is all about.........waiting until the indicators show what you want to see.

However, if you are just demo-ing, i wouls say try as much as possible, experiment, get to know how your tradestation works, you need to be as automatic with your tradestation as you are when driving your car, so everything comes natural to you.

I use candlestick patterns, so if you havent got that selected, then do so, again on the netdania charts it can be founs under the "Chart type".

On the slow stochs, 14,3,3 is fine.

Commodity Channel Index (CCI)
The CCI is a timing system that is best applied to commodity contracts which have cyclical or seasonal tendencies. CCI does not determine the length of cycles - it is designed to detect when such cycles begin and end through the use of a statistical analysis which incorporates a moving average and a divisor reflecting both the possible and actual trading ranges. Although developed primarily for commodities broker, the CCI could also be used to analyze stocks as well.

Hope that helps a bit.

This is also on the netdania charting package.
Again, under the heading "Studies" you will find CCI about 2/3 of the way down.

Good luck friend

[mprince74]

Thank you for posting a reply.

So is netdania a charting software that can be used with whatever trading platform you are using? Is this typically how most of you guys are trading?

[ljyljl5555]

Hi maurizio77 ! could u explain to us how do u use ema step in lower Timeframe? below H4... Thanks

[bafukie]

ljyljl5555, i believe the system works the same for 15mins, 30mins TF according to maurizio77.

one thing i would like to ask is it possible for the cross candle to be in the same direction as the EMA always? eg red cross candle (price goes down) and ema 1 cross ema 5 from above. or blue cross candle ( price goes up) and ema 1 cross ema 5 from below.

[maurizio77]

Yes ljyljl5555,

When they cross downwards i place a sell trade at the open of the following candle. If they cross upwards i place a buy trade at the open of the next candle.

I have had some pretty good success with this system recently...I lost out on the 24th when it retraced but luckily enough it gave me an immediate buy signal for the 25th so i was able to make back my loss and hold the trade long enough to make a 150pip profit out of it too.

Has anyone else had decent results??

[maurizio77]

Ok i have attached some examples of how many of these crosses happen everyday.......on a whole range of timeframes.

Now you will notice that sometimes they cross and they recross......this HAPPENS......but if you follow the exit rules and stop placement, your losses will be limited, but before getting depressed LOL......consider this...on each timeframe shown......look how many winning trades there are in comparison to the possible losers. Always more winners than losers....on ANY of the timeframes shown.....and isn't that what it's all about???....winning more than you lose???

[swavaa]

On post 35, I attached some sketchy pics of the fxstreet graphs. While I compare these to your Oanda graphs, the spacing is throwing me off. While Oanda has candles butted up against each other, mine are at least a candle's width apart.

My trouble is, which is my cross candle if the cross is in between a candle. I would tend to believe the right side candle due to the fact that the only way the EMA's would swing is due to a bear/bull swing on the candle to the right. If I would use the candle to the left as the cross-candle, it's too late and the movement is over.

If more pics are needed to answer, let me know and I'll try to get some clearer shots.

Thanks again for your help - I'm 4-6 with this system, mostly due to my short time on the FX and learning the signals. Definitely a system I want to keep using as I've never made more than 5-10 pips with any other system and my 4 wins have been for 20+ every time!

[maurizio77]

Hi Swaava,

Glad to hear you're getting the hang of it, great news that you are making more now than you had previously. Long may it continue!!!!

In answer to your question, i had another look at the pics you put up and i see your dilema. Personally though, i would only use my Oanda pics as a reference, to see what is possible and what you need to do...............then i would advise you to study your own charts, get to know the way they work...most importantly......how they present the price action.(Crosses)

Having won 4 out of 6 with your biggest profit margins to date means you are well on your way to understanding how the system works on your charting package.
The best advice i can give on this is to keep going, keep watching, keep learning...in a couple of weeks you will feel alot happier...and probably be making even more pips!!

Keep up the very good work my friend

[shezian]

How long have you tested this system and over what months was this? You really don't know if the system works unless you back test it over years, and this is hard to do over a 5-15min time period as there is not data which you can place indicators on the chart. At least you can test the daily. From my experience the forex can do really well for 5 months and then dump, and the system can faily very badly wiping out all your equity. You will never have a system that will always win, but overall it should stand the test of time.

Snez

[shezian]

HI
Had a quick look at your system on the daily and it seems that the EMA cross over too much and give false entries.

Snez