Forex trading strategy #9 (Teodosi's Moving Averages tunnel)
Submitted by User on September 20, 2007 - 08:21.
This Forex system was submitted by Teodosi.
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"Hello guys i want to help all of you and i want to share you some good system.
Like many traders say good system is simple one an that`s why i`ll tell you one very simple.
This is......
- 1H (of 30MIN, but you will get more whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 12 WMA (in yellow)
- RSI = 21
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Rebecca,
what are the pairs you are using that give you best result?
Do you have preferred time of the day, and the day you don't make trading is Friday?
Thanks
Maria
Hello
First of all I would like to thank forex-strategies-revealed.com for the great work! I found that system and I really like it because it is simple and profitable. I'm still using it on a demo account and i'm a little confused about a situation I found myself in today. I'm uploading an image so you understand me better. Teodosi says that the exit signal is when the red tunnel narrows but on the picture that is posted here says that you have to exit when 5 WMA cross downwards the 12 WMA and we see that the tunnel has just began narrowing. My question is should I exit position when the 5 WMA crossed the 12 WMA or should I wait for the tunnel lines to get close to each other?
PS looking at the pictures below what should i've done in this situation according to you? I was almost -300 when closed the position because I wasn't sure if it is going up again.
thanks
Hi there,
would you mind to upload an image again and include a link to the file into your comment? Thank you.
Thomas
without the image, I still think yo should exit when 5 WMA crosses 21 WMA, because the momentum shits at that point.
Thomas
with this system i follow the trend on the daily and 4hr charts on nzd/usd then i use bollinger bands with this system on the 1hr charts and only buy or sell when price goes outside the bollinger bands and when i have the news on my side http://www.oilngold.com/
where to find WMA in moving average with MT4..
Thanks...
You should only open a position, when the red tunnel is extremely narrow or crossed !
Always close your position when boundaries of the red tunnel cross eachother
or when they become so narrow that they are one! This is a clear sign of a trend reversal.
These things look controversial..
Any suggestions..
When you place a Moving average indicator on the chart, in the settings change MA method to Linear Weighted to get WMA.
I'll try to explain the controversy to another User:
"Always close your position when boundaries of the red tunnel cross eachother
or when they become so narrow that they are one!"
This explains what to do, while in a trade. Narrowing tunnel precedes changing trends, while crosses MAs is the actual time of a change.
"You should only open a position, when the red tunnel is extremely narrow or crossed!"
I believe the author meant that your entries in the opposite direction should follow only after the period of a narrowly traded tunnel or a cross. When you open your charts and find tunnels trading wide, it is not the right time to enter a trade.
Cheers,
Thomas
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