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
The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine
the start of a rend and the end of a trend.
Long term
The 5 WMA & 12 WMA will show you when to enter a trend, they will also
help you to see the strength of the trends. Short term
Entry Signals
You should only open a position, when the red tunnel is extremely narrow or crossed !
LONG: 5 WMA & 12 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 12 WMA upwards, then the signal is extra strong.
RSI >50
SHORT: 5 WMA & 12 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 12 WMA downwards, then the signal is extra strong.
RSI<50
Exit Signals
Signals that show the end of the chosen trend
- Long: The price has reached a top and 5 WMA dives under 12 WMA
Close position
- Short: The price has reached a bottom and 5 WMA jumps above 12 WMA
Close position
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.
After you see this, close your position and open a new position in the other way
(If you were long, close, open a short position)
When in a trade and the 5 WMA & 12 WMA cross the red tunnel ->
Pay attention! As long as the red tunnel boundaries doesn’t cross
eachother there is no problem, but often this is a sign that they will!"
Teodosi
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What else can we say? Well done, Teodosi!
Thank you from all our users for sharing the system!
Learn about another Simple system by Teodosi
at http://forex-strategies-revealed.com/teodosi-simple-system
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
GREAT SYSTEM! Teodosi GOD BLESS YOU AND YOUR FAMILY! GREETINGS FROM BULGARIA.
Regards, Plamen
this is lovely. thank you very much.
hi
can you send me WMA and EMA indicator in my e_mail?
[email protected]
please write in e_mail SUBJECT: forex indicator
thank you
base on the graf EUR/USD wich one high and low of EMA 18 nad EMA 28?
and WMA 5 and WMA 12??wich one high and low?
edwin
Hi I am new to this forex. Thanks for the knowledge sharing in this website and i searched all the website in google everyone says all the words about forex how to trade and profit but not clear explanation as i am seeing in this website. Its really gratefull for us also who are new to the forex. Do u have any Exper Adivisor for this Forex strategy 9 & 8 created by Teodois). what is accuracy of this two methods so that i can start directly on real trading instead of trading in demo. I tried lot of demo and wasted with useless and unproper application of knowledge in forex.Inforex strategy 8 created by Teodois how is has shown diagram that Stochastic and RSI not exactly 75 but candles identified 50% close as red w r to previous Green Bar Range(H-L) i e candles should close below 50%(H-L) of White Candle and above 50%(H-L) of Black Candle for Buy Signal. Here the problem is Stochastic and RSI near to overbought(what is exactly or min value) and oversold(what is min value) to confirm or enter the Buy or Sell instead of waiting exactly above 75 and Below 25 as long as Candles showing 50% move w r to H-L for irrespectivey of Buy or Sell. Little confused please explain.
Of course , its a copy of Sidus method written by Nicholas moerman which was published in forex factory .The Basic idea of Tunnel that helped Nicholas moerman(sidus) to develop sidus method was adopted from Vegas Tunnel method in which EMA 144 and 169 used to create Tunnel ( This strategy was used for 1 hour TF ).Later he introduced a variation of Tunnel method in which RVI (100) was used for filtration .
JK
It is similar to old Sidus method published in forex factory .Teodosi made little modification , changed 8 WMA to 12 and added RSI as filter.However the Idea of Tunnel ( 18 EMA and 28 EMA ) belongs to Sidus . Its not Teodosi's Moving average tunnel, its Sidus Moving average tunnel .
John
A bit late but....
A simple enough system certainly - and profitable - but takes ages waiting for a trade on the 1h tf even following multiple pairs. Teodosi says that whipsaws are a problem on the 15m tf.
However any whipsaw on the 15m would also occur and take you out on the 1h or, indeed, on any time frame. The 1h tf would encompass all the tfs below it surely?
In other words any whipsaw on a lower tf would be reflected on all the tfs above it. Or am I missing something?
Maurice
hi Edward'
i am from asad and i appreciate u and all of others who are sharing their ideas and strategies ,thats a lot of big work and it requires a big heart too ,thanks for all of that u have done and doing
asad
"Long" or "Going Long" means Buying.
"Short" or "Going Short" means Selling.
Thomas
Hi Mr Teodosi
I am a newby of forex trade, can i ask u ,what long and short mean ? thanks you very much for a very good strategie!(sorry for my english )
Hi Jing,
if you put 12 EMA it'll always stay between 18 and 28 EMA. You need 12 WMA instead. All indicator values are applied to Close.
If everything is set correctly, then I'm not sure why it's so on Trading Station. To compare results, try any other demo account on another platform.
Best regards,
Edward
Hi, I just started testing this strategy with a few pairs. but why is that in my chart, there isn't a time when the 12 WMA goes down the 2 red EMA or up, only between those 2 red EMAs?
Is it wrong to put my indicators on close?
Is this a good signal or not?
BTW, I using FXCM Trading Station.
Thanks,
Jing
Hello to all. I just come to give you some tips of how to use any system. This is pretty simple and good strategy. For entry! Try to test it and see what works best for you. Always look at the big picture where you at the big picture if you trade it 1 hr look what is the dominant trend on 4 hr for example. This is trend following system and your works is to be with the trend. Good look to all of you!
I have created my own strategy trading the GBP/USD and GBP/JPY using the 18,28,200 EMA and pivot S&R lines on a 4 hour and daily charts.
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