Ema Step System

[tentoerun]

@dobro

So how could you tell then that the EMA5 crossed “something”?

Hi dobro

Have a look at the pic attached.

[Dan89]

thanks for the help guys. but personally i would still like to have the actuall ema line on the chart … just makes it a little more easy. i may just buy it from FXCM if i cant find one

[dobro]

thanks for the help guys. but personally i would still like to have the actuall ema line on the chart … just makes it a little more easy. i may just buy it from FXCM if i cant find one

Go to the Software Section and ask if someone would code for you as an EA. I bet it is a simple few lines of code and would be free.

[Dan89]

just type ‘ema step system’ into google and its the second link where you can download the ebook

[IronHeart]

Hey guys, using this method, do you ever enter a signal on, say, a 1H chart without checking the lower timeframes?

Or must you always enter on the 5M chart and work upwards as they hit their targets?

I’m getting this from the eBook btw.

Thanks in advance.

[dhan]

Hi There,

I am pretty new to this, but so far i have found just two systems that work for ME.
The first one i use is the EUR/USD 45 pips a day system that was posted by James. I haven’t ever actually got 45 pips from this system, but 20-30 is common…i trade $4 pips currently, so it adds up to about $2K a month…I owe James a ty for that

The second was one that i stumbled across when i was “playing”.

I don’t like complicated systems, as i find it slows me down at the most crucial moment and i end up missing pips and getting a bit frustrated.

I liked the EMA systems i have seen, but all too often they cross half way down a major move, and you end up catching the “tail” of the trade, or at worst, end up entering right at the point of a retracement!!!

I would not say this is a Holy Grail and it is not perfect. I have worked out that i win about 4 out of 5 using this system. But the winning trades are always much larger than the losing ones.

Anyway, let me know what you think…

So after playing about and watching the results, the closest to the move i could find was this;

Ema5 (White)

Ema1 (Yellow)

I have RSI (14), Slow Stocs (14, 3) and CCI (20) up too, this is just my preference, i use it to try and predict when a cross-candle will appear…for this system i don’t really need them.

I use this mainly on GBP/JPY on 15m, 30m and daily. (Daily is generally the most lucrative and predictable but requires patience, it can sometimes seem a small reward for such a long wait)

This is what i do;

I will wait for the Ema’s to cross and for the timeframe on that “cross-candle” to have almost come to an end.
Once i have seen the cross, i am looking to enter as soon as the timeframe makes the step to the next candle, i will enter in the direction of the Ema cross.

If i am at my desk i will not use a stop ( i use a mental stop in this instance), if i am going to be away from my desk i will put on a stop of 3/4 of the cross-candle.
So say the cross-candle was 100 pips from OPEN to CLOSE i would make my stop 75 pips…if the cross-candle was 80 pips OPEN to CLOSE, i would make my stop 60 pips etc…

Take profits;

I tend to use a trailing stop, and as i use Oanda i have to do this manually. (unless anyone knows any different)

This depends on the timeframe you are trading on;

On 15m chart i use a trail of 10-15 pips, looking for an overall 25-40pip trade.

On 30m chart i use a trail of 10-15 pips, looking for an overall 30-50pip trade.

On daily chart i use trails of 25, 50, 100 & 150 pips, looking for an overall
2-300pip trade.

I just looked on my history and for my last 15 trades i won all but 3 using this system. 4 of those trades were on the daily and netted me over 200 pips each.

Let me know what you think,

Maurizio77

Thank you for sharing. I’d like seeing EUR/USD 45 pips a day system that was posted by James. Where could I get it.

[maurizio77]

Hi Maurizio and anyone else who would like to comment,
I will try and explain my question so you can understand as it makes sense in my head but not sure how it will read in a thread
If im Following the assertive trader entry with three lots i would close one lot at the first profit target , this i get , but at the second profit target i should close the second lot and check for a step on the next T/F and if a step is developing i would open two more lots,
So i would in effect ( if a step was developing or already there) be closing one lot and then immediatly opening two more so im paying the spread of that currency again on one of the lots. would i not be better just looking for a step leaving the two lots i have and just open one more to make three again ?

Thanks in advance
Rich

Hi Guys, sorry i haven’t been on…

OK, you need to understand that i wrote that Ebook for the ‘Masses’. I was trying to be as detailed as possible whilst still looking at the system from an overview.

The point i was trying to show by the Timeshares is that you should follow your trades to higher TF’s , this is how the system becomes properly profitable.

Now, regarding this question, if you have taken profit (1st TP) then you don’t HAVE to come out and re-enter…what was shown in the Ebook was to illustrate the process of what you’re doing, ie; that you’re re-evaluating your trade in larger TF’s.

If you TP at 1st target, then 2nd target and let your 3rd run that’s fine, but you’ll have a lower pip value than if you had you re-entered…Equalling less profit for a larger move. If you’re ok with this, then go fo it.

[maurizio77]

@suwuming

Hi maurizio77

I still got confused about how to filter fake trades. As shown in the pic, 3 of 5 would be failed trade, furthermore, the rest 2 did not have great RR (roughly 1:1).

You comment will be highly appreciated.

Thanks a lot!
Simon

Use trendlines my man. These can give indications to fakeouts better than anything.

[maurizio77]

M. -

I am confused regarding the drilling down on TFs to find the setup. That is, if I see a setup on the 5M, let’s say Buy/Long, but the 1M is just the opposite, Sell/Short, what should one do? Which one is more valid? Or just sit it out for a while?

Your insight please. d

The higher the TF the more valid the entry.

Look at what the 30M & 1hr charts are doing…are they heading down or up?

If they’re heading up, then go with the 5Min, if they’re heading down go with the 1M.

The larger Tf’s will always pull price the way they are going, unless you have ‘Red’ news, but we have talked about that.

Ya need to be able to read what the larger TF’s are doing. Then capitalise on their movement by entering on a smaller TF.

Remember to look at the larger picture, the 1M and 5M are simply entry screens to the larger trade.

You look to the bigger timeframes to drag your lower timeframe entries into profit…if that trade should keep going that direction you stay in it, if it turns and crosses your trendline you exit.

We are essentially piggy-backing a larger move by jumping on it’s back early.

[maurizio77]

Im not an expert and still trying to get this right but i think you would wait for the lower time frame to match up
if you have a cross on the daily i might go to the hourly and wait for that to cross
or a cross on the hourly wait for the 5 min to cross
if i try to look at to much at the same time i go a bit loopy
im trying myself at the moment to wait for a three hour cross then waiting for the 15 min to match but having said that i have two trades that are going the wrong way at the moment

Spot-on!

The first trade would have been good for about 50 pips, the second would have lost for about -40, but why are you trading this pair on this system?

Look big (TF) enter small, then if you can, follow up the trade.

[maurizio77]

Hey guys, using this method, do you ever enter a signal on, say, a 1H chart without checking the lower timeframes?

Or must you always enter on the 5M chart and work upwards as they hit their targets?

I’m getting this from the eBook btw.

Thanks in advance.

Noooooo.

If you see an entry, no matter what TF it is, have a look lower, if there is an entry there… enter, if not then enter on the TF you originally saw the signal on, wait for the price to hit the Opp. B/Band for TP 1 then start looking at the higher TF’s.

You dont have to wait for all the TF’s to indicate the same thing. Look backwards in this thread, you’ll see a post imade regarding how many TF’s make up other TF’s.

This should help you.

[tentoerun]

Use trendlines my man. These can give indications to fakeouts better than anything.

Can you please provide more details? if there is a trendline appearing, so we consider it as a fakeout?

Thanks,
Simon

[noviceuser]

[QUOTE=maurizio77;178924]The higher the TF the more valid the entry.

Look at what the 30M & 1hr charts are doing…are they heading down or up?

If they’re heading up, then go with the 5Min, if they’re heading down go with the 1M.
[/QUOTE]

Hi Maurizio,
Apologies for troubling you to clarify my doubts. Am still having doubts about “terrain of the land”. Today while checking the EJ charts, I “see” the following:-
Daily Chart – Generally Uptrend but yesterday was a downtrend
3H TF – Uptrend till last Friday, however, downtrend in a channel since yesterday
1H TF – Since yesterday Downtrend and then sideways towards the right side of the channel and then downtrend again
30M TF - Same as 1H TF
15M TF – Ranging but downtrend present
5M TF Ranging but quite Choppy
Basis above I envisaged that I must Trade short and try to butt in at a lower time frame. Bss this plan I entered on a 1 M TF and since then I am still in the trade, though I could have exited with about 17 pips but now at -4 pips positive. However, as there is potential for it to go down I am still in the Trade. Is my understanding correct of the terrain and short entry based on 1M TF.
Cheers

PS: shifted my stop loss and got whacked for -40 pips. Should have used the 5 mins chart for collecting 10 to 12 pips and I would have collected a basketful. Alas tomorrow is another day

[noviceuser]

Use trendlines my man. These can give indications to fakeouts better than anything.

Maurizio,

Basis your attached chart if one took the trades on the 1H TF, we would have got 1 winning Trades and 3 loosing Trades. Also once the entry is seen on 1H TF it would be better to enter at a lower time frame. My experince has been that if the entry is there on the higher TF then the entry at Lower TF has already happened and we will not be able to enter the trade, unless a new setup presents itself at a lower time frame. Is my understanding correct.

[unrepipant]

Hey Maurizio,

I started reading your posts a few days ago (directed here from a post on Tymen1’s thread) and love it!!! Thanks for your time and effort. I, like many folks am just getting my feet wet in the FOREX world and wanted to ask a question…and
forgive me for backtracking as I have not reached this far yet. On page 6 of this thread you put up a chart and I noticed that your Stochastics were set at 9/3 yet on your introductory page you say you set them at 14/3. I actually was glad for this as it made me delve more into the meaning of what Stochasitcs is so I’m more educated now:). Thanks for your help.

[noviceuser]

Hi Maurizio,
Am posting the charts for EJ as I see them today. My understanding of the charts is:-
Daily TF – Price moving upwards in a channel
3H TF – Upwards after bouncing off the bottom support line of the daily channel. Stochs Up nearing 80
1H, 30M, 15M TF – PA has been moving sideways with stochs close to 80 region
5M TF slightly ranging but I would consider choppy.
Daily movement till now has only been 29pips indicating low volatility.

Under these circumstances I opine that I should not be trading till I see more volatility and should be trading long as 1H, 3H and D TF are indicating an upward trend. Pls correct me if I am wrong.
Yesterday I got whacked as I drew the channel on the IH TF while trading on 15M TF, whereas now I think the channel ought to have been on the Daily TF to have the overall picture.

Cheers

[unrepipant]

Hi Maruizio,

I have your thread and as some others have done created a word document of what I beleive are the most pertitant items in your system. So far I have made it to post page 52 but it looks like you were never able to get the E-book up on the post. A huge heap of gratitude for your diligence in keeping this going and coddeling us newbies along. It really makes me want to be able to give back someday and share my own system. Your a good-un mate.

[Audiopro]

Here is a setup I took a little bit ago. I got in on the 15 min TF after I saw the 4H and Daily about to create a timeshare. It’s probably not too late to try to catch the daily TF!

However, trade at your own risk ;D

[joebanana]

Fascinated by thread! Been reading for hours but will probably take weeks to go through all. I am a battling newbie trader trying desperately to preserve a rapidly dwindling bankroll. Much appreciated advice on this site and especially this thread. Is it still possible to receive your e book Maurizio? Or if anyone else can forward it to me i shall be most grateful

[Michel]

add rsi 9 to this system it reduce the fake out a lot.