Complex trading system #4 (Trend trading with EMAs)

Trading strategy setup:

Time frame: 1 day, 1 hour or 30 min.
Currency pair: any.
80 EMA
21 EMA
13 EMA
RSI (21)

Trading rules:

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Hi Azim,

in this case its a correct statement - the conditions illustrated on the screenshot on the first page aren't very favorable - a lot of pullbacks, crosses etc.
So, the purpose was to show how still WEll the strategy works in those tough conditions. Meaning that even if the market start to range, you should be able to do fine, without major losses while using it.

Kind regards,

Hello again Edward,

In the first page image,you said that"This strategy is capable of under 'favorable'trend changing conditions"

So i hope u mean by "under 'favorable'" is during ranging market?

hee~ sorry for asking silly questions, i'm just kinda curious and hoped that if this strategy works on ranging market, i'll just stick with this method..i dont mind though if it losses during this condition as long as it limit my losses=)


Hi Azim,

Since 13 EMA is still on top of 21 EMA, you can't enter a Short position just yet.
The market is in the unknown territory, e.g. can easily resume an uptrend, or it might be slowly reversing to the downside. Either way, the conditions for a Short trade are not met.

Kind regards,

ooops,sorry edward

according to my picture its the opposite..i mean im about to take a short position=D

Ohh i forgot to upload the picture for better view on it is...

hello edward,

Im following and using this strategy for 1 week but i've got some confusion in entering the trade...i noticed that we shouldnt enter long when 13EMA is still under 21EMA eventhough both 3EMA&5EMA already crosses both EMA(13&21) am i right?can i just enter the trade or should i wait for 13EMA to be on top of 21EMA?

Thank you,

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!

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,

Thank you, Benson.


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.


Hi Faisal,

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

Best regards,

Hi Edward,

This is my Chart of Gbp/Jpy

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

EMA cross

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.


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?????????


Hi Luigi,

these are EURGBP and EURCHF.

Best regards,

Thank you Edward for your answers always precise and punctual my thanks will never be enough. One last question, I am a "quite" trader and I use daily TF, I would like to ask what are the less volatile pairs, and if agreed to operate on cfd (especially with this strategy). Many thanks. Best Regards. Luigi.


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