Hi everyone. I’m Anthony and I’m looking to make a trend following system. I’m practice using a simple system but I’m making a trend following system, what indicators would you recommend me to start with, being a new trader in the game?
Just an EMA. Actually, you could get useful help from two, one being about 2 to 5 times the duration of the other. Don’t enter / exit on cross-overs, but pay attention to the sequence of the EMA’s and whether they both slope up or down. After that what you do depends on how quickly you want to enter trends after they have started but I can’t see any additional indicators adding a lot of value and clarity.
Thanks for the help!! I highly appreciate it
For trend a simple 200 moving ave and rsi is all you need,
Try the following: Put 2 WMAs (Weighted Moving Average), both at 8 periods. For one use the close price as input. For the other use the open price as input.
Sell when the wmaClose crosses under the wmaOpen. Buy when wmaClose crosses above wmaOpen. Use them only after you determine that the market is trending and go long or short in the direction of the trend.
Increase or decrease the period to suit your needs. You can combine this with other indicators for additional confluence.
I like it, I’ll give it a try. what are the exits rules? unless I can just use the risk management plan I have already.
I’ll let you know how I do with it. I’ll be trading USD/JPY, GBP/USD, and GBP/JPY. That’s it. I’ll give you weekly reports lol.
Whom are you asking?
You sorry. Forgot to tag you.
If you’re trading the daily TF, plan your entries on a 4H. Drop in an RSI of 7 or 8 period with oversold at 25 and overbought at 75. Enter only at the RSI extremes using the wma crosses and only in the direction of the trend.
Your entries and exits will be somewhere at the tops or bottoms of the next major swing high or low. Your stop will be at the previous swing high/low from the entry swing high/low.
Hope you got that.
Yup I got it. I’m on it. Writing down the reports. I actually might just make an article so the community can follow too if ever they were looking for a new trending system to use.