The purpose (as I understand it) of this thread is to learn from a study of this crossover method/approach. I think the following series of comments is a good example of how this learning process functions.
@LukasVisser initially raised a good point:
Reinventing the wheel?
Maybe that would be the case if every question had a single right answer. But in forex nearly every issue will have a multitude of answers.
There is no progress made if one changes the tyres every time someone suggests a better set. One needs to know the technology and charactistics of the various tyre options in order to evaluate it personally and know what works best for oneself.
I don’t think that’s what I did, though. I realized that the filters kept agreeing on every single signal, which made me aware that they are not really working.
Exactly! That was my point. Sorry if it didn’t come across clearly.
I was trying to emphasise that your reaction to receiving good advice from Lukas was to study it and come to your own conclusion, which in this case was the same.
I was trying to say that your’s is a much better approach in the long run than just reacting blindly to comments (even when they do come from reliable sources) even though it may seem to others that you are just reinventing the wheel.
It was meant as a compliment to your study process
Oh! I thought you had moved on to scalping and Bollinger bands?
It is not necessarily a good idea to enter 4H+ timescale positions immediately on the start of Monday trading. The spreads may be evil and the direction unclear until at least the NY trading gets underway.
It seems quite many pairs saw covering late Friday including USDCAD. Since this pair has already been in a 400 pip trend i would like to see a candle close back down below the MAs before jumping back in. But that is just my take on it at the moment!
I have often wondered how some people can have the tenacity to intensively stare at 5 mins TFs for long enough periods to make scalping worthwhile!
I guess one has to either take very large positions or automate it or adopt a rather looser definition of what scalping trades are.
I used to trade both 5min and 15min but only during selected busy trading sessions. It is a good way of being able to switch on/switch off and only trade when one felt like it - but the intensity, discipline and precision required is immense and not everyone’s cup of tea.
The Bollinger’s bands were part of that Black Swan thread if i remember rightly.
It’s not that bad at all. I usually leave my charts opened while watching an episode of a TV show or while I’m studying, and simply check for signals every ten or so minutes. The basics for the strategy I’m using are pretty much price action trading, meaning that I could also do the same thing on higher timeframes. The difference is that scalping allows me to take more trades and gain more experience.
Yes, that was the one i noticed! That was why I assumed you were done with MA crossovers since your initial experiences with the 5/10 emas were not, let’s say, as encouraging as they might have been!
@giovannicali… A simple way to combine an RSI (14) and EMA Slope 10 on the 1H TF is to use the signal as an Oscillator. The EMA Slope is Non repainting…
No MA Crosses and only the EMA signal (Green - Buy / Red - Sell), and a clean uncluttered Chart…
Lacks the added confusion of the MACD and you can see at a glance how accurate the signal is every time the RSI crosses the EMA…
Is this the way you currently trade? Also, what are the signals? Wait for overbought or oversold condition, and a change of color by the moving average?
I have a few different trading methods… mainly Currency Strength strategies… but from time to time I use a CCI based Indicator similar to the Charts above. Just got to keep the Charts simple…
The strategy is simple RSI 101, Indicator breaks below 70 from above SELL, breaks above 30 from below BUY.
With this setup I’d be entering long on the Green using the ATR for a TP (ie: I would have closed out at 130 pips) and then enter again on the next Red Signal…and obviously visa versa…
Just apply your entry & exit logic (Original Post). Anytime the EMA and the RSI have moved above the 50 Look to go long, below the 50 look to Short. Check the 4H for market direction and trade the 1H TF…Try it on a Demo…only real way to know if it suits your way to trade…
I normally use a WMA as it gives a little sharper signal (with more fakeouts) allowing a few more pips each trade…
These two Indicators used in this way give you a pseudo MACD Indicator…
The two methods you’ve listed go in contrast. Going long when RSI crosses the 50 level, and going long when RSI comes out of oversold, are two vastly different things.
If the RSI is coming up out of Oversold (crossing above the 30 from below)… your looking for a Buy opportunity (Green EMA)… if the RSI crosses above the 50 from below it is confirming strength in the move up and you should be holding the Buy or looking to Buy (Green EMA).
Understood. Thanks for the clarification. I still don’t understand how your are using the moving average on the RSI: do you wait for it to change color, or the cross of the 70 or 30 level is already enough? Plus, how do you get it to change color like that?
Change of colour & RSI x EMA parameters… I coded this Indicator 12-18 months ago… I got the idea from an Indicator I saw that was available for MT4/5 in MQL5 Market Place… I will try to find it… Tippi? something…
I use either clean Charts or off Chart strategies…Candles are chaotic and generate confusion.
Perfect RSI signal as it bounces off the 30… Price Action as a Hammer displays at the end of the trend…
Stop Losses are not added to Chart, the position will close when the RSI crosses below the EMA… I don’t feel the need to give my Broker something to aim at…
RSI Cross shows change of trend, EMA Colour change is confirmation to open position…
Hi @anon5343843…Yep, correct, but don’t be afraid to change the values slightly to get the clearest signal from the Indicator…ie: RSI 20 / WMA Slope 8 etc…
Each pairs behaviour, time frames etc. will require slightly different settings.
Unfortunately…these concepts are an absolute waste on most here as shown in this thread…
Have replied to your PM… Cheers… Hope this is of help…
@Trendswithbenefits this is a challenge in MT4. Tried using the navigator, selecting the xlv4 for the color change ema10, and dragging it to the RSI 14 open indicator but it will only draw it on the chart. Any thoughts? Don’t mean to hijack or be a PITA.
Edit:
I should have kept reading … sorry… thought I was up to date. I will look as well.
