Forex trading strategy #8 (EMA breakthrough)

I see on charts situations of about 3 pips lower and then market moved more than 200 pips... What about this??

"Enter with the second candle after it makes 5 pips higher than the previous one" refers to the previous candle High. If we talk about a bearish move, it'll be an entry 5 pips below the Low of the previous candle.

Best regards,
Edward

What means "5 pips higher than the previous one."?? It refers to the previous candle's high or close? And also on bearish is about low or close?

Not a problem. Use 4 hours instead.

Regards,
Edward

i havent traded for a long time but ad advice the newbies like me to forget about timeframes less than 1 hour this strategy is good but i dont have a platform with 3 h am trying on daily the signals are abit stable

I would try 34 or 20.

I have been testing a few strategies, but results are weak.

Still testing this one. Which EMA do you suggest for a 30m timeframe?

Thanks for all the great work; This is by far the best forex site for newbies! :)

No, it would be not the time to trade yet.
In order to open a Buy order, a candle should make it above EMA and also close above EMA. (If it closes below EMA, wait for another candle).

Kind regards,
Edward

what to do if the first candle makes it above the ema line but closes beneath it.
should i still see this candle as a legit reason to buy, or not?

Hi Edwin,

you would need a larger period Moving average, because otherwise you'll be dealing with lots of reversals.
We need smoother lines with fewer entries for higher profitability, thus try 100 EMA.

Best regards and happy holidays!

Edward

Hi Edward

If I am using H1 or lower time frame, what EMA would you recommend?

Edwin

Good stuff, RockRobb!

Thank you for the informative feedback.
I'm very glad you've found your style and tools and methods to make it happen!

Best regards,
Edward

this is the 2nd strategy gone tested by me....

i test this on 1H time frame...Sell GBP today 7-10GMT (two long bearish candles,the third candle is the one that really hit the button...thanks,100 pips)

tool added are Stoch 21,3,3 from Double Stoch Strategy(make sure Stoch lines has crossed over,and in overbought/oversold area)
,Good_Macd(histogram below zero line, cross over has occured) and Gann_HiLo_Activator(price below this indicator) ... just wanna make sure i'm going with the trend...sorry if i sound a little paranoid:)

i set pending order 20 point below 50EMA line...once its triggered, no serious drawdown...things went smoothly,1st bearish candle is 40 pips under my sell posistion (move SL to BEP), since this is a breakout,i can see power within the price movement...i really have nothing to worry about...when enough is enough, i am out!!

i learned a lot from this site, now i knew more of what is call "trading with skill and knowledge"

thanks again bro...(edward&team)

have a great trading time guys!! let there be fun for everyone!!

-RockRobb of Jkt-

Thank you Edward,

Really appreciate the work you put in.
A lot of interesting stuff on this site. You have contributed a lot and what I like about your ideas is that they are almost always quite simple to implement.

Claude

Hi Claude,

sure you can experiment by adding various indicators, like ADX for example. Observe historical charts, then try it in real time - it would be the same for me: in order to provide a feedback, I need to test the strategy over again with ADX added.
The thing is, these days I'm overwhelmed with questions from traders (which I love answering to no matter what), but I'm not sure I'll have time to test this particular strategy with new settings. I'm truly sorry about that.

Best regards,
Edward