Complex trading system #4 (Trend trading with EMAs)

Hi Luigi,

these are EURGBP and EURCHF.

Best regards,
Edward

Hi Edward,

Please tell me should we wait for all EMA's to cross below/above 80 EMA or we just can get the entry with 3,5 EMA cross over 13,21 EMA and RSI21 cross 50?????????

Regards
Faisal

Hi Edward,

This is my Chart of Gbp/Jpy

3EMA=Yellow Line
5EMA=Grey Line
13EMA=Orange Line
21EMA=Blue Line
80EMA=White Line

It is clear that bars are still below 80EMA (Bearish) but 3,5EMA crossed 13,21 EMA's and RSI21 is also crossed above 50 so now can i take long entry or i should wait all EMA's to cross above 80 EMA for long entry.

Regards,
Faisal

Hi Faisal,

you should always wait till price goes above 80 EMA before going Long.

Best regards,
Edward

Hi Edward,

Maybe you should amend the trading rules in the first page as the requirement that the price should go above or below the EMA 80 before entering the trade was not mentioned.

Regards.
Benson

Done!
Thank you, Benson.

Regards,
Edward

Hi Edward,

I am experimenting with this strategy.

I noticed that many times the 3x5 EMA crossover happen 1-2 bars before these EMAs cross the channell of 13,21. How many bars are allowed for this setup to develop? Must all the crosses happen the same time (in the same price bar)? May 3x5 cross 1-2 bars sooner/later before 3 and 5 EMA cross 13 and 21?

Thank you,
Gyula

Hi Gyula,

the sequence of the crosses and the candle count or distance before or after the cross doesn't matter. I don't look for any specific conditions beyond the original rules, where it requires all signals to be in place regardless the time of arrival. However, if you feel there could be something more to it, you should definitely try to find those extra clues and make some additional rules.

Happy trading!
Edward