Advanced system #6 (Picking Tops and Bottoms)

Hi Ed - I'm been following this for ages now - great system, and it makes so much sense.

Quick question - if I'm looking at a pair that is > 30 ADX on 60, 30, 15, 10 etc. but the pair on 60, 30, 15 is trading much higher than the 20 EMA (assuming I'm looking at buying this pair) but I notice that my 5 min chart for this pair is just about to bounce of the 20 EMA - should I trade on this 5 min or not?

Also to answer a question way up in the posts with FXCM - if you want to get the 3 hour time frame or any time frame just go to the box where you click the time frame you want but click the text e.g. 60 minutes - when you click it the computer highlights the text so you can delete it and type in h3 - that will give you 3 hours. You can do m2 - 2 minutes (if you would want to!) or any other time frame - 3 days is d3.

Pani

THANKS ALOT BRO! I JUST LOVE THE FOREX COMMUNITY BECAUSE OF HELPFUL PEOPLE LIKE YOU! YOUR WORK IS ALWAYS APPRECIATED, THANKS.
FELLOW TRADER, UMAIR

Hi Pani,

I'd trade that 5 min with a tight stop. There would be few pips to lose on 5 min TF, but if you were right about that trade, you'd get the best entry and a good reward.
At times when I see and obvious invitation to get in with small risks and high promises, I go for it... but every time you have to be sure your decision is well weighted and based on facts, instead of impulsive motives.

Regards,
Edward

Hi Edward, How do you define a "bounce" in this approach? In other words, how far do you allow the price to head back up (in a long trade) before entering? I know it would be different for different time frames but I am guessing there are some parameters that you use. thanks John

Hi John,

By trading the bounce off of 20 EMA I mean that we already have a pending order ready sitting on 20 Moving average line.
In case, however we missed the touch of 20 EMA or it never happen and we believe that price will reverse now, we enter after the first bearish candle (Short) or after the first bullish candle (when we plan to go Long).
Also, if we spot such reversal candlesticks as doji or stars, we enter a trade immediately upon the close of those candles.

Regards,
Edward

Hi Edward, thx a lot for this strategy. I have one qustion: do u move the SL with the EMA 40 or do u let it at origin position?
Thx a lot

Alex

Hi Alex,

My choice is to trail stop beyond recent swings high/low.

Regards,
Edward

Hi Guys,

I am using a MT4 platform but cannot find the ADX indicator, any idea's?
my email is nbrinvest@gmail.com Thanks in advance