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.

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Hi Edward,

Nice website and strategies. I trade Commodities and many of your strategies works very well.

In this strategy, I used 11sma, MACD(12,26,9) and Awesome Oscillator. I just entry short if A.O. is > +.25 and long if A.O. is < -.20. This works as a good filter. In 3 days, just one wrong trade.

I`m working now on exits, as the entry point is already in a nice shape. As soon as I get more results, I`ll post here.

Thanks a lot,

Roberto (Brazil)

Yes, that's the right one.

Happy trading!


hello,edward.i am like to ask you that whether the full stockhastic is same to my stockhastic settings or not,because i cant found in my trading platform,thanks so much

Well, I was trying to describe the 9 EMA method, while the MACD was chosen to illustrate how we can filter some MACD signals using 9 EMA, thus enhancing our performance.

MACD cross + 9 EMA is a good sign, but you don't necessarily have to use MACD indicator. Intead, it could be any indicator or a set of trading signals you want to filter using 9 EMA.


P.S. If you feel that it is still confusing for you at this stage, don't get stuck, move on, I'm sure later you'll come back to appreciate the 9 EMA method as you get more experience. Happy trading!

thank you for showing this EMA(9). But i dont really understand it. When the EMA(9) Line cross with MACD line, is it a good sign?

Hi Paul,

RSI 6 is faster to respond. I like it for some strategies, that's why I've mentioned it.
For 15 min you can also use same RSI 6.

Kind regards,

Hi Edward

why do u use ENA 9 with [email protected] 6 and not 14 period ??

thanks in advance



What should I set my RSI to for 15min or 1H chart?

Submitted by Edward Revy on July 9, 2009 - 08:07.
Leave same settings: RSI 6.


I really admire you... helping trader the way you do, answering even the most dull questions! that's very nice of you man.
As for me i am a greedy novice, my name is Rayan from Lebanon, i trade the GBP/JPY. Since i read this post (few months ago) i added the 9 EMA to my chart and i've been making some profit, much appreciated!..
My only problem is that i don't have a reliable strategy (i'm only using one indicator with the 9EMA, bigger time frames to identify the trend).. i was wondering if you can show me the way to form a good strategy of my own for swing trading the generous pair GBP/JPY.
Regards and thanks again.

Hi Paul,

RSI 14 sometimes reflects the market slower than needed. Therefore I may use RSI 6 when I find it suitable. It's my own preferences, while the standard settings for RSI are 14-period.

Best regards,

Hi Picco,

the simple rule of using 9 EMA method with any Forex trading system is:

whenever the system rules say "Enter when... (conditions)", insert an additional rule about 9 EMA, e.g. "...and price has closed on on the other side of 9 EMA". That's it. Should be easy to apply to any strategy.

Best regards,

Sorry Edward, the double stochastic strategy is in the basic strategy list.

Hi Edward,

why you use RSI at 6 and not 14 ? I read that in some comments here.

thanks in advance.


Hi Edward,

Thanks to you for a great job you are doing here.

How would you use this 9 EMA method with your double stochastic strategy (found in the simple strategy list)?

Kind Regards


Hi Toju,

to save a file properly (if that's what you meant) you have to use right mouse click and then "Save as..."



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