#3 The Best of EMA Crosses on S/R
Submitted by Edward Revy on June 5, 2008 - 07:03.
AUTHOR: Ayetemimowa James
STRATEGY: The Best of EMA Crosses on S/R
Time frames: 1hr and 15min
Indicators: 5ema(close-red), 6ema(Open-blue), 20ema(close green), Daily, weekly, monthly pivot,Fibonacci retracement Weekly and Daily support and resistants, Breakout-Eagle Indicator.
PAIRS: Anything traded online that respects technicals - Commodities, FOREX, INDEXES, SHARES ETC
I will be using EUR/USD June 3 as an example.
Open the 1hr chart
plot the 5ema(close-red),6ema(open-blue), 20ema(close), add the ema_crosses indicator activating alert, plot the resistant and support lines using ur weekly and daily time frame, plot other S/R like pivots and fibo retracments of daily, weekly and even monthly. add the breakout_eagle indicator let ur parameter cover the first 8hours candles of the day in the 1hrs timeframe.
Plot all the indicators in another window of 15min time frame.
| 1 HOUR TF (Click for detailed image)
|| 15 MIN TF (Click for detailed image)
I have read a lot of research work on ema crosses and i have seen alot of setups that are not practical at all. but what i will give hear seems to be very easy, sure, and poise more confidence even for newbies to apply.
Wait for the 5ema to cross 6ema in the 15min time frame. An alarm will sound and an arrow will show you the direction. When you see the arrow, this is what you should do. In the 15min time frame draw a vertical line for visual aid and change the time frame to 1hour.
For you to enter a trade for short for example. If the arrow in 15min is pointing down, as you change to 1hr tf, the 5ema/6ema must be crossing and very obvious, then move back to 15min and make an entry few pips below the candle with the arrow. DO NOT PLACE A TRADE IF THE 5EMA/6EMA ARE NOT CROSSING.
This is very vital. You dont need for opposite ema cross before you checkout/exit, this many not be funny sometime like more people believe. Your next exit should be the next support or resistant line.
I have attached my weekly and daily template for MT4 support and resistant lines. Additionally you can add pivots of daily, weekly and fibonacci retracement of weekly, daily and or 4hrs swing highs and low
You need all the S/R lines above. Why? Online trading is a big challenge and with lots of drama, as price setout in a direction it has a destination which is a support or resistant point. So if you rely on a point, you may regret because another vital point may be a barrier to meeting your assumed point.
The knowledge of daily range can also help you in planning your entry and exit.
I hope you have a happy trading.
I will also welcome comments.
I believe you can enjoy this cos i gave to my newest newbie and she performed better without my help,
All the Indicators:
Additional indicators (Swing Recognition)
The template for 1hr and 15min tf