S'ema

Trading Systems Free Forex Trading Systems
1

This is a trading system I’ve developed and been currently testing. This is called S’ema ([B]S/B [B]E/B [B]M/B [B]A/B). Since I use a bundle of EMA’s and SMA (from Bollinger Band), I just combine those.

Since reading may make you tired, I’ll write simply (but in detail). I want to know what you think. So far, I’m doing well. This is effective in any currency so far. More trendy, better gain. Ranging/consolidation, fairly good. I use 15-min chart, but any others are fine. For the big picture, I go with 4-hour chart. Trading longer than day-chart is not sure.

Set up:
Candle stick
BB(14,2)
EMA(10)
EMA(20)
EMA(50)
EMA(100)
EMA(200)
STOCH, FULL (14,3,3)
ATR (14)

Long:
[ol]
[li]Gauge uptrend by direction of EMA’s: open up in the same direction, at least EMA (200) is underneath
[/li][li]In Stoch, crossover below 20
[/li][li]Crossover of EMA(10)&SMA(14) (EMA should cross over SMA upwards)
[/li][li]Close of the entire candle stick above and after crossover of EMA(10)&SMA(14)
[/li][/ol]

Trigger:
The close of the candle stick

Target:
Recent swing high OR next 00/50 number (i.e. 1.4000, 1.4050)

Stop:
The price of swing low extended with ATR(14) value. (i.e. swing low is 1.4089, and ATR(14) is 14; then, the stop is 1.4075)

Short:
Do the opposite. Stoch must have crossover above 80. Candle stick must close below the crossover.

Volatility:
More distance between EMA’s, more volatile.
*Note that in high volatility, it’s ok to get in trade even if the only body part of candle is above the crossover.

Trendiness:
More EMA’s are in same direction, more trendy.
*Note that if the price movement is so trendy (a.k.a. all EMA’s are in same direction and fanning out upwards), it’s ok to be greedy for the take profit (i.e. skipping one 00/50 value).

For really greedy trader and risk taker, it’s not too bad to trade with this plan against the trend as long as for the short term (i.e. 15-min chart).

So, what do you think? Let me know! I appreciate if you could follow me in Meetpips as well. I go in more detail in that one.

S'EMA.jpg700×624 86.8 KB

2

I’d say you’re not placing enough significance to price action.

3

Thank you for your response!

I thought I put my concern on price action by using the bundle of EMA’s and using swing high/low or 00/50 numbers as the target. So could you please explain and advise me in which part I had a lack of concern to the significance specifically and how to improve that?

Thank you!

4

looks like a decent strategy I guess I had to take an aspirin after looking at that chart. but i agree with purplepatch you need to look at price action a little more. Not sure about what purple patch ment but you need to look closer at candlesticks and what they are telling you. For instance your last trade on that chart I would have never took that trade it worked for you depending on where your stop was. But that candle you entered on was a bearish pin bar. Indicating price was going to go down and it did but not to far. I would have sat on the sidelines on that one. How long have you been using this strategy. Reason for asking you can expect a few whipsaws with this if you dont looking at price action. Reason being those are all lagging indicators by the time they are no longer giving a buy signal price has already moved against you. Thats why I think its a godd strategy but you need to look at the actual candles for entry t avoid a whipsaw.

5

Also to better define what I meant on price action I just had to take a few more aspirin to look at the chart again lol. Sorry I just like clean charts. I wont comment on ATR as I have never really used it. But just to the right of the first circle in stoch you can see it was below 20 and had a cross over but if you look at the bottom of the candles directly above you can see there was alot of rejection off that bottom bollinger band. That would have indicated a buy to me and I would have stayed in till stoch was above 80 you thats where you have candles with really tall wics on them signaling price is being rejected and going back down. Also vertical lines of support and resistance are important to keep in mind but I think with all those moving averages you got floating S/R levels covered. Just food for though looks like a winner to me though for now

6

LOL. I’m sorry if my chart costs you aspirin :smiley:

Thank you for your advise! I now understand what the “price action” means here. I just simply came up with this strategy and am trying to follow as much as possible for now as “testing.” If you don’t mind, I have journal I just started a week ago for my strategy in Meetpips, and I would appreciate if you could visit me.

So, here is my last trade in which I extended my take profit since the price start to consolidate to empower the movement and had a good confirmation with divergence at the time. Trade #7 ~67pip gain~ | MeetPips.com

And is this the price action you are explaining? (I may be still wrong though :frowning: ) I used trend line and triangle to see the next move. What you really remind me what lack in me is that I should look at the candle more. Since I am not that good at candle confirmation especially complicated one, I’ll study about it again. Thank you.
EUR/USD 1.4535 is the key resistance and strong 1.4500 | MeetPips.com

I just use ATR to avoid faking out since I get confirmation of closing the candle above the crossover of SMA&EMA additional to the signaling of a bundle of EMA’s, Stoch, and the crossover. Reason why I put a bunch of well-known indicator is (sorry if i make you headache again!!!) that I’m attempting to utilize sentimental perspective here. Although “some” or few traders may use sophisticate indicators or not famous one to catch a unique signal, I believe the most of people use simple and famous indicators like SMA, Stoch, BB, and candle. In other words, my trading plan (hopefully :smiley: ) implicitly display what “most people” are watching and doing. So I just follow the crowds. This is the main reason why my chart is a bunch of simple and popular indicators.

But anyway, yes, there are a lot of things that I must concern and I should focus on price action more. Thank you so much. And for anyone who see this and have disagreement, please post for me! I really want to improve my trading!

Thanks all!

7

It seem to be a good strategy a week is still early to tell. All I was saying is to learn price action to helpp make the perfect entry. Start with easy ones pin bars. They are called something different in the school I just call them pin bars instead of tryig to learn there names. What I mean by that is wait till you signals tell you to enter lets say they are telling you to buy and you see a candle with a nice long wic at the bottom thats a pretty godd indication price will go up. But if what you got is working then stick with the old saying if it is not broke dont fix it. But just advise I see looking at the chart you might need to tweek it in the future and keep that in mind if you ever have to

8

Yes, definitely! Thank you for advise. I still in testing, so I’ll try to increase the winning possibility with that.

9

Support & Resistance is important, but it needs to be in context, i.e. it needs to be relevant to your chart, from your chart chart I think you are looking at trying to figure out where a trend changes, I would suggest that you trade trend continuation, I find it the most profitable approach.

Also, look at your chart to see if the market is really moving, or is it consolidating, and look at how many PIPS there are from top to bottom, on a 15min chart from top to bottom could be anything between 200 PIPS to 1000 PIPS.

Patterns too are very significant, but again they need to be in context, a similar pattern on a chart with 1000 PIPS to one with 200 PIPS from top to bottom will be a completely different opportunity.

10

Update: so, I’m trying to stick with my trading plan for a while even though I’m considering to put price action into my strategy; here is two post that I’ve made on Meetpips.

First one is about my two losses. Two losses ~followed the plan without concern of price action~ | MeetPips.com
Second one is making good pips collaborating with Fibonacci. Trading #10 ~86.1 pips gain~ and what’s next | MeetPips.com

Thanks!

11

Update: I made another 65pips with my trading plan. I just want to post how my next trade that I am currently hold does. I am not that confident with my current trade since the bundle of EMA’s (for picturing trend) is not indicating strong downtrend unlike the last time. However, since EMA(200) is holding the price up-movement strongly as resistance, and I see divergence, I am confident enough to trade though. But putting stop is really giving me difficult time whether or not to extend it.

Here is my Meetpips sasa2340’s Channel | MeetPips.com

Thanks!

12

Hello, I had two losses this week. But the good news is that I’ve covered and made profit over those by last two trade. So here is update of the trade I announced in my previous post and made 115.3 pips.

Here is the detail post. Thanks!
Trading #12 ~115.3 pips gain~ and what’s next? | MeetPips.com

t-12 b.jpg560×700 82.5 KB

13

Jul. 12 00:19 EUR/USD Short
[email protected]
Stop Loss @ 1.40780
Take Profit @1.38695 (after modified)

Hit TP and another good 141 pips gain. Detail will be posted in my Meetpips later sasa2340’s Channel | MeetPips.com

Thanks!

14

Hello, this is my third loss since I start counting trade on the journal for #14 :17:

I believe I failed to measure the reverse sign in bigger picture and was ignorant for negative sign for the risk.

The detail is here: Trade #14~31pips loss~ :frowning: | MeetPips.com

Thank you.

t-14.jpg560×700 78.4 KB

15

That’s simple, your entry should be near about where your Stop is. Triangles are OK, but the real resistance is at 4050.

16

Thank you for your advise. I maybe can use that like as support for next short-term fib.

17

Although I made another loss in trade#15, I am currently on #16. I see divergence to my direction twice, so hopefully that’ll confirm the directional bias for the crowds too.

EUR/USD, [email protected]. [email protected], [email protected]; Jul. 18, 07:14.

Trade #16~ongoing EUR/USD Long~ and fundamental and COT-data analysis | MeetPips.com

Thank you!

18

Hello, the trade I posted yesterday is making some pips finally! I am undecided to close or hold it. Since I was told to hold longer when I asked, in other forum, when to take profit since I have seen extra pips extension after I close the trade for many times.

I hope Euro’s optimism still hold its price.

Trade#16 is still on trade ~Unrealized 118 pips~ | MeetPips.com

19

Sorry I’m a little confused and I have a couple of questions about your system.

First, for you stops, am I correct in assuming that you just pick the most recent high/ low before the crossover then add the ATR as your stop?

Second, I’m guessing BB stands for bollinger bands. How does that play into everything? You’re just using it for the 14 period SMA correct? Why not just put the 14-SMA instead?

Aside from that, it seems like you’ve got a nice system. I like how you annotate your charts haha.

I think there was a signal on EUR/USD today (15-min chart). Crossover just before the European open? are you still in that trade?

20

Thank you for asking me questions! A picture attached is “supposed” entry. Since I was advised to see price action as well, I entered my trade with divergence and exhaustion of the price movement. I’m sorry for the first confusion.

In responding to the second question, since my pure S’ema strategy has a huuuge weakness, which is it is not profitable at range-bounding, in order to measure price’s trendiness, I use the bundle of EMA’s (as it gets gathered) AND Bollinger Band for measuring tops and bottoms.

So, in range, if I want to trade, I simply buy when the price touches BB’s bottom and crossover of Stoch. below 20 or sell when the price touches BB’s top and crossover of Stoch.

By adding Bollinger Band, I use its SMA in trend and its band for consolidation/range. To measure if it is trending, the bundle of EMA’s can tell whether it is trending or ranging.

Although S’ema seems so complicated, once it is understood, the trader will not need to switch to other systems. S’ema is made to measure the “crowds” to follow them by collecting the most famous and used indicators.

I hope I answered your question correctly :rolleyes:

t-16a - Copy.jpg561×700 76.9 KB