Trading method #1 (9 EMA Entries)

Thank you.

First of all, this is just a trading method, not a full strategy. Therefore if doesn't anticipate large/small moves. For that you'll be using another strategy.

9EMA method just helps to pinpoint the moment of entry once or after you main strategy produces a signal.

Exits with 9 EMA will be the same a entries: when a candle closes on the other side of EMA we close a trade.

Best regards,
Edward

Hello,
First let me say great tips and great website. Thanks for your insight and assistance. As far as your 9EMA strategy, when do you exit? Also, is how do you determine how big teh move will be? I first used the above strategy and had great results, at first. Then I seem to be having less and less positive results. Do you see ANY signs that will point to how big the move will be and when to exit? (example; hammer, shooting star, tweezer...?)

Thank you so much for helping "newbies" like myself.

Absolutely any time frame.
Don't get me wrong, I'm not trying to generalize it, the 9 EMA method beautifully works on 5, 15, 30 minute, 1 hour, 4 hour, daily, monthly time frames and anything in between. There is no best/worst time frames for this method, all are equally good.

Regards,
Edward

Another question please.
Which chart is BEST to use this technique??
5M, 30M, 1H etc??

Thank you, VJ

I'm sure you'll find a lot of useful stuff here.

Best regards,
Edward

Hi Edward,
The moment i read the first paragraph of this topic... and continuously down..
inside of me is shouting out loud saying, "THATS WHAT IM TALKING ABOUT!"
It's really true that ive been always getting false entry signals due to just relying on MACD, RSI etc.
I hope your invention of 9EMA will really work on me.
Thanks alot for creating this site. It really do help us alot. Keep it up!

VJ, Indonesia.

Leave same settings: RSI 6.

Regards,
Edward

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

Greetings!
Initial stop loss is always set at the previous swing high/low.
But then the actual exit may come earlier - when price closes back inside 9 EMA, proving I was wrong on the momentum.

Once I'm in I look forward to take as many pips as market allows me to while 9 EMA holds the trend.

... The point is, I'm not setting fixed targets or calculating ratios with 9 EMA method. This is just a method of timing trades, mostly entries. The method should be used in combination with a trading system, and there you'll look for win/reward ratio as well as exits, unless 9 EMA suggests an earlier exit. Hope, it is not too confusing... :)

Regards,
Edward

Hello Edward,

When you use the EMA 9 as a entry method.
How you calculate your stoploss and profit taking levels for this method ?
At which ratio are you laying it etc. 1:2 or 1:3 ?

regards from denmark :)

Mani,
SMA - Simple Moving Average, if that's what you meant.
It should be on every trading platform. Ask your broker, they should help you to find it.

Regards,
Edward

Thanks Mr. Edward.

One more question, what is expantion of SMA, as i didnt
find the indicator in CMS VT Trader 2.

Best Regards, Mani.

Hi Mani,

Double EMA most likely has two separate EMAs in it, just like regular EMAs. So, there is no difference between Moving averages in EMA indicator and Double EMA indicator.

Regards,
Edward

Mr. Edward, Is it EMA and DOUBLE EMA is same ?

Regards,
Mani.

For Stochastic do you look at overbought/sold signals,
- or at Stoch cross at any time
- or at Stoch being above/below 50 level?

Regards,
Edward