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Trading method #1 (9 EMA Entries)

Think about entries.
When your trading strategy says: enter on the cross of Stochastic lines, on the cross of MACD lines, when RSI comes from oversold/bought zone, when two moving averages cross, when divergence occur etc etc. When exactly do you enter?

Usually you would just visually double check that there is a signal from your indicator and then enter on the close of a signal bar.

Sometimes it will work, sometimes you would wish you have waited a bit more before entering.
Sometimes moving averages that produced a cross would straighten back or as I like to say "uncross", and you'll be left with a false signal and a losing trade. Same for Stochastic lines, which can cross multiple times before price actually decides to move in either direction. Things like divergence are even more difficult: at which point after you've spotted a divergence you are going to enter?

Here is my favorite and simple method. I use 9 EMA. After I get an entry signal from other indicators, I wait till a price bar Closes above 9 EMA to enter Long, or Closes below 9 EMA to enter Short. This method helps me to know when exactly I will enter, and so I have no second doubts about "acting now or waiting a bit longer".

Examples:

9 EMA Forex trading method

9 EMA Forex trading method

9 EMA Entry works on any time frame. I used to scalp on 5 min charts entering with 9 EMA, now I use it successfully for daily charts with the same good result.

Traders can use whatever Moving average they like: 5 EMA, 10 SMA etc. I like 9 EMA.
Besides entries, 9 EMA can also be used for exits, where the same principle works: once price Closes on the opposite side of 9 EMA, you exit. Note, that poking trough the Moving average without closing on the opposite side of it doesn't count, also doesn't count when price Closes right on the moving average.

Additional note: I use 9 EMA to time my entries. I do not trade 9 EMA alone, because it is vulnerable to sideways choppy prices (just have a look at the last several candles on the first screenshot with RSI - candles dance back and forth around 9 EMA as the price moves sideways).

Hope you find this method useful for your Forex trading.
Happy trading!


Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

Hi Edward - Great looking strategy. I love the simplicity of it!
Just one quick question:
If i understand the method correctly is that a confirmed short signal on the second graph when the MACD first crosses to go short? (as the price bar has also closed below the 9EMA)
Thanks,
Stephen.

Hi Stephen,

MACD cross and 9 ema

Yes, that's a valid signal. The Close below 9 EMA actually happened even before MACD cross, but it only adds more confirmation in such cases.

Best regards,
Edward

hi edward,
what other indicator[s} does stephen use..please let us know.
many thanks in advance,
tommy

Hi Tommy,

I don't know what indicators he uses.

Regards,
Edward

Hi Edward - Yes thanks for the clarification. Ill test this out and post some results in the near future.
Much appreciated,
Stephen.

Tommy - I was following Edwards second graph above using the MACD(12,29,9) and EMA(9).

Thanks Edward for all the good stuff you're posting here, how can I register in this excellent website.

Thank you.
Registration is available for our phpbb Forex Forum pages.

Regards,
Edward

Hello Edward,
I want to know where to get the formula for 9 EMA i dont seem to have it in my indicators list

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