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Haha Bobkat - you must have typed your message in while I was typing mine 
Of the ones I listed - the USD/CAD is most likely to develop soon. The others have had a cross but are still some ways off a stochastic cross.
Yepā¦you rendered my post as unnecessary. :17:
Iām on board with your analysis.
This is a question probably only Philip can answer.
As we wait for a sell signal on the USD/CAD pair, we have also just come off a buy signal on the USD/CAD as well - it produced a buy signal about 2-3 candles before the EMA crossover to the downside.
If you had taken the Buy signal would you have exited that trade when the EMA cross to the downside happened or would you still be holding it.
A quick look at the USD/CAD weekly chart shows it is in a distinct upwards trend - but stochastics also show on the weekly that itās in an overbought area.
Would you be hesitant taking the trade on the USD/CAD or do you just take the signals as they come ?
Iām not sure, but looking at the Daily chart, it seems like it may be in a range.
Iām hesitant about this one
Bucketman,
Are you in a short trade with USDCAD? Our last Oanda H4 candle just closed. The stoch crossover is there but only by a thin margin. 
I guess I need a more positive confirmation of a downward move before I commit to a trade.
Yeah - I took a short on the USDCAD - entered at 1.25028 with a Stop Loss at 1.26748 (about 170 pips)
What Iām watching though is the EMA are very close together so it wonāt take much to give a cross to the long side and signal me to get out.
Had I entered the buy signal and the EMA crossed indicating a sell. At that moment stochastic was oversold. I wait until the sell signal is completed to exit my buy signal.
The same with your USDCAD short, if EMAs crossover, you wait until the buy signal is completed and you exit your short.
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I am on the USDCAD too, letās see how it goes!
add [B]AUDUSD[/B] to the watchlist as well
So, Philip, if I am interpreting this correctly:
Assuming we are in a long trade, in order to exit that long trade, a [I]complete[/I] short trade setup must occur (not just a 20/50 EMA cross, but also an overbought stoch cross must occur). That would essentially make this a āstop and goā system?
Thanks
Regarding the USDCAD short position that some forum members are in, my greatest objection to this speculative short entry is the fact that the USDCAD EMA 20/50 cross on the [B][I]daily[/I][/B] chart has been continuously up since August of last year! Thatās rightā¦in an upswing for more than 6 months. Also, because Canada is a commodity based economy (oil), and with oil prices extremely low, it will take a major economic turnabout against the resilient US economy for this to change anytime soon. Soā¦under these circumstances, I would favor using the daily chart direction to filter out short trades and happily take long positions as they present themselves.
YMMV (disclaimer: this is not trading advice, enter at your own risk).
Just my 2 cents worthā¦ :rolleyes:
thatās how i understood it tooā¦
Nice thread guys and thank you Philip for sharing your strategy. Can someone clear up this doubt for me. So EURJPY makes a crossover as shown in the image around 135.20. When do you enter a short trade ? A? B? C?
OR the sell signal is not validated since the stochastics crossover has not been from the overbought area?
Any reply would be appreciated. Thanks
this might be a question for philipā¦but anybody can answer, of course 
e.g. if the 20 EMA is above the 50 EMA and comes back to only [B]touch[/B] the 50 EMA and then goes up againā¦do you consider the next stochastics signal as a new first signal (although no cross happened) or is it just a second, third,ā¦ signal?
Thatās assuming the trade does not reach the fibonacci extension levels.
It is a first signal only if the value of the 20 EMA was lower than 50 when they touched. If they were equal I wouldnāt consider it a new signal.
@gianseng, Iām about to pull the trigger on AUDUSD in an hour exactly
Yeah it is not valid. It is strange though because I had a signal to sell EURJPY but you didnāt
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