#3 The Best of EMA Crosses on S/R
Submitted by Edward Revy on June 5, 2008 - 07:03.
AUTHOR: Ayetemimowa James
STRATEGY: The Best of EMA Crosses on S/R
Time frames: 1hr and 15min
Indicators: 5ema(close-red), 6ema(Open-blue), 20ema(close green), Daily, weekly, monthly pivot,Fibonacci retracement Weekly and Daily support and resistants, Breakout-Eagle Indicator.
PAIRS: Anything traded online that respects technicals - Commodities, FOREX, INDEXES, SHARES ETC
SETUP:
I will be using EUR/USD June 3 as an example.
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What stop loss levels do we use?
Has anybody tried using this system on H1 and daily charts instead of M15 & H1? May it work there?
Trading on very short time frames like M15 means that you have to sit behind your computer all day long, which is one of the worst ways to spend your time...
Indrek
Hello everybody,
I still do not understand the role of all indicators in this strategy... If MA is, in fact, the only etry signal, why do we need AC, Mouteki, Demark etc?
Indrek
If it goes below 2 3 bars later, we take a trade.
If a signal is generated on the 15 min bar, for example a sell (down) arrow, and the next 2 or 3 bars don't go below the lowest point of that bar (so we don't take the trade), what happens if the next bar DOES go below the bar with the signal. Do we then take the trade or is it considered too late, and we therefore wait for a new signal on the 15 minute bar?
great strategy!
Mouteki can be used on 1 hour, no doubt about it!
As far as I interpret it, when you get emas cross on 15 min, your 1 hour chart must already have emas cross. If 1 h doesn't have it, you pass the trade.
If 1h makes emas cross first, then you have to go to 15 min TF and wait for emas to cross there at which point, you'll open a trade.
Support-resistance lines will be seen as soon as you add all indicators, shared by James.
Hi all,
I am a newbie and have been demoing this startegy for a while now, I love it. I have few questions: when the 2 emas cross on the 15 min and they cross on 1H time frame..lets say 1H or 2 H later,is it valid to enter? Plse explain how to draw suport and resistance.
As for Mouteki method can I use it in 1H time frame?
Thank you very much
Hi Andy,
The arrow might not appear on the h1 straight away but if it is a valid trade the ema's should have crossed and you should be able to enter sooner than the end of the h1 candle.
Hi Arinze,
I believe we should adjust it in order to follow the rules offered.
Regards,
Edward
HI EDWARD,
YOU SAID "NOTE ALSO THAT THE DEFAULT INDICATOR SETTING ARE 4 AND 8 WHEREAS WE NEED 5 AND 6" THAT IS FOR THE EMA CROSS SIGNAL. ARE YOU SUGGESTING WE SHOULD ADJUST THE SETTING OR WE SHOULD LEAVE IT AS IT IS, FOR A BETTER SIGNAL? THANKS.
ARINZE
Sorry, Thomas my mistake.
Yes I do mean demark lines.
thanks
Andy
Do you mean this for Demark Lines?
http://forex-strategies-revealed.com/mt4/tomdemark-trendlines
Hi Tom and Andy
at this stage I have no suggestions about improving this strategy.
Regards,
Edward
Hi all,
I've been having a look at this strategy and have noticed that there very often appears an arrow, either up or down, on the first 15 minute bar of a new hour. This means that the arrow can appear on the 15 minute bar followed by three further bars before the corresponding one hour bar is complete. Now, until this one hour bar completes and shows an arrow you would not have acted on the arrow presented on the 15 minute bar 45 minutes earlier and would therefore have missed a profitable trade opportunity. Does anybody have any ideas how to overcome this apparent shortcoming of this system.
thanks
Andy
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