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

[maurizio77]

shezian,

Hi and thanks for the straightforward reply lol.

I won’t become defensive and try to justify the system, from my perspective it has made me plenty of profit…and continues to do so.

I will however say that price action has been a little strange since the GBP topped 2.000, however that is a state of affairs world economists won’t let last for very long, so things will calm down again soon enough.

Thanks for reading

[hisbride]

maurizio77,

What are you looking at to identify the cross candle? The shape of the candle? or where the EMA crosses the trendlilne? I am really new at this. Thanks very much

[maurizio77]

Hi hisbride,

Primarily i am looking for the EMA’s to cross [I]on a candle[/I]
If the bottom line crosses upwards then i will prepare to buy.
If the top crosses the bottom line i will prepare to sell.

Then i make my calculations for my stop ([U]IF[/U] i use one, i know there are trading methods by the big players that wipe out stops deliberately to further push the price momentum, so i only use a stop if i am unable to monitor the trade)

I will then enter the trade as soon as the timeframe skips from the cross candle to the next.

When it comes to entry, i tend to use my slow stochs.
If i get a cross candle in conjunction with slow stochs breaking out of either overbought or oversold…i will start rubbing my hands together as i know the likelyhood is that it’s gonna be a very good trade!!!

Once i am in, i look to my CCI.

When the CCI “peaks” (Looks a bit like a mountain) as soon i see it start to slope downwards again i will exit the trade.
It doesnt always do this on the lower timeframes, to get good at them to be honest takes a bit of practise, but starting on the daily-3hr timeframes will still earn you good profits…it just takes longer

If you do this on a dialy chart, you are looking at at least 100 pips, if it is a strong trend you could be looking at anything up to 500 pips.

This might take a few days (My average is 7-9 days for a trade on the daily)
but i find it simple and unstressful and that’s just the way i like to trade.

Hope this helped

[nicesurf]

If we use EMA indicators, we’d better take time frame at least 1h chart.

Nic

[rafiqs]

Hi maurizio77
can you let me know what currency you are looking at what time and do you do live day trading-- how do you plan the trade

Rafiq

[prosper888]

Hi all,

The thread seems to have stopped at #55. IS THIS THREAD STILL GOING ?

Regards,

prosper888

[edotrader]

Hi, I sow you are using MT. So do I

I can’t find EMA in the indicators list. Do you have the script, or do you know where can I find it for metatrader?

Thak you

[maurizio77]

This post isn’t dead… i have been busy slaving at work and at my tradestation ;o)

edotrader, i don’t use MT i use Oanda.

rafiqs, all the info on your question can be found in the previous pages.

So…does this system still work?

Have i been hiding away in shame?

Judge for yourself, the diagrams on the posted pic will probably prompt some WTF!? responces, but just take your time and go from trade to trade, number by number.
I have tried to list the actions as bullet points, something i am sure everyone will understand.
Trade1
1.1
1.2
1.3 . . . .etc.

What i am trying to show here is MY THINKING behind when i enter and exit a trade, it’s easy for me to sit here waffling on about CCI, fast an slow stochs but hard for some people to get their head around…i am the same with other posts, i end up re-reading it a few times so my crumbling grey matter is forced to absorb it

So anyway, here goes…let me know if it helped ok?..and YES i know i should have done each trade in a different colour but Hey!..i’m not Bill gates

OK

Trade 1

(1.1) CCI drops below +100, expect the price to go down.

(1.2) Fast stochs cross, the CCI trend is continuing…good news!

(1.3) We get our EMA Cross, this is our entry.(For those familiar with James’ system, this is also an OB!)

The market wasn’t moving much which made me a little edgy, so i got out at +42 pips…there was a possible 89 pips to be made.

Trade 2

(2.1) The EMA’s cross upwards, excellent, but will it hold or reverse straight back?
(2.2) The fast stochs cross, giving confidence in the move.

(2.3) Just on entry the slow stochs cross, i am happy, this move will last.
(2.4) CCI has crossed +100, peaked and is now in plateau, time to get out…but this brings the possibility of another trade…a sell.

Trade 3

(3.1) CCI is in plateau, i am looking for the price to begin falling.

(3.2) Price tops out and begins to drop…this is looking promising.

(3.3) Fast stochs cross downwards, extra confirmation.

(3.4) Slow stochs now cross downwards, this move will be pretty big.

(3.5) I Entered at the opening of the next candle after the cross, just sat and waited for the CCI to do it’s thing…peak…as soon as this happened i was out of the trade, waiting on the set up of the next one. I got out at +200pips, but could’ve made 270!!!

Trade 4

(4.1) Just as the CCI peaked for my exit of trade 3, the fast stochs were crossing upwards, good sign.
(4.2) CCI breaks out from the -100 line, more confirmation.

(4.3) Slow stochs cross upwards, you whats comming . . . . we get our EMA cross! The strength of movement is good, the stoch lines are far apart, stay in this baby!
(4.4) CCI is in plataue again, we have had a minor retracement, time to get out…a happy +600pips to the good

As you can see, this system still works.

These were all done on the daily, so no sweating, no premature actions leading to disapointment in hindsight…Just happily following the signals the market gives us.

If you are worried, practise this on demo, and keep going, keep going, keep going…before you know it, you can spot all this in seconds, decide your action and then act upon it.

It won’t work for everyone, but it WILL for some of you.

Good luck

[cryten]

hey, havn’t posted in this thread but I printed every page and plan to demo when I get a chance to see the cross! glad your back!

I cant trade at work but I have just gone onto a later shift from 12pm till 8 pm, I plan to use demo oanda for the charting as my platform is in EST and i live in bournemouth GMT. My question is as ill have to make a move for work at around 11am do you think jumping in at 5 on the ema step and coming out of the trade or at least locking in profit around 11am and setting a tp could still work with your method?

cheers!

[jimocean]

Hi

does this method still works for u ?

i am just too curious…