After losing a few times using Mouteki Trading I decided to play around with some other indicators.
I noticed that when you add the 10 EMA and 5 EMA that you can find a 80-90% accurate way of making a trade.
This is what you need:
3 or 4 hour chart
Any pair (so far that I tested)
Locate the last two supports or resistance points
10 EMA
5 EMA
Ok, locate the last two support or resistance candles and connect with a trendline. If a new support or resistance point occurs you MUST RE DRAW THE TRENDLINE.
now, when the candle breaks above or below the line AND the 10/5 EMA cross within’ 1-3 candles then you have a good indication to go long or short.
Please see my example here and tell me what you think.
Notice when the lines cross and candle breaks the trendline that it’s a nie little indicator of a trade.
I tried to label them on paint but it wouldn’t upload here. I will try again later if anyone is interested.
If i’m not mistaken the original method issued by DeMark filters entries with a 9 EMA / 30 EMA cross and a Momentum Oscillator with 100 set at pivot level for long / short trades.
THis is true. He also throws in Fibs. to consider as well.
Also I think some people may not realize that his different magnitude levels of trendlines filter one another out. The higher level you use (level 3) which has 3 lower highs or 3 higher lows on each side invalidate level 2 and level 1 trendlines. So break outs of those levels would not be taking if you are finding a higher level. Watch for a downclose on a upward breakout and a upclose on a downward breakout on the preceding day.
This system seems to work but how would you know where it is going to go
SHORT or LONG…I think if you put two entries at the cross over for a Short order and a Long order then which everbreaks you go with that.
It has to break out …right?
Still VERY new at this …i am trying to grasp what is going on.
thanks for the Knowlege
