Hello to everyone, I would like to share my system with you. Maybe someone will benefit from it.
I believe that this will appeal to newbies more than experienced traders as experienced traders tend to trade higher time frames and this uses a 5 min chart.
The benefits of this system are its simplicity and the ability to use tight stop losses.
The basics of the system are quite easy to grasp. Some elements of its use are a little more advanced such as reading candles/price action. I would suggest anyone who doesn't know candlestick reversal patterns should read a good book on candlestick trading before they use this system.
Ok, the system...
On a 5 minute candlestick chart put a 288 ema and a commodity channel index with a period of 10.
I use 288 periods for the ema as there are 12 candles per hour for 24 hours which gives you an idea of the trend over the last 24 hours.
I recommend using a cci with an alert (google it or look on this very forum) so that you don't have to keep watching the chart.
The signals...
Only take signals when price approaches the 288ema. If the price fails to cross over or crosses but quickly turns back the other way it will start to move away from the ema and the cci will cross the zero level.
Enter a trade in the direction of the cross and place a 20 pip stop loss.
Exit the trade when the cci crosses the zero level in the opposite direction.
That's it!
You will find there will be periods when you are stopped out a few times in a row but quite often you will catch a big move of between 50 and 200 pips with no stress.
I have been trading this method on GBP/USD and EUR/GBP with some success for a little while now.
As this is such a simple system maybe someone could create an EA for it? I don't have too much trouble trading this manually due to using the cci with alert.
I look forward to receiving some feedback regarding this system, any advice or help would be appreciated.
If you have any questions please ask.
I believe that this will appeal to newbies more than experienced traders as experienced traders tend to trade higher time frames and this uses a 5 min chart.
The benefits of this system are its simplicity and the ability to use tight stop losses.
The basics of the system are quite easy to grasp. Some elements of its use are a little more advanced such as reading candles/price action. I would suggest anyone who doesn't know candlestick reversal patterns should read a good book on candlestick trading before they use this system.
Ok, the system...
On a 5 minute candlestick chart put a 288 ema and a commodity channel index with a period of 10.
I use 288 periods for the ema as there are 12 candles per hour for 24 hours which gives you an idea of the trend over the last 24 hours.
I recommend using a cci with an alert (google it or look on this very forum) so that you don't have to keep watching the chart.
The signals...
Only take signals when price approaches the 288ema. If the price fails to cross over or crosses but quickly turns back the other way it will start to move away from the ema and the cci will cross the zero level.
Enter a trade in the direction of the cross and place a 20 pip stop loss.
Exit the trade when the cci crosses the zero level in the opposite direction.
That's it!
You will find there will be periods when you are stopped out a few times in a row but quite often you will catch a big move of between 50 and 200 pips with no stress.
I have been trading this method on GBP/USD and EUR/GBP with some success for a little while now.
As this is such a simple system maybe someone could create an EA for it? I don't have too much trouble trading this manually due to using the cci with alert.
I look forward to receiving some feedback regarding this system, any advice or help would be appreciated.
If you have any questions please ask.