EMA/SMA14 5min - sys. in testing

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Good luck and more of'em sexy pips to all.

Additions I forgot (don't want to edit the original for those who read it already):

- One other parameter that's adjustable by discretion somewhat is the placement of the trade in time, abviously if the next bar opens above the ema after the first bar was there for 4min and 50sec or after it crossed just 10 secs ago - the first case should be more reliable.

how about posting some images?

Jurrasic, I used the same indicators (different time frames) until a few weeks ago, maybe it was me, but I think these indicators may cause problems with the way the pair is acting. If it is working for you and you can make some $'s, GREAT! Best of luck.

Sorry I can't, the whole thing with the icons above the message posting window doesn't work for me (on different computers). Don't know why, asked once in the member's area but didn't get an answer. If you know how, let me know too..

It's easy though, open the chart (5 min preferably) turn on ema14 and sma14 (they're 14 by default on my platform) wait for the price to cross the ema with sma behind both, if it stays a littly on that side (typicaly until the next bar opens beyond the ema) - take the trade in that direction (away from ema) with SL right behind the sma (ussualy a pretty tight SL and if it gets bigger on the next bar you can choose to skip it).

If you wanna see some really neat examples, scroll back to the big E/U jumps between about 535 to near 550 - you'll see the 5 min sma crossing below with ema above it and price sitting a bit above until it jumps up. Same happens on 15 minutes but a bit higher because the 15min ema and sma abviously respond slower.

This is probably for larger time frames allright. On 5 min this happens like every half hour or a bit more and most trades are winners IF taken with the right timing of course, while the larger trend doesn't really have effect here and the volatility changes aren't a big matter..

Ok, woke up and made a pic with arrows and stuff, it's great Now, can someone who CAN post pics here P.M. me an email or messenger please ? I'll send you the pic so you can post it in this thread and I'll add the explanations by figures.Thanks

time to used this strategy?

One week now, and it works great - had it taken longer on the 5min time scale to see how well it works - it's not good at all as far as I'm concerned.

Well geez... nice support people, thanks for all the help to post and image and the concentration in reading and trying to understand.. didn't think this will be hard to get like rocket science (btw, rocket science aint that hard anyway, I know cause I studied it now control theory, that's another matter...)

Here's a link to an image (the explanation follows by figures):
http://www.freeimagehosting.net/imag...0f1f532a82.jpg

Brown line - EMA14
Pink line - SMA 14

1. SMA14 is below EMA14 and the price crossed both up, looking for an entry.
2. The second 5min bar opened above the EMA – I choose to enter Long with SL at the Red line right below the SMA. (Notice there were like 8 pips maybe of SL here so that’s relatively wide and I can choose not take it or decrease the standard leverage a bit to minimize risk).
3. Somewhere along the way I TP. Either by some TS triggered or because I decide it’s enough.
4. SMA crossed above EMA and price opened second bar below, entry Short with SL at red line right above SMA (again here it’s about 8 pips which is relatively wide, so choosing to skip it is also and option).
5. TP.
6. Same deal as 2 or 4 but the SL is short too, definitely enter.
7. TP a few pips or walk away with nothing if only moved to breakeven because the move was small.
8. Waiting for the SMA to cross the EMA up, don’t enter before this reversal confirmation sign occurs – it’s less reliable (back test the charts yourself and see). Entry Short as usual after they crossed. Could enter on the previous bar also it was after the crossing already. SL as usual right behind SMA.
9. TP somewhere.
10. Entry Long.

Jurrasic Hi,just wondered if there was any particular reason why you use the 14 period over any other?I must confess i've not been able to back test this yest but instinctively it feels like a bit of a gamble! (no offence intended and none taken i hope ;-))i say this as in my experience most MA based systems are only effective in a firmly established trade. could it be that this method is suited to trying to re enter in the direction of a trend rather than as a stand alone trading method?As i say i havent back tested this but would be happy for your thoughts on why in your experience it is effective.

Well, about the 14 periods - I really can't tell you, that was the default and it works. I suppose that if at least a few people test it together maybe we can test it for different amounts of periods, because verifying it statisticly isn't easy - it's probably dependent on current market conditions and so on, I'd rather stick to working on it as is for now and then maybe inspect the amount of periods adjustment. As for firm trends, well if you got a firm trend - just follow it I suppose.. This system is for short term trading that's rather independent of what the market's doing in general. Small swings up and down occur all the time no matter the general dirction. Like I said in the original post - if you back test it you can see how the price ussualy respects the sma unless it is about to cross right back and the ema indicates some safe distance which is more likely to indicate an actual shift I suppose.Frankly, I don't care that much about why it works - I care more about how well it works and how to TP it more eefcetively.

This is a pic of the last 100+ pip jump in E/U that just happened:http://www.freeimagehosting.net/imag...136614e256.jpg

Didn't take the trade because I was on the forum here (plus it's virtual money for now so never mind.. ).

a picture is worth a thousand words as they say, or in the case of the chart you posted a thousand $!!. I will definately be looking into this a bit more even if its just out of curiosity. I still feel it needs something else but i'm willing to try and prove myself wrong by back testing this over the weekend. will let you know what i find out.

Yup, though to be fair - if you look at the retrace after the first third of the jump I'd probably tp half way through it and would doubtedly reenter again - because it was like 15 pips from the sma at the lowest point. But retraces like that or jumps like that are not the ussual. Still, nice pips and like I said - TP adjustment needed.

are you on a pc or a Mac?
if you're on a Mac I can help you with posting a pic .... if you're on a pc...I can't help you

pc. I'll work with that free pic posting service I guess. Does the job.